Salata
Salata offers fast casual restaurants featuring freshly prepared salads, soups, wraps, and dressings. Known for its healthy menu options, Salata operates in the competitive quick-service restaurant sector.
Salata franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Salata restaurant franchise ranges from $776,000 to $1,163,000 for a traditional in-line shopping center site, and from $285,500 to $605,000 for a business district/non-traditional site. [p.2]
What is the initial franchise fee?
The initial franchise fee is $40,000 and must be paid in full at the time you sign the Franchise Agreement [p.13].
What are the ongoing royalty and advertising fees?
The franchisees pay an ongoing advertising royalty at 2% [p.220, p.234]. Additionally, they contribute to a franchise-wide marketing program through this royalty payment, which is accounted for separately from other revenues [p.220, p.234].
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?
This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if you do not meet site approval, construction start or opening deadlines as specified in the Development Schedule [p.38]. Additionally, the franchisor maintains the right to terminate any Cooperative Ad Fund, but this cannot occur until all funds are expended for advertising and promotional purposes, or if there are no longer any operating Salata Restaurants within the covered geographic area [p.121] / [p.44].
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?
This isn't specified in the excerpts. The FDD mentions that territories may be granted but do not provide exclusivity, and there are no guarantees of territorial protection based on sales volume or market penetration [p.53-57]. Additionally, the size and scope of any potential territory depend on various factors and are not guaranteed [p.53-54].
What training and ongoing support does the franchisor provide?
The franchisor provides pre-opening and opening training and field support as part of the franchisee's restaurant setup [p.22]. For subsequent restaurants, particularly from the fourth one onwards, the franchisor may require the franchisee to conduct initial training for management personnel according to specified standards [p.100]. The franchisor also reserves the right to charge additional fees if extra on-site training or field support is needed beyond the initial setup [p.22].
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, but generally does not make representations about future financial performance or past financial performance of outlets. The franchisor can include financial performance information in the Disclosure Document if there is a reasonable basis for it and it is included there [p.68]. However, other than this, no oral or written representations regarding actual or projected earnings are authorized by the franchisor [p.72, p.165].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling Products at your Franchised Restaurant only to retail customers for consumption on premises, carry-out, off-premises catering activities, and through third-party food ordering and delivery service providers approved by the franchisor. You must purchase all additional Products, services, and other Restaurant Items solely from manufacturers, distributors, and suppliers who demonstrate the ability to meet the franchisor's standards and specifications and have been approved by them. [p.29]