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Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Maui Wowi Franchise Costs (2015 FDD)

by Franchise Chatter on October 4, 2015

in Franchise Costs, Smoothie Franchise

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Maui Wowi Photo by JChungg

Detailed Estimates of Maui Wowi Franchise Costs Based on Item 7 (Estimated Initial Investment) of Maui Wowi’s 2015 Franchise Disclosure Document

For Mobile Operating Units

1.  Initial Franchise Fee and Training Fee:  $42,500 to $65,000

  • The Initial Franchise Fee is $30,000 for a Single Unit Franchise, $42,500 for a Standard Franchise, and $65,000 for an Empire Builder Franchise.

2.  Travel and Living Expenses Incurred by You During the Mainland Training Program:  $650 to $3,550

  • Maui Wowi provides a Mainland 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 the Denver, Colorado metro area, or at another site designated by it, without an additional fee.
  • You will pay your own transportation and living expenses (including the expenses for a hotel room(s) for five nights and up to an additional seven days if you are opening a Fixed Retail location) during the Mainland Training Program.

3.  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 by the organizer of the event.

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 Library of Operating 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 Affiliate.

7.  Mobile Launch Fee:  $2,200

8.  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.

9.  POS System, Credit Card Processing, and Back Office Computer Equipment (Optional):  $0 to $10,000

10.  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.

11.  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.

12.  Total:  $75,400 to $207,250

  • Maui Wowi has relied on its principals’ and predecessors’ combined over 50 years of experience in the fresh fruit smoothie business, as well as reporting provided by some of the over 200 Maui Wowi franchise operators, to compile these estimates.

Additional Investment if the Mobile Operating Unit is Operated from a Permanent Site

1.  Real Estate Lease:  $1,200 to $30,000

  • You will need approximately 60 to 1,200 square feet of floor space. The estimates in the tables include the first three months’ 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.

2.  POS System, Credit Card Processing, and Back Office Computer Equipment (Mandatory):  $5,000 to $10,000

  • This figure includes the cost range for a point-of-sale system, credit card processing, a high-speed internet connection, and back office computer systems. These systems are currently required only for Fixed Operating Units and Mobile Operating Units from Permanent Sites.

3.  Adjusted Total:  $81,600 to $225,750

For Fixed Operating Units

1.  Initial Franchise Fee and Training Fee:  $30,000 to $65,000

2.  Travel and Living Expenses Incurred by You During the Mainland Training Program:  $650 to $7,000

3.  Real Estate Lease:  $1,200 to $30,000

4.  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.

5.  Equipment/Decor:  $7,500 to $25,000

6.  Construction:  $10,000 to $180,000

7.  Fixed Launch Fee:  $12,000

  • Maui Wowi and its Affiliate have established a network of professional organizations to assist all franchisees opening Fixed Operating Units. You will be required to work with vendors designated by Maui Wowi and its Affiliate for the 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 of $12,000. The Fixed Launch Fee does not include payment of your architect fees.

8.  Architect’s Fees:  $4,000 to $12,000

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 $12,000

12.  Grand Opening:  $3,500

13.  Miscellaneous Opening Costs:  $3,000 to $8,000

14.  Additional Funds for 3 Months:  $0 to $90,000

15.  Total:  $80,500 to $469,000

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