Tikiz
Tikiz Franchising offers mobile shaved ice and ice cream businesses. Known for refreshing treats from trucks, it operates in the frozen dessert retail sector.
Tikiz franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Tikiz franchised business ranges from $172,500 to $185,250. This includes an estimated $166,999 to $167,499 that must be paid to the franchisor or affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee is $20,000 for the first franchise. If you purchase more than one Tikiz franchise at the same time, the Initial Franchise Fee for the second Tikiz franchise will be $20,000 and the Initial Franchise Fee for the third Tikiz franchise that you purchase at the same time will only be One Dollar ($1). The Initial Franchise Fee for any additional Tikiz franchises that you purchase at the same time will be reduced to $10,000 each. [p.18, p.10, p.114]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is $500 per month [p.68]. Additionally, there is an advertising fund fee of $250 per month [p.68], which must be paid regardless of sales levels. These fees are mandatory minimum payments you must make as a franchisee.
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?
According to [p.90], you can assign, transfer, or sell your franchise, but such actions are subject to the conditions stated in Sections 20.2 and 20.3 of the Agreement. This means any rights of assignment, transfer, or sale must comply with those specific terms for them to be valid.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement by mutual written agreement of both parties [p.87]. This requires providing at least six months' prior written notice of intent to terminate the Agreement.
What financial requirements — net worth and liquid capital — do I need to qualify?
You are required to make an estimated initial investment ranging from $172,500 to $185,250. However, the franchisor's financial condition is reported with a deficit of $669,900 as of December 31, 2022, which raises questions about their ability to provide services and support. [p.4]
Do I get an exclusive or protected territory?
Yes, you receive an exclusive territory. During the term of the Franchise Agreement and provided you comply with your obligations, the franchisor will not establish another Tikiz Business in your designated territory, which generally includes an area consisting of approximately 200,000 people [p.31]. However, central business districts may have more restricted territories [p.31].
What training and ongoing support does the franchisor provide?
The franchisor provides ongoing training programs and seminars from time to time at no cost, but you will be responsible for all related expenses such as travel, room and board, and employees' salaries if applicable [p.69]. This isn't specified in the excerpts regarding the exact nature or frequency of these training sessions beyond them being optional and not mandatory.
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 representations about a franchisee's future financial performance or past financial performance of company-owned or franchised outlets. They also do not authorize their employees or representatives to make such representations either orally or in writing [p.45]. However, if you are purchasing an existing outlet, they may provide actual records of that outlet [p.45].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the menu items, food, and beverage products designated by the franchisor, as specified in the Manual or otherwise. You may not offer or sell any other products or services without prior written consent from the franchisor [p.74]. Additionally, you must purchase all required Proprietary Products exclusively from the franchisor, its affiliates, or a supplier designated by them [p.20], and you are also required to buy Tikiz branded print materials, merchandise, uniforms, clothing, and other marketing materials from the franchisor and their designated suppliers [p.21].