In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Candy Cloud franchise, based on Item 7 of the company’s 2024 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Candy Cloud franchise, based on Items 5 and 6 of the company’s 2024 FDD
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.Section III – Number of franchised and company-owned Candy Cloud outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD
Section IV – News updates on the Candy Cloud franchise opportunity
Section V – Presentation and analysis of Candy Cloud’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:
- September 1, 2022 to August 31, 2023 gross revenue, cost of goods sold, gross profit, operating expenses, franchisee fees, and net income for the one affiliate-owned Candy Cloud outlet that was open and operating during the reporting period
Section VI – Key ratios, comparables, computations, and analyses for the Candy Cloud franchise opportunity (exclusive content for Platinum subscribers)
Section I – Candy Cloud Franchise Costs
- Candy Cloud franchise costs, based on Item 7 of the company’s 2024 FDD:
- Initial Franchise Fee: $40,000
- Leasehold Improvements: $150,000 to $275,000
- Lease Deposits: $4,000 to $20,000
- Rent (3 months): $8,000 to $30,000
- Utilities (3 months): $2,100 to $2,700
- Utility Deposit: $0 to $900
- Architect and Engineer Fees: $7,000 to $15,000
- Design Service: $2,500 to $3,000
- Furniture and Fixtures: $3,000 to $15,000
- Equipment: $100,000 to $135,000
- Computer Equipment: $10,000 to $13,000
- Software (3 months): $1,800
- Internal System Fee (3 months): $600
- Miscellaneous Equipment and Supplies: $3,500 to $4,000
- Accounting Service (3 months): $1,000 to $1,500
- Signage: $8,000 to $20,000
- Smallware: $4,000 to $6,000
- Initial Inventory: $10,000 to $15,000
- Insurance: $2,100 to $2,850
- Your Training Expenses (transportation, lodging, and meals): $5,000 to $7,000
- Grand Opening Marketing Campaign: $8,000
- Professional Fees: $3,000 to $6,000
- Business Permits and Licenses: $500 to $2,000
- Additional Funds (3 months): $15,000 to $20,000
- Total Estimated Candy Cloud Franchise Costs: $389,100 to $644,350
Section II – Candy Cloud’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Candy Cloud’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:
- Initial Franchise Fee: $40,000
- Continuing Royalty Fee: 6% of weekly Gross Revenue
- Brand Fund Contribution: up to 4% of weekly Gross Revenue. The current Brand Fund Contribution is 2% of weekly Gross Revenue.
- Required Minimum Expenditure for Local Marketing and Advertising: no minimum current required spend after the initial $8,000 grand opening marketing campaign is paid to Candy Cloud; maximum of 2% of the average Gross Revenue per territory per month annually
Section III – Number of Franchised and Company-Owned Candy Cloud Outlets
Franchised
2021
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2022
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2023
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
Company-Owned
2021
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 1
2022
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 1
- Net Change: +1
2023
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 1
- Net Change: 0
*Company-owned outlets are operated by affiliated entities.
Section IV – News Updates on the Candy Cloud Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Candy Cloud Franchise (Item 19, 2024 FDD)
- Candy Cloud has one outlet that is owned and operated by an affiliate. This unit has been in operation since March 2022 in Rockford, Illinois.
- The below historical financial performance representations include the Royalty and Brand Fund Contribution that a franchisee-operated outlet would be expected to pay. Candy Cloud has included the financial representations for this outlet from September 1, 2022 through August 31, 2023.
- The reasonable basis for inclusion of this Financial Performance Representation is the affiliate-owned outlet is similar to the franchise being offered under the Disclosure Document in terms of operations and product offerings. There are no material financial or operational characteristics of the below affiliate-owned outlet that are reasonably anticipated to differ materially from future franchise outlet operations.
- “Gross Revenue” includes all revenues and income from any source derived or received by the affiliate-owned outlet, including but not limited to, any and all other revenues received using Candy Cloud’s methods, operations, and/or trade secrets whether received in cash, in services, in kind, from barter and/or exchange, on credit (whether or not payment is actually received), or otherwise.
- Some outlets have earned these amounts. Your individual results may differ. There is no assurance you will earn as much.
Candy Cloud Rockford (September 1, 2022 through August 31, 2023)
Gross Revenue: $1,604,285.00 (100.0%)
Cost of Goods Sold
- Cost of Goods Sold: $465,416.02 (29.0%)
- Square Fees: $47,464.20 (3.0%)
- Wages & Salaries: $412,035.31 (25.7%)
- Total Cost of Goods Sold: $924,915.53 (57.7%)
Gross Profit: $679,369.47 (42.3%)
Operating Expenses
- Business License & Fees: $2,007.00 (0.1%)
- Dues & Subscriptions: $996.14 (0.1%)
- Insurance: $3,115.64 (0.2%)
- Office Expenses: $12,520.22 (0.8%)
- Payroll Tax Expense: $47,299.84 (2.9%)
- Professional Fees: $28,914.21 (1.8%)
- Rent Expense: $40,565.06 (2.5%)
- Repairs & Maintenance: $10,525.27 (0.7%)
- Small Equipment: $8,835.42 (0.6%)
- Utilities: $24,790.07 (1.5%)
- Total Operating Expenses: $179,568.87 (11.2%)
Operating Income: $499,800.60 (31.2%)
Franchisee Fees
- Assumed Franchisee Royalty Fee (6%): $96,257.10 (6.0%)
- Marketing Fund Fee (2%): $32,085.70 (2.0%)
Net Income: $371,457.80 (23.2%)
Section VI – Candy Cloud Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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