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Review of the Freshii Franchise Opp and Startup Costs

When you’re hungry, what do you tend to crave? Many people tend to want the foods that are the easiest to eat that are the closest to them. In the average American diet, this is typically potato chips, crackers, or some form of candy. What if you could replace those items with a healthier choice, like an apple? The goal of Freshii is to provide healthy snacks and fantastic meals in a friendly, yet sustainable environment.

How Much Does It Cost To Start a Freshii Franchise

If you want to get involved with this exciting opportunity, then the initial franchise fee is $30k. This is payable upon the signing of the franchise agreement to get your business off the ground. You’ll receive a protected area for your new franchise to limit competition within the same branding, but the size of that protected area is based on the population of your community, the amount of traffic you receive, and several other factors.

If you prefer, Freshii also offers what they call a development agreement that can be signed in conjunction with your franchise agreement. This will allow you to define the number of future stores and areas that you wish to develop and will outline your plan to get them open. Each defined location that is put into this development agreement will also require a $30k franchise fee, with half of that fee due upon signing. You’ll pay the other half when you finalize the franchise agreement for each additional location you want.

Unlike other franchises, you also have a deadline for opening your new location. From the time you sign the franchise agreement, you have 180 days to open a store. Exceptions may be granted, but in general, if your location isn’t open within this timeframe, you’ll risk forfeiting your franchise fees that were paid upfront. The initial agreement is valid for 10 years, with a 10 year renewal as an option for 20% of the existing franchise fee.

Are There Any Royalties That Must Be Paid?

The base royalty isn’t based on gross sales, but is instead based on your net sales plus comps and discounts that might have been offered. It’s a 6% royalty and it is required to be paid weekly. As part of the franchise agreement, you must use the point of sale system that is designated by Freshii and internet access to your store is mandatory. Your POS will be pinged to keep track of what your sales happen to be.

In addition to the above royalty, an advertising fee can be up to 2% of your net sales as well. A portion of this fee is reallocated to a regional co-operative so that all Freshii locations can benefit from the extra advertising and marketing efforts. You’ll also be required to spend a minimum of 1% of your net sales on local advertising for your specific store, making the total royalty required under this agreement be up to 9% of total net sales.

The advertising funds are not used to market for new franchises, as you might see with other organizations. Your advertising royalties are used for the creation and placement of media advertising, PR efforts, market research to refine the sales pitch to the targeted audience, and to increase brand recognition. In return, you get to take part in a special series of community efforts to build school gardens and community gardening areas to help make the food supply become healthier and more sustainable in every neighborhood where Freshii has a presence.

What Kind of Support Is Offered By Freshii To Franchisee?

When you sign a franchise agreement with Freshii, you’ll start getting help immediately with the negotiation of a leasing agreement or the closing of your real estate. Tenant work letters, letters of intent, and other documents are all worked on in-house and can be provided to you if you need the assistance, although this isn’t a substitute for adequate legal council.

You’ll also receive the ability to use the brand name of Freshii, the trademarks and recipes that will develop your local customer base, and assistance with décor. Facility planning is a key part of the process and you’ll get immediate assistance with architectural design. The specifications for the fixtures in your location, the equipment you’ll need, and other specific leasehold improvements your location might need are also part of the package.

Corporate training is available at Freshii’s headquarters and includes the owner-operator and whomever will act as your general managers. There is assistance for workflow design in the back of the house and relevant, personalized advice is offered to help you increase your profitability. You’ll also gain access to the contracts that Freshii has already negotiated that will help you increase your margins on your goods and services.

In other words, what you’ll be getting is access to the best practices that Freshii has developed over time through a series of research, trial, and error. This is all done to help you become successful as a franchisee and your greater success means more success for the organization as well.

Is Freshii the Right Investment To Make As a Franchisee?

Freshii focuses on quality, fresh ingredients that still taste as good as those snacks that can be extremely unhealthy when excessively eaten. There is an emphasis on sustainability and a community presence that backs up these efforts. This helps to increase community awareness of your franchise while you help to promote a healthier eating lifestyle that can literally prolong someone’s life!

From brown rice to field greens, you’ll be giving people the chance to have a healthy meal that is packed full of the vitamins and minerals they need. Burritos, soups, wraps, and even yogurt is available in many locations. Chicken, steak, tofu, and shrimp are quality protein add-ons as well. If you love the restaurant industry, but also love making a big difference in people’s lives, then with a Freshii franchise you’ll be able to accomplish your goals. Apply online today!

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