Franchising Since: 2008
U.S. Headquarters: Chicago, Illinois
Country of Origin: Canada
Estimated Number of Units: 345
Franchise Description: The franchisor is Freshii Development, LLC. The parent company is Freshii Inc. The franchise is to develop and operate restaurants offering healthy meals such as salads, soups, bowls, wraps, burritos, frozen yogurt, healthy portable snacks, smoothies and other beverages.
Training Overview: The franchisor uses a variety of tools and formats to deliver training, which may include manuals, webinars, in-person teaching and online courses. Prior to the restaurant opening, franchisees, the operating partner (if applicable) and/or the general manager (as determined by the franchisor) must attend and complete our initial training program regarding the operation of a Freshii restaurant at least four weeks, or such other timeline as the franchisor may determine, prior to the opening of the restaurant. Initial training may consist of or include the MIT program as well as a mix of virtual training and assessments. If franchisees are opening their first new store, in addition to virtual training, they, the operating partner and/or the general manager (as determined by the franchisor) will be required to participate in the manager in training (MIT) program. The program consists of franchisees, the operating partner and/or the general manager participating in hands-on learning of operating skills necessary to open and operate the restaurant, such training to be conducted at a Freshii restaurants (as determined by the franchisor) within the same region. The virtual manager training program is a mixture of virtual classroom sessions, assessments (conducted by the franchisor’s team) and self-study programs available online at Freshii’s online learning portal, “Freshii University”. It typically consists of a one-week online training program (approximately 20 hours). If the restaurant is the franchisee’s first Freshii restaurant, a trainer from an applicable coach store will lead in-person training for franchisees and their staff at the corporate store. The franchisor provides ongoing training, development courses and materials pertaining to new operations and menu launches.
Territory Granted: Franchisees will operate the restaurant only at an approved site. The franchisor and the franchisee will identify the “designated territory” for the restaurant in the Franchise Agreement before signing it. Sizes and boundaries for designated territories will vary widely depending on the demographics and other market factors concerning the restaurant’s site, but the franchisor expects that the designated territory’s minimum area to be granted will be the area within a radius of five city blocks around the location approved for the restaurant and for locations in suburban areas the designated territory may be up to a two mile radius of the restaurant. If franchisees are complying with the Franchise Agreement and all other agreements, during the Franchise Agreement’s term, neither the franchisor nor its affiliates will operate, or authorize any other party to operate, a Freshii restaurant, the physical premises of which are located within the designated territory, except for Freshii restaurants located at non-traditional locations within the designated territory.
Obligations and Restrictions: The franchisor expects only companies to sign its Franchise Agreement. Only franchisees are authorized to operate the restaurant. The restaurant must, at all times, have a fully-qualified general manager who meets the then current standards for Freshii restaurant general managers and who has satisfactorily completed the franchisor’s then current training curriculum. The general manager must devote all of his or her business time and efforts (at least 40 hours per week and at least five days per week) to the on-premises supervision of the restaurant. The restaurant must offer for sale all products and services that the franchisor periodically specifies, including all products intended for off-premises consumption. Franchisees may not offer, sell or otherwise distribute at the restaurant or any other location any products or services that the franchisor has not authorized.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees give timely notice, have complied with obligations during the Franchise Agreement’s term, and (at the franchisee’s option) either remodel/upgrade or relocate the restaurant, they may acquire a successor franchise for a 10-year term.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.
Investment Tables:
The above information has been compiled from the FDD of Freshii. Year of FDD: 2023.
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| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Travel & Living Expenses While Training | $10,000 | $25,000 |
| Marketing Deposit for Grand Opening | $10,000 | $10,000 |
| Real Estate/3 Months’ Rent | $10,000 | $30,000 |
| Security Deposit | $0 | $15,000 |
| Construction, Remodeling, Leasehold Improvements and Decorating Costs | $50,000 | $300,000 |
| Design Firm Fees | $3,500 | $5,000 |
| Furniture, Fixtures, Other Fixed Assets and Equipment | $30,000 | $100,000 |
| Signage (Interior and Exterior) | $3,000 | $15,000 |
| Opening Inventory and Supplies | $5,000 | $10,000 |
| Insurance | $5,000 | $15,000 |
| Licenses and Permits | $1,000 | $3,000 |
| Miscellaneous Opening Costs | $0 | $10,000 |
| Professional Fees | $3,500 | $10,000 |
| Initial Training Fee and Opening Assistance | $1,500 | $3,000 |
| Additional Funds—3 Months | $10,000 | $60,000 |
| ESTIMATED TOTAL | $172,500 | $641,000 |
| Type of Fee | Amount |
|---|---|
| Royalty | 6% of gross sales. |
| Marketing Fund Contributions | Amount the franchisor specifies, up to 3% of gross sales. Currently 1.5% of gross sales. |
| Local Marketing | 1.5% of gross sales. |
| Successor Franchise Fee | The then current standard initial franchise fee. |
| Transfer | $10,000 |
| Ongoing Training and Special Assistance | Currently $500 per day plus out-of-pocket costs and expenses, but could increase if the franchisor’s costs increase. |
| New Product/Supplier Testing | The franchisor’s good faith estimate of evaluation costs. |
| Insurance | Premiums and the franchisor’s costs and expenses. |
| Relocation | Reasonable costs the franchisor incurs. |
| Health and Safety Audit | Cost of audit. |
| Other Audit | Cost of inspection or audit. |
| Late Payment Fee | 1.5% of overdue amount(s) per month. |
| Management Fee | 10% of gross sales while the franchisor manages the restaurant plus direct out-of-pocket costs and expenses. |
| Costs and Attorneys’ Fees | Will vary under circumstances. |
| Indemnification | Will vary under circumstances. |
| Liquidated Damages | Will vary under circumstances. |
| Technology Fees | Varies. |
| Restaurant365 Inventory Management Platform | Initial set up fee of $50 and monthly platform fee $55. |
| Food Safety Restaurant Inspection | $197 quarterly, if the franchisor or the approved supplier determines that the restaurant fails the inspection. |
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