Z!Eats Franchise Costs, Fees & FDD

Year Business Began: 2002

Franchising Since: 2003

Headquarters: St. Petersburg, Florida

Estimated Number of Units: 35

Franchise Description: The franchisor is Zoup Franchising Co., LLC. The parent company is Zoup Restaurant Co., LLC. Franchisees operate a Z!Eats fast casual restaurant featuring a wide variety of soups, sandwiches and salads, cold beverages, and other ancillary products for lunch, dinner, catering and take-home.
Training Overview: The franchisor will provide initial training (except for the sanitation certification course, which franchisees will need to have completed prior to attending Z!Eats training). The franchisor will train franchisees and up to three of their management personnel. The required training lasts up to four weeks. Two of those weeks will be spent in the Southfield, Michigan, area for classroom and hands-on training, followed by up to two weeks of training in the franchisee’s own restaurant or another location it designates. The franchisor may also offer additional training or refresher courses or seminars to be conducted at its corporate headquarters or at another place that it designates, and franchisees and/or their manager may be required to attend these courses, at their expense. Each year, the franchisor may hold an annual convention or regional meeting, which franchisees must attend.

Territory Granted: Franchisees will operate their restaurant from a specific location which the franchisor approves. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands the franchisor controls. The scope and size of the territory will be in the franchisor’s sole discretion, based on the following factors: general location, traffic patterns, parking availability, size of site in relation to building type, access, visibility, area demographics, population density, surrounding area commercial activity, and market demands. Because these factors may vary significantly from location to location, at a minimum, the territory may be limited to the accepted location. Except as otherwise provided, for as long as franchisees comply with the terms and conditions of the Franchise Agreement, the franchisor will not solicit orders or establish and operate, nor license any party other than the franchisee to establish and operate, any Z!Eats restaurant under the system and the proprietary marks within the territory.

Obligations and Restrictions: Franchisees (or at least one of the principals if the franchisee is a corporation, limited liability company or partnership) must devote their best efforts to the management and operation of the restaurant. Franchisees may, however, delegate the day-to-day supervision of the operation of the restaurant to a manager. The manager must successfully complete initial training before assuming any managerial responsibility. Franchisees may offer for sale and sell only those food and beverage products and accompanying services that the franchisor has approved for the system. Franchisees must offer all services and products that the franchisor designates as required for all franchisees. Franchisees must participate in the catering program.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees have the right to renew the franchise for successive 10-year terms, if certain conditions are met.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or any of their obligations. The franchisor currently offers a 25% discount of the initial franchise fee to active members and honorably discharged veterans of the U.S. Armed Forces, including a spouse or widow of an active member or honorably discharged veteran. The franchisor also currently offers a 25% discount of the initial franchise fee to first responders.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$35,000	$35,000
Architectural Plan Review	$0	$1,000
Architect Fees	$13,500	$15,500
Permits & License Fee	$1,500	$5,000
Leasehold Improvements	$220,500	$330,000
Equipment	$125,000	$143,000
Furniture	$5,000	$15,000
Millwork	$11,000	$15,000
Smallwares	$9,000	$20,000
Exterior Signage	$7,000	$14,000
Interior Signage and Graphics	$4,300	$9,500
Technology Systems	$25,000	$32,000
Grand Opening Marketing	$15,000	$15,000
Uniforms, Menu Materials, Office Supplies	$2,000	$4,500
Travel & Living Expenses While Training	$0	$7,500
Opening Inventory	$7,500	$12,000
Insurance	$1,500	$3,500
Additional Funds – 3 months	$15,000	$35,000
ESTIMATED TOTAL	$497,800	$712,500

 
Other Fees

Type of Fee	Amount
Royalty Fee	6% of net sales.
Brand Development Fund Advertising Fee	3% of net sales.
Local Advertising and Promotion	2% of net sales.
Training and Customer Service Fees	0.5% of gross sales not to exceed 1% of gross sales.
Technology License and Development Fee	$600 - $1,400 per week.
Unauthorized Advertising Fee	$1,000 per occurrence.
Site Selection Extension Fee	$1,500
Maintenance / Repair / Refurbishing	Actual amount incurred.
Grand Re-Opening Marketing Fee	$5,000
Transfer Fee	(I) 50% of the then-current initial franchise fee if transferring to an existing franchisee; or (ii) 75% of the then-current initial franchise fee if transferring to a new owner. The fee to transfer ownership among existing partners only is $2,000.
Commission	5% to 10% of gross purchase price.
Interest	Lesser of 18% per year, or highest rate allowed by law, plus $100. (In California, the highest lawful rate of interest is 10% per annum.)
Insufficient Funds Fee	Lesser of 18% per year, or highest rate allowed by law, plus $100.
Costs & Attorneys’ Fees	Actual amount incurred.
Audit Expenses	Actual amount incurred; cost ranges from $250 to $7,500.
Insurance	Cost of insurance. If franchisees fail to maintain their insurance as required, there is an 18% administrative cost charge if the franchisor exercises its right to procure their insurance.
Renewal Fee	$17,500
Service Fee	$600 per day.
Supplier Evaluation Fee	A minimum of $500.
Annual Convention/Regional Meeting	The franchisee’s travel and lodging expenses.
Failure to Attend Annual Convention/Regional Meeting	$1,000
Training Cancellation Fee	Currently $400 per person.
Food Safety and Operations Excellence Report Fee	Actual amount incurred.
Guest Complaint Resolution Fee	$10 - $100
Critical Operating Standards Violation	$250 for second infraction; $1,000 for third and any subsequent infraction.
Additional Requested Store Opening Assistance & Additional Requested On-Site Assistance	Currently, $500 per person per day, plus expenses.
Additional Training	Travel and lodging expenses.
Training for Replacement Personnel	Travel and lodging expenses.
Affiliate Brand License	$7,500
Survey Fee	Actual amount incurred.
Use of Proprietary Marks	Actual amount incurred.
Indemnification	Actual amount incurred.
Liquidated Damages	Up to 36 months of royalty fees and brand fund contribution paid in 12 months prior to termination, but in any event not less than $100,000.

The above information has been compiled from the FDD of Z!Eats. Year of FDD: 2025.
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