About Food Systems Unlimited Franchise
Food Systems Unlimited is a food service franchise that has been in the franchise space since 2005.
The company works within the institutional and commercial food service sector, offering a business model centered on food preparation and distribution for various dining environments.
The franchise fee is $30,000.
Food Systems Unlimited Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently 0% Maximum 1% of Gross Sales | National brand fund |
| Total Investment Range | $826,000 – $1,490,900 | Includes build-out, inventory, working capital |
The investment range of $826K–$1.5M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (Currently 0% Maximum 1% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (1) | $30,000 | $30,000 |
| Leasehold Improvements (2) | $600,000 | $1,000,000 |
| Sublease Acquisition Fee (3) | $0 | $15,000 |
| Lease Payments and other rental expenses (4) | $15,000 | $50,000 |
| Equipment (5) | $100,000 | $200,000 |
| Imported Italian Tile (5) | $4,500 | $4,500 |
| Signage (6) | $5,500 | $9,000 |
| Initial Inventory (7) | $8,000 | $10,000 |
| Architectural/ Engineering (8) | $25,000 | $100,000 |
| Electronic Cash Register System with Modem (9) | $7,000 | $10,000 |
| Initial Access to Monitoring Software (9) | $400 | $400 |
| Facsimile machine (10) | $350 | $500 |
| Travel, lodging and meals for initial training (11) | $1,500 | $2,500 |
| Business Supplies (stationery, business cards, brochures, presentation folders, paper and other materials (12) | $1,000 | $1,500 |
| Business licenses, permits, etc. (for first year) (13) | $250 | $1,000 |
| Insurance deposits and premiums (for first year) (14) | $2,500 | $6,500 |
| Additional Funds (15) | $25,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $7,500 or 25% of Our then current initial franchise fee |
| Renewal Fee | $15,000 or 50% of the then-current franchise fee |
| Technology Fee | $150 to $300 (annual software updates) |
| Audit Fee | Cost of audit |
| Local Advertising | 1% of Gross Sales |
| Advertising Cooperative | As determined by the members, up to 1% of Gross Sales |
| Promotional Materials | $500 to $5,000 |
| Interest | 18% or highest rate allowed by applicable law |
| Initial Training of additional or replacement and successor personnel | $1,500 per person |
| Certification Fee | Current per diem $500 |
| Additional Assistance | Current per diem $500 |
| Public Offering | $5,000 |
| Support Fee | $50 per week |
| Site Evaluation | $500 per visit, plus Our expenses |
| Inspection and Testing | Cost of inspection or testing, not to exceed $500 |
| Late Payment or Reporting Fee | $50 per day |
| Extension Fee | $5,000 |
| Manual Replacement Fee | $1,000 |
| Common Area Maintenance Charges (“CAM Charges”) | The actual amount You pay under the lease will vary |
| Key Money | $25,000 to $200,000 |
| Default Resolution Fee | $50 per day |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | two weeks |
| Classroom Training | 0 hours |
| On-the-Job Training | 80 hours |
| Training Location | Longwood, Florida |
| Additional Training | Initial training for additional personnel costs $1,500 per person. Remedial training requested by franchisee costs $500 per diem plus expenses. If a replacement General Manager is not trained/certified, a support fee of $50 per week is charged. Mandatory additional training programs/seminars are provided without fee, but travel/lodging/meals/wages are at your expense. Optional additional training programs/seminars may incur a fee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Generally 550 to 850 square feet for food court units, or 800 to 1,500 square feet for in-line spaces in shopping malls with approximately 800,000 square feet or more. Size varies depending on local market conditions and number of Restaurants to be developed. |
| Description | The Assigned Area is generally the contiguous property controlled by the landlord where the Restaurant is located (e.g., a shopping mall). For non-traditional areas (airports, hospitals, universities, etc.), the Assigned Area is limited to the specific physical space occupied by the Restaurant. The franchisor and its affiliates may advertise and promote the System in the Assigned Area and may operate restaurants under different marks or through other distribution channels within the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years; Term continues for the term of the Master Lease |
| Renewal Term | one (1) additional term of ten (10) years |
| Renewal Fee | $15,000 or 50% of the then-current franchise fee |
| Renewal Conditions | You must give 24 months' notice, repair and update equipment and premises, not be in breach of any agreement, execute a lease directly with the landlord, have the right to remain in possession, pay the successor agreement fee, sign current agreement and general release, and comply with current qualification and training requirements. |
| Transfer Fee | $7,500 or 25% of Our then current initial franchise fee |
| Transfer Conditions | You must obtain Our consent, pay all amounts due, not be in default, sign a general release, and pay a transfer fee. The transferee must meet Our criteria, attend training, and sign the current Franchise Agreement. |
| Termination for Cause | Termination for cause can occur for various defaults, including: failure to pay monies owed within 5 days of notice, failure to obtain confidentiality/non-competition signatures within 5 days, failure to maintain required insurance within 7 days, unauthorized use of Marks not cured within 24 hours, or other curable defaults not cured within 30 days. Non-curable defaults include insolvency, bankruptcy, outstanding judgments, selling unauthorized products, failure to acquire/remodel/open a restaurant as required, abandonment, or conviction of a felony/crime affecting the System. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise agreement and for two (2) years after its expiration or termination, you and your principals are prohibited from operating or having an interest in a similar business (including Asian cuisine restaurants) within a 50-mile radius of any Food Systems Restaurant in existence or under construction. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must designate and retain an 'Operating Principal' who will devote substantial full-time and best efforts to the supervision and performance of the Restaurant. If you are an individual, you will be the Operating Principal. If you are a corporate entity, the Operating Principal must be one of your Principals and hold an ownership interest in your entity. You must also retain a 'General Manager' responsible for daily operations, who must meet franchisor's criteria and training requirements and devote full-time efforts. |
| Required Suppliers | You must purchase Tyson Orange Chicken. We are the only approved supplier of imported Italian tile and the Software for restaurant operation. We are also an approved supplier of Business Supplies (stationery, business cards, brochures, presentation folders, paper, and other materials). Coca-Cola® is the only approved soft drink product. |
| Supply Restrictions | You must purchase or lease and install all required fixtures, furnishings, equipment (including electronic cash registers, computer hardware and software), decor items, signs, and related items conforming to Our standards and specifications, or obtain Our written consent for substitutions. You must maintain sufficient supply and use/sell only food and beverage items, ingredients, products, materials, and paper goods meeting Our standards. All menu items must be prepared according to Our recipes and procedures. You must sell only expressly approved menu items, products, and services, and discontinue any We disapprove. Unapproved suppliers require written request and approval, including potential inspection and testing at your cost. |
| Franchisor Revenue from Suppliers | $412,238 or 1.39% of total revenues of $29,555,850 (for fiscal year ended December 31, 2023) from required purchases or leases, including the Coca Cola arrangement. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer any financing arrangements or guarantee your obligations. However, we offer the option to sublease locations to you. If you choose a subleased location, you must sign a Sublease Agreement with us, which is subject to the terms of our Master Lease with the landlord. You must reimburse us for costs incurred in acquiring the location, including real estate consulting and legal fees, and pay an additional month of security. You will pay rent and other sums directly to the Master Lessor. |
Food Systems Unlimited Franchise Earnings — Item 19
Food Systems Unlimited 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.
Food Systems Unlimited 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.
Food Systems Unlimited System Growth
Food Systems Unlimited currently operates 45 franchised locations and 7 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 2 | 3 | 63 |
| 2022 | 2 | 8 | 55 |
| 2023 | 0 | 3 | 52 |
Transfers: 2 | Closures: 14
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Audited by Moss, Krusick & Associates, LLC for year ending December 31.
Food Systems Unlimited Franchise — FAQ
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