Risk Score
Pending analysis
Investment Range
$252,400 - $368,200
Franchise Fee
$30,000
Business Summary
Sugar Llamas operates quick service restaurants that offer mini donuts, coffee, ice cream, and specialty drinks. These restaurants are typically located in shopping malls, strip shopping centers, or as free-standing units. Each Sugar Llamas location provides dine-in, take-out, drive-thru (if available), catering, and delivery services.
Corporate History
Sugar Llamas Enterprises LLC was formed on February 16, 2024, and began offering Sugar Llamas franchises in May 2024. Although the franchisor itself is new and does not operate any restaurants, its affiliate, Sugar Llamas, LLC, was formed in September 2020 and has been operating a business of this type since February 2021. This affiliate also previously sold 30 licenses for Sugar Llamas units, with 13 of those units currently operating. A second affiliate, Sugar Llamas Corporate, LLC, was established in February 2023 to accept royalty payments from all licensees of the first affiliate.
Financial Overview
Investment Range
$252,400 - $368,200
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$30,000
Royalty %
5%
Marketing %
0.5%
Equipment Costs (Low)
$187,500
Equipment Costs (High)
$305,000
Working Capital
$20,000
Audited Financials
No
Offers Financing
No
Audit Opinion
Disclaimer of opinion
Financial Health Notes
The financial statements for Sugar Llamas Enterprises LLC are based on the tax basis of accounting and have been compiled, not audited or reviewed. The accountant explicitly states that substantially all ordinary disclosures have been omitted, and if they were included, they might influence a user's conclusions about the company's financial position. As of February 29, 2024, shortly after its formation, Sugar Llamas Enterprises LLC reported $5,000 in cash and $5,000 in equity.
Financing Details
Sugar Llamas does not offer any direct or indirect financing to its franchisees. This means Sugar Llamas will not provide loans, guarantee any notes or leases, or help sell or discount any financing arrangements for franchisees. Franchisees must secure all their own funding.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Avg Square Footage
1,600
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Sugar Llamas has no litigation history to report.
Bankruptcy History
Sugar Llamas has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Term
10 years
Renewal Conditions
To renew a Sugar Llamas franchise, franchisees must notify Sugar Llamas in writing that they wish to renew, be in full compliance with their current Franchise Agreement, and ensure all payments are up-to-date. Franchisees must also pay a renewal fee and sign a general release. Sugar Llamas may require the franchisee to remodel or refurbish their restaurant to meet current brand standards and sign a new franchise agreement, which may have different terms and conditions, though territorial boundaries and fees will not increase beyond what is charged to other similarly situated renewing franchisees.
Training & Support Program
Franchisor Assistance
Sugar Llamas provides extensive assistance to its franchisees. Before opening, Sugar Llamas helps with site selection guidelines and offers assistance, provides standard designs and layouts for the restaurant, loans its Confidential Operations Manual, and gives a list of approved products and suppliers. Sugar Llamas also provides a mandatory five-day initial training program for up to two people (including the General Manager/Operating Principal) at its headquarters and up to seven days of on-site opening assistance. For ongoing support, Sugar Llamas offers marketing and promotional materials, management and operational advice, updates to the operations manual, and conducts training programs and seminars that may be mandatory. Additional on-site training is available at the franchisee's expense. Sugar Llamas also administers a Brand Development Fund for regional and national advertising.
Initial Training Hours
50
Training Location
Broken Arrow, Oklahoma
Ongoing Support
For ongoing support, Sugar Llamas provides marketing and promotional materials, advice and written updates to the operations manual on management and operations techniques, and conducts training programs and seminars that may be mandatory for franchisees or their staff. Additional on-site training is available at the franchisee's cost. Sugar Llamas administers a Brand Development Fund for regional and national advertising and will indemnify franchisees for trademark use if they comply with the agreement. Sugar Llamas may also hold annual franchisee meetings and refresher training courses, which may be mandatory, with franchisees covering their own expenses for attendance.
Franchise Requirements
Ideal Candidate Profile
Sugar Llamas seeks franchisees (individuals or entities) who will either actively participate as an Operating Principal or designate an Operating Principal with at least a 5% ownership interest. This Operating Principal must participate in the daily operation of the restaurant on a full-time basis. The General Manager, who may also be the Operating Principal, must meet Sugar Llamas' educational and business experience criteria, be acceptable to the franchisor, devote full-time and best efforts to the restaurant's supervision and management, and complete all required training. Key equity owners and executive officers (Controlling Principals) are required to personally guarantee performance and comply with confidentiality and non-competition covenants. The franchisor acknowledges that success depends largely on the franchisee's ability as an independent businessperson and active participation.
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
exclusive
Territory Size Requirements
Sugar Llamas grants an exclusive territory for each restaurant. The size of this territory varies based on demographics, population, and commercial development. Generally, it will be a radius of one to three miles around the restaurant, including a minimum population of 30,000 people. In rural areas, Sugar Llamas may grant a larger territory at its discretion.
Staffing Notes
Sugar Llamas requires each restaurant to have a designated General Manager who is primarily responsible for the business's daily operations and must devote full-time effort to this role. This General Manager must meet Sugar Llamas's educational and business experience criteria, be individually acceptable to the franchisor, and successfully complete the initial training program. If the franchisee is not actively involved in daily operations, they must designate an Operating Principal, who owns at least a 5% interest and participates full-time. Both the General Manager and Operating Principal (if different) must be approved by Sugar Llamas and complete training. Additionally, all managers and other designated employees must obtain ServSafe (or similar) certification.