About Supreme Produce Franchise
Supreme Produce's Illinois operation extends the brand's fresh produce distribution model into one of the nation's largest food markets.
The franchise has been operating since 2021, establishing distribution networks that connect growers and suppliers with businesses and institutions across Illinois.
Each franchise territory handles the sourcing, warehousing, and delivery of fresh produce and food products.
Supreme Produce Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | up to $50,000 (minimum of $5,000) | One-time payment upon signing |
| Royalty Fee | greater of $200 per bi-weekly period or 1% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Maximum – 1.0% of Gross Sales (currently 0%) | National brand fund |
| Total Investment Range | $22,100 – $238,750 | Includes build-out, inventory, working capital |
The investment range of $22K–$239K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (greater of $200 per bi-weekly period or 1% of Gross Sales) and marketing fee (Maximum – 1.0% of Gross Sales (currently 0%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $5,000 | $50,000 |
| Kitchen Equipment and Supplies | $3,000 | $15,000 |
| Initial Inventory (First Month) | $2,000 | $18,000 |
| Training | $1,720 | $1,720 |
| Additional Funds Post-Opening (first 3 months) | $10,400 | $144,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 plus an amount necessary to reimburse us for our out-of-pocket expenses |
| Renewal Fee | $5,000 |
| Hosting Fee | 15 – 35% of weekly Gross Sales |
| Franchise Fee (withheld) | up to the remaining 5 – 25% of weekly Gross Sales |
| Inventory Order Processing Fee | $50 per order, as applicable |
| Supplemental Marketing Programs | Maximum – 1.0% of Gross Sales |
| Replacement and Supplemental Training | Currently, $5,000, plus costs of your personnel attending training |
| Offering Review Fee | Franchise/Capital Raise – $5,000 |
| Late Charge and Interest | Late Charge: 5% of the amount due late charge for each delinquent payment. Interest Rate: the lesser of 18% per annum or maximum legal rate from the due date thereof. |
| Early Termination Fee | $10,000 |
| Indemnification | Will vary depending on loss |
| Insurance Premiums | $500 – $1,200 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | generally two weeks |
| Classroom Training | 5 hours |
| On-the-Job Training | 15 hours |
| Training Location | Training Facilities located throughout the U.S., location varies by region and availability |
| Additional Training | Franchisor may require personnel to attend supplemental training programs and may charge a reasonable fee for these programs. Franchisees are responsible for all expenses incurred for attendees, including meals, lodging, and transportation. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisees do not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other distribution channels/competitive brands controlled by the Franchisor. The Franchise Agreement grants the right to operate only at an approved location, with no territorial rights or rights to acquire additional franchise locations. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 1 year |
| Renewal Term | additional one-year Term |
| Renewal Fee | $5,000 |
| Renewal Conditions | Franchisee must not be in default, satisfy all monetary obligations, execute a general release, and comply with current qualification and training requirements. A new franchise agreement, potentially with different terms and higher fees, may be required. |
| Transfer Fee | $10,000 plus an amount necessary to reimburse us for our out-of-pocket expenses |
| Transfer Conditions | Franchisor's written consent is required. Conditions include satisfying all monetary and outstanding obligations, not being in default, executing a general release, the transferee assuming all obligations, meeting franchisor's criteria, signing the then-current franchise agreement, completing training, and satisfying other reasonable conditions. |
| Termination for Cause | Termination can occur for material breaches such as insolvency, unauthorized transfers, false statements, deleterious conduct, health/safety violations, misuse of marks, failure to pay fees, or failure to open the kiosk within 30 days. Some defaults may have a cure period (3 or 10 days), while others result in immediate termination. |
| Non-Compete Period | During the Term and for two years after termination/expiration of the Franchise Agreement or transfer of interest; for one year after an individual/entity ceases to be a 'Franchisee’s Owner'. |
| Non-Compete Details | During the term and post-term, franchisees and owners are prohibited from diverting business to competitors, taking actions prejudicial to the Marks/System, or having any interest in a competitive produce kiosk/restaurant business (defined as featuring Produce Products as primary menu items) within the United States of America. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If the franchisee is an entity, a 'Managing Owner' must be designated. This individual must own the largest percentage share (at least 10%), be authorized to bind the franchisee, direct actions for compliance, and, unless an Operating Partner is appointed, devote full time and best efforts to the Produce Kiosk operations without other management commitments. If an Operating Partner is appointed, they must also devote full time and best efforts and live within a 50-mile radius. |
| Required Suppliers | You must purchase all labels, food inventory and utensils used or offered for sale at the Produce Kiosk solely from us or a supplier previously approved by us in writing. |
| Supply Restrictions | Franchisor may withhold approval of any supplier in its sole discretion. You must comply with all of our standards and specifications (as set forth in the Manual) for the purchase of all food and beverage items, ingredients, supplies, equipment and other products used or offered for sale at the Produce Kiosk. |
| Franchisor Revenue from Suppliers | Franchisor’s total revenue was $15,614,577 and Franchisor recognized revenue with respect to product sales and billed shipping of product to franchisees of $769,979 in 2023 (4.93% of total revenue). |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Franchisor may, from time-to-time and at its option, provide financing to Franchisee on commercially reasonable terms (including through payment cards referenced in Item 5) and deduct any such due and owing indebtedness, interest, late fees, or any other costs or expenses incurred by Franchisor in connection with such financing arrangement from your Franchisee Payment. If desired, Franchisor will provide all or a portion of, and/or the financing for, the initial equipment, supplies and/or inventory and deduct the costs from your share of the revenue of the Produce Kiosk until fully reimbursed; provided that Franchisee must use the payment card or other financing (if provided) by Franchisor to purchase Produce Products. |
Supreme Produce Franchise Earnings — Item 19
Supreme Produce 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.
Supreme Produce 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.
Supreme Produce System Growth
Supreme Produce currently operates 0 franchised locations and 134 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 0 | 0 |
| 2023 | 134 | 0 | 134 |
Transfers: 1 | Closures: 4
State Registrations
Registered in 31 states: AL, AK, AZ, AR, CO, GA, ID, IL, IN, KY, MD, MI, MN, MS, MO, NC, ND, NY, OH, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WV, WI
Franchisor Financials (Item 21)
Supreme Produce Franchise — FAQ
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