FILTA ENVIRONMENTAL KITCHEN SOLUTIONS
FILTA ENVIRONMENTAL KITCHEN SOLUTIONS offers on-site services like fryer maintenance, waste oil collection, and kitchen cleaning to restaurants and institutions. Known for sustainable practices in commercial kitchens, it operates in the environmental services sector.
FILTA ENVIRONMENTAL KITCHEN SOLUTIONS 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-territory FILTA ENVIRONMENTAL KITCHEN SOLUTIONS® franchise is $141,100 to $163,750. This includes $124,900 that must be paid to the company [p.1].
What is the initial franchise fee?
The initial franchise fee consists of a Base Fee of $49,950. Additionally, if the territory has an existing customer base due to servicing by neighboring Filta franchisees, there may be an Existing Customer Fee equal to one times the annual revenue from customers in that Territory at the time the agreement is signed. Therefore, the total initial fee (Territory Fee) would be the sum of the Base Fee and any applicable Existing Customer Fee [p.12].
What are the ongoing royalty and advertising fees?
The ongoing royalties include a Base Royalty, which is the greater of $650 or a percentage of base revenue [p.73], and an additional 15% royalty on gross revenue from WVO sales if Filta cannot secure a Designated Collector for your territory [p.80] or [p.7]. There are no specific advertising fees mentioned in the provided excerpts; however, the franchisor expenses advertising costs as they are incurred [p.159].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement term is 10 years [p.72]. At the end of this term, you have the option to renew the franchise relationship for an additional 5 years upon satisfaction of certain conditions set by Filta [p.72].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.190]. Good cause includes but is not limited to unspecified factors. Therefore, you cannot freely sell or transfer your franchise without the franchisor's approval, which may be granted or denied based on their discretion and the reasons provided.
On what grounds can the franchisor terminate the agreement?
According to [p.190], a franchisor can terminate a franchise prior to its expiration only for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
Yes, you receive an exclusive territory. However, Filta retains the right to refer customers within your territory to other franchisees under certain conditions [p.37]. Additionally, Filta can introduce new products or services and may offer them in your territory without compensating you for it [p.37]. There are also no options or rights of first refusal regarding additional franchises or territories provided to you [p.38].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training which includes classroom training not more than one month before starting business and field training within two weeks prior to opening [p.35]. Additionally, Filta will offer an Opening Support Period of at least 10 working days (which can be extended) to assist with customer accounts, warehouse setup, and operational checklists for new franchises [p.77]. After the initial support period ends, a representative from Filta will continue to guide the franchisee in selling and performing services until Business Volume reaches $1,000 per week [p.77]. This ongoing support can last beyond the initial 10 working days depending on Filta's discretion.
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not specify the number of franchised outlets that 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 financial performance information if there is a reasonable basis for it and it is included in the disclosure document [p.49]. However, they do not make 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.170, p.49]. Additionally, earnings claims figures do not reflect costs and expenses that must be deducted to obtain net income or profit [p.179].
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling only certain products; however, you may be prohibited from operating a similar business during the term of the franchise. Regarding supplies, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which could potentially be more expensive than purchasing elsewhere [p.3].