Supreme Deli Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$62,032 - $327,170
Franchise Fee
$5,000
Total US Locations
26
Business Summary
Supreme Deli operates kiosks or workspaces within third-party locations like upscale supermarkets, hotels, cafeterias, and universities. These kiosks prepare and sell sandwiches, salads, paninis, deli platters, and other deli meat and cheese products. Customers purchase these products through the host location's point-of-sale system to either take away or consume on-site.
Corporate History
Supreme Service Solutions, Inc. (d/b/a Supreme Deli) was organized as a Texas corporation on November 4, 2021. The company's primary business activity is franchising. Supreme Deli has 34 deli kiosks operating in 7 states, none of which are company-owned. An affiliate, GBC Food Services, LLC, which shares co-founders and executives with Supreme Deli, has been offering sushi kiosk franchises since 2011 and recently expanded to include dumpling and Pan-Asian food kiosk franchises, having sold approximately 666 of these by the FDD issuance date.
Financial Overview
Investment Range
$62,032 - $327,170
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$50,000
Royalty %
25%
Equipment Costs (Low)
$3,000
Equipment Costs (High)
$15,000
Working Capital
$56,080
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Supreme Service Solutions, Inc. had two customers that accounted for 100% of the company's total trade accounts receivable from grocers as of December 31, 2023. Additionally, for the year ended December 31, 2023, two customers represented approximately 72.9% of the company's net sales. Supreme Service Solutions, Inc. notes that the loss of one or more of its major customers would negatively impact its business, results of operations, and financial condition. The independent auditors did not identify any going concern issues in their report.
Financing Details
Supreme Service Solutions, Inc. does not provide standard financing for the operation of individual franchises. However, Supreme Deli may, at its discretion, advance franchisees supplies, inventory, and other items during the first six weeks of operations. These advancements are then offset against amounts owed to the franchisee. Additionally, Supreme Deli may provide franchisees with a payment card, issued by a financial institution, for purchasing inventory. Amounts drawn on this card will accrue interest at the financial institution's rate, and Supreme Deli will withhold repayments from the franchisee's earnings.
Performance Metrics
Total US Locations
26
Franchised Units
24
Corporate Units
2
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Supreme Service Solutions, Inc. (SSS) and its affiliate GBC Food Services, LLC have been involved in two administrative proceedings. In 2021, the Washington Securities Division alleged that GBC violated the Washington Franchise Investment Protection Act by entering into independent contractor agreements that were essentially franchises without providing disclosure documents to about 45 residents. GBC settled this case on August 25, 2021, agreeing to cease and desist violations and pay $1,500 in investigative costs. More recently, the California Department of Financial Protection and Innovation investigated GBC for similar violations between 2020 and February 12, 2024, involving approximately 36 prospective franchisees. SSS agreed to a settlement of $54,000 and executed a Consent Order on October 18, 2024, agreeing to cease and desist from violating California Franchise Investment Law and Corporations Code.
Bankruptcy History
Supreme Service Solutions, Inc. has no bankruptcy history to disclose.
Agreement Terms
Initial Term
1 years
Renewal Term
1 years
Renewal Conditions
To renew the franchise agreement, Supreme Deli franchisees must: not be in default of their agreement or any other agreements with Supreme Deli or its affiliates; satisfy all monetary obligations owed to Supreme Deli and its affiliates; if applicable, execute Supreme Deli's then-current form of successor franchise agreement (which may have substantially different terms, including lower franchisee earnings percentages and higher advertising fees); pay a renewal fee between $500 and $6,500; execute a general release of all claims against Supreme Deli parties; and comply with Supreme Deli's then-current qualification and operations training requirements.
Training & Support Program
Franchisor Assistance
Before opening, Supreme Deli assists franchisees by providing the host location site and an initial operational training program for the Managing Owner, Operating Partner, and up to five additional personnel. Franchisees also receive a physical copy of the Franchise Manual, including a Build Book. On an ongoing basis, Supreme Deli may offer additional training programs and continuing advisory assistance, provide research data and materials related to merchandising, marketing, and advertising (once an advertising program is established), revise the Franchise Manual as needed, and offer advice and written materials on managing the kiosk, new developments, and improvements. Supreme Deli also reserves the option to establish and administer a national advertising program.
Initial Training Hours
80
Training Location
Training Facilities located throughout the U.S.
Ongoing Support
After opening, Supreme Deli may make available other training programs and provide continuing advisory assistance as deemed appropriate. They may also provide research data and materials related to merchandising, marketing, and advertising, though this only occurs after an advertising program is established. Supreme Deli will revise the Franchise Manual as needed, and franchisees may be charged a $2,000 fee for replacement manuals. Additionally, Supreme Deli may provide advice and written materials concerning management and operation techniques, including new developments in kiosk equipment, food products, packaging, and preparation. Supreme Deli also has the option to establish, maintain, and administer a national advertising program.
Franchise Requirements
Ideal Candidate Profile
Supreme Deli looks for franchisees who have strong management skills, experience, and business acumen. Ideal candidates should possess good moral character, a strong business reputation, and a good credit rating. They should demonstrate an aptitude and ability to operate the Supreme Deli kiosk in accordance with the franchise agreement, potentially evidenced by prior related business experience. Candidates need sufficient financial resources, infrastructure, and capital for operating a multi-unit kiosk business. The designated Managing Owner or Operating Partner must own at least 10% of the franchise, be authorized to bind the franchisee in business dealings, ensure compliance with the franchise agreement, and, if an Operating Partner is not appointed, devote full time and best efforts to the daily operations of the Deli Kiosk with no other operational or management commitments.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Staff Count
2
Territory Size Requirements
Supreme Deli does not grant franchisees an exclusive territory. Franchisees are granted the right to operate their Supreme Deli kiosk only at a single, approved location specified in the Franchise Agreement. There are no territorial rights or rights to acquire additional franchise locations granted. Supreme Deli (the franchisor) retains all rights to establish, develop, construct, open, and operate other Deli Kiosks or competitive brands in any area, including the area where a franchisee's approved location is situated, either directly or through other franchise or licensing arrangements. Supreme Deli may also advertise and promote the system and fulfill customer orders in any area, including those near a franchisee's location.
Staffing Notes
Supreme Deli requires franchisees to maintain a competent, conscientious, and fully-trained staff, including at least two fully-trained, full-time employees, with at least one serving as a manager, unless otherwise agreed upon in writing. When the Supreme Deli kiosk is open for business, it must be staffed by one manager and at least one additional employee. Franchisees are generally expected to hire one employee for every $2,500 in weekly sales, with an average cost of $750 per week per employee. Franchisees are solely responsible for hiring, firing, training, disciplining, setting hours, and supervising all employees, and must ensure employees preserve good customer relations and comply with dress codes. The Managing Owner or Operating Partner is responsible for the overall staffing and operation of the kiosk.