SoBol
SoBol offers fast-casual restaurants serving fresh acai bowls, fruit smoothies, and healthy menu items. Known for its vibrant, nutritious options, SoBol operates in the competitive quick-service dining sector.
SoBol franchise FAQ
How much does it cost to open one — the total initial investment?
The estimated initial investment to open one SoBol Restaurant is between $195,600 and $470,700. This includes $35,000 that must be paid to the franchisor or its affiliates [p.1]. For a 1-3 Multi-Franchise Addendum, the initial investment increases to between $245,600 and $520,700, with an additional $85,000 going 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. For a single franchise supplemented with their 1-3 Multi-Franchise Addendum, it is $85,000 [p.19]. This fee is non-refundable and must be paid upon signing the Franchise Agreement [p.11, p.219].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of weekly Gross Sales [p.121]. Additionally, there is a requirement to contribute up to 2% of weekly Gross Sales to the Brand Development Fund, with the current contribution being 1% [p.32]. This information does not specify exact advertising fees beyond the Brand Development Fund contributions.
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement does not specify a fixed term length [p.3]. However, you have the option to renew the franchise for one additional 10-year term under certain conditions [p.148], though this renewal option may not be available if the business was previously operated or developed under a prior Franchise Agreement [p.148].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires the franchisor's approval. The franchisor may refuse to permit a transfer of ownership except for good cause, which is defined as including but not limited to certain criteria being met by the transferee [p.247]. This provision does not prevent the franchisor from exercising a right of first refusal to purchase the franchise [p.247].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.250]. 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?
This isn't specified in the excerpts. The FDD does not detail specific net worth or liquid capital requirements for qualifying as a franchisee. However, it mentions that if the franchisor's most recent financial statements are unaudited and show a net worth of less than $100,000, you may request escrow arrangements for your initial investment until certain obligations are fulfilled [p.247].
Do I get an exclusive or protected territory?
You do not receive an exclusive territory [p.37]. However, during the term of the Franchise Agreement, provided you comply with your obligations, Acai Industries, Inc. will not establish another SoBol Restaurant in your Designated Territory [p.37]. This protection does not apply if you are in default or if the territory is within an Advertising Cooperative designated by the franchisor [p.137].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial Training Program that includes classroom and on-the-job instruction, which may be conducted remotely through online web-based conferencing at their discretion [p.119]. This program is structured by the franchisor and must be completed to their satisfaction [p.35]. Additionally, ongoing training for employees must conform to the franchisor's standards and specifications [p.119]. The franchisor also offers a replacement Operating Manager initial training program at designated facilities, with associated fees and costs [p.31].
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 except for providing actual records of an existing outlet if you are purchasing one. However, they do report select financial performance data for each Company-Owned Outlet during the respective Calendar Year [p.53]. This isn't specified in the excerpts for ongoing franchise operations or new locations.
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and serving the Approved Products and Services, preparing and serving them according to the System's standards and specifications [p.128(2)]. You must exclusively purchase and use System Supplies from the Franchisor or its designated suppliers [p.128(3)(c)]. This means you must buy certain source restricted goods and services that meet specific standards, typically from approved or designated suppliers, including potentially exclusive suppliers designated by the franchisor [p.23-24].