Frios
Frios offers gourmet ice pops and other treats from mobile units like Sweet Ride Vans and Happiness Hauler Trailers. Known for creative flavors, Frios competes in the casual food service franchise market.
Frios franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of the franchised business under a franchise agreement within a single territory is between $71,615 and $90,654 for a Sweet Ride Van, between $59,548 and $101,417 for a Happiness Hauler Trailer, or between $71,000 and $90,000 for three Nelson Carts. [p.1]
What is the initial franchise fee?
The initial franchise fee is $37,500 for a Frios Business operated in a single Territory [p.11, p.22, p.20, p.18]. This fee is non-refundable and does not include any financing options provided by the franchisor [p.22, p.20, p.18].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a weekly payment as specified in the schedule provided on page 14 [p.14]. Additionally, there is a requirement to contribute up to 2% of weekly Gross Sales to the Brand Development Fund for various marketing and development purposes, though this is not an advertising fee per se but rather a fund contribution [p.31]. This isn't specified in the excerpts.
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in detail within these excerpts. However, according to [p.149], you have the option to renew the franchise for a one additional 10-year term under certain conditions. This renewal is not available if the business was previously operated or developed under a prior Franchise Agreement with the franchisor or its predecessors.
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. The franchisor may refuse to approve a transfer for good cause, which includes but is not limited to unspecified criteria. Additionally, the proposed transferee must meet certain standards set by the franchisor in its sole discretion and cannot own or operate a competitive business [p.210; p.145].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.213]. Additionally, the franchisor may terminate for good cause, such as the franchisee's failure to comply with lawful provisions of the franchise agreement and failing to cure such failures after receiving written notice and a reasonable opportunity to cure, which cannot exceed 30 days [p.5; p.210].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD excerpts discuss minimum net worth for the franchisor but do not detail specific financial requirements for franchisees regarding net worth or liquid capital. [p.6, p.132]
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the franchisor, or other competitive brands within your Operating Territory [p.34]. However, during the term of the Franchise Agreement, the franchisor will not open another Frios Business, Sweet Ride Van, Happiness Hauler Trailer, or Nelson Cart in your Operating Territory unless you are in default of your obligations or there is an Open Area [p.108] and no Additional Territories have been purchased [p.11].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial Training Program that includes both classroom and on-the-job instruction, which may also be conducted remotely. Following this, Franchisee is responsible for providing ongoing training to employees of the Franchised Business, ensuring it conforms to the franchisor's standards. Additionally, the franchisor reserves the right to offer supplemental training upon approval, with associated fees applicable in certain circumstances such as hiring a new Operating Manager or failing to meet operational standards [p.120].
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 does not make representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets [p.48]. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that outlet [p.48]. Additionally, the franchisor is permitted to include financial performance information in the Disclosure Document if there is a reasonable basis for it and it is included as required by the FTC's Franchise Rule [p.45].
What am I restricted to selling, and where must I buy supplies?
You are required to exclusively offer and serve the Approved Services and Products as per the franchisor's standards [p.129]. Additionally, you must purchase and use System Supplies from the franchisor or its designated suppliers [p.3] and [p.24]. This includes items like displays, point of sale materials, uniforms, and other equipment specified by the franchisor [p.129].