Zoup
Zoup offers Z!Eats fast casual restaurants serving soups, sandwiches, salads, and more. Known for its variety of hot and cold dishes, it operates in the competitive quick-service restaurant sector.
Zoup franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to open one Z!Eats® restaurant ranges from $567,800 to $782,500. This includes a development fee of $105,000 and the initial investment needed to open and commence operations of the first restaurant within your development area [p.1].
What is the initial franchise fee?
The initial franchise fee is $35,000 [p.60]. This fee is non-refundable upon payment and is considered fully earned by Franchisor for administrative expenses and lost or deferred opportunities to franchise others [p.60].
What are the ongoing royalty and advertising fees?
The franchisee pays ongoing royalties between 3.00% and 6.00% of net sales (or a minimum as defined) [p.177, p.152]. Advertising service fees are recognized when related restaurant sales occur based on the application of the sales-based royalty exception within ASC 606 or Topic 606, and these revenues are typically billed and paid weekly [p.153, p.178].
How long is the initial franchise agreement, and can I renew it?
The length of the initial franchise agreement isn't specified in the excerpts. Additionally, whether you can renew the franchise agreement isn't detailed either; however, the FDD does mention that a franchisor may change its business model without your consent, which could affect renewal terms [p.28].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your franchise, but it is subject to the franchisor's approval for good cause [p.5]. Additionally, a transfer fee equal to 50% of the current initial franchise fee when transferring to an existing franchisee, or 75% when transferring to a new non-franchisee, may be required unless certain conditions are met for transfers to controlled corporations or LLCs [p.15].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on various grounds, including if you fail to comply with any lawful provision of the franchise agreement and do not cure such failure within a reasonable time [p.5], if the franchise does not open within twelve months from signing the agreement [p.221], or if you file for bankruptcy [p.225]. Additionally, termination is permitted on any grounds available by law [p.233], but this must comply with Virginia Retail Franchising Act requirements regarding reasonable cause [p.240].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD provides information on working capital needs [p.22] and cash equivalents [p.154], but it does not detail specific net worth or liquid capital requirements for qualifying as a franchisee. You may need to conduct an independent investigation of the costs and expenses you will incur [p.221].
Do I get an exclusive or protected territory?
You will receive a protected territory for your approved location, but you do not have an exclusive territory. This means you may face competition from other franchisees, company-owned outlets, or other channels of distribution controlled by the franchisor [p.36]. Additionally, the franchisor retains the right to engage in similar business activities outside your territory without affecting your operations [p.244].
What training and ongoing support does the franchisor provide?
The franchisor provides a training program conducted by Katie O'Rourke, who has been the Senior Training Manager since March 2024 and has over 18 years of relevant experience. Other trainers may be substituted to supervise or provide initial training. There are no specific details provided about ongoing support beyond the training program in these excerpts. [p.28]
How many franchised outlets are there, and how many have closed or been terminated?
As of September 29, 2024, there were 35 franchised outlets operating in the system [p.49]. The number of franchised outlets that have closed or been terminated is not specified in the provided excerpts.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor shares historical financial performance representation based on data from operating franchised outlets. This information is compiled from unaudited sales reports submitted by franchisees and represents the performance of certain outlets that operated continuously during fiscal year 2024 [p.49]. However, the franchisor does not make any other financial performance representations except for providing actual records of an existing outlet if purchased [p.49].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling items under the Z!Eats system and proprietary marks, which includes soups, bowls, sandwiches, salads, baked bread, or related food and beverage items. You may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate; however, you can request approval for additional suppliers but must pay a fee for evaluation [p.24].