About Freshii Franchise
Freshii is a fast casual restaurant franchise specializing in healthy meals including salads, soups, bowls, wraps, burritos, smoothies, and frozen yogurt.
Franchising since 2008 under Freshii Inc., the brand has established itself as a go to destination for health conscious diners looking for fresh, nutritious, and convenient meal options.
The initial franchise fee is $30,000.
Freshii Franchise Cost & Fees
Minimum Investment
$169K
Average Investment
$378K
Maximum Investment
$586K
| 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 | Up to 3% of Gross Sales (currently 1.5%) | National brand fund |
| Total Investment Range | $169,000 – $586,000 | Includes build-out, inventory, working capital |
The investment range of $169K–$586K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (Up to 3% of Gross Sales (currently 1.5%)) 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 |
| Travel & Living Expenses While Training (2) | $10,000 | $25,000 |
| Marketing Deposit For Grand Opening | $10,000 | $10,000 |
| Real Estate/3 Months’ Rent (3) | $10,000 | $30,000 |
| Security Deposit (3) | $0 | $15,000 |
| Construction, Remodeling, Leasehold Improvements And Decorating Costs (4) | $50,000 | $300,000 |
| Furniture, Fixtures, Other Fixed Assets And Equipment (5) | $30,000 | $100,000 |
| Signage (Interior And Exterior) | $3,000 | $15,000 |
| Opening Inventory And Supplies | $5,000 | $10,000 |
| Insurance | $5,000 | $15,000 |
| Licenses And Permits | $1,000 | $3,000 |
| Miscellaneous Opening Costs (6) | $0 | $10,000 |
| Professional Fees | $3,500 | $10,000 |
| Initial Training Fee and opening assistance | $1,500 | $3,000 |
| Additional Funds – 3 Months (7) | $10,000 | $60,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | Our then current standard initial franchise fee |
| Technology Fee | Varies by service, including one-time fees (e.g., $250 OLO Activation, $7,422 Oracle hardware, $99 First Data setup) and monthly fees (e.g., $0.18 OLO per transaction, $45 OLO fixed, $47 HQ Pinnacle, $55 Level Up, $55 Restaurant365, $10 First Data account, $45 Eigen, $208.45 Pinnacle IP, $36 UR Channel, $30 Stingray). |
| Audit Fee | Cost of audit (Health and Safety Audit, Other Audit) |
| Local Marketing | 1.5% of Gross Sales |
| Ongoing Training And Special Assistance | Currently $500 per person, per week plus out-of-pocket costs and expenses, but could increase if our costs increase |
| New Product/Supplier Testing | Our good faith estimate of evaluation costs |
| Insurance | Premiums and our costs and expenses |
| Relocation | Reasonable costs we incur |
| Late Payment Fee | 1.5% of overdue amount(s) per month |
| Management Fee | 10% of Gross Sales while we manage Restaurant plus direct out-of-pocket costs and expenses |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Liquidated Damages | Will vary under the circumstances |
| Food Safety Restaurant Inspection | $197 Quarterly if the approved supplier determines that your Restaurant fails the inspection and we (or the approved supplier) determine that a re-audit is required. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | At least 4 weeks |
| Classroom Training | 20 |
| On-the-Job Training | 120 |
| Training Location | Virtual training from Freshii HQ in Toronto, Ontario, Canada; On-the-job training at an Applicable Coach Store. |
| Additional Training | Franchisor may require participation in additional or supplemental training, including programs for third and subsequent Freshii Restaurants, with associated fees. Ongoing training, development courses, assessments, and materials are provided online through Communitii and Freshii University. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | A radius of 5 city blocks in urban areas, or up to a 2-mile radius in suburban areas. |
| Description | The Development Area or Designated Territory is defined using streets or other natural boundaries, or city/county boundaries. It may vary based on market conditions, number of restaurants to be developed, demographics, and site availability. The franchisor retains the right to operate or authorize others to operate Freshii Restaurants at Non-Traditional Locations within the territory and outside the territory, and to offer products/services through other distribution channels, including grocery stores, mail order, and the Internet. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10-year term |
| Renewal Fee | Our then current standard initial franchise fee |
| Renewal Conditions | To renew, the franchisee must give timely notice (90-180 days before expiration), comply with all obligations during the initial term, and either remodel/upgrade the Restaurant to current new Freshii Restaurant standards or relocate to a franchisor-approved site and construct a new Restaurant. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Transferee must qualify, not be in a competitive business, complete training, sign a general release (if state law allows), and pay the transfer fee. The franchisor must approve the transfer, and may impose other reasonable conditions, including subordination of transferor financing to franchisor obligations. |
| Termination for Cause | The franchisor may terminate the agreement for various causes, including material misrepresentation, failure to complete mandatory training, repeated development defaults (2 in successive periods or 3 during term), felony conviction, dishonest/unethical/illegal conduct, unauthorized transfer, termination of other agreements, breach of non-compete, unauthorized use of confidential information, repeated failures to comply with obligations (3 in 12 months or 2 in 6 months/3 in 36 months), insolvency/bankruptcy, failure to pay amounts due, or failure to correct other defaults within 30 days. |
| Non-Compete Period | 2 years |
| Non-Compete Details | Upon termination or expiration, for 2 years, the franchisee (and owners/immediate family) may not have any direct or indirect interest in, or perform services for, a competitive business within the Development Area/Territory or within 3 miles of any other Freshii Restaurant. This restriction also applies after transfers. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | For Area Development Agreements, the 'Operating Partner' must own at least 5% of the ownership interests in the developer and devote at least 40 hours per week to the business. For Franchise Agreements, a fully-qualified 'General Manager' must be appointed, meet franchisor standards, complete training, and devote at least 40 hours per week (5 days per week) to on-premises supervision of the Restaurant. |
| Required Suppliers | Franchisees are required to use the Freshii customer experience platform (currently the only approved supplier). They must purchase furniture, fixtures, foodservice equipment, food items, beverages, printed marketing materials, uniforms, digital menu boards, construction materials, and software from designated or approved suppliers. Specific required systems include Oracle point of sale, Eigen for transactional terminals, First Data payment processing, Pinnacle IP Solutions for internet/phone/fax/security software, UR Channel for digital menu boards, Kill the 8 for uniforms, Stingray for music (currently optional), and Restaurant365 for inventory management. LevelUp loyalty platform and Maegan systems for menu management are also required. |
| Supply Restrictions | Franchisees must purchase all furniture, fixtures, foodservice equipment, food items, beverages, printed marketing materials, uniforms, digital menu boards, construction materials, and software for the Restaurant only from designated or approved suppliers. Any products or services not yet evaluated or from unapproved suppliers must be submitted for franchisor approval, which may involve evaluation costs and inspection of facilities. The franchisor reserves the right to limit the number of approved suppliers or designate exclusive sources. |
| Franchisor Revenue from Suppliers | The franchisor itself did not earn any rebates from franchisee purchases in 2021. However, its Parent company earned $335,183 in rebates, representing 8% of its total revenues of $4,247,744, from franchisee purchases of required and approved items from suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease, or obligation. |
Freshii Franchise Earnings — Item 19
Freshii does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Freshii 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.
Freshii Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Freshii System Growth
Total Units
64
Franchised
64
Company-Owned
0
Freshii currently operates 64 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 | 19 | 21 | 121 |
| 2020 | 1 | 35 | 87 |
| 2021 | 0 | 23 | 64 |
Transfers: 7 | Closures: 79
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$2K
Net Income
$620
Total Assets
$9K
Audited by PricewaterhouseCoopers LLP for year ending Last Sunday of December.
Freshii Franchise — FAQ
The total investment to open a Freshii franchise ranges from $169,000 to $586,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Freshii charges a royalty fee of 6% of Gross Sales of gross sales, plus a Up to 3% of Gross Sales (currently 1.5%) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Freshii Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Freshii to ensure you have the most up-to-date version.
Freshii does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Freshii has been franchising since 2008. The FDD shows an investment range of $169,000-$586,000, a 6% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000 and the total investment ranges from $169,000 to $586,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Freshii and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Freshii or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com