Just Love
Just Love Coffee & Café offers upscale coffee, tea, and food in a café setting. Known for its quality beverages and baked goods, it operates in the competitive quick-service restaurant sector.
Just Love franchise FAQ
How much does it cost to open one — the total initial investment?
The estimated initial investment to begin operation of a Just Love Coffee & Café shop ranges from $494,500 to $759,500, including $50,000 to $52,000 that you pay to the company for initial fees, opening inventory, and project management. [p.1]
What is the initial franchise fee?
The initial franchise fee ranges from $25,000 to $39,000 depending on the number of cafes included in the franchise agreement. For a single café, the fee is $39,000, while additional cafes owned by the same franchisee cost $25,000 each [p.88, p.13]. This fee is non-refundable and due upon signing the Franchise Agreement or an Area Development Agreement [p.13].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is payable on all Gross Sales recognized during the entire term of the agreement [p.127]. The system development fees are paid in addition to the royalty fees, with one location being subject to pay both royalty and system development fees while the other pays only system development fees [p.97]. This isn't specified in the excerpts for exact amounts, but it is clear that these fees are part of the ongoing obligations under the franchise agreement.
How long is the initial franchise agreement, and can I renew it?
The lease term must be at least equal to the initial Term of the franchise agreement, either through an initial term of that length or rights, at your option, to renew the Lease for the full Term of this Agreement. [p.119] This indicates that you have the option to renew the lease for the full term of the agreement upon its expiration.
Can I sell or transfer my franchise, and what does that require?
The franchise agreement may restrict your ability to transfer ownership of your franchise except for good cause [p.3, p.71, p.218, p.247, p.5]. Good cause can include various factors as specified in the FDD, but it is not limited to just those reasons [p.71, p.247].
On what grounds can the franchisor terminate the agreement?
According to [p.5]C, the franchisor can terminate the franchise agreement prior to its expiration only for good cause. Good cause includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and failing to cure such failure after being given written notice and a reasonable opportunity to do so, which cannot exceed 30 days. Additionally, [p.222] and [p.74] mention that termination without reasonable cause is unlawful under Virginia law as per the Virginia Retail Franchising Act.
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?
No, you will not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other competitive brands controlled by them [p.42]. Additionally, there are no protected radius restrictions for existing franchises that could provide exclusivity [p.235].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training known as 'CoffeeU' which lasts up to 21 days before the Just Love Coffee & Café opens. This includes training for you and your store manager, with up to two additional persons also able to participate [p.39]. Ongoing support includes providing ongoing training to assist in employee training [p.33], though there are associated fees ranging from $500 to $1,000 per day depending on the trainer and location of the training [p.40].
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 financial performance information if there is a reasonable basis for it and if it includes actual records of an existing outlet you are considering buying. However, the franchisor does not make any representations about future financial performance or past financial performance of company-owned or franchised outlets, nor do they authorize their employees to make such statements [p.57, p.288, p.292]. Additionally, the information provided in Item 19 does not include store-level operating expenses, royalty fees, and system development fund fees [p.58].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling products only at your Just Love Coffee & Café [p.45]. You may have to buy or lease items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options [p.3].