Risk Score
Pending analysis
Investment Range
$6,470 - $25,400
Franchise Fee
$3,000
Total US Locations
30
Business Summary
Wiki-Licious Franchises LLC offers at-home bakeries that specialize in serving malasadas (Hawaiian donuts), cookies, and other baked goods. Franchisees operate their businesses primarily under their state's cottage food laws, with locations referred to as "cottages."
Corporate History
Wiki-Licious Franchises LLC was established as an Alaska Limited Liability Company on August 30, 2021. The company began offering and selling franchises under the Wiki-Licious® brand in January 2022. Prior to the franchising entity, an affiliate called Wiki-Licious LLC was organized on February 7, 2017. This affiliate initially operated as a cottage bakery starting in 2017, then grew into a full-time bakery by June 2020. Wiki-Licious LLC also started licensing the Wiki-Licious® brand in 2018, entering into six license agreements, with an anticipation that these licensees will convert to Wiki-Licious® franchises. Another affiliate, Wiki-Licious Distribution LLC, organized on September 3, 2021, provides products like boxes, fillings, donut mix, and merchandise to the Wiki-Licious® cottages.
Financial Overview
Investment Range
$6,470 - $25,400
Franchise Fee (Low)
$3,000
Franchise Fee (High)
$3,000
Equipment Costs (Low)
$1,970
Equipment Costs (High)
$17,600
Working Capital
$625
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Wiki-Licious Franchises LLC is a start-up franchise that has incurred net losses in its recent years of operation, with a net loss of $13,006 in 2023, $6,295 in 2022, and $15,090 in 2021. The company also reported a members' deficit of $17,533 as of December 31, 2023. The independent auditor's report indicates that the financial statements present fairly, in all material respects, the financial position in accordance with accounting principles generally accepted in the United States. While the auditor's report mentions that they evaluate for conditions that raise substantial doubt about the company's ability to continue as a going concern, the opinion itself does not contain such a qualification, and the opinion is unqualified.
Financing Details
Wiki-Licious Franchises LLC does not offer any direct or indirect financing to its franchisees. This means that Wiki-Licious Franchises LLC will not provide loans or payment plans for the initial franchise fee, equipment, or working capital. Franchisees are solely responsible for securing their own financing through third-party lenders or other sources, and Wiki-Licious Franchises LLC does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
30
Franchised Units
29
Corporate Units
1
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Wiki-Licious Franchises LLC has no litigation to disclose in this document. The company's legal record indicates no reported lawsuits or legal proceedings that would be required for disclosure in its FDD.
Bankruptcy History
Wiki-Licious Franchises LLC has no bankruptcy history to report for the company or any of its principals, as no bankruptcy proceedings are required to be disclosed in this document.
Agreement Terms
Initial Term
2 years
Renewal Term
1 years
Renewal Conditions
To renew their franchise agreement, Wiki-Licious Franchises LLC franchisees must meet several conditions. They need to provide written notice of their intent to renew between 3 and 6 months before their current agreement expires. At the time of renewal, they must not be in default of their franchise agreement and must have consistently complied with all material terms and conditions throughout the initial term. Franchisees are required to pay a successor franchise fee and modernize their franchise business to meet the then-current standards of Wiki-Licious Franchises LLC. Finally, they must sign the then-current successor franchise agreement, which may have materially different terms from their original agreement, and sign a general release of claims.
Training & Support Program
Franchisor Assistance
Wiki-Licious Franchises LLC provides franchisees with pre-opening and ongoing assistance. Before opening, Wiki-Licious Franchises LLC designates the franchisee's territory and approves their home kitchen virtually via video conferencing, providing general guidance for site selection. The franchisor also provides names of approved suppliers and access to confidential operations manuals. During operation, Wiki-Licious Franchises LLC updates these manuals and offers additional virtual training for a fee. Franchisees are provided with a dedicated email address and their business information is listed on the Wiki-Licious® brand website. Wiki-Licious Franchises LLC may also organize conferences (mandatory for the operating principal, with fees and expenses) and seminars, conduct periodic inspections of the cottage (in-person or remotely), and provide continuing assistance as deemed advisable. They may suggest retail prices, specify maximum and minimum pricing, replace defective products purchased directly from them, and refine and develop new products and services.
Initial Training Hours
34
Training Location
Online/virtual
Ongoing Support
After opening, Wiki-Licious Franchises LLC provides several forms of ongoing support. Franchisees receive updates to the operations manuals, which may require additional investment. They can request additional virtual training for a fee. Franchisees are required to attend monthly virtual meetings, with a fine imposed for missing more than two meetings. Wiki-Licious Franchises LLC maintains a brand website that includes each franchisee's business information. The franchisor may also hold mandatory annual conferences (with associated fees and travel expenses for the franchisee's operating principal) and optional seminars. Wiki-Licious Franchises LLC may perform periodic inspections of the franchisee's cottage, either in-person or through video conferencing. The franchisor may also suggest retail prices, specify maximum and minimum pricing, and refine and develop new products and services that franchisees are required to offer.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Wiki-Licious Franchises LLC defines territories based on factors like population density and business base, considering whether the area is metropolitan or rural. Generally, a large territory has a population base of at least 50,000 people, while a small territory has a population base of less than 50,000 people. The specific boundaries are included in the franchise agreement, often defined by a 5-driving-mile radius from the franchisee's cottage in all directions. These boundaries can also be based on zip codes, streets, highways, or county lines. If a small territory's population reaches 50,000, it automatically converts to a large territory. If a large territory exceeds 100,000 people, Wiki-Licious Franchises LLC reserves the right to divide it, ensuring the new territory still has at least 50,000 people.
Staffing Notes
Wiki-Licious Franchises LLC requires franchisees to maintain sufficient supplies and employ adequate personnel to operate their business at maximum capacity and efficiency. The operating principal is responsible for conducting frequent inspections to ensure high standards of professionalism and compliance. Franchisees must have at least one manager on-site during business operations. However, Wiki-Licious Franchises LLC does not assist with specific hiring, firing, or other employment-related decisions for franchisee employees. While a sample employee guide may be provided, franchisees are solely responsible for creating their own policies and ensuring compliance with all state and federal employment laws.