Doc Popcorn
Doc Popcorn offers popcorn and related snacks from mobile units, kiosks, and retail stores. Known for its customizable popcorn flavors, the brand operates in the snack and quick-serve restaurant industries.
Doc Popcorn franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation ranges from $175,000 to $376,050 for a fixed Doc Popcorn® PopKiosk, and from $184,500 to $413,550 for a fixed Doc Popcorn® PopShop. [p.1]
What is the initial franchise fee?
This isn't specified in the excerpts. The excerpts mention deferring payment of the Initial Franchise Fee and provide conditions for when it should be paid, but they do not specify the amount of the fee.
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of Gross Revenue [p.60], payable on the 10th day of the following month. Additionally, franchisees must contribute to an Advertising Fund at a rate of 1% of Gross Revenue as of the Effective Date, with this rate potentially increasing up to 2% after 30 days' written notice from the Franchisor [p.62].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts. However, according to [p.56], at the end of the Initial Term, you have the option to renew your right to operate a Doc Popcorn Business for 2 additional successive 5-year terms (each called a 'Renewal Term').
Can I sell or transfer my franchise, and what does that require?
According to [p.70], you cannot sell or purchase any Doc Popcorn Supplies and Equipment at any time to or from a third party without the franchisor's prior written consent. Additionally, if such a sale or purchase is approved, the equipment must be refurbished in accordance with the franchisor's refurbishment program before it can be used. [p.70] also states that you must purchase new Doc Popcorn Supplies and Equipment from the franchisor and its affiliates for use in your operating unit upon opening, unless otherwise agreed in writing by the franchisor.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the franchise agreement on any grounds available by law, as stated on [p.169]. This includes changes to the business model or manuals without consent, which could require additional investments or harm the franchise business ([p.3]).
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not detail specific net worth or liquid capital requirements for franchisees. However, it does mention that a transferee must have adequate financial resources and capital to operate the Business [p.80], and Franchisee is authorized to allow the franchisor to make inquiries about its financial standing [p.68].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive or protected territory according to the excerpts. You may face competition from other franchisees and channels of distribution controlled by the franchisor [p.32, p.55]. Your right to operate at a specific site is contingent upon the franchisor's approval, but this does not grant you exclusivity [p.73].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training courses using a confidential manual, with training led by Martin Azambuya and assisted by Sara Bradley, Shawn Patel, and Krista Kelley. The training covers various topics and is estimated to take no longer than five days per year. Additionally, franchisees are required to attend annual meetings of all system franchisees. [p.32]
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 being considered for purchase but does not make representations about future financial performance or past financial performance of company-owned or franchised outlets. Any other financial performance information received should be reported to specified entities as outlined in the FDD [p.40].
What am I restricted to selling, and where must I buy supplies?
You are required to sell or offer for sale all types of services and products specified by the franchisor. You must purchase Doc Popcorn® supplies and equipment from DP or authorized third party distributors, vendors, or suppliers, which may include affiliates. This includes items like flavorings, bags, office supplies, popcorn, sugar, and oil [p.3, p.20]. Additionally, you are prohibited from buying or selling Doc Popcorn Products and Supplies and Equipment from or to any other current or former franchisee without notifying the franchisor and receiving written authorization [p.20].