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FDD Talk 2015: The Lemon Heaven Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on May 8, 2015

in Beverage Franchise, FDD Talk 2017: Food Franchises, Franchise Earnings

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Lemon Heaven Kiosk

In this FDD Talk 2015 post, you’ll learn the following:

  • Section I – Background information on the Lemon Heaven franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Lemon Heaven franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of Lemon Heaven’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • 2014 system-wide low, high, median, and average annual gross receipts (net of discounts, sales taxes, or other taxes), annual cost of goods sold, annual gross profit, and annual gross profit margin % data within each such individual category for franchisees operating in the 2014 calendar year

Section I – Background Information

It was January 1996 when newlyweds Marty and Mirjam Bennett decided to get into the lemonade business. After all, who doesn’t like a nice tall glass of fresh-squeezed lemonade?

When it’s made fresh in front of you, there’s no doubt you’re getting the real deal. That’s the whole concept behind Lemon Heaven, a low-cost franchise that specializes in catering to special events and event venues like stadiums, arenas, convention centers, amusement parks, zoos, farmer’s markets, and more.

Their first event was at the Cloverdale Rodeo on May 17 of their founding year. They’ve come a long way since then.

Now you can have your lemonade straight or in a variety of flavors, including cherry, blue raspberry, watermelon, lime, strawberry, and iced tea flavored.

The same concept also applies to its newer Cin City Donuts division, which focuses on fresh-made mini donuts, coffee (both hot and iced), and hot chocolate.

Here are some ways that Lemon Heaven and Cin City Donuts tries to keep their franchises fresh:

Flexible Setups

Lemon Heaven and Cin City Donuts custom builds each franchisee’s setup. Options include the Trailer, an award-winning setup ideal for fairs and larger venues; the kiosk, a dome-shaped brightly colored setup that can be assembled in as little as one hour; and the cart, a highly portable setup that can go just about anywhere you need it.

Each option can be further customized as needed to fit the venue in which it will be operated. Need something completely different for a unique venue? Lemon Heaven and Cin City Donuts can make it happen.

Outstanding Customer Service

Lemon Heaven thinks everyone should be able to enjoy fresh-squeezed lemonade, which is why it has a diabetic-friendly version of its original lemonade available on request.

When one customer was desperate to satisfy his pregnant wife’s craving for a Lemon Heaven lemonade, franchisees Aly and Fiona Daya opened up their cart at their home for a drive-by purchase.

That’s the kind of customer service Lemon Heaven franchisees are expected to provide.

Franchisee Satisfaction

Lemon Heaven has been recognized by both Franchise Business Review and the Canadian Franchise Association for its high levels of franchisee satisfaction regarding its franchisee selection process, information package, leadership, business planning and marketing, training and support, ongoing operations, and the relationship between the franchisor and franchisee.

Franchisee Support

Each new franchisee is fully supported with five days of training, along with staff from headquarters at the first event; an Intranet System with the tools to run a franchise including access to an online custom event management program and forums to communicate with fellow franchisees; and a yearly convention with plenty of educational seminars and networking opportunities.

Section II – Estimated Costs

  • Please click here for detailed estimates of Lemon Heaven/Cin City Donuts franchise costs, based on Item 7 of the company’s 2015 FDD.

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis

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