Updated September 10, 2018.
Detailed Estimates of Maui Wowi Franchise Costs Based on Item 7 (Estimated Initial Investment) of Maui Wowi’s 2018 Franchise Disclosure Document
1. Initial Franchise Fee: $42,500 to $65,000
- The Initial Franchise Fee is $42,500 for a Standard Franchise and $65,000 for an Empire Builder Franchise.
2. Travel and Living Expenses (2 persons) While Training (not including salaries, if any, for you and your employees): $650 to $3,550
- The Initial Franchise Fee includes the training fee for two individuals.
- Maui Wowi provides a Training Program for up to two individuals (or up to three individuals if you purchase an Empire Builder Franchise) at a location it designates in Scottsdale, Arizona, or at another site designated by it, without an additional fee.
- You will pay your own transportation and living expenses during the Training Program. If you cancel your attendance at the Training Program within two weeks of the first day of Training Program, you will be charged a $500 cancellation fee unless Maui Wowi waives this fee in writing.
3. Mobile Launch Fee: $2,200
- Maui Wowi will assist all franchisees in operating their first event for Mobile Operating units. You will be charged a launch fee (“Mobile Launch Fee”) of $2,200. The Launch Fee will not be refundable in whole or in part under any circumstances.
4. Mobile Operating Unit: $26,000 to $78,000
- Shipping costs for the Mobile Operating Unit are included in the estimate and vary depending on the type of unit and delivery destination, but are estimated to range from $0 to approximately $5,000.
5. Coffee Equipment: $800 to $12,000
- You will purchase espresso machines, blenders, signage, decor, and other equipment as listed in the Operations Manuals and as may be otherwise designated by Maui Wowi.
6. Optional Equipment: $0 to $15,000
- There are other items of equipment that, although not mandatory, are generally recommended that you acquire. This may include a three-basin sink that costs approximately $5,000, and is available from Maui Wowi’s approved vendor or supplier.
7. Opening Inventory: $1,500 to $7,000
- The minimum required opening inventory varies by Operating Unit. For each Operating Unit type, you are required to purchase a designated minimum number of cases of Maui Wowi Blends for making smoothies.
8. POS System, Credit Card Processing, and Back Office Computer Equipment (Optional): $0 to $10,000
9. Miscellaneous Opening Costs: $1,750 to $5,000
- The Miscellaneous Opening Costs include utility costs, permitting/plan check fees, business entity organization expenses, fire suppression, security cameras, safe, insurance, and deposits for the first six months of operation of your Maui Wowi business, as well as the miscellaneous small wares.
10. Additional Funds for 3 Months: $0 to $13,500
- This is for budgeting purposes only to account for unanticipated expenses. This estimates your pre-operational expenses, which Maui Wowi has not listed above, as well as additional funds necessary for the first three months of your business operations, but excludes any revenue you may generate from operating your Maui Wowi business.
11. Concession License Fee: Amount Not Specified
- Depending on what type of Operating Unit you choose to operate, you may incur lease or concession license charges.
- If you choose to operate from a Mobile Operating Unit at an Event, you may be charged a concession license charge by the organizer of the Event. These costs vary depending on the Event and its organizer. You should investigate these charges before you agree to operate at a particular Permanent Site or Event.
12. Business Insurance: $1,000 to $4,000
- Initial premiums for commercial general liability insurance are subject to change due to market forces beyond either of your and Maui Wowi’s control. The cost of other coverages, including workers’ compensation and employer liability coverage and your discretionary purchases, varies widely.
13. Total: $76,400 to $215,250
- This amount was formulated based upon Maui Wowi’s years of experience as a franchisor and its affiliate’s years of experience operating company operating units in addition to information provided by its predecessor franchisor and other franchisees.
Additional Investment if the Mobile Operating Unit is Operated from a Permanent Site
1. POS System, Credit Card Processing, and Back Office Computer Equipment (Optional): $5,000 to $15,000
2. Real Estate Lease: $1,200 to $30,000
- If you choose a Fixed Operating Unit, or if you choose to operate Mobile Operating Unit at a Permanent Site rather than an Event, you will be required to purchase or lease real property where your Operating Unit will be located. You will need approximately 60 to 1,200 square feet of floor space. The estimates in the tables include the first three month’s lease payments, and a security deposit equal to one month’s rent.
- Maui Wowi used a lease rent rate of between $4 and $75 per square foot, annually. However, the lease rent rate and required deposit varies considerably from location to location.
3. Adjusted Total: $82,600 to $260,250 (Does not include real estate costs and/or rent for the business location except for the initial security deposit.)
Standard Unit Franchise (for a Fixed Operating Unit)
1. Initial Franchise Fee: $42,500 to $65,000
2. Travel and Living Expenses (2 persons) While Training (not including salaries, if any, for you and your employees): $650 to $7,000
3. Fixed Launch Fee: $12,000
- You are required to work with vendors designated by Maui Wowi for location, development, and construction of your Fixed Operating Unit, including architects, real estate brokers, millwork, signage and equipment suppliers, construction service providers, and contractors.
- You will be charged a launch fee (“Fixed Launch Fee”) of $12,000. The Fixed Launch Fee does not include payment of your architect fees.
4. Architect’s Fees: $4,000 to $12,000
5. Real Estate Lease: $1,200 to $30,000
- You may also choose to engage the services of a commercial broker to assist you in locating a Permanent Site. In most cases, the broker’s fee, which you will negotiate with the broker, will be paid by the landlord. Maui Wowi has included the broker’s fee in the estimated lease rent rate and required deposit.
6. Fixed Kiosk: $0 to $90,000
- If you will operate from a Fixed Kiosk, the Fixed Kiosk will be purchased from Maui Wowi’s designated supplier at an estimated cost of $40,000 to $90,000. The shipping costs for the Fixed Kiosk are included with the construction costs.
7. Equipment/Decor: $7,500 to $25,000
8. Construction: $10,000 to $180,000
9. Opening Inventory: $2,000 to $10,000
10. Signage: $3,500 to $15,000
- You will purchase and install at your expense signage based on Maui Wowi’s System standards.
11. POS System, Credit Card Processing, and Back Office Computer Equipment (Optional): $5,000 to $15,000
12. Miscellaneous Opening Costs: $3,000 to $8,000
13. Additional Funds for 3 Months: $0 to $90,000
14. Grand Opening: $5,000
15. Business Insurance: $1,000 to $5,000
16. Total: $97,350 to $569,000