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Rocket Fizz Franchise Costs $125K – $266K (2024 Fees & Profits)

Rocket Fizz was established by Ryan Morgan and Robert Powells in 2007. The company started franchising in 2009, with its first store opened in Camarillo, California. Rocket Fizz offers a wide variety of sodas and candies, including unique and international products.

Headquartered in Reno, Nevada, the brand stands out by creating a fun, visually appealing shopping space that features a mix of retro and gag gifts along with its extensive candy and soda selection. Unlike other stores, Rocket Fizz does not require food preparation, making it simpler and cheaper to operate.

The company also provides its franchisees with thorough training and support to ensure their success. The franchise model is designed to be easy to manage and includes detailed guidance on choosing the best location and running the store effectively.

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Initial investment

Type of ExpenditureAmount
Initial Franchise Fee$54,000
Utility Deposits, Fees, and Licenses, Pre-Construction Cost$1,000 – $8,000
Leasehold/Construction$15,000 – $32,000
Signage (interior & exterior)$2,500 – $10,000
POS System, Computer Equipment and Software$1,000 – $3,000
Furniture, Fixtures and Equipment$0 – $1,000
Opening Inventory – Rocket Fizz Authorized Products$30,000 – $60,000
Opening Inventory – Non-Proprietary Products$1,000 – $3,000
Grand Opening Marketing$0 – $2,000
Rocket Fizz Shop Premises (3 Months’ Rent & Security Deposit)$7,200 – $40,000
Insurance – Liability & Workers Compensation (initial deposit)$1,200 – $3,000
Legal Fees/Organizational Expenses$1,000 – $5,000
Training Expenses (Including Travel and Living Expenses)$1,000 – $5,000
Additional Funds (3 months)$10,000 – $40,000
Total Estimated Initial Investment$125,000 – $266,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Initial Franchise Fee

The Initial Franchise Fee is $54,000, which is due when you sign the Franchise Agreement for a new Rocket Fizz Shop. This fee is non-refundable and fully earned when paid.

Royalty Fee

You are required to pay a Royalty Fee monthly, which is the greater of $900 or 5% of your Gross Revenue. Gross Revenue includes all revenue from the Rocket Fizz Shop, including proceeds from sales conducted both in and from the shop, even if the actual transaction occurs elsewhere.

Marketing Fund Fees

Currently, you are not required to contribute to a Marketing Fund. However, you might be required to contribute between 1% and 2% of your Gross Revenue per month towards this fund if the franchise decides to establish a Marketing Fund in the future.

POS System Support Fees

These fees range from $70 to $140 per month. You are required to purchase, use, and maintain the designated POS System, which includes all related hardware and software as specified in our Operations Manuals.

Violation Assessments

If you violate the operational standards or purchase unauthorized products, you must pay $500 per day plus other out-of-pocket expenses. This includes our transportation, food, and lodging expenses if we must travel to your shop to investigate the violation.

Finance and Administrative Fee

This fee varies depending on the payment’s lateness and the amount due. It applies to late payments or payments returned due to insufficient funds, including costs related to handling these situations.

Pre-Opening Additional Initial Training Fees

If you require training for more than the three supervisorial or managerial personnel included in your initial training program, you must pay $500 per day for each additional trainee.

Post-Opening Initial Training Fees

Following the opening of your Rocket Fizz Shop, if you request additional training for new or replacement supervisorial or managerial personnel, a fee of $1,500 per week per trainee will be charged. This fee includes our transportation, food, and lodging expenses during the training period.

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How to apply

1. Research the Franchise

  • Understand the brand, market position, and product offerings of Rocket Fizz.
  • Explore the unique selling proposition that distinguishes Rocket Fizz from other confectionery and soda franchises.

2. Review the Franchise Disclosure Document (FDD)

  • Carefully read the FDD, which provides detailed information about the franchise’s legal, financial, and operational aspects.
  • Consult with a franchise attorney to clarify any legal terminologies and implications.

3. Assess Your Financial Capacity

  • Evaluate your financial resources to ensure you can meet the initial investment requirements, which include franchise fees, inventory, and store setup costs.
  • Plan for ongoing operational costs, such as rent, utilities, salaries, and marketing.

4. Secure Financing

  • Explore financing options if personal funds are insufficient. Consider loans, investors, or partnerships.
  • Prepare a solid business plan to present to banks or private investors to secure the necessary funding.

5. Choose a Suitable Location

  • Identify a location with high foot traffic, such as shopping malls, downtown areas, or near cinemas and universities.
  • Ensure the location aligns with the demographic targeted by Rocket Fizz, primarily families and young adults.

6. Complete Franchise Application and Approval Process

  • Submit a detailed franchise application to Rocket Fizz, showcasing your background, financial standing, and business acumen.
  • Participate in interviews and discussions with Rocket Fizz representatives to confirm mutual interests and expectations.

7. Attend Franchise Training

  • Participate in Rocket Fizz’s comprehensive training program, which covers product knowledge, operations, staffing, and customer service.
  • Utilize the training to understand the company’s operational procedures and marketing strategies to effectively manage your franchise.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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