Mahana Fresh
Mahana Fresh offers fast-casual restaurants featuring freshly prepared bowls with proprietary marinades and sauces. Known for its diverse menu options including craft beer and wine, it operates in the competitive quick-service restaurant sector.
Mahana Fresh franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment required to open the initial Restaurant under a Development Agreement ranges from $212,200 to $758,500. This figure includes all items outlined in Chart 7.A., except for the Franchise Fee since it is not required for Restaurants opened under this agreement [p.21].
What is the initial franchise fee?
The initial franchise fee is $49,500 for a single-unit Franchise Agreement [p.12, p.18]. This fee is uniform and nonrefundable upon payment [p.12].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is typically two to four percent of weekly royalty sales, with an initial contribution of two percent that can be increased up to a maximum of four percent. Additionally, franchisees must spend at least two percent of their monthly royalty sales on local advertising and promotion as approved by the company [p.107, p.108].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD excerpts, you can potentially sell or transfer your franchise, but it is subject to certain conditions. The franchisor has a right of first refusal [p.6], meaning they can choose to purchase the franchise instead of allowing the sale to a third party [p.138]. Additionally, any transfer must comply with the franchisor's standards and requirements regarding qualifications, non-competition, and agreement to comply with all lawful obligations [p.6]. This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.175]. Additionally, the franchisor can terminate the franchise prior to expiration if there is good cause, which includes the franchisee's failure to comply with lawful provisions of the franchise agreement and not curing such failure after being given written notice and a reasonable opportunity to cure [p.6(c)].
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. You may face competition from other franchisees, outlets owned by the company, or competitive brands that the company controls [p.37, p.38]. The franchisor retains the right to operate at non-traditional sites and has reserved certain rights under the Franchise Agreement, including the ability to develop Restaurants outside your designated area [p.143, p.149].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training overseen by Dave Baer, COO, who has over 20 years of experience in training for quick-serve and fast casual food establishments. This includes onsite training before opening, which costs $10,000, and may be waived if it's not the first franchise agreement. Additionally, the franchisor can require ongoing supplemental or additional training at a fee ranging from $0 to $500 per class, with a requirement to complete such training within one year of its offer. [p.34, p.104]
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 can provide financial performance information based on actual records of existing outlets you are considering buying [p.56]. However, unless supplemented by specific circumstances or records, the franchisor does not make representations about future financial performance or past financial performance of company-owned or franchised outlets [p.56].
What am I restricted to selling, and where must I buy supplies?
You are generally restricted from operating a similar business during the term of the franchise [p.4]. For supplies, you must buy Mahana Fresh Proprietary Products only from Mahana Fresh Approved Suppliers as specified in the FDD [p.22], and you may be required to purchase certain ingredients, supplies, and materials exclusively from the franchisor, their affiliates, or approved suppliers [p.43].