What will we do for you?

Training:

Our company-owned store is located in Highlands, North Carolina, and we offer training sessions, which give you the benefit of hands-on experience. These sessions can be coordinated with your schedule.

Topics we will discuss during training include:

  1. personnel
  2. administration
  3. operations
  4. advertising and customer service
  5. inventory control
  6. sanitation and safety.

We will provide you with a list of vendors, assist you in locating equipment, review and assist with shop location, floor plan, and store image.

We want you to be successful and we believe that the better we train you the better you will be able to serve your customers and avoid some of the trials and errors we experienced when first opening. We will gladly answer your questions and offer assistance as necessary.

Registered Name and Proprietary Equipment:

You have the right to use the registered SweeTreats name and logo to promote your business. The flavor maker/blending machines and cone bakers are made especially for SweeTreats. There is not one available "off the shelf" that will work properly without major modifications. You will be provided with two blending machines and two cone bakers to operate your business; however they remain the property of SweeTreats in the event you dissolve your business. We will be happy to assist you in locating other necessary equipment.

We will establish a non-compete area in which no other SweeTreats will be permitted to operate.

SWEETREATS INC. WILL PROVIDE

  1. Registered Name and Logo
  2. Blending Machines
  3. Cone Bakers and Cone Rolling System
  4. Dipping Freezers
  5. Assistance in locating additional equipment
  6. List of Vendors
  7. Training in store operations and procedures: This will include 5 days training at our SweeTreats store in Highlands and 5 days at your store location during your opening. We also offer on-going assistance as deemed necessary by both parties.
  8. Guidance in store location and floor plan
  9. Accounting assistance and guidelines
  10. Quality ice cream and yogurt at or below market price
  11. Annual visit and review of operations.

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What do we expect from you?

Most importantly we expect you to enjoy what you are doing. Successful franchisees look forward to operating their SweeTreats, meeting with and serving their customers.

We believe service is as important as the wonderful product we sell; therefore, we expect you and your employees to make every person that enters your store feel special. We expect everyone to go the extra mile to achieve 100% customer satisfaction.

Most businesses fail due to lack of operating capital, so we expect you to have adequate capital to carry the business through its early stages and during slumps. We expect you to pay vendors promptly and use good business sense in operating the business.

We expect you to contact us if you run into problems or have questions concerning operations. We can assist you with issues concerning employees, location of vendors, provide tips and shortcuts, and analyze your financial records to help you keep expenses in line.

We expect you to use your creativity and imagination. SweeTreats is always evolving. We come up with new ideas based on customer requests and employee ideas. Certain products sell better in one area than in another and you are encouraged to contact us to discuss ideas for new items.

We expect you to take pride in your struggles and successes, to enjoy your business, and to look forward to a bright future.

FRANCHISEE TO PROVIDE:

  1. Timely payment of franchise fees and royalties
    (Monthly Royalty 4%, Advertising Royalty 1%)
  2. Cost of advertising for opening and any additional on-going advertising
  3. Adequate financing to purchase equipment, product and supplies, and to maintain operations for a specified period of time.
  4. Hiring of Staff
  5. Product/Liability insurance as per agreement
  6. Additional requirements necessary to operation of store.

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Monthly Royalty 4%, Advertising Royalty 1%.

Investment Item

Estimated Low

Estimated High

Method of Payment

When Due

To Whom Payment is
to be Made

Initial Franchise Fee

$30,000

$30,000

Lump sum

When you sign the Franchise Agreement

Us. Non- refundable

Initial Equipment License Fee

$15,000

$15,000

Lump sum

When we deliver the equipment to your before you open the franchise

Us. Non- refundable

Leasehold Improvements

$35,000

$85,000

Varies

Before commencing operations

Approved suppliers or per specifications.
Non-refundable

Signs

$2,000

$6,000

Varies

Varies

Approved suppliers or per specifications.
Non-refundable.

Equipment, Furniture and Supplies

$29,500

$35,000

Varies

Varies

Approved suppliers or per specifications.
Non-refundable.

Initial Inventory

$3,000

$8,000

Varies

Varies

Us, our affiliates or our approved suppliers.
Non-refundable.

Start-Up Marketing

$1,000

$2,000

Varies

Shortly before and at the time operations commence

Media companies.
Non-refundable.

Insurance

$2,000

$3,000

Lump sum payment of first year premium

Prior to commencing operations

Insurance companies.
Non-refundable.

Lease Deposits

$2,000

$5,000

Lump sum

When you sign your lease

Landlord. A portion of the deposit may be refundable at the termination of the lease.

Other Deposits

$200

$500

Lump sum

When you engage the service

Utilities, banks/credit card companies, leased equipment vendors, alarm company, telephone company. Terms will vary.

Professional Fees

$1,000

$4,000

Varies

Varies

Accountants, lawyers, etc. Non-refundable.

Your Out-of-Pocket Initial Training Expenses

$200

$2,800

Varies

Varies

Airfare, ground transportation, meals, lodging, etc.
Non-refundable.

Licenses/Bonds

$100

$300

Lump sum on application

Prior to commencing operations

Government agencies and bonding companies.
Non-refundable.

Operating Cash (Additional Funds over next 3 months)

$15,000

$30,000

Varies

Varies over the next 3 months

Payroll, debt services, and cash to cover miscellaneous day-to-day expenses Non- refundable.

Total

$136,000

$225,600

Does not include real estate costs


Notes:

The expenses in this Item 7 are estimates of your initial investment in one location prior to beginning operations and for the first 3 months after opening. We cannot guarantee that you will not have additional expenses starting the business. Your costs will depend on how closely you follow the SWEETREATS® system standards, your management skill, experience and business acumen, local economic conditions, the acceptance by local consumers of our approved products and services, prevailing wage rates, competition, etc.

We've made no estimate regarding real estate acquisition costs. We do not require you to acquire real estate. We make no representation as to whether any of the estimated investment amounts are refundable. We relied upon our affiliate’s experience in operating a similar business to the franchise business in compiling these estimates. You should review these figures carefully with a business advisor before making any decision to purchase the franchise.

 

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