Woops! logo

Woops! Franchise

Audited Financials
Food and BeverageEst. 2015New York, NY
www.bywoops.com

Risk Score

Pending analysis

Investment Range

$64,875 - $455,675

Franchise Fee

$36,000

Min Cash Required

$7,450

Total US Locations

26

Business Summary

WOOPS! Franchise, LLC operates a business that offers luxury gifting services and packages featuring French-style macaron pastries and other high-end confections and baked goods. WOOPS! also operates retail locations for these products, along with optional sandwiches, beverages, and merchandise. The franchise offers three distinct models: a Mobile Business (operating kiosks, food trucks, or carts), a Boutique (an in-line retail outlet), and a Bake Shop (a larger retail outlet that also bakes on-site). WOOPS! locations emphasize a premium customer experience, distinctive designs, proprietary products, and specific operating procedures.

Corporate History

WOOPS! Franchise, LLC was formed as a New York limited liability company on January 5, 2015. However, its affiliates have been operating WOOPS! outlets similar to the franchised business since 2012. The marks for the system are owned by an affiliate, BYWOOPS, LLC, which was formed in June 2013 and licenses the marks exclusively to WOOPS! Franchise, LLC. Another affiliate, FoodArt Bakery, LLC, formed in December 2014, operates as a wholesale bakery and supplier to the system. WOOPS! Franchise, LLC began offering franchises on May 14, 2015.

Financial Overview

Investment Range

$64,875 - $455,675

Franchise Fee (Low)

$36,000

Franchise Fee (High)

$45,000

Minimum Cash Required

$7,450

Royalty %

4%

Marketing %

2%

Equipment Costs (Low)

$4,000

Equipment Costs (High)

$190,000

Working Capital

$11,225

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Item 5 of the Special Risks to Consider About This Franchise, located on page 4 of the FDD, states that WOOPS! Franchise, LLC's financial condition, as shown in its financial statements (Item 21), calls into question its financial ability to provide services and support to franchisees. The financial statements for 2023 show a members' deficit and net losses for 2023 and 2022. As of December 31, 2023, WOOPS! Franchise, LLC had current assets of $185,177 and current liabilities of $453,059, resulting in a current ratio of 0.41, indicating potential liquidity challenges. While the 2024 financial statements show a net income of $13,379 for the year and a slight improvement in the members' deficit, the special risk disclosure remains, highlighting that potential franchisees should carefully review these financial details.

Financing Details

WOOPS! Franchise, LLC does not offer any direct or indirect financing to its franchisees. Additionally, WOOPS! Franchise, LLC does not guarantee any notes, leases, or other financial obligations on behalf of franchisees.

Performance Metrics

Total US Locations

26

Franchised Units

24

Corporate Units

2

Avg Square Footage

800

Franchising Since

2015

Agreement Terms

Initial Term

5 years

Renewal Term

5 years

Renewal Conditions

To renew their franchise agreement, WOOPS! franchisees must meet several conditions. They need to be in full compliance with their current agreement and all other agreements with WOOPS! Franchise, LLC, with no more than three instances of default during the current term. Franchisees must provide written notice of their intent to renew at least six months before the agreement expires. They will also be required to sign a new franchise agreement, which may have different terms and conditions, and pay a successor agreement fee. This fee is 50% of the then-current initial franchise fee for a WOOPS! Shop or Boutique, or $5,000 for a WOOPS! Mobile/Trailer Business. Additionally, franchisees must still have the right to occupy their approved location or receive approval for a new site, remodel their business to meet current brand standards, complete any required additional training, and sign a general release of claims against WOOPS! Franchise, LLC and its affiliates.

Training & Support Program

Franchisor Assistance

WOOPS! Franchise, LLC provides extensive assistance to its franchisees both before and after opening. Pre-opening support includes site selection guidelines and approval, review and approval of the lease, and prototypical plans and specifications for the outlet's design and signage. WOOPS! also provides access to its confidential Operations Manual and lists of required equipment, fixtures, and supplies, including coordinating delivery and installation. Initial training is provided at WOOPS! headquarters or an affiliate-owned outlet, along with standards for employee qualifications. For WOOPS! Shops and Boutiques, WOOPS! Franchise, LLC provides up to three weeks of on-site training and opening assistance, while Mobile/Trailer Businesses receive up to two days. After opening, WOOPS! Franchise, LLC offers optional and mandatory additional training programs (up to three days annually) and annual conferences (up to five days annually). Franchisees can also request remedial on-site training and individualized assistance via telephone, fax, or email. WOOPS! Franchise, LLC provides samples of digital artwork and advertising materials, conducts inspections to ensure standards, and offers updated lists of approved suppliers.

Initial Training Hours

328

Training Location

Our Affiliate-owned New York City outlet or Then Designated Training Outlet

Ongoing Support

After opening, WOOPS! Franchise, LLC offers ongoing support through various programs. Franchisees may be required to attend mandatory additional training programs for up to three days per year at a location designated by WOOPS! Franchise, LLC, and an annual business meeting or conference for up to five days per year. WOOPS! Franchise, LLC also provides remedial on-site training and assistance at the franchisee's premises upon request or as deemed appropriate. Individualized assistance is available within reasonable limits by telephone, fax, electronic mail, or postage service, subject to personnel availability. WOOPS! Franchise, LLC also provides samples or digital artwork for advertising and promotional materials and conducts inspections of franchised businesses to ensure adherence to standards. Franchisees receive updated lists of approved suppliers for products and services. Additionally, WOOPS! Franchise, LLC oversees the system-wide Brand Fund for national advertising and marketing, and may establish regional advertising cooperatives.

Franchise Requirements

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Hybrid

Owner Participation

Supervisory

Territory Type

Limited

Territory Size Requirements

WOOPS! Franchise, LLC defines territories differently based on the business model. For WOOPS! Boutique and WOOPS! Bake Shop locations, territories are determined individually and include all or part of a town, city, or county, identified by contiguous zip codes or other designations. These territories consider demographic data, including a minimum of approximately 1,000 surrounding businesses, population density, and household incomes. For WOOPS! Mobile/Trailer Businesses, the territory is limited to the mall or other shopping center where the operation is based for retail sales. While WOOPS! Franchise, LLC grants limited protection against other WOOPS! physical storefronts within the territory, it reserves the right to engage in or permit others to engage in sales through alternative distribution channels, such as the internet, catalog sales, or captive market locations, both within and outside the territory.

Staffing Notes

WOOPS! Franchise, LLC requires each franchised outlet to be directly supervised by a general manager, who can be the franchisee or another approved individual. This general manager must successfully complete the Initial Management Training Program and devote full-time efforts to the business, without holding interests in competing businesses. If a general manager leaves, a replacement must be designated and trained within 30 days. Additionally, within 120 days of opening, WOOPS! Franchise, LLC requires franchisees to hire an outside sales professional to handle non-retail business development, and this role must be maintained for the duration of the agreement. All personnel with access to WOOPS! proprietary information, including the general manager and outside sales professional, must sign a Non-Disclosure/Non-Competition Agreement. The Operations Manual provides extensive guidance on job responsibilities, ideal employee profiles, recruitment, interviewing, background checks, new employee paperwork, training (including a Shadow Training Program), personnel policies, compensation, scheduling, performance evaluations, and disciplinary actions, but does not specify a typical numerical staff count.