NRGize
NRGize offers lifestyle cafes serving low-calorie smoothies and nutritional supplements, targeting health-conscious consumers in the quick-serve beverage and food industry.
NRGize franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of an NrGize Lifestyle Cafe franchise ranges from $89,410 to $393,800 for a non-traditional unit and from $168,910 to $353,800 for a new NrGize Lifestyle Cafe located within an LA Fitness health club. [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on the type of restaurant. For a NrGize restaurant within an LA Fitness health club, it is $15,000 [p.31]. For traditional NrGize restaurants, the fee starts at $30,000 for the first one and reduces to $17,500 for each subsequent traditional location [p.31]. Non-traditional NrGize restaurant locations have an initial franchise fee of $7,500 for the first one and $5,000 for each additional non-traditional location [p.381 and p.390].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a fixed monthly amount due on the 15th calendar day of each month, which may be increased annually at a rate of three percent (3%) in the franchisor's sole discretion. Additionally, a surcharge of up to $10 per week can be charged if the franchisee’s business is located in a state requiring additional reporting from the franchisor [p.381]. Advertising fees are used for marketing and advertising activities, but the franchisor has no fiduciary obligation regarding their use or effectiveness [p.243].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not contain information about the duration of the initial franchise agreement or its renewal terms beyond mentioning that a renewal franchise fee applies upon renewal [p.313, p.177, p.313].
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but it requires good cause as determined by the franchisor. The franchisor may also exercise a right of first refusal to purchase the franchise instead. [p.102, p.500]
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.107]. Additionally, the franchisor can change its business model without your consent, which might require additional investments or harm your franchise business [p.3]. However, under Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause [p.515, p.113].
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. According to the FDD excerpts, you may face competition from other franchisees, company-owned restaurants, and other channels of distribution controlled by the franchisor [p.66]. This isn't specified in the excerpts.
What training and ongoing support does the franchisor provide?
The franchisor provides a Training Program consisting of In-Store Training (16 hours) and New Owner Training (40 hours), which can be conducted either online or at their training center in Scottsdale, Arizona. This program is mandatory for new franchisees, but additional training may be required if the franchisee does not operate according to Franchisor's Systems Standards [p.238, p.305, p.49, p.170]. The franchisor also offers informal training sessions from time to time [p.61].
How many franchised outlets are there, and how many have closed or been terminated?
As of November 30, 2024, there were 57 NrGize Lifestyle Cafe franchises. One franchise outlet was terminated during the year ending November 30, 2024, but no specific number of closed outlets is provided in the excerpts for NrGize Lifestyle Cafe. [p.90]
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of an existing outlet if it is being sold, but generally does not make financial performance representations about future financial performance. The franchisor may include such information in the disclosure document if there is a reasonable basis for it and it complies with the FTC's Franchise Rule [p.85].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those products authorized by the franchisor. According to [p.18], you must operate according to their specifications and standards and sell only authorized products. As for supplies, you may have to purchase or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options ([p.3]).