Freshii Franchise Disclosure Document (FDD) What You Need to Know

The Franchise Disclosure Document (FDD) is the cornerstone of any franchise relationship. For prospective Freshii franchisees, the FDD provides essential information about the brand, the financial commitments required, and the legal obligations of both parties. Below is a concise, yet comprehensive, guide to the most important sections of the Freshii FDD, written in plain language to help you make an informed decision.

1. The Franchise Overview

Freshii is a fastcasual concept focused on wholesome, customizable mealssalads, bowls, wraps, and smoothies. The brand emphasizes sustainability, locally sourced ingredients, and a modern, healthcentric dining experience. The FDD outlines the companys mission, growth history, and the support system offered to franchisees, including training, marketing, and operations assistance.

2. The Franchisors Background

This section provides a snapshot of Freshiis corporate structure, key executives, and the experience of the leadership team. It also contains any prior litigation, bankruptcy filings, or regulatory actions that could affect the franchises stability.

3. Initial Investment Costs

Understanding the total outofpocket expense before opening your restaurant is critical. The Freshii FDD breaks down the costs as follows:

• Franchise fee: $30,000 $50,000 (depending on market and location).
• Equipment & leasehold improvements: $120,000 $250,000.
• Initial inventory & supplies: $10,000 $20,000.
• Software, POS, and signage: $15,000 $30,000.
• Working capital: Recommended $30,000 $50,000 to cover the first three months of operation.

Overall, the estimated total investment ranges from $210,000 to $400,000. The FDD also lists optional costssuch as additional marketing programs, specialty equipment, or realestate assistance.

4. Ongoing Fees

Franchisees are required to pay recurring fees that fund continued support and brand development:

• Royalty fee: 5% of gross sales, collected weekly.
• Marketing contribution: 2% of gross sales, deposited into a national advertising fund.
• Technology fee: $120 per month for software updates and data analytics.

5. Territory Rights

The FDD outlines the exclusive territory granted to each franchisee, typically defined by a radius of 510 miles from the restaurant location. The document explains how territory can be defended, the conditions under which the franchisor may open additional units, and the process for requesting territory expansion.

6. Training and Support

Freshii provides a robust training program that includes:

• Two weeks of onsite training at the corporate headquarters.
• Three weeks of field training at an existing Freshii location.
• Ongoing operational support through a dedicated franchise consultant.
• Access to an online learning portal covering food safety, inventory management, and customer service.

7. Financial Performance Representations (Item 19)

Unlike some franchisors, Freshii does not provide audited financial performance representations in its FDD. Prospective franchisees should therefore rely on the disclosed average unit economics, historical sales data, and thirdparty market analysis when projecting earnings.

8. Obligations of the Franchisee

The franchise agreementattached to the FDDcovers key obligations such as:

• Maintaining brand standards and product quality.
• Adhering to approved suppliers and pricing structures.
• Submitting regular financial statements to the franchisor.
• Participating in mandatory training and marketing programs.

9. Renewal, Transfer, and Termination

Franchise agreements typically run for ten years, with a renewal option for an additional ten years provided the franchisee is in good standing. Transfer of ownership is allowed, but the franchisor must approve the new owner after a review process. Termination can occur for cause (e.g., breach of brand standards) or without cause after the initial term, subject to a termination fee.

10. Litigation and Bankruptcy

The FDD includes a disclosure of any pending lawsuits involving Freshii or its affiliates, as well as any past bankruptcies. As of the latest filing, Freshii reports no significant ongoing litigation that would materially affect franchisees.

11. Financial Statements

Audited financial statements for the most recent fiscal year are attached to the FDD. These statements give insight into Freshiis revenue streams, profitability, and cash flow, helping prospective franchisees evaluate the brands financial health.

12. How to Use the FDD

Review each item carefully and crossreference any figures with your own market research. Consider consulting a franchise attorney or accountant to interpret the legal and financial language. Remember that the FDD is a disclosure tool, not a guarantee of success.

For the full Franchise Disclosure Document, visit the official Freshii franchise page or request a copy directly from the corporate office.