Rush Bowls Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$200,000

-

$545,000

LOCATIONS

38

Emily

Updated

May 2, 2024

Is

Rush Bowls

a franchise?

Yes,
Rush Bowls
currently
accepts
franchise
applications

Rush Bowls is a Colorado-based fast-casual franchise that offers all-natural smoothies, fruit bowls, and acai bowls, emphasizing health and nutrition. Their menu features up to 40 grams of protein and up to 5 servings of fruits and vegetables per bowl, catering to a wide range of dietary needs including vegetarian, vegan, wheat-free, nut-free, soy-free, dairy-free, and non-GMO options. The franchise prides itself on not adding any artificial sweeteners, additives, or preservatives to its products, making it a popular choice for health-conscious consumers.

Founded in Boulder, Colorado in 2004 by Andrew Pudalov, Rush Bowls began its franchising journey in 2016. The expansion reflects the brand's commitment to making nutritious food more accessible across the country and its dedication to health and happiness. Rush Bowls aims to continue this expansion, with plans to broaden its footprint in early 2024, furthering its mission to offer quick, nutritious food options in communities nationwide.

Most recently, Rush Bowls has expanded into the Northeast, with new locations opening in states like Massachusetts, marking a significant milestone in the brand's nationwide growth. This expansion not only allows Rush Bowls to reach new customers but also enables them to contribute to local charitable causes, highlighting their commitment to community engagement alongside their growth in the fast-casual industry.

How many

Rush Bowls

franchises

are there?

In 2022, there were
38
outlets in
the United
States, of which
36
are franchises, and
2
are corporate-owned.

What are the

Rush Bowls

franchise

fees?

Advertising fee

4.00%

Initial Franchise Fee

The Initial Franchise Fee is $39,000, payable in a lump sum when you sign your Franchise Agreement.

Royalty

Franchisees will pay a Royalty equal to the greater of 6% of the Gross Sales generated by the Franchisee's Restaurant during the preceding week or a Minimum Royalty Fee.

Technology Fee

A monthly Technology Fee of $100 may be required for website hosting, central telephone services, and future web-based system integration. This fee can be increased by up to $200 per month with 30 days' notice if updated or additional software or technology is offered.

Non-Compliance Fee

A $500 non-compliance fee per day per incident may be charged if the Franchisee fails to follow System standards, comply with the Agreement, or follow the Franchise Operations Manual.

Transfer Fee

If the Agreement is transferred to another person or Entity, or if any ownership interest in the Franchisee is transferred to a third party, a Transfer Fee of 30% of the then-current initial franchise fee will be charged, except for a Transfer to an existing franchisee of the Franchisor, which will be $4,000.

Management Fees

A Management Fee of $500 per day plus costs and expenses may be incurred as needed.

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

Rush Bowls

franchise?

It costs between
$200,000
and
$545,000
to start a
Rush Bowls
franchise.
Type of Expenditure Amount
Initial Franchise Fee $39,000
Leasehold Improvements and Rent – Three Months $70,000 - $325,000
Wages, Travel Expenses, and Living Expenses During Training $0 - $10,000
Furniture, Fixtures, Supplies, Décor, Inventory, and Equipment $48,000 - $90,000
Architectural and Engineering Fees $7,500 - $16,000
Signage $4,000 - $12,000
Point-of-Sale and Computer System $3,000 - $4,500
Licenses and Permits $1,000 - $5,000
Miscellaneous Site Development Fees $2,500 - $5,000
Grand Opening $3,000 - $6,500
Grand Opening Training Fee $6,000 - $6,000
Webpage Set Up Fee $1,000 - $1,000
Additional Funds – Three Months $15,000 - $25,000
Total $199,800 - $544,800

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

Rush Bowls

provide

training

to its

franchisees?

Yes,
Rush Bowls
provides
training

The franchisor has a detailed training program for its franchisees and their staff to establish and run successful Rush Bowls restaurants.

Initial Training Program

The franchisor provides an initial training program at no cost for up to two individuals, provided they attend the training simultaneously. For any additional participants, the franchisor charges a current fee of $500 per person. This training program must be completed to the franchisor's satisfaction before the franchisee's restaurant opens. All travel expenses, salaries, and benefits for attendees are the responsibility of the franchisee. No compensation or reimbursement is provided for participating in the training program.

Ongoing Training

The franchisor may require franchisees, their Operating Principals (if the franchisee is an entity), Designated Managers, and other employees to attend system-wide refresher or additional training courses periodically. These courses can be either optional or mandatory. In case of non-compliance or operational deficiencies identified during an inspection, remedial training may be required at the franchisee's expense. Franchisees can also request additional training, which the franchisor may provide at its discretion, with franchisees responsible for all associated costs.

Grand Opening Assistance

For the opening of the franchisee's restaurant, the franchisor provides on-site assistance covered by a $6,000 Grand Opening Training Fee, payable after the agreement's execution and before the 14-day period leading to the restaurant's opening. This fee includes up to five days of on-site assistance before and during the restaurant's opening, focusing on training the franchisee to operate in accordance with the System's standards. Any additional assistance or visits requested by the franchisee or deemed necessary by the franchisor incur extra charges.

Does

Rush Bowls

provides

territory

protection?

The franchisor offers territory protection for Rush Bowls franchises under certain conditions. According to the document, if the Area Developer is developing Rush Bowls Franchises in compliance with the terms of the Agreement, the Development Schedule, and each individual Franchise Agreement, Rush Bowls will not franchise or license others to, nor will itself directly or indirectly develop, own, lease, construct, or operate in any manner any Rush Bowls Franchises in the Development Territory during the term of the Agreement. 

However, Rush Bowls reserves all other rights, including, without limitation, the right to otherwise act in the manner permitted in any Franchise Agreement. This indicates that the franchisor provides a level of territorial protection to its franchisees, ensuring that no other Rush Bowls franchises are developed within their Development Territory as long as they adhere to the agreement terms.

Moreover, your Development Territory is described as an exclusive territory for the development of Rush Bowls Restaurants during the term of your Area Development Agreement, so long as you comply with your Area Development Agreement. This exclusivity grants you the right to open Rush Bowls Restaurants in your Development Territory if you follow the terms of your Area Development Agreement.

Can a

Rush Bowls

franchise

be run as

a passive

investment?

The Rush Bowls franchise disclosure document specifies that franchisees are required to either directly operate their Rush Bowls Restaurant or designate a manager ("Designated Manager") who has been approved by the franchisor. 

If the franchisee is not an individual, an "Operating Principal" acceptable to the franchisor must be designated, who will be principally responsible for communicating with the franchisor about the Rush Bowls Restaurant and will have authority and responsibility for its day-to-day operations.

The Designated Manager must successfully complete the franchisor's training program. The document does not explicitly state that passive investment is allowed, suggesting that some level of active involvement or oversight is required, either directly by the franchisee or through a Designated Manager.

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