About Fluffy Fluffy Franchise
Fluffy Fluffy, operating under the Fuwa Brands banner, is a specialty dessert franchise offering Japanese style soufflé pancakes, ice cream, and other sweet treats.
The brand has been franchising since 2022, bringing a distinctive and visually appealing dessert concept to shopping centers and street front locations across North America.
The initial franchise fee is $30,000.
Fluffy Fluffy Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000.00 | One-time payment upon signing |
| Royalty Fee | 6% of monthly Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | A minimum of 1% of monthly Gross Revenue (local marketing) and 3% of monthly Gross Revenue (Brand Fund Contribution) | National brand fund |
| Total Investment Range | $183,200 – $491,600 | Includes build-out, inventory, working capital |
The investment range of $183K–$492K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of monthly Gross Revenue) and marketing fee (A minimum of 1% of monthly Gross Revenue (local marketing) and 3% of monthly Gross Revenue (Brand Fund Contribution)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Your Training Expenses | $2,000 | $7,000 |
| Lease & Utilities deposits | $0 | $45,000 |
| Architectural Plans | $8,000 | $15,000 |
| Leasehold Improvements, Construction and/or Remodeling | $45,000 | $170,000 |
| Furniture, Fixtures and Equipment | $40,000 | $100,000 |
| Signage | $5,000 | $15,000 |
| Business Licenses and Permits | $1,500 | $3,000 |
| POS | $1,500 | $3,000 |
| POS Subscription | $0 | $0 |
| Security Systems | $1,000 | $4,000 |
| Initial Inventory | $15,000 | $20,000 |
| Professional Fees | $3,000 | $5,000 |
| Grand Opening Advertising | $10,000 | $10,000 |
| Insurance | $400 | $3,500 |
| Office Supplies | $100 | $2,000 |
| Cleaning Supplies | $100 | $5,000 |
| Warehouse Rental | $0 | $3,500 |
| Operating Expenses / Additional Funds – 3 months | $20,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then current initial franchise fee |
| Renewal Fee | 50% of the then current initial franchise fee |
| Technology Fee | $250 per month |
| Audit Fee | Actual cost of examination plus related expenses |
| Late Charge | $250 |
| Interest Charge | 6% per month from due date, or maximum allowed by law |
| Non-Sufficient Funds Fee | $50 |
| Additional Training | $300.00 per person per day |
| Remedial Training Fee | $300.00 per person per day, plus travel and other expenses |
| Interim Management Support Fee | $500 per day, plus travel and other expenses |
| Evaluation Fee | Actual cost of inspection and testing of a proposed item or vendor |
| Quality Review Services | Not currently assessed |
| POS/Software/Applications Fees | Varies |
| Indemnification | Amount of loss or damages plus costs |
| Reimbursement of Cost and Expenses for Non-compliance | Actual costs and expenses |
| Reimbursement of legal fees and expenses | Our costs and expenses, including but not limited to attorneys’ fees |
| Confidential Operating Manual Replacement Fee | $100, or our then current fee |
| Insurance | Amount paid by us for your insurance obligations |
| Taxes | Amount of taxes |
| Non-Compliance Fee | $2,000 per occurrence |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 4 weeks |
| Classroom Training | 33 hours |
| On-the-Job Training | 163 hours |
| Training Location | At an Fuwa Fuwa outlet in Toronto, Ontario, operated by one of our affiliates, and/or at another affiliate-owned or franchised-owned outlet. |
| Additional Training | Mandatory or optional additional training programs may be offered from time to time, up to three days per year, at a designated location. Fees and travel expenses apply. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Limited protected territory |
| Exclusive Territory | No |
| Territory Size | Single location within a territory |
| Description | The territory will be defined and attached to the Franchise Agreement as Exhibit B, Attachment 3. The document states Attachment 3 is blank for this. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | One additional term of 5 years |
| Renewal Fee | 50% of the then current initial franchise fee |
| Renewal Conditions | Full compliance with agreements, no more than three defaults during current term, written notice six months prior to term end, execution of new franchise agreement, payment of renewal fee, right to occupy premises or approved relocation, remodeling, general release, compliance with current qualifications and training. |
| Transfer Fee | 50% of the then current initial franchise fee |
| Transfer Conditions | Franchisor's consent (not unreasonably withheld), transferee meets franchisor's standards (demeanor, character, experience, financial resources), transferee completes initial management training, all amounts owed to franchisor and third-party creditors paid, transferee executes franchisor's then-standard franchise agreement (without initial franchise fee), franchisee and transferee execute general release, franchisee subordinates claims against transferee, franchisee indemnifies franchisor for 3 years, franchisor approves material terms, landlord's consent to lease assignment. |
| Termination for Cause | Franchisor may terminate for various defaults, including insolvency, bankruptcy, failure to acquire/open site within required time, falsifying reports, ceasing operations for 5+ days, loss of premises, failure to restore business, non-compliance with laws/regulations, understatement of Gross Revenue (2+ times), violation of transfer provisions, misrepresentation, felony conviction, unauthorized use of intellectual property, non-compliance with non-compete covenants, insufficient funds (2+ times), or other agreement defaults. Some defaults are curable within 5 days, others are non-curable. |
| Non-Compete Period | 24 months after termination or expiration of the Franchise Agreement |
| Non-Compete Details | During the term of the agreement, franchisee and principals may not divert business to competitors, participate in similar restaurant/eatery businesses, or act prejudicially to the goodwill of the System. After termination/expiration, for 24 months, they may not divert business or participate in similar restaurant/eatery businesses within 10 miles of their former location or any other Fuwa Fuwa location, or act prejudicially to the System. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The franchisee is not required to personally supervise the Fuwa Fuwa outlet, but it must be directly supervised by a general manager. The general manager can be the franchisee or an approved appointee, must complete initial management training, devote full time to the job, and cannot have an interest or business relationship with competitors. |
| Required Suppliers | Franchisee must purchase employees’ and manager’s uniforms, pancake mixes, dry goods, and paper goods, branded merchandise, dry goods, and certain ingredients directly from Fuwa Operations, Inc. (an affiliate). All other equipment, fixtures, furnishings, ingredients, supplies, and services must be purchased from designated suppliers or in accordance with franchisor specifications. |
| Supply Restrictions | Franchisor maintains written lists of approved items and designated suppliers. Franchisee must request written approval for unapproved items/suppliers, which may involve inspection and testing at franchisee's cost. Approval may be revoked if standards are not met. |
| Franchisor Revenue from Suppliers | No revenue received from required purchases by franchisees for the fiscal year ending December 31, 2021. Franchisor may receive rebates or discounts from other suppliers in the future and keep them. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee any note, lease, or obligation on your behalf. |
Fluffy Fluffy Franchise Earnings — Item 19
Fluffy Fluffy does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Fluffy Fluffy Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Fluffy Fluffy System Growth
Fluffy Fluffy currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 0 |
| 2020 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Moscato Certified Public Accountants for year ending December 31.
Fluffy Fluffy Franchise — FAQ
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