Maui Wowi
Maui Wowi offers fresh fruit smoothies, coffee, and other beverages from fixed or mobile locations. Known for tropical flavors, it operates in the quick-serve beverage and food industry with both standard and empire builder franchise options.
Maui Wowi franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation ranges from $35,100 to $258,050 for a Maui Wowi Mobile Fixed Operating Unit. This range includes costs such as the initial franchise fee and the purchase of products, supplies, equipment, and potentially a lease guarantee fee [p.1, p.49, p.35].
What is the initial franchise fee?
The initial franchise fee is $30,000 for a Standard Franchise and $50,000 for an Empire Builder Franchise [p.35]. This fee constitutes part of the company's general operating funds [p.107] and will be used at their discretion.
What are the ongoing royalty and advertising fees?
The franchisee pays an Advertising Fee equal to fifteen percent (15%) of their purchase price for Maui Wowi Products and Supplies [p.59]. This fee is recognized as revenue by the company based on the value of purchases during the period, with agreements containing initial upfront fees recognized on a straight-line basis over the term of the agreement [p.424]. However, this does not specify an ongoing royalty fee separate from the Advertising Fee for product purchases; it only mentions that there is no royalty on the purchase of any proprietary Maui Wowi Products [p.59].
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?
The franchisor can refuse to permit the transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified reasons [p.103]. Additionally, there's a right of first refusal where the franchisor may purchase the franchise instead of approving a transfer [p.103][p.346].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes the failure of the franchisee to comply with lawful material provisions of the franchise agreement and to cure such default after being given written notice and a reasonable opportunity (not exceeding 30 days) to do so [p.118]. Additionally, the franchisor may terminate without prior notice or opportunity to cure if the franchisee is adjudicated bankrupt, makes an assignment for the benefit of creditors, voluntarily abandons the business, or is convicted of violating a law related to the franchised business [p.118].
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 or protected territory according to the FDD excerpts. The franchise agreement explicitly states that the franchisor does not grant any exclusive or protected territory for your restaurant [p.108]. While the franchisor will consider proximity when approving new locations, this does not provide you with an exclusive right to any particular market or customers [p.67].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that includes up to 24 hours for Fixed Operating Units or 16 hours for Mobile Operating Units. This training is designed to inform participants about operating the Franchised Business and must be personally managed with on-premises supervision, directly operated by you or a manager who has completed the Training Program [p.74]. Additionally, the franchisor may require additional initial training if you later open a Fixed Operating Unit after operating a Mobile Operating Unit as your first unit [p.169]. Ongoing support includes the right to require Franchisee and/or its managers to attend additional training and pay an Additional Training Fee in certain circumstances [p.169].
How many franchised outlets are there, and how many have closed or been terminated?
As of November 30, 2024, there were 88 Maui Wowi franchises in total [p.8]. During the year ending November 30, 2024, 10 franchise owners had an outlet terminated, canceled, not renewed, or otherwise ceased to do business under the Franchise Agreements [p.91].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are purchasing one, but they do not make representations about future financial performance or past financial performance of company-owned or franchised outlets. Any other financial performance information should be reported to specified entities as outlined in the FDD [p.83].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling any specific products or services beyond the requirements outlined in the FDD. However, you may have to buy or lease certain items from the franchisor or a limited group of suppliers designated by them, which could potentially be more expensive than other options [p.3]. For supplies like Maui Wowi proprietary fresh fruit smoothie mixes, you are required to purchase these from a supplier designated by the franchisor when opening an Operating Unit [p.46].