Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Considering a Zoup! Franchise? Don’t Overlook These 20 Important Franchise Fees

by Franchise Chatter on June 28, 2017

in Franchise Fees, Soup Franchise



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Don't Invest in a Franchise Until You Check Out This List

If you are considering a Zoup! franchise, don’t get blindsided by these 20 important franchise fees (from the initial franchise fee, to the royalty fee, to 18 other fees found in Items 5 and 6 of Zoup!’s 2017 FDD).

1.  Initial Franchise Fee:  $29,000 to $39,000

  • You must pay Zoup! an initial franchise fee when you sign the Franchise Agreement (the “Initial Franchise Fee”). The standard Initial Franchise Fee is $39,900 for your first Restaurant.
  • The Initial Franchise Fee is considered earned at the time the Franchise Agreement is signed and is not refundable under any circumstances.
  • Zoup! is a member of the International Franchise Association and participates in the International Franchise Association’s VetFran Program. Under that program, Zoup! offers a $2,500 discount on the Initial Franchise Fee to qualified veterans of the U.S. Armed Forces who meet the requirements of the VetFran program.
  • Zoup! has provided a $10,000 discount on the Initial Franchise Fee to some existing franchisees when they purchased an additional franchise within three years of purchasing their original franchise.
  • You will pay reduced initial franchise fees if you enter into an Area Development Agreement with Zoup!, as described below.
  • Except as described above, Zoup!’s initial franchise fees are uniform for all new franchisees.

2.  Area Development Fee:  $20,000 for the 2nd Restaurant and $10,000 for each additional Restaurant you agree to develop in the designated development area

  • Area developers will pay Zoup! an Initial Franchise Fee of $39,900 under their first Franchise Agreement. In addition, area developers must pay Zoup! an area development fee equal to the total of $20,000 for the 2nd Restaurant and $10,000 for each additional Restaurant they agree to develop in the designated development area (the “Development Fee”).
  • The specific number of Restaurants to be opened is reflected in the Area Development Agreement. There is no minimum or maximum number of Restaurants you are required to commit to develop in order to sign an Area Development Agreement, but Zoup! estimates the range to be 2 to 5 Restaurants.
  • Assuming a range of 2 to 5 Restaurants, the Development Fee would range from $20,000 to $50,000 and the total of the Initial Franchise Fee and Development Fee paid by an area developer would range from $59,900 to $89,900.
  • The entire Development Fee is due and payable in a lump sum to Zoup! at the time the Area Development Agreement is signed.
  • The Development Fee is fully earned when paid and is not refundable under any circumstances.
  • Area developers are not required to pay any additional Initial Franchise Fees for the additional Restaurants developed under the Area Development Agreement.

3.  Royalty:  6% of gross sales



  • Due Date:  Wednesday of each week.
  • Based on gross sales during the preceding business week (Monday through Sunday).

4.  National Brand Marketing Fund Contribution:  1% of gross sales, not to exceed 2% of gross sales

  • Due Date:  Wednesday of each week.
  • Based on gross sales during the preceding business week (Monday through Sunday).

5.  Training and Customer Service Fees:  0.5% of gross sales, not to exceed 1% of gross sales

  • Due Date:  Wednesday of each week.
  • Based on gross sales during the preceding business week (Monday through Sunday).

6.  Technology License and Development Fee:  $150 per week

  • Due Date:  Wednesday of each week.
  • This fee is paid for use and maintenance and payment to third party vendors for Zoup! Technology Systems.

7.  Advertising Cooperative:  amount determined by cooperative

  • Due Date:  As determined by the cooperative.
  • If your Restaurant is included in an advertising cooperative group designated by Zoup!, you must maintain a membership in and abide by the decisions of the cooperative.

8.  Maintenance and Repairs:  actual cost to Zoup!

  • Due Date:  On receipt of billing.
  • If you fail to maintain your franchise location, Zoup! may do so at your expense.

9.  Insurance:  actual cost to Zoup!

  • Due Date:  On receipt of billing.
  • If you fail to purchase insurance, Zoup! may do so at your expense.

10.  Additional Training:  Zoup!’s then-current fee. Currently, Zoup! charges $100 per day for training conducted at its location and $250 per day plus travel expenses if provided at the franchise location.

  • Due Date:  Before additional training.
  • You may be required to attend and pay these fees for additional training.

11.  Additional Assistance in Set-up and Opening:  Zoup!’s then-current fee. Currently, Zoup! charges $100 per day for training conducted at its location and $250 per day plus travel expenses if provided at the franchise location.

  • Due Date:  Before additional assistance.
  • If you request additional assistance in the initial set-up and opening of your Restaurant.

12.  Late Charge and Interest:  $25.00 per week late charge for each invoice not paid when due and 1.5% per month interest

  • Due Date:  On receipt of billing.
  • If you do not pay any amounts due on time to Zoup! or its affiliates.

13.  Transfer Fee (Franchise Agreement and Area Development Agreement):  $15,000; $15,000 per Zoup! Restaurant developed under the Area Development Agreement



  • Due Date:  Before closing of the transfer.
  • If you transfer your franchise or a controlling interest in the franchise or your interest in the Area Development Agreement.

14.  Renewal Fee:  $7,500

  • Due Date:  At the time of renewal.
  • If you renew your franchise.

15.  Audit Expenses:  cost of audit

  • Due Date:  On receipt of Zoup!’s billing.
  • If you fail to furnish financial reports or the audit discloses an understatement of 3% or more.

16.  Indemnification (Franchise Agreement and Area Development Agreement):  amount will vary under circumstances

  • Due Date:  As incurred.
  • You must reimburse Zoup! if it incurs liability from the operation of your franchise.

17.  Costs and Attorneys’ Fees (Franchise Agreement and Area Development Agreement):  amount will vary under circumstances

  • Due Date:  As incurred.
  • You must pay Zoup! on demand all costs and expenses it incurs to enforce your obligations under the Franchise Agreement or Area Development Agreement, including reasonable attorneys’ fees and arbitration and court costs.

18.  Relocation Fee:  $7,500

  • Due Date:  At the time of request for approval of a new location.
  • If you relocate your franchise.

19.  Liquidated Damages for Non-Compliance with Operating Standards:  $250 to $2,500 per
occurrence, depending on the nature of the non-compliance

  • Due Date:  Within 10 days of demand.
  • If you deviate from the Zoup! operating standards.

20.  Liquidated Damages for Interfering with Employment Relations of Others:  $2,500 per employee

  • Due Date:  Within 10 days of demand.
  • If you hire, without consent, an individual who is or was, during the prior one-year period, an employee of Zoup! or its affiliates or another franchisee.


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