Totally Nutz
Totally Nutz franchises sell fresh roasted cinnamon glazed nuts at various venues. Known for their delectable treats, they operate in the snack food retail industry.
Totally Nutz franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a single Totally Nutz franchised business is between $64,500 and $113,000. This includes an Initial Franchise Fee of $27,500 [p.20], along with other costs that must be paid to the franchisor or its affiliate(s).
What is the initial franchise fee?
The Initial Franchise Fee is uniform and non-refundable, payable in a lump sum when you sign your Franchise Agreement. It is fully earned by the franchisor upon payment and covers pre-opening assistance provided to allow you to open your Totally Nutz Business. The amount varies depending on whether you are purchasing single or multi-franchise rights: $19,500 for a single Unit, $39,500 for a Multi-3 Franchise, $59,500 for a Multi-5 Franchise, and $69,900 for a Multi-10 Franchise. [p.12, p.24]
What are the ongoing royalty and advertising fees?
The franchisee must pay a monthly royalty fee equal to six percent (6%) of Gross Revenue, which is due on or before the seventh day of each month [p.59]. Additionally, there are mandatory minimum payments for royalties and advertising funds that must be made regardless of sales levels [p.4]. The use of the Brand Building Fund for advertising and marketing purposes is at the discretion of TNF, with no guarantee of direct benefit to individual franchisees [p.30].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts. However, if you do not have a renewal option exercised against your favor by the franchisor, you have the option to renew your rights to operate a Totally Nutz Business for two additional successive ten-year terms [p.54].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified factors [p.5]. This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.157]. Additionally, the franchisee must comply with all lawful provisions of the franchise agreement; failure to do so and not curing such failure after receiving written notice and a reasonable opportunity (no more than 30 days) may provide cause for termination [p.5].
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 or protected territory. You may face competition from other franchisees, from other outlets owned by the company, or from competitive brands controlled by them [p.34]. However, the company will consider your proximity when evaluating the site of another franchisee submitted for approval [p.107]. For fixed locations, you need written approval to operate at any approved location and may not relocate without their prior written consent [p.34].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program for up to two individuals at no charge, which includes attendance at the TNF Training Program held at their corporate center in St. George, Utah [p.62]. For additional attendees or if more extensive training is required, there are fees involved [p.32, p.29]. Ongoing support includes refresher courses and additional training as needed or requested by the franchisee [p.29].
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 purchased, but does not make representations about a franchisee's future financial performance or past performance of company-owned or franchised outlets. [p.43] Additionally, while financial performance information can be disclosed under certain conditions, the franchisor is not authorized to make such representations either orally or in writing. [p.43]
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those products and services authorized by the franchisor, which must meet their standards and specifications. You must purchase all required products, equipment, supplies, and materials only from approved suppliers, with approximately 95% of your purchases coming from the franchisor or other approved sources as specified [p.25].