3 Natives Acai Cafe
3 Natives Acai Cafe offers quick-service restaurants with premium fruit smoothies, cold-pressed juices, acai bowls, salads, sandwiches, and healthy snacks. Known for its fresh, proprietary recipes, it operates in the health-conscious fast-casual dining industry.
3 Natives Acai Cafe franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single-unit 3 Natives franchise is estimated to range from $310,500 to $523,500. This includes a mandatory payment of $44,500 to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee for a single franchise is $39,500 [p.12, p.85]. If you choose to purchase additional franchises, you can do so at a discounted rate of $29,500 each [p.170, p.13].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of franchise sales, due in the month following the month sales are generated [p.243]. Advertising contributions are managed through a Marketing Fund Account, where sums paid by franchisees are used to create and conduct various advertising campaigns without directly benefiting the company [p.32].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is typically 10 years [p.85]. The agreement may not be renewed if the franchisor does not find good cause or acts in bad faith, but it can be renewable if you meet certain conditions specified in the agreement [p.199].
Can I sell or transfer my franchise, and what does that require?
You can generally not sell or transfer your franchise without the franchisor's permission, except for good cause. If you do wish to transfer, there is a requirement to pay a transfer fee, which is the greater of 50% of the current initial franchise fee for a single unit franchise or $17,500 [p.179].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.218], under any grounds permitted by law [p.223], or if the franchisee fails to comply with any lawful provision of the franchise agreement and does not cure such failure within a reasonable time, which cannot exceed 30 days [p.5].
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisor requires you to have sufficient working capital as they may reasonably require [p.90]. Additionally, if the franchisor's most recent unaudited financial statements show a net worth of less than $100,000.00, you can request that initial investment and other funds be escrowed until obligations are fulfilled [p.6], though this is not specified as a qualification requirement for franchisees. This isn't specifically covered in the excerpts regarding minimum net worth or liquid capital requirements for franchisees to qualify.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You are granted a Protected Territory as described in Exhibit 'A', but this does not provide territorial exclusivity. Competitors, including other franchisees and outlets owned by the company, may operate within your Protected Territory. [p.77, p.131]
What training and ongoing support does the franchisor provide?
The franchisor provides general advisory assistance and field support, updates to the manual, periodic inspections, guidance on specifications, standards, and operating procedures, as well as local advertising and promotional programs. Additionally, upon request, they may provide refresher or continuing training and operational assistance, and services from a representative for additional operating help [p.244].
How many franchised outlets are there, and how many have closed or been terminated?
As of the end of 2024, there were 34 total 3 Natives franchised restaurants. However, this number includes outlets that were either not open or did not report sales during the Measurement Period, so the exact number of active franchised outlets is not specified in the excerpts. The document does not provide a specific number of closed or terminated outlets, but it lists the names and contact information of former franchisees who have ceased business operations under a 3 Natives Franchise Agreement during the most recently completed fiscal year [p.230].
Does the franchisor share any financial performance or earnings information?
The franchisor shares financial performance information derived from the actual historic performance of their franchised outlets and affiliate-owned units that have been open and operating for a full twelve months as of December 31, 2024. However, they do not make any financial performance representations about future financial performance or past financial performance of company-owned or franchised outlets except when providing records of an existing outlet being considered for purchase. [p.55, p.99]
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering only products and services that conform to the franchisor's standards and specifications as described in their Manual and other writings. You may not sell any unauthorized services or products without prior written approval from the franchisor [p.46]. For supplies, you must purchase or lease fixtures, equipment, and supplies from suppliers designated or approved by the franchisor. In some cases, a single source may be required for these items [p.23].