Supreme produce Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$20,684 - $228,815
Franchise Fee
$5,000
Total US Locations
134
Business Summary
Supreme Produce operates kiosks or dedicated workspaces within commercial establishments like upscale supermarkets, hotels, cafeterias, and university facilities. At these locations, Supreme Produce franchisees prepare and sell fresh items such as cut fruit, shucked corn, other fresh vegetables, and sparkling water. Customers can purchase these produce products through the host establishment's point of sale system for consumption on-site or to take with them.
Corporate History
Supreme Service Solutions, Inc., operating as Supreme Produce, was established as a Texas corporation on November 4, 2021. The company developed a distinctive system for operating food kiosks and dedicated workspaces that sell fresh cut fruit, shucked corn, other fresh vegetables, and sparkling water. Supreme Produce focuses solely on franchising and does not operate its own kiosks. Its affiliate, GBC Food Services, LLC, has been offering sushi kiosk franchises since 2021 and has expanded into other Pan-Asian food kiosks.
Financial Overview
Investment Range
$20,684 - $228,815
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
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Supreme Service Solutions, Inc. received an unqualified audit opinion on its financial statements for the year ended December 31, 2023, showing its financial position and cash flows are presented fairly. The company reported a net income of $1,683,120 for 2023 and maintains positive working capital, with current assets exceeding current liabilities. However, Supreme Service Solutions faces a notable risk due to its high customer concentration: two customers accounted for all of its trade accounts receivable and nearly 73% of its net sales in 2023. The loss of these key customers could significantly harm the business. Furthermore, an affiliate, GBC Food Services, LLC, owes Supreme Service Solutions a substantial intercompany note of $2,160,030, which is due by the end of 2024.
Financing Details
Supreme Produce does not offer standard financing directly to its franchisees for the operation of their businesses. However, the franchisor may, at its sole discretion, advance supplies, inventory, materials, and other items to franchisees during the first six weeks of their franchise operations. Any amounts advanced will then be deducted from the payments Supreme Produce owes to the franchisee.
Performance Metrics
Total US Locations
134
Franchised Units
134
Corporate Units
0
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Supreme Service Solutions, Inc., operating as Supreme Produce, has been involved in two legal disputes through its affiliate, GBC Food Services, LLC. The first was an administrative proceeding in Washington State between 2019 and 2021. The state alleged that GBC Food Services violated the Franchise Investment Protection Act by treating independent contractor agreements as franchises without providing disclosure documents. This case was resolved on August 25, 2021, with a consent order where GBC agreed to stop the practice and pay $1,500 in costs. The second dispute was an administrative investigation in California, active from 2020 to February 2024, also against GBC Food Services. The state alleged similar violations of the California Franchise Investment Law by not providing disclosure documents to prospective franchisees. This case was settled on October 18, 2024, with GBC agreeing to pay a $54,000 fine and cease violating California franchise investment law.
Bankruptcy History
Supreme Service Solutions, Inc. has no bankruptcy history to report.
Agreement Terms
Initial Term
1 years
Renewal Term
1 years
Renewal Conditions
To renew their agreement with Supreme Produce, franchisees and their owners must ensure they are not in default of their current franchise agreement or any other agreements with the franchisor or its affiliates, and must have fulfilled all monetary obligations on time. They are required to sign the franchisor's then-current franchise agreement, which may include different terms and fees, and pay a renewal fee that ranges from $500 to $6,500. Additionally, franchisees and their owners must execute a general release of any claims against the franchisor and meet the franchisor's current qualification and operations training requirements. The franchisor reserves the right to waive any of these conditions.
Training & Support Program
Franchisor Assistance
Supreme Produce offers comprehensive assistance to its franchisees. Before a kiosk opens, the franchisor provides the approved host location, an initial training program for the managing owner, operating partner, and up to five additional staff members, and a physical copy of the Franchise Manual. On an ongoing basis, Supreme Produce may offer further training programs, continuous advisory support for kiosk operations, research data, and materials for merchandising, marketing, and advertising. The franchisor also revises the Franchise Manual as needed, offers advice and written materials on managing the kiosk, covering new developments in equipment, food products, packaging, and preparation, and may establish and administer a national advertising program. Franchisees are also granted the right to audit the franchisor's books concerning gross sales and payments.
Initial Training Hours
80
Training Location
Training Facilities located throughout the U.S.
Ongoing Support
Supreme Produce provides ongoing support through various channels. This includes offering additional training programs and continuous advisory assistance for kiosk operations, as deemed appropriate by the franchisor. Supreme Produce also makes research data and marketing materials available once an advertising program is established. They regularly revise the Franchise Manual and offer advice and written materials on managing the kiosk, covering new developments in equipment, food products, packaging, and preparation. A bi-weekly management fee contributes to covering costs for onsite food quality and safety inspections (4-6 times per year) and periodic onsite supervisory visits by Supreme Produce personnel.
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
Full-Time
Territory Type
Non-Exclusive
Staff Count
2
Staffing Notes
Supreme Produce requires franchisees to maintain a fully-trained staff at their kiosks, consisting of at least two full-time employees, including one full-time manager, unless other arrangements are approved by the franchisor. A manager and at least one additional employee must staff the kiosk at all times it is open for business. Franchisees are responsible for hiring, training, and supervising their employees, ensuring good customer relations and adherence to any prescribed dress codes. Supreme Produce may also mandate 'above-kiosk' supervision, like area or regional directors, who must be fully trained according to the Franchise Manual. Franchisees bear sole responsibility for the safety and well-being of their staff and customers.