Robeks
Robeks offers nutritious food options like juices and smoothies through franchised stores. Known for healthy eating choices, it operates in the quick-serve restaurant sector.
About Robeks
Robeks is a smoothie franchise chain headquartered in Los Angeles, California. The company was founded in 1996 by David Robertson, a former investment banker. As of July 2024, the company has over 100 franchise locations.
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Robeks franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a ROBEKS® store ranges from $298,050 to $511,700. This amount includes $30,000 that must be paid to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on different scenarios. For a new franchise, it is $30,000 [p.13], while for an existing franchisee acquiring additional franchises, it is reduced to $22,500 per additional franchise [p.13]. An existing Regional Director pays $15,000 for opening stores on their own account [p.13]. This fee is fully earned upon receipt and is not refundable under any circumstances [p.86].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is variable based on the number of operating stores. It starts at 6.5% of Net Sales for two operating stores and adjusts to 6% if a third store is opened, or increases to 6.5% if one of the stores is closed or sold. Advertising fees can vary; they include POS system maintenance, license, and support service fees (up to $160/month), online ordering/delivery program fees ranging from $55 to $230 based on total sales volume, and related advertising fees charged by approved third-party delivery service providers that may be up to 27% of the order total. [p.18]
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement does not specify a fixed term length [p.76]. However, you have the option to renew the franchise for two successive options, each for an additional 10 years [p.76]. To exercise each renewal option, you must comply with the conditions outlined in the Franchise Agreement [p.76].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot transfer, assign, or sell any franchise or related rights for a Franchised Business under this agreement unless the business is in existence. However, there is an exception for multiple-store transfers where all of your franchise agreements and open Robeks stores are being assigned [p.108]. This isn't specified in the excerpts regarding other conditions or requirements for such transfers.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.192]. Additionally, under Virginia state law, it is unlawful for a franchisor to cancel a franchise without reasonable cause [p.193], implying that termination must be based on reasonable grounds as defined by the Virginia Retail Franchising Act or Virginia laws.
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. However, you are granted a protected 'Designated Trade Area' under the Franchise Agreement [p.42], which prevents the franchisor from establishing other retail stores using their trademark or trade name within this area as long as you comply with the agreement. This area may overlap with neighboring franchisees’ designated areas [p.9, p.42]. Additionally, if you sign a Reservation Agreement, no other ROBEKS® franchise will be granted in your reserved geographic area for 6 months after signing [p.9], though this is not an automatic right of renewal.
What training and ongoing support does the franchisor provide?
The franchisor provides initial in-store training for the franchisee and their designated personnel before opening the store [p.41]. This includes qualifying as a Certified Manager and participating in New Store Opening Training, which must be completed three to six weeks prior to opening [p.33, p.41]. The training program is managed by Mike Pisani, Vice President of Operations, who has extensive experience in field operations and training [p.41]. Additionally, the franchisor may provide additional training upon request, though this would be at an extra cost [p.79]. This isn't specified in the excerpts for ongoing support beyond initial training.
How many franchised outlets are there, and how many have closed or been terminated?
As of December 29, 2024, there were 103 franchised stores open in total. Five franchised stores closed during the Fiscal Period and are therefore excluded from the Net Sales data provided in Item 19 [p.56].
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor can provide financial performance information if there is a reasonable basis for it and if such information is included in the disclosure document [p.56]. However, the franchisor does not make any representations about future financial performance of new franchises or past performance of company-owned or franchised outlets, nor do they authorize their employees to make such claims [p.57].
What am I restricted to selling, and where must I buy supplies?
You are required to sell Proprietary Products such as ROBEKS® Premium Nutritional Boosts from Distribution Science, and you must purchase principal product ingredients like IQF fruit through designated distributors. For Non-Proprietary Products, you may have to buy or lease items from the franchisor or a limited group of suppliers they designate [p.3]. Additionally, if you wish to use or sell any Non-Proprietary Product not specified in the ROBEKS® System or purchase from an alternative supplier, you must first obtain written approval from the franchisor [p.28].