About Naisnow Franchise
Naisnow (also known as Naixue) is a franchise restaurant concept where franchisees operate retail restaurants selling tea, coffee, other beverages, cakes, bread, other bakery items, retail goods, and other food and beverage products.
Day-to-day operations involve preparing beverages and bakery items according to proprietary recipes and procedures, serving the general public in a dine-in and carry-out format, and maintaining strict quality and service standards prescribed by the franchisor.
The target customers are the general public seeking premium tea, coffee, and bakery products.
Naisnow Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 15% of Net Cash Contribution of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | None currently; franchisor reserves the right to establish a national or regional marketing fund | National brand fund |
| Total Investment Range | $504,000 – $743,500 | Includes build-out, inventory, working capital |
The investment range of $504K–$744K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (15% of Net Cash Contribution) and marketing fee (None currently; franchisor reserves the right to establish a national or regional marketing fund) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Performance Deposit | $20,000 | $20,000 |
| Integrated Service Fee | $18,500 | $18,500 |
| Wages, Travel and Living Expenses for You and Your Staff During Training | $14,000 | $16,000 |
| Rent (3 months); Utility and Security Deposits | $72,000 | $150,000 |
| Equipment, Fixtures and Signs | $130,000 | $150,000 |
| Design & Architect Fees | $3,000 | $5,000 |
| Leasehold Improvements | $150,000 | $250,000 |
| Business Licenses, Permits, Fees | $3,000 | $5,000 |
| POS System Fee | $3,000 | $10,000 |
| Opening Inventory | $20,000 | $30,000 |
| Uniforms | $500 | $1,000 |
| Insurance | $5,000 | $8,000 |
| Additional Funds for First 3 Months of Operation | $10,000 | $20,000 |
| Professional Fees | $5,000 | $10,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Then-current Initial Franchise Fee |
| Renewal Fee | Then-current Initial Franchise Fee |
| Technology Fee | Up to $1,000 per month |
| Audit Fee | Actual cost of audit if understatement of Gross Sales by more than 2% or failure to submit required reports |
| Performance Deposit Replenishment | Shortage amount, on demand within 7 days |
| Unauthorized Advertising Fee | $500 per occurrence |
| Insurance Reimbursement | Reimbursement of costs plus 20% administration charge |
| Additional Training Fee | $2,500 per additional person |
| Food Safety Audit | Actual cost of audit |
| Replacement of Manual | $500 |
| Customer Issue Resolution | Actual costs incurred |
| Payment Service Fee | Up to 4% of total charge |
| Late Payment Fee | $100 per occurrence plus 18% per year simple interest |
| Non-Sufficient Funds Fee | $100 per occurrence plus 18% per year simple interest |
| Failure to Submit Required Report Fee | $100 per occurrence and $100 per week |
| Liquidated Damages (In Term) | $100 to $5,000 per occurrence |
| Liquidated Damages (Post Term) | $20,000 Performance Deposit forfeiture plus $30,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 10 to 15 business days |
| Classroom Training | 6.5 to 11 hours |
| On-the-Job Training | 65 to 97 hours |
| Training Location | Affiliate's training center in China, or another location designated by the franchisor including online locations |
| Additional Training | Additional training available at $2,500 per person for additional personnel, replacement managers, remedial training, and refresher courses. Franchisee responsible for all travel, lodging, meals, wages, and other expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Single site address only, no minimum territory based on radius or population |
| Description | Franchisee is granted the right to operate at a specific street address (the Site) only. No exclusive territory is granted. The franchisor and affiliates reserve the right to own, franchise, or operate other locations at any proximity, use alternative distribution channels, provide delivery services, and engage in any other business activities regardless of proximity to the franchisee's location. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | 5 years (successor franchise agreement at franchisor's sole discretion) |
| Renewal Fee | Then-current Initial Franchise Fee |
| Renewal Conditions | No right to renewal; successor franchise agreement granted only at franchisor's sole discretion. Must provide 6 months written notice, be in compliance with no defaults, sign then-current franchise agreement (which may have materially different terms), sign general release, pay renewal fee, renovate to current standards, have valid lease for successor term, and meet current financial and operational criteria. |
| Transfer Fee | Then-current Initial Franchise Fee (plus transferee must pay then-current Integrated Service Fee) |
| Transfer Conditions | 45 days prior written notice, qualified transferee meeting franchisor standards, all monetary obligations paid in full and in compliance, transferee completes training, transferee obtains all licenses and permits, transferee signs then-current franchise agreement, payment of transfer fee and transfer integrated service fee, general release signed, franchisor's right of first refusal not exercised, landlord consent to lease assignment, remodel to current standards |
| Termination for Cause | Non-curable defaults include failure to open, material misrepresentation, violation of law, criminal offense, false books or underreporting, trademark misuse, health/safety violations, abandonment (3 consecutive days or 7 cumulative days per year), failure to pay within 10 days of demand, unauthorized transfer, violation of brand covenants, license revocation, failure to complete training, repeated defaults (3+ notices in 12 months), cross default, and bankruptcy. Curable defaults have 30 days to cure. |
| Non-Compete Period | 2 years after termination, expiration, or transfer |
| Non-Compete Details | During the restricted period, franchisee and owners may not engage in prohibited activities (owning, operating, or having interest in a competitive business; diverting business; inducing customers or employees) within a 2-mile radius of the franchisee's site and a 2-mile radius of all other operating or under-construction sites. The restricted period is extended by any period of non-compliance. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee must either directly operate the restaurant or designate a Franchise Manager approved by the franchisor. If franchisee is a legal entity, a Responsible Owner with at least 25% equity must be appointed. The Responsible Owner must have authority and responsibility for day-to-day operations unless delegated to an approved Franchise Manager. The Franchise Manager must complete the initial training program. |
| Required Suppliers | Franchisees must obtain all food and beverage items, ingredients, supplies, materials, fixtures, furnishings, equipment, and other products from suppliers approved by the franchisor. Proprietary recipes and products must be purchased solely from the franchisor or a designated source. Currently the franchisor and affiliates are not an approved supplier for any products but reserve the right to designate themselves as sole supplier in the future. |
| Supply Restrictions | Approximately 85%-90% of initial purchases and 90%-95% of ongoing purchases must be from approved suppliers or conform to franchisor specifications. Franchisees may not use any supplies or services not approved or designated by the franchisor. |
| Franchisor Revenue from Suppliers | During fiscal year ended December 31, 2023, neither the franchisor nor its affiliates derived revenue or other material consideration from franchisees' required purchases or leases. The franchisor reserves the right to collect and retain all allowances, rebates, credits, incentives, or benefits from suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing and does not guarantee any note, lease, or obligations. |
Naisnow Franchise Earnings — Item 19
Naisnow does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Naisnow Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Naisnow System Growth
Naisnow currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Naisnow Franchise — FAQ
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