Year Business Began: 2002
Franchising Since: 2003
Headquarters: St. Petersburg, Florida
Estimated Number of Units: 65
Franchise Description: The franchisor is Zoup Franchising Co., LLC. The parent company is Zoup Restaurant Co., LLC. Franchisees operate a Zoup! fast casual restaurant featuring a wide variety of soups, sandwiches and salads, cold beverages, and other ancillary products for lunch, dinner, catering and take-home.
Training Overview: The franchisor will provide initial training (except for the sanitation certification course, which franchisees will need to have completed prior to attending Zoup! training). The franchisor will train franchisees and up to three of their management personnel. The required training lasts up to four weeks. Two of those weeks will be spent in the Southfield, Michigan, area for classroom and hands-on training, followed by up to two weeks of training in the franchisee’s own restaurant. The franchisor may also offer additional training or refresher courses or seminars to be conducted at its corporate headquarters or at another place that it designates, and franchisees and/or their manager may be required to attend these courses, at their expense. Each year, the franchisor may hold an annual convention, which franchisees must attend.
Territory Granted: Franchisees will operate their restaurant from a specific location which the franchisor accepts. Within 30 days after the execution of a lease for the accepted location, the franchisor will provide franchisees with a protected territory for the accepted location. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands the franchisor controls. The scope and size of the territory will be in the franchisor’s sole discretion, based on the following factors: general location, traffic patterns, parking availability, size of site in relation to building type, access, visibility, area demographics, population density, surrounding area commercial activity, and market demands. Because these factors may vary significantly from location to location, at a minimum, the territory may be limited to the accepted location. Except as otherwise provided, for as long as franchisees comply with the terms and conditions of the Franchise Agreement, the franchisor will not solicit orders or establish and operate, nor license any party other than the franchisee to establish and operate, any Zoup! restaurant under the System and the Proprietary Marks within the territory.
Obligations and Restrictions: Franchisees (or at least one of the principals if the franchisee is a corporation, limited liability company or partnership) must devote their best efforts to the management and operation of the restaurant. Franchisees may, however, delegate the day-to-day supervision of the operation of the restaurant to a manager. The manager must successfully complete initial training before assuming any managerial responsibility. Franchisees may offer for sale and sell only those food and beverage products and accompanying services that the franchisor has approved for the system. Franchisees must offer all services and products that the franchisor designates as required for all franchisees. Franchisees must participate in the catering program.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees have the right to renew the franchise for successive 10-year terms, if certain conditions are met.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or any of their obligations.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Architectural Plan Review | $0 | $1,000 |
| Architect Fees | $12,000 | $15,000 |
| Permits & License Fee | $1,500 | $5,000 |
| Leasehold Improvements | $220,500 | $310,000 |
| Equipment | $120,000 | $135,000 |
| Furniture | $7,000 | $14,000 |
| Millwork | $35,000 | $55,000 |
| Smallwares | $9,000 | $13,000 |
| Exterior Signage | $7,000 | $12,000 |
| Interior Signage and Graphics | $1,500 | $4,000 |
| Technology Systems | $20,300 | $25,200 |
| Grand Opening Marketing | $15,000 | $15,000 |
| Uniforms, Menu Materials, Office Supplies | $1,634 | $3,750 |
| Travel & Living Expenses While Training | $0 | $5,600 |
| Opening Inventory | $7,500 | $12,000 |
| Insurance | $1,500 | $3,500 |
| Additional Funds – 3 months | $15,000 | $35,000 |
| ESTIMATED TOTAL | $509,434 | $699,050 |
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 6% of net sales. |
| Brand Development Fund Advertising Fee | 3% of net sales. |
| Local Advertising and Promotion | 2% of net sales. |
| Training and Customer Service Fees | 0.5% of gross sales not to exceed 1% of gross sales. |
| Technology License and Development Fee | $146.42, subject to increase. |
| Bookkeeping Service Fees | $50 per month after signing lease and until restaurant opens; $300 per month after restaurant opens; additional charge of $75 per month if franchisees do not assist with coding of unidentified credit card purchases. |
| Unauthorized Advertising Fee | $1,000 per occurrence. |
| Sublease Fee or Guaranty Fee | 0.5% of net sales. |
| Site Selection Extension Fee | $1,500 |
| Maintenance/ Repair/ Refurbishing | Actual amount incurred. |
| Grand Re-Opening Marketing Fee | $5,000 |
| Transfer Fee | (I) 50% of the then-current initial franchise fee if transferring to an existing franchisee; or (ii) 75% of the then-current initial franchise fee if transferring to a new owner. The fee to transfer ownership among existing partners only is $2,000. |
| Commission | 5% to 10% of gross purchase price. |
| Interest | Lesser of 18% per year, or highest rate allowed by law, plus $100. (In California, the highest lawful rate of interest is 10% per annum.) |
| Insufficient Funds Fee | Lesser of 18% per year, or highest rate allowed by law, plus $100. |
| Costs & Attorneys’ Fees | Actual amount incurred. |
| Audit Expenses | Actual amount incurred; cost ranges from $250 to $7,500. |
| Insurance | Cost of insurance. If franchisees fail to maintain their insurance as required, there is an 18% administrative cost charge if the franchisor exercises its right to procure their insurance. |
| Renewal Fee | $17,500 |
| Service Fee | $600 per day |
| Supplier Evaluation Fee | A minimum of $500 |
| Annual Convention | The franchisee’s travel and lodging expenses. |
| Failure to Attend Annual Convention | $1,000 |
| Training Cancellation Fee | Currently $400 per person. |
| Food Safety and Operations Excellence Report Fee | Actual amount incurred. |
| Guest Complaint Resolution Fee | $10 - $100 |
| Critical Operating Standards Violation | $250 - $1,000 |
| Additional Requested Store Opening Assistance & Additional Requested On-Site Assistance | Currently, $500 per person per day, plus expenses. |
| Additional Training | Travel and lodging expenses. |
| Training for Replacement Personnel | Travel and lodging expenses. |
| Survey Fee | Actual amount incurred. |
| Use of Proprietary Marks | Actual amount incurred. |
| Indemnification | Actual amount incurred. |
| Liquidated Damages | Up to 36 months of royalty fees and brand fund contribution. |
The above information has been compiled from the FDD of Zoup!. Year of FDD: 2023.
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