About Supreme Deli Franchise
Supreme Deli's South Dakota operation brings the brand's fresh deli concept to markets throughout the state.
The franchise focuses on prepared food products and deli style meals, catering to consumers who want quality, convenient meal options.
With franchising operations beginning in 2022, the brand is building its presence in underserved markets.
Supreme Deli Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | up to $50,000 | One-time payment upon signing |
| Royalty Fee | 5 – 25% of weekly Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Maximum – 1.0% of Gross Sales | National brand fund |
| Total Investment Range | $27,975 – $288,125 | Includes build-out, inventory, working capital |
The investment range of $28K–$288K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5 – 25% of weekly Gross Sales) and marketing fee (Maximum – 1.0% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $5,000 | $50,000 |
| Kitchen Equipment and Supplies | $3,000 | $15,000 |
| Initial Inventory (First Month) | $4,050 | $40,500 |
| Training | $1,720 | $1,720 |
| Additional Funds Post-Opening (first 3 months) | $14,200 | $179,900 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 plus an amount necessary to reimburse us for our out-of-pocket expenses. |
| Renewal Fee | $500 and $6,500 |
| Hosting Fee | 15 – 35% of weekly Gross Sales |
| Management Fee | greater of $200 or 1% of the prior biweekly period’s Gross Sales |
| Inventory Order Processing Fee | $50 per order, as applicable |
| Supplemental Marketing Programs | Maximum – 1.0% of Gross Sales |
| Replacement and Supplemental Training | Currently, $5,000, plus costs of your personnel attending training. |
| Offering Review Fee | Franchise/Capital Raise – $5,000 |
| Late Charge and Interest | Late Charge: 5% of the amount due late charge for each delinquent payment. Interest Rate: the lesser of 18% per annum or maximum legal rate from the due date thereof. |
| Early Termination Fee | $10,000 |
| Indemnification | Will vary depending on loss |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | two weeks |
| Classroom Training | 20 hours |
| On-the-Job Training | 60 hours |
| Training Location | Training Facilities (throughout the U.S.) |
| Additional Training | Franchisor may require personnel to attend supplemental training programs for a fee, plus costs for travel, lodging, and meals. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | You will not receive an exclusive territory. You may face competition from other franchisees, from Deli Kiosks or other outlets that we own, or from other channels of distribution or competitive brands that we control. The Franchise Agreement does not grant any territorial rights, radius restrictions, or minimum population requirements. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | one (1) year |
| Renewal Term | one-year Term |
| Renewal Fee | $500 and $6,500 |
| Renewal Conditions | Franchisee must not be in default, satisfy all monetary obligations, execute a general release, and comply with current qualification and training requirements. A new franchise agreement, potentially with different terms and higher fees, may be required. |
| Transfer Fee | not to exceed $20,000, plus reasonable costs and expenses |
| Transfer Conditions | Franchisee must pay all accrued monetary obligations, not be in default, execute a general release, and remain liable for pre-transfer obligations. The proposed transferee must assume all obligations, meet franchisor criteria, complete training, and sign the then-current franchise agreement. If an entity, its owners must guarantee performance and comply with Article 6 representations and warranties. |
| Termination for Cause | Breach of any material and essential obligation or condition of the Franchise Agreement, including but not limited to abandonment, loss of business rights, unfavorable conduct, health/safety violations, misuse of marks, unauthorized subfranchise agreements, failure to pay amounts owed, or failure to open the Deli Kiosk within 30 days. |
| Non-Compete Period | During the Term, and for two (2) years after termination/expiration of the Franchise Agreement, or one (1) year after an individual ceases to be a Franchisee's Owner. |
| Non-Compete Details | During the term, Franchisee, Owners, and employees/managers are prohibited from diverting business to competitors or having any interest in a competitive deli kiosk/restaurant business. Post-termination/expiration, for two years (or one year for former Owners), they are prohibited from similar activities within the United States. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Managing Owner must own the largest percentage share of ownership (at least 10%), be authorized to bind the franchisee, direct actions for compliance, and, unless an Operating Partner is appointed, devote full time and best efforts to the Deli Kiosk operations without other management commitments. Both Managing Owner and Operating Partner must satisfy training requirements. |
| Required Suppliers | You must purchase all equipment, food inventory, packaging, labels, utensils and other supplies used or offered for sale at the Deli Kiosk solely from us, the Host Location, a local deli distributor, or a supplier previously approved by us in writing. |
| Supply Restrictions | Franchisor may withhold approval of any supplier in its sole discretion. All bread products must be supplied by Franchisor; all deli products (meats and cheeses) from an approved local deli distributor; and produce and miscellaneous food items (condiments) directly from the Host Location. |
| Franchisor Revenue from Suppliers | SSS recognized revenue of $1,596,635 from services, product sales and billed shipping of product to Supreme Deli and Supreme Produce franchisees in 2024, representing 2.10% of total revenue ($76,053,112). |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Franchisor does not provide standard financing and financing terms. However, Franchisor may, in its sole discretion, advance franchisees supplies, inventory, materials, and other items during the first eight (8) weeks of operations. These advancements are then applied to amounts owed by the Franchisor to the Franchisee. During the initial eight weeks, franchisees may experience delays in receiving funds from sales, and funds may be insufficient for full operations due to payment mechanics between the Host Location, Franchisor, and franchisee. |
Supreme Deli Franchise Earnings — Item 19
Supreme Deli 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.
Supreme Deli 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.
Supreme Deli System Growth
Supreme Deli currently operates 31 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 11 | 0 | 12 |
| 2023 | 18 | 15 | 27 |
| 2024 | 19 | 9 | 34 |
Transfers: 0 | Closures: 24
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 Forvis Mazars, LLP for year ending December 29, 2024.
Supreme Deli Franchise — FAQ
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