About Natural Awakenings Franchise
Natural Awakenings is a franchise system where franchisees publish a free, local, community print and digital magazine focused on natural lifestyles, organic and healthy foods, sustainable green living, and whole health for people and the planet.
Franchisees generate income by selling advertising space in their print and digital magazine and on their website, as well as selling NAPC-approved services including memberships, business services, advertising and media kit offerings, paid subscriptions to Knatural Awakenings magazine, IT solutions, marketing agency services, and events and expos.
The target customers are businesses offering whole health, well-being, and natural lifestyle products and services who wish to advertise to a health-conscious readership.
Natural Awakenings Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,500 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Revenues or $500/month minimum (after month 6) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Monthly Gross Revenues (if National Advertising Fund is established) | National brand fund |
| Total Investment Range | $59,550 – $86,275 | Includes build-out, inventory, working capital |
The investment range of $60K–$86K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Gross Revenues or $500/month minimum (after month 6)) and marketing fee (2% of Monthly Gross Revenues (if National Advertising Fund is established)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,500 | $49,500 |
| Travel Expenses and meals while training | $0 | $1,500 |
| Racks & Computer | $2,100 | $6,350 |
| Additional Funds – first 6 months | $5,850 | $24,675 |
| Additional Misc. Fees & Expenses | $2,100 | $4,250 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $7,500 |
| Renewal Fee | $5,000 |
| Technology Fee | $557 per month |
| Audit Fee | Actual cost of audit plus interest on overdue amounts |
| Minimum Layout Services Fee (32 pages, no local) | $165/month |
| Layout Services Fee (Full Service) | $3,500/month |
| Regional Advertising Cooperative | 1% of Monthly Gross Revenues (if activated) |
| Additional Training/Extended Support | Up to $1,600/day |
| Training Fee for Replacement Business Manager | $1,500 per person |
| Ongoing Training Fee | $500 per participant annually |
| Conference Fee | $1,000 per person |
| Training Fee Upon Transfer | $3,500 |
| Convenience Fee (credit card) | 3.99% of amount paid |
| Late Fee | $5/day plus 1.5%/month interest |
| Non-Compliance Fees | $250 first violation, $500 if uncured after 30 days, $100/day thereafter |
| Insurance Default Fee | Cost of insurance plus $200/month administrative fee |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 2 to 5 days |
| Classroom Training | 15.5 to 39.5 hours |
| On-the-Job Training | 0 hours |
| Training Location | Online/Remote (via internet, videoconference, self-paced online courses); may include travel to NAPC headquarters in Bedminster, NJ |
| Additional Training | Ongoing training may be required; annual training session at $500/participant; NAPC Owners Conference required at least once every 2 years at up to $1,000/person; replacement Business Manager training at $1,500/person |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Approximately 500,000 in general population |
| Description | Each franchise territory is a designated geographical area of approximately 500,000 in general population based on U.S. Census Bureau data. Franchisee may not solicit or distribute outside territory without written approval. NAPC reserves the right to use Marks in alternative distribution methods inside and outside territory including maintaining websites. NAPC may develop other business concepts under other brand names within territory. Territorial rights are not dependent on sales volume or market penetration. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | 2 additional 5-year terms |
| Renewal Fee | $5,000 |
| Renewal Conditions | Give notice 6-9 months prior to expiration, not be in default, satisfy all conditions including completing training, making required expenditures for appearance/condition, executing then-current franchise agreement, paying renewal fee, executing general release |
| Transfer Fee | $7,500 |
| Transfer Conditions | NAPC right of first refusal, new franchisee must qualify and be approved, transfer fee paid, training fee of $3,500 paid, sign current agreement, general release executed, personal guarantee required, total sale price must not jeopardize viability |
| Termination for Cause | Non-curable defaults include: failure to timely open, competing business, bankruptcy, felony, disclosure of confidential information, operating outside territory, misuse of funds, abandonment, unauthorized ownership change, threat to public health/safety, failure to maintain insurance, 2+ defaults in 12 months, failure to run national ads 3+ times. Curable defaults have 30-day cure period (7 days for financial obligations). |
| Non-Compete Period | 2 years |
| Non-Compete Details | For 2 years after termination or expiration, franchisee may not own, operate, or be involved in any Competitive Business within the Approved Territory or within the territory of any other NAPC franchisee. May not solicit NAPC sales representatives or divert customers. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee must personally and directly supervise operations unless NAPC waives requirement in writing. Must designate a Responsible Agent who personally supervises operations and may also serve as Business Manager. Designated Manager and each individual owner must sign personal guaranty and confidentiality/non-compete agreement. |
| Required Suppliers | Franchisees must purchase minimum layout services and technology services from NAPC. Required technology services include technology licensing, website hosting, CRM, digital marketing applications, accounting software, enterprise-wide operations systems, mobile application, data hosting, email, IT security, and other technology services. Chief Marketing Officer's company Flip 180, LLC provides layout services. Website must be purchased from NAPC. |
| Supply Restrictions | Approximately 61% of initial expenditures and less than 35% of ongoing expenditures are subject to sourcing restrictions. All items must conform to NAPC standards and specifications. Proposed suppliers must be approved by NAPC within 30 days. |
| Franchisor Revenue from Suppliers | In 2023, neither NAPC nor KnoWEwell received revenues from product/service sales to franchisees. Expected to receive revenues in 2024. NAPC reserves the right to receive rebates or other benefits from supplier purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | NAPC offers qualified franchisees the opportunity to finance part of the Initial Franchise Fee. Down payment of $25,000 with $24,500 financed. Two options: 4-year term at Prime Rate +1% (currently ~$615.52/month) or 6-year term at Prime Rate +2.5% (currently ~$656.68/month). No prepayment penalty. No security required. Default results in outstanding balance plus accrued interest due and termination of Franchise Agreement. Promissory Note must be personally guaranteed. |
Natural Awakenings Franchise Earnings — Item 19
Natural Awakenings 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.
Natural Awakenings 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.
Natural Awakenings System Growth
Natural Awakenings currently operates 46 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 3 | 51 |
| 2022 | 1 | 4 | 47 |
| 2023 | 0 | 1 | 47 |
Transfers: 4 | Closures: 0
State Registrations
Registered in 30 states: CA, CT, FL, GA, HI, IL, IN, IA, KY, LA, ME, MD, MI, MN, NE, NH, NY, NC, ND, OH, OK, OR, RI, SC, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Fuoco Group (Margate, Florida) for year ending December 31.
Natural Awakenings Franchise — FAQ
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