Surf City Squeeze
Surf City Squeeze offers smoothies, fruit drinks, and nutritional supplements in casual dining locations. Known for its refreshing beverages, the franchise operates in the quick-serve beverage and food industry.
About Surf City Squeeze
Surf City Squeeze is a chain of smoothies and restaurants, which is franchised by Kahala Brands of Scottsdale, Arizona. The chain was founded in Phoenix, Arizona in 1981 by Kevin Blackwell. As of 2010 Surf City Squeeze has more than 100 franchise locations operating in Canada, Saudi Arabia, Curaçao/Netherlands Antilles and United States.
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Surf City Squeeze franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment ranges from $12,000 to $57,000 depending on whether the location is non-traditional or traditional. This includes the Initial Franchise Fee, Grand Opening Marketing, lease review fee (if any), and the cost of menu boards, wall décor, and supplement containers [p.31].
What is the initial franchise fee?
The initial franchise fee varies based on the type of restaurant. For traditional locations, it starts at $30,000 for the first location and reduces to $17,500 for each subsequent traditional location. For non-traditional locations, the initial franchise fee is $7,500 for the first location and reduces to $5,000 for each subsequent non-traditional location. [p.31, p.372, p.376]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of total gross sales on a weekly basis [p.372]. There is also an Advertising Fee, though the specific rate is not provided in these excerpts; it is collected along with the Royalty Fee [p.376].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD excerpts provided do not include information about the length of the initial franchise agreement or details on renewal terms beyond mentioning a Renewal Franchise Fee of 50% of the current initial fee when you renew the Agreement [p.173, p.309].
Can I sell or transfer my franchise, and what does that require?
According to the FDD excerpts, you cannot freely sell or transfer your franchise without the franchisor's approval, except for good cause. Good cause includes but is not limited to specific reasons determined by the franchisor [p.95, p.472]. The franchisor also retains a right of first refusal to purchase the franchise in such cases [p.95, p.472].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.100]. Additionally, the franchisor can change its business model without your consent, which might require additional investments or harm your franchise business [p.3]. However, under Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause [p.108, p.487], and any termination grounds not constituting 'reasonable cause' may not be enforceable.
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 according to the FDD excerpts. The franchise agreement explicitly states that you will not be granted any exclusive or protected territory for your restaurant [p.100]. This means you may face competition from other franchisees as well as restaurants owned by the franchisor or its affiliates [p.62].
What training and ongoing support does the franchisor provide?
The franchisor provides a Training Program consisting of In-Store Training (40 hours) and New Owner Training (40 hours), totaling 80 hours. This program is conducted either online or in person at designated locations, such as Scottsdale, Arizona. Additionally, the franchisor reserves the right to require further training if the franchisee does not operate according to their Systems Standards. Ongoing support includes potential additional training and access to vendor allowances for various business improvement initiatives. [p.234, p.301, p.166]
How many franchised outlets are there, and how many have closed or been terminated?
As of November 30, 2024, there were 62 Surf City Squeeze franchises. The FDD does not specify the number of closed or terminated outlets directly; however, it mentions that Kahala Franchising previously offered franchises for Pizza Fresh Take●N●Bake, Wafflō, and Tango, which have since been discontinued without any current operations. [p.15] This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information if there is a reasonable basis for it and it is included in the disclosure document [p.77]. However, they do not make representations about future financial performance or past financial performance of company-owned or franchised outlets [p.77], except that actual records of an existing outlet may be provided if you are purchasing one [p.77].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling only certain items; however, you may have to purchase or lease specific items from the franchisor or a limited group of suppliers designated by them. These items might be more expensive than those available elsewhere [p.3]. For equipment, supplies, or inventory items required by System Standards that haven't been previously approved, you must submit sufficient information for approval and can only use suppliers approved by the franchisor [p.251, p.183].