Saladworks Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$590,000 - $764,500
Franchise Fee
$26,250
Min Cash Required
$118,000
Total US Locations
91
Business Summary
Saladworks operates unique restaurants that offer a variety of salads, sandwiches, wraps, panini, soups, breads, and beverages. These items are prepared according to specific recipes and procedures, and the restaurants serve customers for lunch, dinner, catering, and take-home.
Corporate History
Saladworks, LLC was formed on April 13, 2015, in Illinois. This entity, initially named SW Acquisition Company, LLC, acquired most of the assets of its predecessor, Saladworks, LLC (DE), in June 2015. The predecessor had filed for Chapter 11 bankruptcy earlier that year to resolve internal disputes and allow for a sale. After the acquisition, SW Acquisition Company, LLC changed its name to Saladworks, LLC. The current Saladworks brand began offering franchises in August 2015 and has been operating businesses of this type since June 2016.
Financial Overview
Investment Range
$590,000 - $764,500
Franchise Fee (Low)
$26,250
Franchise Fee (High)
$35,000
Minimum Cash Required
$118,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$461,000
Equipment Costs (High)
$583,500
Working Capital
$25,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Saladworks' financial condition raises concerns about its ability to provide services and support to its franchisees. The company reported a net loss of over $3.1 million in 2024 and over $1 million in 2023. Its current liabilities slightly exceed its current assets in 2024, and its member's equity is negative. Auditors have noted that the company has generated cumulative net losses since it started operations, requiring a full valuation allowance against deferred income tax assets, which indicates substantial doubt about Saladworks' ability to realize these assets.
Financing Details
Saladworks does not offer any direct or indirect financing to its franchisees. It also does not guarantee any notes, leases, or other financial obligations of its franchisees.
Performance Metrics
Total US Locations
91
Franchised Units
88
Corporate Units
3
Avg Square Footage
1,800
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Count
1
Litigation Summary
Saladworks itself has no pending or concluded litigation to report. However, Saladworks' predecessor faced one lawsuit in 2014, JVSW, LLC v. Saladworks, LLC, et al. This case alleged breach of contract, fraud, waste of corporate assets, and unjust enrichment related to a $7.75 million investment. The lawsuit was settled and dismissed in 2016 as part of the predecessor's Chapter 11 bankruptcy proceedings.
Bankruptcy History
Saladworks, LLC's predecessor, Saladworks, LLC (DE), filed for Chapter 11 bankruptcy on February 17, 2015. This action was taken to resolve litigation among equity holders and to sell the business. The current Saladworks, LLC acquired most of the predecessor's assets in June 2015. The predecessor's bankruptcy liquidation plan was confirmed in October 2015. Saladworks, LLC itself has no other bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew a Saladworks franchise, franchisees must provide written notice between 6 to 12 months before the current agreement expires. They must demonstrate the right to operate at the approved location or secure an acceptable substitute. Franchisees are required to complete all necessary maintenance, refurbishing, and remodeling of their restaurant to meet Saladworks' current system standards and specifications, no later than 90 days before the term expires. They must not be in breach of any agreements with Saladworks, its affiliates, or major suppliers, and must have satisfied all monetary obligations. Renewal also requires signing Saladworks' then-current franchise agreement (which may have materially different terms), satisfying current training requirements at the franchisee's expense, meeting operational standards for quality, service, and cleanliness, signing a general release (consistent with state law), and paying a $17,500 renewal fee. The decision to renew is solely at Saladworks' discretion.
Training & Support Program
Franchisor Assistance
Saladworks provides comprehensive assistance to its franchisees. Before opening, Saladworks helps with development area discussions, loans electronic operations manuals, and conducts a mandatory Franchise Orientation Seminar. Franchisees and up to three management personnel receive approximately four weeks of initial training, which includes two weeks of virtual/classroom instruction in the Philadelphia area and up to two weeks of on-site training at their own restaurant or another designated location, plus sanitation certification. Saladworks also provides specifications and designated suppliers for inventory, approves grand opening advertising programs, and assists with a mock opening and initial operations (1 to 5 days, depending on the unit number). Ongoing support includes continuous consultation and advice via telephone, fax, intranet, and occasional on-site visits (additional on-site visits are available upon request for a fee). Saladworks manages a Brand Development Fund (3% of Net Sales) for system-wide advertising, product development, and marketing. Franchisees must also spend 2% of their Net Sales on local advertising, or the amount will be remitted to the Brand Development Fund. Saladworks implements systemwide marketing promotions, manages digital marketing and social media master accounts, and provides a mandatory technology bundle ($605-$1,400 per month) that includes a POS system, online ordering, loyalty program, and other tools.
Initial Training Hours
95
Training Location
Virtually via webinar, a company-owned Saladworks restaurant in the East Norriton, Pennsylvania area (or alternative designated location), and at the franchisee's own restaurant prior to opening.
Ongoing Support
After opening, Saladworks provides ongoing consultation and advice regarding restaurant management and operations, delivered via telephone, fax, intranet communication, and on-site visits. Additional on-site assistance can be requested at a cost of $500 per person per day plus expenses. Franchisees are required to attend an Annual Convention or Regional Meeting, for which they cover all travel, lodging, and meal expenses. Saladworks also manages a Brand Development Fund for systemwide advertising and marketing, plans and executes systemwide marketing promotions (including new product introductions and loyalty/gift card programs), and manages digital marketing and social media for the brand. Franchisees must also meet a local advertising expenditure requirement.
Franchise Requirements
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
Staffing Notes
Saladworks requires the franchisee, or at least one of their principals, to dedicate their best efforts to managing the restaurant. Day-to-day supervision can be delegated to a manager, but this manager must successfully complete Saladworks' initial training program before taking on responsibilities. The restaurant must always be managed by either the franchisee or a trained manager. For multi-unit owners, each location requires a properly trained manager who dedicates full-time efforts to day-to-day supervision and has full authority to act on the franchisee's behalf. If a manager leaves, a replacement must be hired within 30 days and complete initial training within 60 days. Saladworks provides guidelines and materials for training other non-management personnel.