Happy & Healthy Products Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$90,000

-

$223,000

LOCATIONS

29

Emily

Updated

May 2, 2024

Is

Happy & Healthy Products

a franchise?

Yes,
Happy & Healthy Products
currently
accepts
franchise
applications

Happy & Healthy Products, Inc., epitomizes the fusion of taste and nutrition in its product range, setting a high standard in the snack and frozen novelties industry since its inception in 1991. Founded by Linda Kerr Kamm, the company was built on the principle that combining exceptional products with outstanding people and service would lead to success. Linda's vision was to create a product that was not only healthy but also catered to the taste preferences of health and weight-conscious adults, particularly women. 

This led to the development of their flagship product, Fruitfull® frozen fruit bars, which are crafted with real pieces of fruit and nutritious ingredients, distinguishing them from the typical sugar and water-based bars prevalent in the market.

Happy & Healthy Products has expanded its product line beyond the Fruitfull® frozen fruit bars to include a variety of cream bars and dairy-free options, ensuring there is something for everyone. The cream bars offer a creamy twist with flavors like Banana Cream, Piña Colada, and Coconut Cream, while the dairy-free bars maintain the brand's commitment to health with flavors such as Strawberry, Raspberry, and Mango​​.

The company's innovative approach to franchising allows for flexibility and autonomy among its franchisees, promoting a business model that does not require a storefront, retail hours, or extensive staffing, making it an attractive option for entrepreneurs looking to venture into the snack food industry. Happy & Healthy Products prides itself on being a top 50 Food Franchisor, recognized for its low franchise fees and award-winning products, with accolades such as "Best Snack of the Americas" at the Americas Food & Beverage Show​​.

How many

Happy & Healthy Products

franchises

are there?

In 2022, there were
29
outlets in
the United
States, of which
28
are franchises, and
1
are corporate-owned.

What are the

Happy & Healthy Products

franchise

fees?

Advertising fee

2.00%

Initial franchise fee

The classic Model Franchise Fee is $25,000 and the Premier Model is $50,000.

Advertising Fee

The advertising fee for the Classic Model is greater than $600 per year or 2% of last year's purchases; for the Premier Model, it's greater of $1,200 or 2%.

Additional Sales Assistance

Additional Sales Assistance is available for a fee of $6,500.

Transfer Fee

Transfer Fees range from $8,500 to $25,000, based on lead generation by the company. Renewal Fee

Renewal Fees are $1,000 for Classic and $2,500 for Premier Models. 

Technology Fee

The Technology Fee is currently $50 monthly for Classic and $100 for Premier Models, with a potential annual increase of up to $250. 

Conversion to Premier Franchised Business

Converting from a Classic to a Premier Franchised Business requires an additional $35,000 fee.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Happy & Healthy Products

franchise?

It costs between
$90,000
and
$223,000
to start a
Happy & Healthy Products
franchise.
Type of Expenditure Amount
Franchise Fee $25,000
Freezers $13,188 - $19,980
Chest Freezer $700 - $1,500
Snack Racks $1,200 - $1,800
Opening Inventory $22,482
Training $10,000
Office Rental $0 - $1,500
Cold Storage Rental $100 - $1,000
Vehicle Rent/Lease $0 - $3,000
Office Equipment $0 - $3,250
Shipping Costs $1,200 - $5,000
Insurance $300 - $1,500
Working Capital $1,000 - $10,000
Additional Funds for the First 3 Months $15,000
Total $90,170 - $121,012

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Happy & Healthy Products

provide

training

to its

franchisees?

Yes,
Happy & Healthy Products
provides
training

Happy & Healthy Products, Inc. provides a comprehensive training program for franchisees, designed to ensure they are fully equipped to operate their franchised business effectively. This training includes a range of support and educational components tailored to both Classic and Premier Franchised Business models.

Pre-Opening Obligations

The company offers the services of a marketing consultant for one or two weeks, depending on whether the franchisee has a Classic or Premier Franchised Business. This consultant provides training in the operation of an H&H Products franchised business within the franchisee's Market Service Area (MSA) and any surrounding areas agreed upon by the company. This training is part of the company's pre-opening obligations to franchisees.

Jumpstart Training Program

Happy & Healthy Products, Inc. conducts a 2-day Jumpstart training program for both Classic and Premier Franchised Business models. The program is scheduled to begin 6 to 8 weeks after the Franchise Agreement's effective date or once all initial fees have been paid in full, depending on the franchisee's schedule and the marketing consultant's availability. This program is mandatory, and franchisees must complete it to the company's satisfaction to operate their Franchised Business.

Does

Happy & Healthy Products

provides

territory

protection?

Happy & Healthy Products, Inc. does not provide franchisees with an exclusive territory. Franchisees may encounter competition from other franchisees, from outlets owned by the company, or from other distribution channels or competitive brands controlled by the company. Franchisees are granted the right to operate within a designated Metropolitan Statistical Area (MSA), which is detailed in Schedule 1 of the Franchise Agreement.

The company reserves the right to require relocation of the franchise from its current cold storage facility within the MSA if the location is deemed unreasonable, such as when it does not allow for timely service to significant accounts within the MSA. Other than this, the company does not approve the operation of the franchise from any specific cold storage facility.

The company also stipulates that it will not grant more than one Classic Franchised Business for every 100,000 residents or increment thereof within an MSA. For Premier Franchised Businesses allowed to sell to Premier Accounts, the company will not grant more than one for every 1,000,000 residents or increment thereof within an MSA.

Can a

Happy & Healthy Products

franchise

be run as

a passive

investment?

The Franchise Agreement for Happy & Heal specifies that franchisees, or an approved manager/employee if the franchisee is an entity, are required to be actively involved in the daily operations of their franchised business.

This stipulation is in place to ensure that the franchise operates in accordance with the franchisor's established standards and procedures, maintaining the quality and consistency expected of the brand.

Essentially, this means that the person running the franchise on a day-to-day basis must either be the franchisee themselves or an individual who has received approval from Happy & Heal, thereby ensuring that the franchise is managed by someone who is directly accountable and has a vested interest in the success of the business.

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