About Popbar Franchise
Popbar is a quick-serve franchise concept specializing in handcrafted gelato, sorbetto, and yogurt served on a stick, made from superior, all-natural ingredients.
Franchisees also offer coffee, hot chocolate, milkshakes, hot and cold drinks, dessert items, and other complementary products.
The shops serve the general public through dine-in and take-out service, and with franchisor approval, may also offer delivery service.
Popbar Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales (ADF) plus 1% of Gross Sales (Local Advertising) | National brand fund |
| Total Investment Range | $217,000 – $458,400 | Includes build-out, inventory, working capital |
The investment range of $217K–$458K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (2% of Gross Sales (ADF) plus 1% of Gross Sales (Local Advertising)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Rent - 3 Months | $9,000 | $30,000 |
| Security Deposits | $6,000 | $30,000 |
| Leasehold Improvements, Furniture | $60,000 | $120,000 |
| Equipment | $70,000 | $100,000 |
| POS Computer System | $1,000 | $3,000 |
| Insurance - 3 Months | $1,500 | $4,500 |
| Permits and Licenses | $1,000 | $5,000 |
| Initial Inventory | $10,000 | $30,000 |
| Shipping Costs for Proprietary Product Mixes | $1,000 | $2,400 |
| Signage, Facade | $3,000 | $20,000 |
| Grand Opening Advertising | $2,500 | $5,000 |
| Layouts | $3,000 | $13,000 |
| Layout Review Fee | $1,000 | $1,500 |
| Travel Expenses for Training | $1,000 | $4,000 |
| Professional Fees | $2,000 | $5,000 |
| Additional Funds | $10,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $35,000 |
| Renewal Fee | $20,000 (Successor Agreement Fee) |
| Technology Fee | $165 to $500 per month (Computer Software and Technology, Support, and Upgrades) |
| Audit Fee | Cost of audit (if understated by 2% or more) |
| Cooperative Advertising | Up to 2% of Gross Sales |
| Software License Fee | Up to $165 to $300 per POS system per month |
| Website Fee | Not to exceed $100 |
| Management Fee | $400 per person per day plus costs and expenses |
| Inspection and Testing | $1,500 |
| Non-Compliance Fee | $250 per violation |
| Proprietary Materials Non-Return Fee | $5,000 per equipment |
| Records Deficiency Fee | $250 per violation |
| Non-Approved Opening | $500 per day |
| Prohibited Product or Service Fine | $250 per day of use |
| On-line Ordering | $50 monthly |
| ServSafe Certification | $150 per person |
| Gift and Loyalty Cards | $1.00 - $2.00 per gift card/package |
| Annual Convention | $500 plus expenses |
| Interest | 1.5% per month |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 6 hours classroom and 14 hours on-the-job training |
| Classroom Training | 6 hours |
| On-the-Job Training | 14 hours |
| Training Location | Franchisor Store (on-the-job) and Franchisor Corporate Office (orientation/classroom) |
| Additional Training | Up to 7 days on-site pre-opening and opening training; additional on-site training available at $100/hour plus expenses; periodic refresher training programs and annual convention may be mandatory |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Maximum five-mile radius in suburban areas; smaller in urban areas |
| Description | Franchise Agreement specifies an Accepted Location and may specify a Territory. Franchisor reserves the right not to grant a Territory for non-traditional sites or major metropolitan locations. During the term, franchisor will not establish or license another person to establish a Shop in the Territory. However, franchisee will not receive an exclusive territory and may face competition from other franchisees, company outlets, or other channels of distribution. Franchisor retains broad rights to sell products through alternative distribution channels within and outside the Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $20,000 (Successor Agreement Fee) |
| Renewal Conditions | Must provide notice 12 to 18 months before expiration; must be current in all payments and not in default; may need to renovate and/or upgrade equipment; must sign release, sign successor Franchise Agreement and pay successor agreement fee; may be asked to sign materially different terms |
| Transfer Fee | $35,000 |
| Transfer Conditions | Must pay all amounts due, not be in default, sign a general release, pay transfer fee; transferee must meet franchisor criteria, attend training, and sign current Franchise Agreement; franchisor has 30-day right of first refusal |
| Termination for Cause | Curable defaults include failure to pay within 5 days, failure to obtain signed confidentiality/non-compete covenants within 5 days, failure to maintain insurance within 7 days, unauthorized use of Marks (24 hours to cure), other defaults within 30 days. Non-curable defaults include insolvency, bankruptcy, selling unauthorized products, failure to acquire location or open Shop, felony conviction, unauthorized transfer, false books/records, reverse engineering proprietary recipes/machinery. |
| Non-Compete Period | 2 years |
| Non-Compete Details | Prohibited for 2 years from expiration or termination from operating or having an interest in a similar business within 10 miles of any Shop in the System |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee must designate a General Manager who must be responsible for supervision and management of the Shop full time. Franchisor recommends but does not require the franchisee to be the General Manager. Even if franchisee hires a General Manager, franchisee must still be involved in the daily operation of the Shop. General Manager may be required to own at least 10% interest in the franchise entity. |
| Required Suppliers | Franchisor is the approved supplier for production machinery, storage drawers, display showcases, Proprietary Product mixes, and other ingredients. All food, beverage, equipment, and supplies must be obtained from approved suppliers. |
| Supply Restrictions | Approximately 66% to 73% of total purchases for establishing the Shop and 85% to 95% of continuing operation purchases must come from franchisor or approved suppliers. Unapproved supplier approval requires written request plus $1,500 fee. |
| Franchisor Revenue from Suppliers | Franchisor did not earn revenue from sales to franchisees in fiscal year ended December 31, 2021. Affiliate received $451,545 in revenue from required purchases of production machinery, storage, drawers, display showcases, Proprietary Product mixes and other ingredients. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Popbar does not offer, either directly or indirectly, any financing arrangements. They do not guarantee notes, leases or other obligations. |
Popbar Franchise Earnings — Item 19
Popbar 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.
Popbar 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.
Popbar System Growth
Popbar currently operates 20 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 6 | 1 | 24 |
| 2020 | 2 | 6 | 20 |
| 2021 | 2 | 1 | 21 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 9 states: AZ, CA, FL, GA, LA, NJ, NC, TX, NY
Franchisor Financials (Item 21)
Audited by Ira D. Ganzfried, CPA, P.C. for year ending December 31.
Popbar Franchise — FAQ
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