Saladworks
Saladworks offers customizable salads, sandwiches, and other fresh foods in multiple-unit restaurant settings. Known for its build-your-own salad concept, Saladworks operates in the quick-service casual dining sector.
About Saladworks
Saladworks, LLC is a restaurant franchise that serves made-to-order entrée salads, wraps, soups, and sandwiches. Saladworks restaurants are categorized as fast casual, and the company markets its menu as a healthy alternative to other fast food fare. The franchise currently operates 150 restaurant locations in 22 states and is developing locations internationally. It continues to develop exclusively through its Multiple Unit Development approach, focusing on development in metropolitan areas throughout the United States. The restaurant chain also has stores in Canada.
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Saladworks franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment to open the first restaurant ranges from $320,000 to $429,500. This includes a $105,000 development fee and all other initial costs except for the Initial Franchise Fee, which is waived after payment of the Development Fee [p.23, p.25].
What is the initial franchise fee?
The initial franchise fee is $35,000 and must be paid in full when the franchisee signs the agreement. This fee is non-refundable upon payment [p.61].
What are the ongoing royalty and advertising fees?
The franchisee pays ongoing royalties between 3.00% and 6.00% of net sales (or a minimum as defined) to the company. Advertising service fees are not distinct from the franchise right, so they are recognized when related restaurant sales occur based on the application of the sales-based royalty exception. Both fees are considered variable consideration and are recognized as revenue as such sales are earned by the franchisees. [p.152, p.178]
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 renewal terms.
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but it requires payment of a transfer fee unless certain conditions are met. The transfer fee is 50% of the current initial franchise fee when transferring to an existing franchisee, or 75% if transferring to a new non-franchisee [p.16]. Good cause allows the franchisor to refuse such transfers [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on several grounds, including if the franchisee fails to comply with lawful provisions of the franchise agreement and does not cure such failure within a reasonable time [p.5], if the franchise does not open within twelve months from signing the agreement [p.221], or if the franchisee voluntarily or involuntarily files for bankruptcy [p.227]. Additionally, termination is permitted on any grounds available by law [p.234], but such termination must comply with Virginia Retail Franchising Act requirements regarding reasonable cause [p.242].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide details on specific net worth or liquid capital requirements for qualifying as a franchisee. You may need to conduct an independent investigation of the costs and expenses you will incur, as suggested in [p.221], but exact financial qualification criteria are not outlined here.
Do I get an exclusive or protected territory?
You will receive a protected territory for your approved location, but this is not an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other competitive brands [p.35]. The franchisor retains the right to engage in similar business activities outside your territory [p.248].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training conducted by or under the supervision of Katie O'Rourke, who has extensive experience in the relevant subjects. Additionally, prior to opening a new restaurant, the franchisor assists with required training and offers up to 5 days of on-site assistance for the first restaurant, 3 days for the second, and 1 day for each subsequent restaurant. This support includes helping to establish and standardize essential procedures and techniques. [p.28, p.67]
How many franchised outlets are there, and how many have closed or been terminated?
As of September 29, 2024, there were 88 franchised outlets. The FDD does not specify the number of franchised outlets that have closed or been terminated; however, it mentions that the Company has closed certain locations, both traditional and non-traditional, over different fiscal years [p.3, p.157].
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 it includes actual records of existing outlets you are considering buying [p.48]. However, the franchisor does not make any financial performance representations other than those specified in Item 19, nor do they authorize their employees or representatives to make such representations [p.49].
What am I restricted to selling, and where must I buy supplies?
Based on the provided excerpts, you are required to purchase certain ingredients through the Prime Supplier Program if you offer menu items from affiliate restaurant brands [p.24]. Additionally, there may be restrictions on operating a similar business during the term of the franchise [p.3], and you cannot own or have an interest in any other retail restaurant selling specific food items except a SALADWORKS restaurant under the System and Proprietary Marks [p.117]. Supplies must generally be bought from suppliers designated by the franchisor, though requests to use alternative suppliers can be made but will incur a fee and require approval based on meeting certain standards [p.24].