If you are considering a Nékter Juice Bar franchise, don’t get blindsided by these 28 important franchise fees (from the initial franchise fee, to the royalty fee, to 26 other fees found in Items 5 and 6 of Nékter Juice Bar’s 2018 FDD).
1. Initial Franchise Fee: $25,000 to $35,000
- When you sign the Franchise Agreement, you will pay Nékter an initial franchise fee.
- Your initial franchise fee for a single Store is $35,000.
- If you are entering into a Multi-Store Development Agreement, the initial franchise fee for the first Store you develop will be $35,000, the initial franchise fee for the second Store you develop will be $30,000, and the initial franchise fee for each additional Store you develop will be $25,000.
2. Area Development Fee: $35,000 for your first Store, plus 50% of the initial franchise fee for each additional Store to be developed
- If Nékter grants you multi-store development rights, you will sign an Area Development Agreement. On execution of the Area Development Agreement, you will pay Nékter an area development fee equal to $35,000 for your first Store, plus 50% of the initial franchise fee for each additional Store to be developed.
- As Franchise Agreements are signed under the Area Development Agreement, Nékter will issue you development credits toward satisfaction of the initial franchise fees due under those agreements.
- For the first Franchise Agreement signed, you will receive a development credit equal to 100% of the initial franchise fee. For the second and each additional Franchise Agreement signed, you will receive a development credit equal to 50% of the locked-in initial franchise fee.
3. Skoop Equipment Purchase: $15,000
- As NJB is the exclusive supplier of the equipment necessary to offer the Skoop non-dairy frozen product for juice and smoothie stores in the United States, you must purchase this equipment from NJB directly.
- The cost of this equipment is currently $15,000, is uniform for all franchisees, and is nonrefundable.
4. Royalty Fee: 6% of Gross Sales
- Due Date: Weekly, cleared on Thursday of each week for sales from Monday to Sunday of prior week.
5. Marketing Fee: 2% of Gross Sales
- Due Date: Weekly, cleared on Thursday of each week for sales from Monday to Sunday of prior week.
6. Local Marketing Expenditure: 2% of Gross Sales
- Due Date: As incurred.
- You will spend at least 2% of Gross Sales each calendar quarter on approved local marketing and advertising activities.
7. POS System: currently, $100 to $200 per month for monthly license fee and $25 per month for technical support
- Due Date: At time of purchase or billing.
- Monthly license fee payable to supplier. Technical support fee payable to Nékter.
8. Store Music, Gift Card and Customer Loyalty Program, and Online Ordering: currently, $140 to $185 per month
- Due Date: At time of billing.
- Payable to suppliers.
9. Intranet: currently, $0
- Due Date: Periodically, as determined.
- If or when implemented, the intranet will contain pertinent documents, manuals, and instructional material for the operation of a Nékter Juice Bar Store.
10. Additional Training: currently, $300 per person per day
- Due Date: Before training begins.
- Nékter has the right to charge for additional training provided, including: (i) initial training provided to persons repeating or replacing a person who did not pass initial training; (ii) initial training for subsequent trainees; and (iii) periodic additional training Nékter may provide or require, including its annual convention.
- Required additional training may be applicable in cases of default and/or failure to pass inspections.
- You are responsible for the travel, lodging, and dining costs, wages, and other expenses incurred by your trainees.
11. Additional Assistance: currently, $300 per trainer per day, plus Nékter’s related travel, lodging, and dining costs
- Due Date: Before assistance.
- Payable if Nékter provides requested or required consulting services in person at your Store location or at a place other than its offices.
- Required additional assistance may be applicable in cases of default and/or failure to pass inspections.
12. Transfer Fee (payable if you are an individual transferring to a business entity for convenience of operation): varies
- Due Date: Before transfer.
- Nékter does not charge a fee if the transfer of the Franchised Business is from an individual to a business entity for convenience of operation; however, you must reimburse Nékter for its related costs and expenditures.
13. Transfer Fee (payable if your owners are transferring among themselves or transferring a minority ownership interest to one or more third parties): $2,500
- Due Date: Before transfer.
14. Transfer Fee (payable if you are assigning your interest in the Franchise Agreement, transferring all or substantially all of the assets of the Franchised Business, or your owners are transferring a controlling interest): 50% of then-current initial franchise fee if transferring to an existing Nékter Juice Bar franchisee; 75% of then-current initial franchise fee if transferring to a new franchisee to the System
- Due Date: Before transfer.
15. Relocation Fee: 50% off initial franchise fee
- Due Date: Before relocation.
- This is to compensate Nékter for services related to assistance rendered reviewing, accepting, and establishing the new Store location.
16. Late Charge: currently, Late Fee of $100 per overdue payment and interest of 18% per annum from the date due
- Due Date: Upon demand.
- Payable only on overdue amounts.
- Interest cannot exceed the maximum allowed by law.
17. Audit: cost of audit
- Due Date: Upon demand.
- For accounting audits, only if audit shows an understatement of 2% or more.
18. Renewal Fee: $5,000
- Due Date: Before renewal.
19. Supplier Review: Nékter’s reasonable costs and expenses for inspecting the supplier and/or testing the proposed equipment, including personnel and travel, lodging, and dining costs
- Due Date: On demand.
- Payable if you wish to offer or use any supplies or equipment that Nékter has not approved or to purchase from a supplier that Nékter has not approved, whether or not Nékter approves the item or supplier.
20. Mystery Shopper Programs: actual costs, estimated at $150 per month
- Due Date: As invoiced.
- Payable if Nékter requires you to participate in a mystery shop program.
21. Quality Assurance Audit Program: actual costs, estimated at $300 per calendar quarter
- Due Date: As invoiced.
- Payable if Nékter engages a third party to perform periodic quality assurance audits.
22. Reimbursement of Monies Paid by Nékter on Your Behalf: varies with circumstances
- Due Date: On demand.
- Covers cost of insurance and other payments you fail to make and which Nékter makes on your behalf.
23. Re-Inspection Fee: currently, Nékter’s reasonable expenses incurred in inspecting your Franchised Business, including travel, lodging, and meals, and compensation for its representatives
- Due Date: On demand.
- Payable if inspection is necessitated by a repeated or continuing failure to comply with any provision of the Franchise Agreement.
24. Remedial Expenses: Nékter’s reasonable expenses incurred in correcting your operational deficiencies
- Due Date: On demand
- If Nékter gives you notice of deficiencies it identifies during an inspection and you fail to correct the deficiencies in a reasonable time, it may correct the deficiencies at your expense.
25. Costs, Expenses, and Attorneys’ Fees: varies with circumstances
- Due Date: On demand.
- You must reimburse Nékter for its expenses in enforcing or terminating any agreements between it and you, including any Franchise Agreement.
26. Indemnification: varies with circumstances
- Due Date: On demand.
- You must reimburse and pay Nékter’s attorneys’ fee with respect to any and all losses and expenses incurred by it arising or resulting from your operation of the Store.
27. Holdover Period: 150% of the Royalty Fee and Marketing Fee due in the Franchise Agreement
- Due Date: Weekly
- If the Franchise Agreement expires and you continue to operate the Store after expiration:
- (a) either party may terminate the relationship at any time, for any reason, or no reason by providing written notice; and
- (b) the Royalty Fee and Marketing Fee during any holdover period will be 150% of the original amounts due under the Franchise Agreement.
28. Liquidated Damages: (i) your average weekly Royalty Fee plus your average weekly Marketing Fee due for the last 52 weeks (or, if less, the period the Store has been open before your termination); (ii) multiplied by the lesser of 156 or the number of weeks remaining in the then-current Term of the Franchise Agreement; and (iii) discounted to present value
- Due Date: On demand.
- Payable only if you prematurely close the Franchised Business or if Nékter terminates the Franchise Agreement on account of your material breach.
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