Risk Score
Pending analysis
Investment Range
$200,000 - $547,000
Franchise Fee
$35,100
Total US Locations
52
Business Summary
Rush Bowls franchises operate restaurants that offer wholesome, all-natural, high-quality bowls and smoothies. These items are made from acai, fruit, organic granola, and other fresh ingredients, serving the general public from approved retail locations.
Corporate History
Rush Bowls Franchising, LLC was organized in Colorado on March 5, 2015, and began offering franchises for Rush Bowls Restaurants in March 2015. The company operates under the names "Rush Bowls Franchising" and "Rush Bowls." An affiliate, LR Industries, Inc., has operated a Rush Bowls Restaurant since 2004 and owns the trademarks for "Rush Bowls." Another affiliate, WLR Industries, Inc., operates a packaged foods business and manufactures frozen products, reserving the right to sell them to franchisees in the future.
Financial Overview
Investment Range
$200,000 - $547,000
Franchise Fee (Low)
$35,100
Franchise Fee (High)
$39,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$125,000
Equipment Costs (High)
$431,500
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The financial condition of Rush Bowls, as reflected in its financial statements, raises questions about its ability to provide services and support to franchisees. The company has a significant member's deficit, which was $(497,390) in 2023, $(620,679) in 2022, and $(720,839) in 2021. The auditor's report highlights that management is required to evaluate conditions or events that raise substantial doubt about Rush Bowls' ability to continue as a going concern within one year.
Financing Details
Rush Bowls does not offer any direct or indirect financing to its franchisees, nor does it guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
52
Franchised Units
49
Corporate Units
3
Avg Square Footage
1,000
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Rush Bowls has no litigation history that is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Rush Bowls has no bankruptcy history that is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew its franchise agreement, a Rush Bowls franchisee must provide written notice between 180 days and one year before the term ends, pay all outstanding amounts, and be in compliance with the agreement, with no more than two defaults in any 12-month period or six defaults during the entire term, and no uncured defaults longer than 60 days. The franchisee must also own or have the right to lease their location for at least five years, ensure their management staff completes any required training, remodel the location to meet current image and décor standards, and pay a $12,000 renewal fee. Finally, the franchisee must sign Rush Bowls' then-current standard franchise agreement, which may have materially different terms, including potentially higher royalty and advertising contributions, and a modified or reduced protected area.
Training & Support Program
Franchisor Assistance
Before opening, Rush Bowls provides an initial training program, lends a Franchise Operations Manual, offers advice for site selection (including an optional vendor for data analysis at no cost), designates a protected area, reviews lease agreements, and provides design and layout specifications. Rush Bowls also arranges for up to five days of on-site grand opening assistance for the first two restaurants, assisting with system implementation and employee training, and conducts 'new restaurant opening' calls. During operation, Rush Bowls informs franchisees of mandatory specifications, standards, and procedures, provides advertising and marketing guidance, and offers additional training for newly hired personnel, refresher courses, or special assistance, which may incur additional fees. Franchisees are allowed to continue using confidential materials and Marks.
Initial Training Hours
92
Training Location
Franchisee's location
Ongoing Support
After opening, Rush Bowls provides ongoing support by informing franchisees of mandatory system specifications, standards, and procedures. The franchisor offers advice and guidance on advertising and marketing. Additionally, Rush Bowls provides additional training for newly-hired personnel, refresher courses, and other requested or needed assistance, though these may incur additional fees. Franchisees are also allowed to continue using confidential materials, including the Franchise Operations Manual and the Marks.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
Rush Bowls defines its Protected Areas based on the demographics and attributes of the location. For Urban Areas, the Protected Area is an approximately zero to ½-mile radius from the Rush Bowls Restaurant. In Suburban Areas, it's an approximately ½-mile to one-mile radius, and for Rural Areas, it's an approximately one-mile to two-mile radius from the restaurant.
Staffing Notes
Rush Bowls requires that its restaurants operate during specified hours with Management Staff on duty to supervise employees and operations. Franchisees must ensure a sufficient number of adequately trained and competent service, kitchen, and other personnel are on duty to provide efficient customer service. Employees are required to meet appearance standards and wear standard attire or uniforms as described in the Franchise Operations Manual. Franchisees are responsible for hiring, training, directing, scheduling, and supervising their own employees and independent contractors. Owners must either directly operate the restaurant or designate an approved manager (Designated Manager) or Operating Principal to be responsible for day-to-day operations, and these individuals must complete the required training program.