Nautical Bowls
NAUTICAL BOWLS offers fast casual restaurants with superfood smoothie bowls and healthy beverages. Known for its nutritious menu options, it operates in the health-conscious quick-service dining sector.
Nautical Bowls franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a NAUTICAL BOWLS Restaurant ranges from $215,917 to $403,017 if you acquire the rights to open three NAUTICAL BOWLS franchised businesses under the Three Pack program. For opening just one restaurant, this range would be similar but not specified directly in the excerpts. [p.1]
What is the initial franchise fee?
The initial franchise fee is $39,500 for a single restaurant, or $99,500 for three restaurants if approved by the franchisor. This fee is nonrefundable and due upon payment after the franchisor has satisfied its pre-opening obligations [p.146].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is based on 6% of each restaurant's weekly gross revenue [p.58]. For advertising, you must contribute 2% of your Gross Revenue to the National Marketing Fund, collected in the same manner as the Royalty Fee [p.21].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts. However, you may renew the franchise for additional consecutive five-year periods if certain conditions are met at the end of each term [p.66]. These conditions include being current on obligations, complying with terms and conditions, renovating the premises, meeting qualifications and training requirements, signing a new agreement, and paying a renewal fee [p.66].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a provision permits the franchisor to refuse to permit a transfer of ownership of a franchise except for good cause [p.5]. Good cause is not fully detailed in the provided excerpts but includes factors such as those specified by the franchisor. Additionally, the franchisor may assign its rights or obligations under the agreement, and any assignee would become solely responsible for the franchisor's obligations from the date of assignment [p.83]. This indicates that direct transfer by a franchisee to another party is not explicitly covered in these excerpts, but the franchisor has significant control over transfers.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and not curing such failure after being given written notice and a reasonable opportunity to cure, which cannot exceed 30 days [p.5]. Additionally, the agreement may be terminated on any grounds available by law [p.44].
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a transferee, you must demonstrate to the franchisor's satisfaction that you have sufficient equity capital to operate the Franchised Business. This condition is presumed if your net worth equals or exceeds the franchisor's net worth at the time of transfer, excluding the value of the Franchised Business [p.84]. However, specific liquid capital requirements are not detailed in these excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. Your protection extends only to NAUTICAL BOWLS restaurants within your Protected Area, and Franchisor may develop and operate other restaurants offering similar menu items under a different trademark in this area [p.25]. Additionally, Franchisor retains the right to offer other competitive concepts that may compete with franchisees within the Protected Area [p.65].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training, pre-opening consultation advice, maintenance of a central website, and other ongoing assistance [p.58]. This includes an initial training program for your Key Person and one other Restaurant Manager before opening the business [p.70]. The franchisor also offers support through a central website and additional unspecified services [p.58].
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 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 representations [p.35].
What am I restricted to selling, and where must I buy supplies?
You are required to offer and sell all menu items that the franchisor requires, and you may only sell approved menu items. You must purchase or lease certain items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than other options [p.3]. Additionally, you must acquire supplies such as POS computer hardware and software from approved suppliers, and all food and beverage items must be purchased according to the franchisor's recipes and processes [p.17, p.28].