Spitz
Spitz offers upscale fast-casual Mediterranean-style restaurants and food trucks, known for their sandwiches, wraps, and salads. Operating in the quick-service restaurant sector, Spitz franchises provide a mix of dine-in and mobile dining options.
Spitz franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operations of a single Spitz Restaurant ranges from approximately $579,250 to $1,150,050. This includes at least $35,000 that must be paid to the franchisor or its affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee is $35,000, which must be paid upon signing the Franchise Agreement [p.12]. This fee applies whether it's a new agreement or a successor agreement at the end of an existing term [p.12].
What are the ongoing royalty and advertising fees?
The franchisee must pay a weekly royalty fee of at least 5.5% of Gross Revenue or $125 per week, whichever is greater [p.84]. Additionally, there is a mandatory minimum payment requirement for royalties and advertising funds regardless of sales levels [p.5]. Local advertising fees are not currently required but could be in the future; as of the date of the FDD, they range from $850 to $2450 monthly, with an average of 1% of Gross Revenue per month [p.41].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in these excerpts. However, upon the expiration of the Initial Term, the franchisee has the right to enter into a renewal agreement under the terms then generally being offered by the franchisor [p.82].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot freely sell or transfer your franchise without good cause as determined by the franchisor. Good cause includes but is not limited to specific reasons outlined in the agreement [p.322]. The franchisor also retains the right of first refusal to purchase the franchise if it chooses to exercise this option [p.6].
On what grounds can the franchisor terminate the agreement?
According to the FDD excerpts, a franchisor can terminate a franchise agreement prior to its expiration only for good cause. Good cause includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and failing to cure such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so [p.6, p.322]. Additionally, termination without reasonable cause is unlawful under the Virginia Retail Franchising Act unless specific grounds for default or termination are not deemed reasonable cause by Virginia law [p.334, p.336].
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 franchisees. However, it does mention that adequate reserves and working capital sufficient to cover at least three months of operations are necessary [p.93]. Additionally, the financial performance figures provided do not include all costs, so an independent investigation is recommended [p.301].
Do I get an exclusive or protected territory?
You do not receive an exclusive territory but are granted a protected area ('Protected Area') within a 1-mile radius from your Spitz Restaurant's Franchised Location. This Protected Area is determined by the franchisor and does not depend on the volume of Gross Revenues generated or market penetration [p.45, p.82].
What training and ongoing support does the franchisor provide?
The franchisor provides an Initial Training Program at their designated 'Spitz University' locations or other training sites, covering topics such as food preparation, portion control, and customer service techniques. This program is mandatory for up to two supervisory or managerial personnel, typically including the Operating Partner and General Manager. Additional trainees incur a fee. The franchisor also offers ongoing support through manuals, operating methods, business practices, design specifications, and other items of trade dress, which may be updated by the franchisor as needed [p.36, p.226].
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 the figures provided in Item 19 of the FDD. If purchasing an existing outlet, actual records of that outlet may be provided. Any other financial performance information should be reported to the President of Radwick Franchising, LLC, as well as relevant regulatory agencies. [p.68]
What am I restricted to selling, and where must I buy supplies?
You are required to serve all products mandated by the franchisor for Spitz Restaurants ('Authorized Spitz Products') and cannot use or sell any unauthorized menu items. You must purchase Spitz Proprietary Products only from approved suppliers as specified [p.95] and [p.30]. Additionally, you may need to buy or lease certain items from the franchisor or a limited group of suppliers they designate, which could be more expensive than other options [p.4].