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

• Section I – Background information on the Maui Wowi franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Maui Wowi franchise, based on Item 7 of the company’s 2018 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Maui Wowi franchise, based on Items 5 and 6 of the company’s 2018 FDD

• Section IV – Number of franchised and company-owned Maui Wowi outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD

• Section V – Presentation and analysis of Maui Wowi’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:

• 2017 average and median gross sales for the top 20%, bottom 20%, and all 2,812 Maui Wowi events located in the United States in the last 12 consecutive months

Section I – Background Information

14 Things You Need to Know About the Maui Wowi Franchise

Announces Event Center Agreements

1.  At the start of 2018, Maui Wowi announced four partnerships at high-traffic venues in Alabama, California, Florida, and Texas. Through the partnerships, Maui Wowi opened new locations at various universities and stadiums in the aforementioned states.

2.  Mike Weinberger, brand president of Maui Wowi, said, “Whether you’re cheering on your favorite football team or taking in a concert, Maui Wowi will be a fixture at multi-purpose venues to satisfy customers. We are excited to announce these new deals in Alabama, California, Florida and Texas and know that people are going to continue to love our products at every event they attend.”

3.  Maui Wowi will now sell its products at Texas A&M University and the University of Central Florida. Franchisee Mark Rome will operate mobile carts at Kyle Field in College Station, Texas, while franchisee Sandro Steiner will serve Orlando customers at UCF’s Spectrum Stadium, CFE Arena, and the UCF Baseball Complex during sporting events and concerts. Maui Wowi will also offer premium Hawaiian coffee, as well as smoothies with alcohol at select event locations.

4.  Deals were also inked for the Birmingham Crossplex multi-venue sporting facility in Alabama and the SDCCU Stadium (formerly Qualcomm) in California. The Maui Wowi carts in Alabama and California will be run by franchisee Trenton Turner and franchisee Vinay Chadha, respectively.

Brings Back Fan Favorite Drink for the Summer

5.  Around the beginning of June 2018, Maui Wowi welcomed back its signature summer coffee drink, the Midnight Kona coffee. According to Maui Wowi, the brand chose to buck the trend of serving something lighter for the summer – Midnight Kona features a blend of Costa Rican and Kona coffee beans, which are a darker roast.

6.  Mike Weinberger, brand president of Maui Wowi, said, “Being able to offer our customers unique summer drinks they won’t find anywhere else is what inspired our dark summer brew. Our dark roast presents a rich, heavy body, countered with subtle hints of coriander and cinnamon that reflects the bold Hawaiian personality of Midnight Kona.”

Releases New Dairy-Free Smoothie

7.  In early April 2018, Maui Wowi launched its new dairy-free menu item, the Tropical Fruit Smoothie. The limited-time blend was made with dairy-free cream of coconut base and contained fruit juices and purees of pineapple, orange, and guava, plus natural mango and papaya flavors, and a fresh banana. The Tropical Fruit Smoothie was available at all brick and mortar Maui Wowi locations and participating event locations until August 31.

8.  Kate Unger, senior vice president of marketing for Maui Wowi, said, “We are thrilled to announce Tropical Fruit Smoothie as our very first creamy and totally dairy-free smoothie. While we have always offered our dairy-free Frozen Lemonade, this new blend offers customers the creaminess of a traditional smoothie without any of the dairy from yogurt. By using the coconut base, we are able to maintain a smooth texture, while keeping all the juicy fruit flavors intact.”

Company History

9.  Maui Wowi was founded in 1982 by Jeff and Jill Summerhays of Salt Lake City, Utah. The just-married Summerhays had spent their honeymoon in Hawaii and were inspired to start making and selling their own smoothies. Upon returning home, the Summerhays put their plan into action and started building a cart where they could prepare and sell smoothies. After spending some time researching exotic and native fruits, the Summerhays developed a line of all-natural fruit and non-fat yogurt smoothies.

10.  Over the next decade, the Summerhays continued to successfully operate Maui Wowi from their single cart. The Summerhays sold their smoothies across Utah and even did business while they traveled around the world. In 1997, Michael Haith, seasoned entrepreneur and food and beverage consultant, acquired a majority interest in Maui Wowi. Haith became CEO of Maui Wowi and was able to turn Maui Wowi into a national franchise.

11.  Maui Wowi grew rapidly after Haith took over as he offered franchisees the opportunity to operate their carts the same way that the Summerhays did – franchisees were allowed to take their carts anywhere and were only required to pay for the cart, equipment, and Maui Wowi proprietary drink mixes.

12.  In 2003, Maui Wowi expanded beyond smoothies and started offering Kona espresso, cappuccino drinks, and a line of blended coffees from Maui, Kona, Kauai, and Molokai. The following year, Maui Wowi opened its first international location. At the company’s peak in 2008, there were 400 Maui Wowi locations.

13.  In recent years, Maui Wowi has closed numerous franchises. Despite the closings, Maui Wowi was acquired in 2015 by Kahala Brands, which owns over 25 quick-service restaurant brands. Today, Maui Wowi continues to seek franchisees around the world.

Entrepreneur’s Franchise 500

14.  Maui Wowi did not rank on Entrepreneur’s 2018 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Maui Wowi franchise costs, based on Item 7 of the company’s 2018 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Maui Wowi’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

• Outlets at the Start of the Year:  200
• Outlets at the End of the Year:  175
• Net Change:  -25

2016

• Outlets at the Start of the Year:  175
• Outlets at the End of the Year:  170
• Net Change:  -5

2017

• Outlets at the Start of the Year:  170
• Outlets at the End of the Year:  160
• Net Change:  -10

Company-Owned

2015

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2016

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2017

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

• The average gross sales amounts contained in the table below pertain to the historic performance of all Maui Wowi events located in the United States in the last 12 consecutive months.

• All of the events measured share the following characteristics: (i) all are located in the United States; (ii) all use the same recipes; and (iii) all operate under the same trademarks.

• The information in the table is based upon gross sales of the events. Some stores had gross sales that exceeded the average gross sales. Maui Wowi is not representing that your event will meet or exceed the average gross sales.

• The figures in the table below should not be considered a representation of the probable gross sales you should expect or a forecast of future performance. Maui Wowi is not representing that your event will meet or exceed the average gross sales in the tables below. Your sales may differ from those in the tables below. There is no assurance that you will earn as much as the events listed in the tables.

• The tables and information below were prepared from sales reports provided to Maui Wowi by franchisees. Maui Wowi has not audited the information provided by the franchisees.

All Events