About SPOT DESSERT BAR Franchise
Spot Dessert Bar is a specialty dessert franchise offering a unique menu of Asian influenced dessert tapas, including cookies, macaroons, ice cream, milk buns, teas, and other beverages.
The franchise fee is $50,000, and the brand has been franchising since 2023.
The concept creates a distinctive dining experience focused entirely on creative, artfully presented desserts.
SPOT DESSERT BAR Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 6% of weekly Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Sales (can increase up to 3%) | National brand fund |
| Total Investment Range | $299,043 – $473,660 | Includes build-out, inventory, working capital |
The investment range of $299K–$474K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of weekly Gross Sales) and marketing fee (1% of Gross Sales (can increase up to 3%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Training-Related Expenses | $3,140 | $10,000 |
| Lease-Related Payments (3 Months); Utility Deposits | $7,500 | $30,000 |
| Leasehold Improvements | $155,800 | $216,000 |
| Furniture, Fixtures and Equipment (“FFE”) | $44,251 | $60,430 |
| Signage | $1,200 | $1,500 |
| Computer System, including POS System and Related Software Fees (3 Months) | $3,500 | $4,200 |
| Initial Inventory | $6,500 | $15,000 |
| Office Equipment and Supplies | $1,252 | $4,150 |
| Business Licenses and Permits | $300 | $330 |
| Insurance (3 Months) | $5,100 | $14,250 |
| Professional Fees | $500 | $2,000 |
| Initial Marketing Spend | $5,000 | $10,000 |
| Additional Funds (3 Months) | $15,000 | $60,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $25,000 |
| Renewal Fee | $5,000 |
| Technology Fee | Currently not charged, but reserved right to charge |
| Audit Fee | Actual cost of Audit |
| POS System | Between $450 and $800 per month |
| Collection Charges | Varies |
| Advertising Cooperative Fee | If collected, no more than your Local Advertising Requirement |
| Fees on Default and Indemnity | Attorneys’ fees, costs, interest, audit costs, default fees |
| Costs and Attorneys’ Fees | Will vary according to circumstance |
| Indemnification | Will vary according to circumstance |
| Insurance | Will vary according to circumstance |
| Interest | 1.5% per month or highest commercial contract interest rate applicable laws permit |
| Insufficient Funds (EFT Transfer) Charge | $100 |
| Late Fee (Reports) | $10 per day |
| Management Fee | Up to 10% of the Gross Sales of your Franchised Business during the period of time we or our representative manages your Franchised Business on your behalf, plus the costs and expenses we incur |
| Conference Attendance Fee | Between $500 and $1,500 per attendee |
| New Product or Supplier Testing | Actual costs incurred, up to $1,500 |
| Relocation Fee | Up to $2,500 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 10 to 14 days |
| Classroom Training | 16 |
| On-the-Job Training | 100 |
| Training Location | New York, NY (headquarters/corporate training location) |
| Additional Training | Up to five (5) days of refresher/additional training annually, and up to five (5) days of remedial training if in default. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Typically a one (1) to two (2) mile radius in rural/suburban areas, or a one (1) block to one (1) mile radius in downtown/urban areas. |
| Description | Once an Approved Location is secured, the franchisor will define a Designated Territory, typically a 1-2 mile radius in rural/suburban areas or a 1-1 block to 1-mile radius in urban areas. Within this Designated Territory, the franchisor will not open or license another Dessert Bar. However, the franchisor reserves the right to establish Dessert Bars at Non-Traditional Sites (e.g., malls, airports) within or outside the Designated Territory, and franchisees do not receive an exclusive territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two (2) additional, consecutive five (5) year terms |
| Renewal Fee | $5,000 |
| Renewal Conditions | To renew, franchisee must not have uncured material defaults, received no more than three written default notices in the preceding 12 months, complete required renovation/modernization, execute the then-current franchise agreement, complete refresher training and pay tuition, participate in and support training/marketing programs, and execute a general release in franchisor's favor. |
| Transfer Fee | $25,000 |
| Transfer Conditions | Franchisor approval is required for transfers. Conditions include: all monetary obligations satisfied, all existing defaults cured, franchisee and transferee (and principals) execute a general release, provide executed purchase agreement, transferee meets franchisor's educational/managerial/business/financial standards, transferee executes then-current franchise agreement, and transferee completes initial training program. |
| Termination for Cause | Franchisor may terminate without opportunity to cure for fraud/misrepresentation, failure to complete initial training, three or more notices to cure similar defaults within 12 months, violation of in-term restrictive covenants, misuse of Proprietary Marks/Confidential Information/proprietary software, default on other agreements with franchisor/affiliates/Approved Suppliers, lease default, abandonment, failure to provide computer system access, failure to pay amounts due, failure to comply with laws/regulations, failure to obtain licenses/permits, conviction of a felony/crime affecting the System, personal use of business assets, or insufficient EFT account funds (3+ times in 12 months). |
| Non-Compete Period | 2 years after termination/expiration/transfer |
| Non-Compete Details | During the term of the agreement, franchisee, principals, owners, guarantors, and immediate family members cannot be involved with a Competing Business (bakery, dessert bar, or similar) or solicit employees/customers. After termination/expiration/transfer, for two years, these parties cannot be involved with a Competing Business that offers/grants licenses/franchises, or operates within the Premises, Designated Territory, or a 15-mile radius of the Designated Territory or any other Dessert Bar. They also cannot solicit former customers, suppliers, or employees. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee must personally participate and manage the day-to-day operations of the Franchised Business. Additionally, a Designated Manager, approved by the franchisor, is required to manage daily operations. Both the franchisee (or a principal if an entity) and the Designated Manager must successfully complete the Initial Training Program. If the franchisee is a business entity, owners and their spouses may be required to sign a personal guaranty. |
| Required Suppliers | Franchisor has the right to require franchisees to purchase items or services from Approved Suppliers, which may include the franchisor or its affiliates. Currently, the affiliate Commissary is an Approved Supplier for initial and ongoing inventory related to menu items and branded items. Franchisor may also introduce Approved Suppliers for site selection assistance, architectural design, construction management, and restaurant management software. |
| Supply Restrictions | Franchisees must only offer and sell Approved Products and must purchase required items from Approved Suppliers or in accordance with franchisor's standards. Any non-approved products/services or alternative suppliers require prior written approval from the franchisor, which may involve evaluation fees and testing. |
| Franchisor Revenue from Suppliers | Franchisor reserves the right to derive revenue from any required purchases made by System franchisees. However, as of the Issuance Date, neither the franchisor nor any affiliate has generated revenue from franchisees' required purchases in the past fiscal year ending December 31, 2022. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither the franchisor nor its affiliates or agents offer direct or indirect financing to franchisees, nor do they guarantee franchisee obligations. |
SPOT DESSERT BAR Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
SPOT DESSERT BAR 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.
SPOT DESSERT BAR System Growth
SPOT DESSERT BAR currently operates 0 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 1 | 2 |
| 2021 | 0 | 0 | 2 |
| 2022 | 0 | 0 | 2 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 1 states: NY
Franchisor Financials (Item 21)
Audited by DELMASTRO & DEINNOCENTIIS CPA for year ending December 31.
SPOT DESSERT BAR Franchise — FAQ
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