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

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

• Section II – Estimated initial investment for a Saladworks franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Saladworks franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned Saladworks outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Saladworks’ financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 average square footage and average, median, highest, and lowest net sales for the 76 Saladworks franchised restaurants that were open and operating during Saladworks’ entire 2020 fiscal year, grouped by location type

• 2020 average square footage and average, median, highest, and lowest net sales for the 76 Saladworks franchised restaurants that were open and operating during Saladworks’ entire 2020 fiscal year, grouped by quartile

Section I – Background Information

16 Things You Need to Know About the Saladworks Franchise

Parent Company Forms WOWorks and Acquires Two New Brands

1.  In late December 2020, the parent company of Saladworks acquired Garbanzo Mediterranean Fresh, the leading fast-casual Mediterranean restaurant brand in America, and Frutta Bowls, a unique fast-casual concept serving a variety of superfood bowls, fresh fruit smoothies, oatmeal bowls, and more. These three brands will share a common core DNA under the new holding company WOWorks, which exists not only to sate appetites but to serve as healthy, nutritious, and flavorful fuel so guests can pursue their passions and live their best lives.

2.  Garbanzo Mediterranean Fresh is a fast-casual staple across the United States with its authentic, nutrient-rich dishes inspired by tradition, but not bound by it. Every order is customized to the guest’s liking, with choices from top-quality meats and plant-based proteins to authentic laffa wraps and perfect, pillowy pitas baked in-house throughout the day.

3.  Frutta Bowls is a fast-casual trend-setter centering around a unique menu that is made fresh-to-order with no sweeteners, no juices, and no fillers added. Frutta Bowl signatures include all-natural acai, pitaya, and kale bowls with a broad array of both healthy and indulgent toppings.

4.  The Saladworks team will take over both brands’ infrastructure and operations in its quest to drive explosive growth. James Park, then-CEO of Garbanzo, will stay on following the acquisition as special advisor to the CEO.

5.  According to Kelly Roddy, CEO of Saladworks as well as the new portfolio of brands within the WOWorks enterprise, fully owned by Centre Lane Partners, LLC, “Today, we welcome both Garbanzo Mediterranean Fresh and Frutta Bowls to the WOWorks family. Like Saladworks, we believe Garbanzo and Frutta Bowls are complementary brands – all sharing a core DNA based upon fresh, flavorful and healthy food along with a heart for hospitality served through convenient business channels, which appeals to our Millennial family and Gen Z guests. We are excited to leverage the appeal of these unique and differentiated brands – along with the added size, scale and shared resources – to benefit all stakeholders including our team members, guests, business partners and communities.”

6.  James Park, then-CEO of Garbanzo, said, “Garbanzo has a favorable path for growth post-pandemic and I’m looking forward to working alongside the new holding company WOWorks to ensure a smooth transition. Our brand and franchisees will benefit from the tremendous new resources this team can bring to continue the growth and prosperity of Garbanzo.”

7.  All brands within WOWorks are strategically positioned to turn industry headwinds into tailwinds based upon their intersection of four key macro growth trends:

• Demographics – Millennials and GenZ comprising over 60% of the U.S. population.
• Psychographics – A shared mindset valuing personalization, customization, self-expression, and connection.
• Lifestyle – Viewing “food as fuel” as guests seek out healthy, nutritious, and satisfying dining options and experiences to support their healthy, active lifestyle.
• Convenience – Desiring convenience as provided by traditional and non-traditional segments of the foodservice industry, which include but are not limited to dine-in, carryout, online ordering, curbside pick-up, delivery, ghost kitchens, food trucks, virtual brands, and stores within grocery retailers, airports, hospitals, and military bases.

8.  Despite the challenges that COVID-19 has thrown its way, Saladworks came out of 2020 a stronger brand, with the acquisitions and formation of WOWorks. In 2020, Saladworks grew by more than 40 restaurant locations, entering new markets such as Canada, California, Tennessee, Rhode Island, Ohio, Florida, and Indiana. Roughly 80% of these openings mark non-traditional presences, i.e. ghost kitchens, food trucks, grocery retail, hospitals, and universities, as the brand continues to flex its muscles as an industry disruptor.

Saladworks and Sister Brand Frutta Bowls Partner with Combo Kitchen

9.  In mid-April 2021, Saladworks’ parent company WOWorks announced a partnership with Combo Kitchen between Saladworks and its sister brand Frutta Bowls. Combo Kitchen is a franchise system that allows entrepreneurs to invest in a ghost kitchen and operate multiple food concepts listed in its network. Initially formed in October of 2020 before Frutta Bowls became part of the family, the partnership recently brought the first Combo Kitchen incorporating a Saladworks to Miami, FL on April 10.

10.  As a ghost kitchen company that utilizes well-recognized restaurant brands as opposed to virtual brands, Combo Kitchen sought these two WOWorks restaurants because of their long-established, widely-known presences. Combo Kitchen has found that while customers enjoy trying new brands, they’re more reluctant to order online without access to customer reviews, established social media pages, or other forms of consumer feedback that virtual brands inherently lack. Saladworks and Frutta Bowls are well-recognized restaurants and industry leaders in their sector, and Combo Kitchen intends to help expand these brands even further.

11.  This partnership allows Combo Kitchen franchisees to add Saladworks or Frutta Bowls into their restaurant and operate as a ghost kitchen. Operators benefit by generating additional revenue with the incorporation of a proven concept, while maintaining or even reducing their standard restaurant expenses.

12.  Combo Kitchen CEO Hossein Kasmai said, “What’s powerful about this partnership is its mutual benefit for all parties involved. Our unique ghost kitchen model calls for proven brands, which Saladworks and Frutta Bowls exemplify. Saladworks and Frutta Bowls can experience exponential growth while Combo Kitchen handles all franchise sales, royalty collections and other operational responsibilities. Restaurant operators boost their revenue with the incorporation of a recognized and established brand, while consumers can take advantage of new flavors being brought to their area. We continue to enjoy working with the Saladworks and Frutta Bowls team to redefine the norm for the restaurant industry.”

Company History

13.  Saladworks was founded in 1985 by John Scardapane at the Cherry Hill Mall in Cherry Hill, New Jersey. Scaradapane, who was a gourmet chef at a country club before starting Saladworks, came up with the concept because he wanted to offer people a healthier alternative to traditional fast food. At the time, there weren’t many healthy food options in malls around the U.S. Scardapane felt that fresh, made-to-order personal salads were the perfect healthy option for people on the go.

14.  The first Saladworks was a success and Scardapane opened a dozen additional locations around New Jersey and Pennsylvania. Over the next few decades, Saladworks continued to grow and franchising started in 2001. By the end of the decade, there were nearly 100 Saladworks locations around the eastern part of the U.S.

15.  Despite its previous success, Saladworks filed a Chapter 11 bankruptcy petition in 2015, and listed Commerce Bank and Metro Bank founder Vernon Hill as a major creditor. The chain was then acquired by Centre Lane Partners. Under Centre Lane Partners, a new CEO was appointed and Scardapane left the company. The whole brand also underwent a makeover, which included menu changes, updated store designs, and new branding. Today, there are Saladworks locations in 18 states, Canada, Dubai, and Singapore.

Entrepreneur’s Franchise 500

16.  Saladworks did not rank on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of Saladworks franchise costs, based on Item 7 of the company’s 2021 FDD.

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

• Detailed information on Saladworks’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  85
• Outlets at the End of the Year:  84
• Net Change:  -1

2019

• Outlets at the Start of the Year:  84
• Outlets at the End of the Year:  84
• Net Change:  0

2020

• Outlets at the Start of the Year:  84
• Outlets at the End of the Year:  85
• Net Change:  +1

Company-Owned

2018

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  6
• Net Change:  +5

2019

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  6
• Net Change:  0

2020

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  8
• Net Change:  +2

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• This Item contains a historic financial performance representation about Saladworks’ existing franchised outlets in 2020. As of September 27, 2020, Saladworks had 84 franchised outlets, of which 76 had been open and operating during Saladworks’ entire 2020 fiscal year (September 30, 2019 to September 27, 2020).

• The data used in preparing this financial performance representation was compiled from information submitted to Saladworks by the franchisees in their unaudited sales reports for their franchised restaurants.

• While Saladworks believes that these sales reports contain accurate information, Saladworks has not independently verified the information.

Part 1 – Net Sales Data of 76 Saladworks Franchised Restaurants in 2020, by Location Type

• Franchisees operated 76 Saladworks restaurants during the entire 2020 fiscal year. Of those restaurants, 67 were at standard locations that were normally open 7 days a week during typical operating hours, and 9 were enclosed mall locations. Because of COVID-19, some of these locations were temporarily closed during the pandemic.

• In response to the changing retail landscape, Saladworks no longer offers franchises for the development of Saladworks restaurants in enclosed shopping malls.

Mall

• Number of Stores:  9
• Average Square Footage:  801
• Average Month Opened:  9.3
• Average Net Sales:  $607,185
• Median Net Sales:  $684,798
• Highest Net Sales:  $1,055,690
• Lowest Net Sales:  $313,906

Pad Site

• Number of Stores:  4
• Average Square Footage:  2,987
• Average Month Opened:  11.8
• Average Net Sales:  $810,741
• Median Net Sales:  $813,375
• Highest Net Sales:  $1,136,042
• Lowest Net Sales:  $490,707

Strip Malls

• Number of Stores:  58
• Average Square Footage:  2,478
• Average Month Opened:  11.8
• Average Net Sales:  $667,224
• Median Net Sales:  $801,384
• Highest Net Sales:  $1,400,448
• Lowest Net Sales:  $202,319

All Others

• Number of Stores:  5
• Average Square Footage:  1,059
• Average Month Opened:  11.8
• Average Net Sales:  $450,134
• Median Net Sales:  $550,483
• Highest Net Sales:  $778,889
• Lowest Net Sales:  $322,077

Part 2 – Net Sales Data of 76 Saladworks Franchised Restaurants in 2020, by Quartile

Top 25%

• Number of Stores:  19
• Average Square Footage:  2,500
• Average Month Opened:  11.8
• Average Net Sales:  $964,736
• Median Net Sales:  $1,117,884
• Highest Net Sales:  $1,400,446
• Lowest Net Sales:  $835,321

Quartile 2

• Number of Stores:  19
• Average Square Footage:  2,416
• Average Month Opened:  11.7
• Average Net Sales:  $747,468
• Median Net Sales:  $787,643
• Highest Net Sales:  $827,817
• Lowest Net Sales:  $747,468

Quartile 3

• Number of Stores:  19
• Average Square Footage:  2,329
• Average Month Opened:  11.3
• Average Net Sales:  $538,524
• Median Net Sales:  $556,857
• Highest Net Sales:  $651,007
• Lowest Net Sales:  $462,707

Bottom 25%

• Number of Stores:  19
• Average Square Footage:  1,670
• Average Month Opened:  10.8
• Average Net Sales:  $369,905
• Median Net Sales:  $329,899
• Highest Net Sales:  $457,479
• Lowest Net Sales:  $202,319

• Net Sales means the full amount payable by the franchisees’ customers, less sales taxes, discounts, and honored coupons.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

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