Frios Gourmet Pops Franchise Costs, Fees & Owner Salary (2023)

Frios Gourmet Pops, established in 2013, is a company that crafts hand-made, gourmet frozen pops using fresh and local ingredients. They initiated their franchising operations in 2015.

Frios Gourmet Pops is based in Gadsden, Alabama, and emphasizes a community-centric approach, often engaging with local events and organizations. The franchise is celebrated for its hand-poured gourmet popsicles made from fresh, high-quality ingredients, setting it apart from traditional frozen treats. Frios offers a wide variety of flavors to cater to diverse tastes and dietary preferences, appealing to both children and adults. This focus on quality and inclusivity has helped Frios carve out a niche in the competitive frozen dessert market.

Frios operates through a unique mobile model, using vibrant, tie-dyed vans known as "Sweet Rides" to sell its popsicles at various locations and events. This flexibility allows franchisees to tap into different markets and customer bases, providing a distinct advantage over traditional brick-and-mortar establishments. The mobility of the business model is complemented by comprehensive training and support for franchisees, ensuring they have the tools and knowledge to thrive.

The Frios franchise model emphasizes community engagement and customer experience, making the act of purchasing a Frios pop a memorable event. This approach, combined with the brand's commitment to quality and innovation, has contributed to Frios Gourmet Pops' growing popularity across the United States.

Initial Franchise Fee

The Initial Franchise Fee is $20,500, payable upon execution of the Franchise Agreement. This fee is fully earned and non-refundable once paid.

Royalty Fee

The Royalty Fee is $400 per month, starting from the first month of the Start of Business. The franchisor reserves the right to increase this fee by up to 10% per calendar year with 30 days' prior notice.

Advertising Fund Contribution

The Advertising Fund Contribution is $125 per month, starting the first month after the Effective Date of the Franchise Agreement. The franchisor may adjust this fee up to $200 per month or change the contribution requirements with 30 days' prior notice.

Transfer Fee

In the event of a Transfer of the Franchise Agreement or Franchised Business, a Transfer Fee of $5,000 is payable.

Successor Franchise Fee

For renewing the franchise, the Successor Franchise Fee is $3,500, payable at or near the time of renewal.

Additional Training Fee

If additional training is provided, the franchisor charges the current per diem rate or $500 per person per day, whichever is greater. Franchisees are also responsible for any travel and living expenses related to the training.

The franchisor provides a comprehensive training program for franchisees, which includes both virtual classroom training and in-person training sessions. The training program is designed to cover various aspects essential for operating the Franchised Business successfully. Topics include advertising and promotional strategies, purchasing procedures, inventory management, revenue streams, and customer service. The initial training includes 10 hours of virtual classroom training and 20 hours of in-person training, which takes place at the franchisor's headquarters or another specified location.

Franchisees are required to ensure their employees are trained to the franchisor's satisfaction before they start working for the Franchised Business. If there are any changes in the franchisee's management or key personnel, the franchisee must enroll a qualified replacement in the franchisor's training program within 30 days. This replacement must attend and satisfactorily complete the training program.

The franchisor may also require franchisees, their Operating Principal, Managers, and employees to attend additional courses, seminars, annual conferences, and other training programs. While the franchisor encourages attendance at these additional training sessions, they reserve the right to mandate attendance and charge a fee for these sessions. This ongoing training is aimed at keeping franchisees updated on the latest operational practices, marketing strategies, and product offerings to maintain the brand's standards and customer service quality.

The franchisor provides franchisees with a designated territory, but it is not exclusive. While franchisees have the right to operate their franchised business within this designated territory, the franchisor reserves several rights that could impact the exclusivity of the territory. Specifically, the franchisor retains the right to:

• Advertise and market the system both within and outside the designated territory.
• Develop Frios Businesses outside of the franchisee's designated territory.
• Develop other frozen dessert business concepts under different brand names, even within the franchisee's designated territory.
• Sell or authorize others to sell similar products through alternative channels of distribution, including but not limited to grocery stores, convenience stores, retail outlets, the internet, and other forms of electronic commerce, potentially competing with the franchisee's business.

While franchisees are prohibited from operating their franchised business outside their designated territory without prior written approval from the franchisor, the franchisor's reserved rights mean that the franchisee's territory protection is limited.

The franchisor emphasizes active involvement in the operation of the franchised business. Specifically, the business must be supervised by the franchisee or, in the case of a corporate entity, a designated Operating Principal who must own at least 51% of the voting and ownership interest in the franchisee entity.

If the franchisee or the Operating Principal is not directly involved in day-to-day operations, a Manager who meets the franchisor's qualifications and has completed the Initial Training Program must be designated.

This structure suggests that the franchisor expects hands-on management from the franchisee or a closely associated Operating Principal or Manager, which implies that purely passive investment opportunities might not be aligned with the franchisor's operational model.