Freshii
Freshii offers healthy meal options including salads, bowls, and smoothies in franchised restaurants. Known for its commitment to health and wellness, Freshii operates in the quick-service restaurant sector.
About Freshii
Freshii is a Canadian fast casual restaurant franchise that serves burritos, wraps, soups, salads, and frozen yogurt. Founded in 2005 by former CEO Matthew Corrin, it has expanded to over 100 locations in countries such as Canada, the United States, Colombia, Peru, Sweden, Austria, Switzerland, Ireland, and United Arab Emirates, with franchises under development in Germany, Guatemala, and Saudi Arabia.
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Freshii franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Freshii Restaurant franchise ranges from $172,500 to $641,000 [p.1]. This range includes costs such as rent, real estate (if applicable), and the Computer System, among other expenses [p.34].
What is the initial franchise fee?
The initial franchise fee is $30,000 plus applicable taxes for each Freshii Restaurant. If this agreement is part of a Multi-Unit Site Selection Agreement, the Initial Multi-Unit Site Selection Fee applies instead and is calculated based on the total number of Restaurants you agree to develop. [p.13, p.75]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is typically paid weekly based on the prior week's sales. As for advertising fees, Franchisees agree to contribute up to three percent (3%) of their Restaurant's Gross Sales to the Marketing Fund, payable in the same manner as the Royalty or as specified by the Franchisor [p.157].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not detail the duration of the initial franchise agreement or renewal terms beyond mentioning that upon expiration (or earlier termination), a franchisee has the right to acquire a successor franchise for a ten-year term under the franchisor's then-current form of agreement [p.169].
Can I sell or transfer my franchise, and what does that require?
Based on the excerpts provided, you cannot sell or transfer your franchise rights without the franchisor's permission, except for good cause. The franchisor has a right of first refusal to purchase the franchise in case of transfer. [p.200, p.264]
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.268, p.121, p.213]. Additionally, the franchisor may terminate the agreement if there is a failure to comply with lawful provisions of the franchise agreement and such failure is not cured within a reasonable time frame [p.264(c)].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD excerpts focus on the franchisor's financial statements and liquidity risk but do not detail the specific financial requirements (such as net worth or liquid capital) needed for a franchisee to qualify.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. According to the FDD excerpts, you may face competition from other franchisees, outlets owned by the company, and other competitive brands within your designated area [p.41, p.42, p.43]. This is consistent across both Area Development Agreements and standard Franchise Agreements [p.9, p.43].
What training and ongoing support does the franchisor provide?
The franchisor provides initial in-person training for new franchisees at their Corporate Store in Toronto, Ontario, Canada, including the Manager in Training (MIT) program. This training includes hands-on learning of operating skills necessary to open and operate a Freshii Restaurant [p.38]. Ongoing support is also provided through online resources like Communitii and Freshii University, as well as additional training courses and materials for new operations and menu launches [p.39].
How many franchised outlets are there, and how many have closed or been terminated?
According to the FDD, during the last 3 years, a large number of franchised outlets (76) were terminated or ceased operations for other reasons [p.4]. However, the total number of franchised outlets is not specified in these excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if purchased, but generally does not make representations about a franchisee's future financial performance or past financial performance of company-owned or franchised outlets. Any other financial performance information should be reported to the franchisor’s management and relevant regulatory bodies as specified [p.57].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling specific items, but you may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate; these items might be more expensive than those available elsewhere [p.3]. This isn't specified in the excerpts regarding where you must buy supplies for operating your restaurant.