Frutta Bowls Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$387,500 - $632,500
Franchise Fee
$26,250
Total US Locations
26
Business Summary
Frutta Bowls operates quick-service restaurants that offer acai bowls, pitaya bowls, kale bowls, fruit smoothies, and other health-centric snacks. These items are available for dine-in, carry-out, catering, and delivery.
Corporate History
Frutta Bowls was originally franchised by its predecessor, Frutta Bowls Franchising, L.L.C., starting in March 2017. However, the predecessor filed for Chapter 11 bankruptcy in February 2019 due to issues with sales compliance. In December 2020, the current franchisor, SW-Frutta Bowls Franchising Co., LLC, which was formed in December 2020, acquired most of the predecessor's assets, including the Frutta Bowls trademark and existing franchise agreements. The current company then started offering Frutta Bowls franchises in March 2021. Frutta Bowls operates under the umbrella of WOWorks, a larger restaurant group that also manages several other food service brands.
Financial Overview
Investment Range
$387,500 - $632,500
Franchise Fee (Low)
$26,250
Franchise Fee (High)
$35,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$300,500
Equipment Costs (High)
$502,000
Working Capital
$25,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial condition of Frutta Bowls' parent company, WOWorks, raises concerns about its ability to provide services and support to franchisees. The company experienced net losses of over $3.1 million in 2024 and over $1 million in 2023. By the end of fiscal year 2024, the company had a member's deficit equity of $924,730. Additionally, the company has accumulated net losses since its inception, leading to a full valuation allowance against its net deferred income tax assets, which means the company may not be able to realize those tax benefits.
Financing Details
Frutta Bowls does not offer any direct or indirect financing options to its franchisees. Additionally, Frutta Bowls does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
26
Franchised Units
25
Corporate Units
1
Avg Square Footage
1,050
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Count
2
Litigation Summary
Frutta Bowls itself currently has no litigation to report. However, its predecessor, Frutta Bowls Franchising, L.L.C., faced two administrative proceedings in 2018. One case in New York involved selling franchises without proper registration, which resulted in a settlement requiring compliance, rescission offers, and a $3,000 payment. Another case in Maryland, also concerning unregistered franchise sales, was settled with an agreement to comply with state law and offer rescission to two franchisees.
Bankruptcy History
Frutta Bowls itself does not have a bankruptcy history. However, its predecessor, Frutta Bowls Franchising, L.L.C., filed for Chapter 11 bankruptcy on February 15, 2019, in the U.S. Bankruptcy Court for the District of New Jersey. This filing was made to discharge potential liabilities related to sales compliance issues that arose before November 15, 2017. The current Frutta Bowls company acquired most of the predecessor's assets, including the Frutta Bowls trademark and existing franchise agreements, through a court order on December 28, 2020.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew a Frutta Bowls franchise, franchisees must provide timely written notice of their intent to renew between 6 and 12 months before the current agreement expires. They must ensure they have the right to operate at their approved location or a new accepted site. Franchisees are required to complete all necessary maintenance, refurbishing, and remodeling of their restaurant to meet current Frutta Bowls system standards and specifications at least 90 days before the term ends. They must be in full compliance with all franchise-related agreements, satisfy all financial obligations to Frutta Bowls and its affiliates, and pay a renewal fee of $17,500. Additionally, franchisees must sign Frutta Bowls' then-current franchise agreement, which may have different terms, successfully complete any updated training requirements, maintain operational standards for quality, service, and cleanliness, and sign a general legal release. Frutta Bowls retains sole discretion over granting renewals.
Training & Support Program
Franchisor Assistance
Frutta Bowls provides extensive support to its franchisees. Before opening, franchisees receive the Operations Manuals, a mandatory orientation, and initial training for up to three individuals free of charge (additional trainees cost $1,000 each). This includes up to 10 days of classroom and on-the-job training. Frutta Bowls also assists with architectural plans, provides specifications for initial inventory, guides the mandatory $15,000 Grand Opening Advertising Program, and offers on-site assistance for up to five days during the first restaurant's opening. After opening, Frutta Bowls offers ongoing consultation via phone, fax, intranet, and on-site visits, with additional on-site assistance available for a fee. Franchisees must attend an annual convention. Frutta Bowls manages a Brand Development Fund, implements systemwide marketing promotions, and oversees loyalty and gift card programs. It also handles the main brand website and social media accounts, while franchisees contribute 2% of net sales to local advertising.
Initial Training Hours
71
Training Location
Virtual (webinar) and on-the-job training at a company-owned or franchised Frutta Bowls restaurant in Wall, New Jersey, or alternative designated locations.
Ongoing Support
After a Frutta Bowls restaurant opens, the franchisor provides continuous consultation and advice on management and operations, delivered through phone, fax, intranet communications, and on-site visits. If additional on-site help is requested, franchisees must pay $500 per person per day, plus expenses. Franchisees are required to attend an annual convention, cover their own attendance costs, and pay a $1,000 non-attendance fee if they miss it. Frutta Bowls manages a Brand Development Fund and coordinates system-wide marketing promotions, loyalty programs, and gift card initiatives, which franchisees must participate in. It also maintains the official Frutta Bowls website and master social media accounts. Franchisees are also required to spend 2% of their net sales on local advertising and promotion, using approved materials and plans.
Franchise Requirements
Ideal Candidate Profile
Frutta Bowls seeks qualified individuals or entities who are committed to operating a health-centric restaurant featuring acai bowls, pitaya bowls, kale bowls, and fruit smoothies according to established recipes and procedures. Ideal candidates will either dedicate their best efforts to managing the Frutta Bowls restaurant directly or effectively supervise a successfully trained manager. The franchise also grants rights to multi-unit owners who can develop and open multiple locations while adhering to the Frutta Bowls System's high standards of quality, appearance, and service.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Frutta Bowls defines the size and scope of each franchise territory at its sole discretion, taking into account factors such as the general location, traffic patterns, parking availability, the physical size of the site, access, visibility, local demographics, population density, surrounding commercial activity, and market demands. For a single Frutta Bowls restaurant, the territory may be limited to the approved location itself. For multi-unit owners, a larger Development Area is mutually agreed upon by Frutta Bowls and the franchisee, and is typically larger than a single restaurant's territory.
Staffing Notes
Frutta Bowls requires each restaurant to always have a manager who has successfully completed the franchisor's initial training program. This manager must dedicate full-time effort to supervising the restaurant's daily operations. If a manager leaves, a replacement must be hired within 30 days and complete initial training within 60 days. Franchisees are responsible for training all other staff, for which Frutta Bowls provides guidelines and materials. All personnel with access to confidential information must sign a Confidentiality and Restrictive Covenant Agreement.