Playa Bowls
Playa Bowls offers fast-casual shops with healthy bowls and smoothies. Known for acai and pitaya bowls, it operates in the quick-service restaurant sector.
About Playa Bowls
Playa 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 Playa Bowls shop under a franchise agreement is estimated between $255,944 and $1,037,794. This includes an amount ranging from $38,600 to $42,200 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee is $35,000 for a single franchise under a Franchise Agreement [p.12, p.19]. This fee is non-refundable and applies unless specified otherwise in the agreement for Development Shops [p.223] or renewals [p.114].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of your monthly Gross Sales [p.128]. For two franchisees, this rate was discounted to 3% and 4% during a specific fiscal year [p.16]. Advertising contributions, which are considered brand development fees, are based on a percentage of adjusted gross revenue collected by the franchisees and are recognized as income when such revenues are earned [p.89]. These fees do not require an estimate of future transaction price due to the practical expedient used by the company [p.88, p.89].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement does not specify a fixed term length [p.12]. However, you have the option to renew the franchise for one additional 10-year term under certain conditions, subject to your satisfaction of the terms of the agreement, including those outlined in Article 15 [p.155].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer your franchise, but it requires the franchisor's approval. The franchisor may refuse a transfer for any good cause, which is not fully detailed here [p.263]. 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.266]. This isn't specified in the excerpts for specific grounds that would allow termination by the franchisor.
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisor requires you to maintain sufficient working capital to fulfill your obligations under the agreement [p.139]. There is no specific mention of minimum net worth or liquid capital requirements for qualification as a franchisee based on the provided excerpts. This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory [p.35, p.36]. However, during the term of the Franchise Agreement, provided you comply with obligations and are not in default, the franchisor will not establish another Shop within your Designated Territory [p.36]. This isn't specified in the excerpts for all scenarios, but generally, you have protection against new franchises in your territory unless certain conditions are met or you breach the agreement.
What training and ongoing support does the franchisor provide?
The franchisor provides on-site pre-opening assistance and training at your Shop Location for a period of up to nine days within seven days of opening. This training includes initial training beyond what is included in the Initial Franchise Fee, such as ServSafe certification costs, which are not covered by the franchise fee [p.34]. Additionally, if needed, you may request or the franchisor may determine additional assistance beyond the nine-day period, for which a supplemental training fee of $400 per on-site trainer per day applies, plus travel, meals, and accommodation expenses [p.28]. This support is typically provided by one of the franchisor's designated representatives [p.126, p.28].
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 does not make any financial performance representations other than the one provided in Item 19. However, if you are purchasing an existing outlet, they may provide actual records of that outlet's performance [p.53]. This isn't specified in the excerpts for new outlets or projections based on specific locations or circumstances.
What am I restricted to selling, and where must I buy supplies?
You are required to exclusively offer and serve the Approved Products and Services as per your franchise agreement [p.136]. You must purchase or lease certain source restricted goods and services from the franchisor or its designated suppliers that meet their specifications [p.25, p.22]. These purchases can represent about 70% of your total purchases in ongoing operations [p.23]. This includes System Supplies, equipment, supplies, promotional materials, point of sale systems, and business management systems as specified by the franchisor [p.136].