Parlay Cafe
Parlay Cafe offers upscale coffee shops with conference rooms and a VIP lounge, combining food service and shared workspace environments. Known for catering to business travelers and remote workers, it operates in the retail sector of the café and co-working space industry.
Parlay Cafe franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Parlay Cafe franchise ranges from $202,950 to $459,200. This includes an initial payment of $55,000 to $60,000 to the franchisor or affiliate and additional costs for required purchases and leases, which are estimated to be 50% to 80% of total purchases and leases needed to establish the business. [p.1, p.16]
What is the initial franchise fee?
The initial franchise fee is $30,000 and it is not refundable [p.76, p.60]. This fee, along with other initial fees, is due upon signing the franchise agreement [p.9]. The fee will be deferred until after the franchisor has fulfilled its pre-opening obligations and the franchisee is open for business [p.106, p.71].
What are the ongoing royalty and advertising fees?
The franchisee must pay a weekly royalty fee equal to 6% of Gross Sales, due on the first Tuesday of the following week [p.76]. There is no mention of an advertising council or specific advertising fees in the provided excerpts [p.20, p.86]—the company uses the Marketing Fund for various marketing and related activities but does not obligate spending in a franchisee's territory.
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 [p.63], upon renewal or transfer of the Franchise Agreement, you are required to sign a general release of claims. Additionally, for franchises governed by Minnesota law, consent to the transfer must be given, and it cannot be unreasonably withheld ([p.66]).
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.68]. However, under Virginia Retail Franchising Act Section 13.1-564, termination without reasonable cause is unlawful unless the default or termination grounds stated in the franchise agreement constitute 'reasonable cause' as defined by law [p.69].
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisee must maintain a minimum net worth as specified [p.119]. However, the exact amount required for the minimum net worth is not detailed in these excerpts. This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.25]. However, if you sign an Area Developer Agreement (ADA), the Development Area specified will be exclusive to you for the period stated in section 6.2, meaning no other franchisee location will be approved within your Development Area [p.75].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training classes once per month, held at their offices in Temecula, CA. They also offer 3-5 days of on-site opening assistance during the franchisee's business opening. The content and length of the initial training can be adjusted based on individual experience and skill level. [p.24, p.79] However, specific details about ongoing support beyond the initial training are not specified in these excerpts.
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 may provide actual records of an existing outlet if you are purchasing one. However, they do not make representations about future financial performance or past financial performance of company-owned or franchised outlets, nor authorize their employees to do so [p.34]. Additionally, the franchisor is required to disclose their financial condition as reflected in financial statements [p.5], but earnings claims figures provided do not include all costs and expenses [p.63].
What am I restricted to selling, and where must I buy supplies?
You must offer for sale all goods and services that the franchisor requires [p.29]. This includes the potential for the franchisor to change the types of authorized goods or services without limitation [p.29]. Regarding supplies, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.4].