Do you want to open a smoothie bar business by buying Nrgize franchise? If YES, here is how much it cost to open Nrgize Lifestyle Cafe franchise successfully. If you are looking towards opening a Nrgize Lifestyle Cafe Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.
Nrgize Lifestyle Cafe was founded in 2006 and they began franchising in 2006, about 19 years ago. The current CEO is Stanley Ma and they have their corporate head office at 9311 E. Via De Ventura Scottsdale, AZ 85258. Presently, the company operates 80 franchises in the United States.
The franchisor is Kahala Franchising, L.L.C. and franchisees operate restaurants called NrGize Lifestyle Cafe which are located primarily in or near health clubs. The menu offers fruit smoothies, meal replacement shakes, juices, coffee, tea and breakfast items. Nrgize is part of Kahala, which franchises a number of other quick-service brands, including Cold Stone Creamery, Surf City Squeeze, TacoTime and Blimpie Subs & Salads.
Financial Investment Required to Open Nrgize Lifestyle Cafe Franchise
Here are areas where you are expected to spend money and the cost associated with it;
- Initial Franchise Fee: $5,600 to $30,000
- Lease Review Fee: $0 to $2,500
- Rent/Security Deposit (for 3 months): $6,000 to $30,000
- Travel and Living Expenses (2 persons) while training, not including salaries, if any, for franchisees and their employees: $2,500 to $5,000
- Real Estate: This fee Varies
- Architectural and Project Management Fees, Leasehold Improvements, Restaurant Equipment, Furniture and Small Wares, Interior and Exterior Signage, Menu Panels, Cameras, Computer Hardware and Software, Security Devices and Security Software, if applicable: $41,510 to $225,000
- PCI Compliance Costs: $150 to $1,300
- Opening Inventory (food and paper): $2,500 to $5,000
- Business Insurance: $1,000 to $5,000
- Miscellaneous Opening Costs: $4,750 to $15,500
- Grand Opening Marketing: $2,000 to $5,000
- Depository Account: $3,000 to $3,000
- Additional Funds – 3 months initial period: $5,000 to $15,000
- Royalty Fee and Surcharge – excluding NrGize Restaurants Located within LA Fitness Health Clubs: Royalty fee is the greater of the following: (i) 6 percent of total weekly Gross Sales or (ii) $150 per week. Surcharge is a maximum of $10 per week in addition to the royalty fee.
- Royalty Fee and Surcharge – for NrGize Restaurants Located within LA Fitness Health Clubs ONLY: The Royalty Fee is a flat fee that is determined on a per restaurant basis based upon the most current number of card swipes or “adjusted average number of daily member check-ins.” Surcharge is a maximum of $10 per week in addition to the royalty fee.
- Advertising Fees: Up to 4 percent of weekly gross sales.
- Additional Persons Training Fee: $1,250 per person ($500 per person for the in-store portion of the training program, and $750 per person for the new owner training portion of the training program).
- Additional Training Fee: $300 per person per day.
- Annual Meeting Registration Fee: Up to $1,000 plus incidental costs to attend.
- Monthly Service Fee Charged by LA Fitness (only applies to NrGize franchises located within an LA Fitness health club): Either $1,000 per month, increased annually by 3 percent compounded, or $1,250 per month, increased annually by 4 percent compounded, or the greater of: (1) $1,250 per month; or (2) 6 percent of monthly gross sales.
- Pre-Paid Monthly Service Fee Charged by LA Fitness and Collected in Advance by Kahala Holdings (only applies to NrGize franchises located within an LA Fitness health club): Either $12,000 or $15,000
- Depository Account: $3,000 (Must be replenished on a regular basis.)
- Data Fees: Up to $75 per month (Subject to reasonable annual and/or service enhancement increases.)
- POS Help Desk Phone Support Maintenance Contract Fee: $55 per month.
- Renewal Franchise Fee: 50 percent of then-current initial franchise fee.
- Transfer Fee – Traditional Locations: $7,500
- Transfer Fee – Non-Traditional Locations : $5,000
- Relocation Fee: $500
- Transfer Training Fee: $2,500 for two individuals ($500 for each additional individual).
- Document Administration Fee: $500
- Default Interest under the Franchise Agreement: $50 plus interest at 1.5 percent per month or maximum legal rate, if less.
- Interest and Late Fees under the Single-Unit Facility License Agreement (only applies to NrGize franchises located within an LA Fitness health club): Annual rate of 12 percent or the maximum interest rate permitted by applicable law. Any payments received 5 days or more after the due date may be assessed and additional fee equal to 10 percent of the original payment due plus 1 percent per day on the overdue amount.
- Late Report Fee: $100 per report.
- Collection Costs: All collection costs including reasonable attorneys’ fees.
- Non-Sufficient Funds: $50 for each electronic funds transfer returned for non-sufficient funds; $25 for each check or draft returned for non-sufficient funds.
- Audit: Cost of audit plus interest at Default Rate on underpayments or the maximum rate permissible by law.
- New Supplier Approval Fee: A charge not to exceed the reasonable cost of the inspection and the actual cost of the test not to exceed $5,000.
- Non-Participation Fee: $100 per day.
- Early Termination Fee: The average monthly royalty and advertising fees paid for any consecutive 12 month period within the preceding 48 month period multiplied by the number of months remaining in the term of the Franchise Agreement, and the product is divided by 2.
- Management Fee: 6 percent of the franchised business’ gross sales (in addition to the royalty fee and advertising fee) plus the franchisor’s direct out-of-pocket costs and expenses..
- Veteran Incentives: 25 percent off franchise fee
- Term of Agreement and Renewal: If franchisees are purchasing a new or existing restaurant, the term is (i) 10 years from the date the restaurant opens to the public if the franchisee owns the property, or enter into a lease directly with the landlord or other third party, or (ii) the term of the sublease if franchisees enter into a sublease with a Kahala Franchising affiliate excluding any extensions or renewal options. If the franchise is to be located within an LA Fitness health club: Term is the earlier of the following: (i) the five-year anniversary of the date of the Franchise Agreement; (ii) the expiration of the term of the single-unit facility license agreement for the premises of the franchised business; (iii) the termination or expiration of the Master Facility License Agreement; or (iv) the date that LA Fitness ceases operating a health club at the location where the franchised business is located. If franchisees are not in default and satisfy certain conditions, they may renew for a single renewal term of five years, with no further right to renew at the end of the renewal term. If the franchise is to be located within an LA Fitness health club: If franchisees are not in default and satisfy certain conditions, they may renew for the shorter of the following: (i) five years; or (ii) the term of the new single-unit facility license agreement for the premises of the franchised business.
- Financial Assistance: Nrgize Lifestyle Cafe does not offer any direct or indirect financing or financing arrangement, nor will it guaranty a franchisee’s obligations under any note or other obligation, except potentially for the lease for the franchisee’s site or if they purchase a restaurant corporate-owned “as-is” by one of the franchisor’s affiliates, and only in its sole and absolute discretion.
- Initial Investment: $57,910 – $341,050
- Net-worth Requirement: $250,000
- Liquid Cash Requirement: $100,000
- Ongoing Initial Franchise Fee: $7,500 – $30,000
- Ongoing Royalty Fee: 6 percent+
- Ad Royalty Fee: 0.5 percent