Kilwins
Kilwins offers franchises in chocolate, ice cream, and confectionery stores. Known for handcrafted chocolates and original recipe ice cream, Kilwins operates in the confectionery retail industry.
About Kilwins
Kilwins, also known as Kilwins Chocolates, is an American company, specializing in confectioneries such as candy, ice cream, and fudge. In 1947, Katy and Don Kilwin opened the first location in Petoskey, Michigan and the company is still headquartered there to this day. There are 178 locations in the United States, across 30 states.
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Kilwins franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment for opening a Kilwins Store franchise ranges from $513,485 to $880,344. For a Kilwins Shop franchise, the range is from $295,415 to $422,942. [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on the type of franchise. For a Store, it is $40,000, while for a Shop, it is $20,000 [p.13, p.171]. This fee is fully earned upon payment and is not refundable [p.79].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of sales [p.268, p.272], and franchisees are required to make local advertising expenditures as well as contribute to the Marketing Fund and Regional Fund contributions (if applicable) [p.60]. Additionally, the company expenses its own advertising costs [p.272], though specific amounts for these fees are not detailed in the provided excerpts.
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD does not provide information about the duration of the initial franchise agreement or the terms for renewal beyond stating that there may be discussions for additional operational rights at the end of the initial term, but any renewal would be by mutual agreement on terms KCF is then offering for new Shop franchises.
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.293]. Additionally, KCF (presumably the franchisor) can terminate your right to use the Kilwins email address(es) at any time with or without cause [p.146], and there are also potential grounds related to competition from the franchisor within your territory [p.3]. However, termination due to default or stated reasons must constitute "reasonable cause" as defined by Virginia law [p.296].
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 do not receive an exclusive territory. The franchise system allows for national accounts and other outlets to operate within your protected territory, and the franchisor retains the right to sell through various channels including major events and internet sales without compensating you for these sales [p.299, p.47].
What training and ongoing support does the franchisor provide?
The franchisor provides initial management training for up to four individuals during the term of the Franchise Agreement [p.38, p.60, p.72, p.83]. Additionally, they offer links to additional training, marketing, and operational support assets such as recipes, instructional videos, and store menus through their Brand Standards Manual [p.282]. However, if more than four individuals or multiple sessions are requested for replacement training, the franchisee must pay a discounted training fee of $5,000 per session [p.83].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2022, there were 145 franchised Kilwins stores. The excerpts do not specify the number of closed or terminated franchises; this information is not provided in the given FDD excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor, Kilwins Chocolates Franchise, Inc., does not make any financial performance representations other than those specified in Item 19 of the FDD. However, if you are purchasing an existing outlet, they may provide actual records of that specific outlet's performance [p.61]. This isn't specified in the excerpts for new franchisees generally receiving projected or historical earnings information.
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling items and services that the franchisor has approved in writing. You may source Approved Products and other required items from any supplier as long as they meet the specified standards, but you must buy certain Store items such as uniforms, product display fixtures, and beverage ice coolers directly from the franchisor or its affiliates [p.27]. This isn't specified in the excerpts for all supplies, but you cannot deviate from the approved products, ingredients, preparation methods, and techniques without prior written consent [p.28].