Acai Express
Acai Express offers fast-casual acai bowls and other fruit-based treats from fresh and frozen ingredients in shops, food trucks, or food trailers. Known for its diverse menu options including smoothies and artisan toast, Acai Express operates in the quick-service restaurant industry.
Acai Express franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of an Acai Express shop franchise ranges from $158,400 to $429,000. For a food truck or food trailer franchise, the range is from $145,850 to $217,500. [p.1]
What is the initial franchise fee?
The initial franchise fee is $25,000 for the right to establish a single Franchised Business under a Franchise Agreement [p.12, p.87, p.118]. This fee is not refundable under any circumstances [p.12, p.118].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a continuing weekly payment of six percent (6%) of Gross Sales, due on Wednesday of each week based on the previous week's sales [p.119]. For advertising, there is an obligation to contribute a minimum of Five Thousand Dollars ($5,000) for a grand opening marketing campaign, which must be approved by the franchisor before commencement [p.133]. The Fund, from which these and other advertising expenses are paid, is used for national and regional advertising, publicity, and promotion, with the franchisor having full discretion over its use [p.38].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement term is currently 10 years from the effective date of the franchise agreement [p.77]. The agreement may not be renewed without the franchisor's approval, which can be withheld for various reasons as specified in the FDD, such as non-compliance with the terms or failure to pay amounts owed [p.118].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires approval from the franchisor. For transfers to new franchisees not currently part of the system, a 50% fee of their current initial franchise fee is required [p.145]. Transfers between existing Principals in good standing or adding a new shareholder do not change majority ownership and require a $1,500 fee [p.145]. Selling to an existing franchise owner requires a $4,000 fee and the franchisor's approval before the sale can proceed [p.145]. Additionally, you must notify the franchisor in writing of any proposed transfer and provide necessary information [p.148].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.194].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD focuses on ongoing expenses during the start-up phase but does not detail specific net worth or liquid capital requirements for qualifying as a franchisee.
Do I get an exclusive or protected territory?
You do receive an exclusive Protected Area under the Multi-Unit Development Agreement [p.48], but this exclusivity is subject to certain conditions and exceptions, such as non-traditional sites within your Protected Area not being included in your rights [p.46]. Additionally, your Designated Territory specified in your Franchise Agreement may be smaller than a full territory, depending on the location type [p.49].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial five-day training program for the General Manager and Operating Partner at their headquarters or a designated location [p.35]. Additionally, one representative is sent to provide opening training and assistance [p.35]. For ongoing support, upon reasonable request or if deemed necessary, the franchisor will provide trained representatives for on-site remedial training and assistance, with the franchisee covering per diem fees and travel costs [p.124]. Instructional materials include the Manual, marketing/promotional materials, point-of-sale system operation materials, and other beneficial materials [p.42].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet's financial performance if a franchisee is purchasing one. However, the franchisor does not make any representations regarding the financial performance of its outlets in general and authorizes no such representations from its employees or representatives [p.62]. Any financial performance information provided must have a reasonable basis and be included in the disclosure document [p.60].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only the menu items, products, and services that the franchisor has expressly approved in writing [p.53]. You must also adhere to the standards and specifications set by the franchisor without deviation unless written consent is obtained first [p.53]. Additionally, you must obtain all food and beverage items, ingredients, supplies, materials, fixtures, furnishings, equipment, and other products used or offered for sale at your Shop, Food Truck, or Food Trailer solely from suppliers who meet the franchisor's standards [p.30]. This includes items that may be more expensive than those you could buy on your own due to supplier restrictions [p.4].