Totally Nutz Franchise Costs, Fees & Owner Salary (2023)

Totally Nutz was founded in 1990 and began franchising in 2014. It offers a fun and flexible franchise model selling freshly roasted cinnamon-glazed nuts at various venues and events. Headquartered in St. George, Utah, Totally Nutz presents a low-cost investment opportunity with high ROI potential, particularly highlighted by its strong holiday sales. The franchise is known for its family-friendly approach, allowing owners to involve their children in the business, teaching them valuable work ethics in a joyful environment​.

Totally Nutz is an appealing franchise opportunity that specializes in fresh-roasted, cinnamon-glazed nuts, offering a unique and engaging business model suitable for both full-time and part-time entrepreneurs. 

Founded with a focus on family-friendly operations, Totally Nutz provides a fun and flexible business environment, allowing for significant lifestyle benefits such as the potential for owners to take extended vacations while still maintaining a successful business. The franchise is designed to be scalable, from mobile units to fixed locations, enabling owners to expand their operations as desired.

Initial Franchise Fee

The Initial Franchise Fee varies depending on the type of franchise agreement. For a Single Franchise, the fee is $27,500. For those opting for a Multi-3 Franchise, the fee increases to $39,500. A more extensive commitment, such as a Multi-5 Franchise, requires a fee of $59,500, while the largest option, a Multi-10 Franchise, has a fee of $69,900. These fees are required for entry into the franchise system and cover initial brand and operational support.

Royalty Fee

Franchisees are obligated to pay a Royalty Fee, which is 6% of the Gross Revenue. This fee is due monthly, specifically on the 7th of each month. The Royalty Fee is a standard practice in franchising, allowing franchisees to leverage the franchisor's brand, system, and ongoing support.

Brand Building Fund Contribution

Each franchisee must contribute $500 annually to the Brand Building Fund. This fee is billed annually on the anniversary of the execution of the Franchise Agreement. The fund is typically used for national marketing and brand promotion efforts, benefiting all franchisees.

Custom Advertising Fee

Franchisees will incur actual costs for custom advertising initiatives, in addition to a 20% administration fee. These costs are as incurred, allowing franchisees to engage in local marketing efforts with the support of the franchisor's expertise.

Unauthorized Advertising Fee

For any unauthorized advertising, franchisees are charged a fee of $500 per occurrence. This fee is payable upon demand and is instituted to ensure that all advertising maintains brand consistency and adheres to franchisor standards.

Transfer Fee

In the event of a franchise transfer, a Transfer Fee is applied, which is 25% of the then-current Initial Franchise Fee. A non-refundable deposit of $1,000 is required at the time of transfer application submission, with the remaining balance due at the time of the transfer.

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Totally Nutz provides a comprehensive training program for franchisees, which covers various aspects essential for operating the franchise. The program includes:

• Initial Training Program: Up to two individuals are provided with initial training at no charge, provided they attend the same program. Additional attendees are charged a fee. The training covers operational aspects of the business, marketing, advertising, management, and hands-on training in operating the unit. The program is conducted at the corporate training center in St. George, Utah, with certain portions possibly online. The duration and subjects covered may vary based on the type of unit being operated.
• Additional Training/Assistance: Available upon request or if deemed necessary by Totally Nutz. This can include on-site assistance or additional training sessions for new hires, refresher courses, and other necessary training. Fees for additional training or assistance may apply, along with travel and living expenses for Totally Nutz representatives providing on-site training.
• Ongoing Training: Franchisees, designated managers, and employees may be required to attend system-wide refresher or additional training courses from time to time. New designated managers must complete the initial training program before assuming management responsibilities.
• Conferences and Conventions: Totally Nutz may hold national, regional, or local conferences for all franchisees to discuss sales techniques, operational standards, and advertising strategies.

Totally Nutz provides territorial protections based on the type of business operated by the franchisee:

• For Mobile Businesses: Franchisees operating mobile units can operate at any event except for a "Protected Event" of another franchisee. A "Protected Event" is one where a franchisee has obtained a written contract to operate, has operated at the most recent occurrence of the event, has posted required information about the event on the current intranet system, and maintains protection of the event by operating at each occurrence.
• For Fixed Locations: Franchisees operating from a fixed location can operate at any location approved by Totally Nutz in writing. There is no territorial exclusivity around fixed locations, but once a site is approved, the franchisee may not relocate or remove the location without prior written approval from Totally Nutz.

The continuation of rights to an approved site or a Protected Event is not contingent on achieving certain sales volumes or market penetration. Franchisees are restricted from using other distribution channels, like the internet or direct marketing, to make sales outside their business without Totally Nutz's prior written consent.

Totally Nutz and its affiliates reserve the right to operate or franchise businesses selling similar products under different names or through different channels, irrespective of their proximity to a franchisee's location or their impact on the franchisee's business​​​​.

The Totally Nutz franchise requires franchisees, especially if they are entities, to have a Managing Owner with at least a 25% ownership interest and voting power who is responsible for managing the franchise. This Managing Owner must be a natural person and is expected to actively participate in the day-to-day operations of the franchise business.

This requirement ensures that the franchise has direct oversight by someone with a significant stake in the business, which supports the brand's commitment to quality and service.

Furthermore, the franchise agreement emphasizes the importance of the franchisee's (or the Managing Owner's) active participation in the Totally Nutz Business. While the documents do not explicitly state that passive investment is disallowed, the emphasis on active management and personal involvement in the business suggests that Totally Nutz expects its franchisees to be actively involved in the operation and success of their franchises, rather than being passively invested.