Risk Score
Pending analysis
Investment Range
$73,500 - $424,539
Franchise Fee
$5,000
Total US Locations
76
Business Summary
Doc Popcorn operates businesses that sell fresh, flavored popcorn and related items like soft drinks and bottled water to the general public. These businesses can be run from mobile units such as PopCarts, PopTrucks, and PopTrailers, or from fixed locations like PopKiosks and retail PopShops.
Corporate History
Doc Popcorn Franchising L.L.C. was organized in Oklahoma on July 3, 2014, and began offering franchises in October 2014. This followed its affiliate, Doc Popcorn L.L.C. (DP), acquiring the Doc Popcorn brand and franchise system assets on July 1, 2014, from a predecessor that had been selling franchises since 2009. Doc Popcorn Franchising is a subsidiary of Dippin' Dots Holdings, L.L.C. (DDH), which was acquired by J & J Snack Foods Corp. (J&J) in June 2022. Doc Popcorn Franchising also offers co-branded franchise opportunities with its affiliate, Dippin' Dots Franchising, L.L.C.
Financial Overview
Investment Range
$73,500 - $424,539
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$15,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$30,659
Equipment Costs (High)
$239,489
Working Capital
$22,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Doc Popcorn's financial statements show positive working capital, indicating that its current assets are greater than its current liabilities for the fiscal years ending September 30, 2023, September 24, 2022, December 31, 2021, and December 31, 2020. The independent auditor's reports for these periods do not include any going concern qualifications, suggesting that Doc Popcorn has sufficient financial resources and no immediate concerns about its ability to continue operations.
Financing Details
Doc Popcorn does not offer any direct or indirect financing to its franchisees. Franchisees will need to secure their own funding, as Doc Popcorn also does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
76
Franchised Units
76
Corporate Units
0
Avg Square Footage
680
Franchising Since
2014
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
3
Litigation Summary
Doc Popcorn's legal history includes three lawsuits filed against its predecessor entities between 2013 and 2015, all alleging fraud or negligent misrepresentation. The first two cases, brought by Kary Berry and Angela Whitford, were resolved through mediation, with Doc Popcorn's predecessor repurchasing the franchisees' assets for $45,000 and $75,000 respectively, and mutually terminating the agreements. The third case, filed by Mehb Khoja and Rodolfo Guizar Reyes, also involving similar allegations, was sent to arbitration by court order after mediation failed. However, no arbitration was subsequently filed by the plaintiffs, and the matter is currently administratively closed. Doc Popcorn has no ongoing litigation as of the FDD issuance date.
Bankruptcy History
Doc Popcorn has no bankruptcy history to disclose in its FDD.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
Doc Popcorn franchisees can renew their franchise agreement for two additional five-year terms. To do so, they must provide written notice between three and six months before the current term ends. Franchisees must be in full compliance with their existing agreement, sign the then-current franchise agreement and other necessary documents, update their equipment through Doc Popcorn's refurbishment program, pay a $2,500 renewal fee, and sign a general release. The new agreement may include terms and conditions that are materially different from the original one.
Training & Support Program
Franchisor Assistance
Doc Popcorn provides franchisees with various forms of assistance both before and after opening their business. Before opening, Doc Popcorn offers counseling on necessary start-up and inventory items, advice on initial inventory amounts, and guidance on optional equipment purchases. Franchisees also receive an initial PopTraining Program for up to two individuals at their Kentucky support center, covering operational standards, marketing, and more. Doc Popcorn loans franchisees a copy of the confidential Franchise Operations Manual, which includes specifications for products and equipment. For mobile units, Doc Popcorn helps with ordering the unit and provides criteria for events. For fixed locations, they offer site selection, lease review, training, and construction management assistance. After opening, franchisees receive ongoing consultation, samples of new advertising and promotional materials (potentially for a fee), and a newsletter. Doc Popcorn also hosts national, regional, or local conferences. Additional training is available, either at headquarters for no fee or on-site for a daily rate, with franchisees responsible for all travel and living expenses.
Initial Training Hours
53
Training Location
Paducah, Kentucky
Ongoing Support
Doc Popcorn provides a reasonable amount of consultation, samples of new advertising and promotional materials (which may incur a charge), and national, regional, or local conferences. Franchisees also receive a newsletter periodically. Doc Popcorn offers additional training at its corporate headquarters at no additional charge, but may require it if the franchisee is not operating according to standards. For on-site training or assistance, franchisees pay a daily rate plus travel and living expenses for Doc Popcorn representatives. Franchisees are responsible for their own travel and living expenses for any training.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Limited
Staffing Notes
Doc Popcorn recommends that the franchisee or a designated manager act as the primary operator of the business, devoting substantial full-time efforts to its supervision and conduct. Any designated manager must successfully complete Doc Popcorn's training program. All managing owners, designated managers, independent contractors, and employees are required to attend and satisfactorily complete various training courses periodically required by Doc Popcorn.