About Surf City Squeeze Franchise
Surf City Squeeze is a quick-service restaurant franchise specializing in smoothies, fruit drinks, functional drinks, nutritional supplements, and other beverage and food items.
Franchisees operate a single Surf City Squeeze restaurant at a specific approved location, preparing and serving these products to the general public.
Target customers are people of all ages who consume smoothies and health-oriented beverages, with locations typically found in shopping malls, strip centers, airports, amusement parks, college campuses, and other high-traffic venues.
Surf City Squeeze Franchise Cost & Fees
Minimum Investment
$67K
Average Investment
$218K
Maximum Investment
$368K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales or $300/week minimum of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of weekly Gross Sales (up to 4% with 30 days notice) | National brand fund |
| Total Investment Range | $67,410 – $368,000 | Includes build-out, inventory, working capital |
The investment range of $67K–$368K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales or $300/week minimum) and marketing fee (1% of weekly Gross Sales (up to 4% with 30 days notice)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Traditional) | $14,000 | $30,000 |
| Lease Review Fee (Traditional) | $0 | $2,500 |
| Rent/Security Deposit - 3 months (Traditional) | $6,000 | $30,000 |
| Travel and Living Expenses - 2 persons (Traditional) | $2,500 | $5,000 |
| Architectural Fees (Traditional) | $6,000 | $11,000 |
| Leasehold Improvements (Traditional) | $5,000 | $168,000 |
| Restaurant Equipment, Furniture, Small Wares, Interior Signage and Menu Panels (Traditional) | $12,000 | $42,000 |
| Exterior Signage (Traditional) | $9,000 | $13,000 |
| Computer Hardware, Software (POS System) (Traditional) | $2,510 | $10,000 |
| PCI Compliance Costs (Traditional) | $150 | $1,300 |
| Opening Inventory - food and paper (Traditional) | $2,500 | $5,000 |
| Business Insurance (Traditional) | $1,000 | $5,000 |
| Miscellaneous Opening Costs (Traditional) | $4,750 | $17,200 |
| Grand Opening Marketing (Traditional) | $10,000 | $10,000 |
| Depository Account (Traditional) | $3,000 | $3,000 |
| Additional Funds - 3 month initial period (Traditional) | $5,000 | $15,000 |
| TOTAL Traditional | $83,410 | $368,000 |
| Initial Franchise Fee (Non-Traditional) | $4,000 | $7,500 |
| Lease Review Fee (Non-Traditional) | $0 | $2,500 |
| Rent/Security Deposit - 3 months (Non-Traditional) | $6,000 | $30,000 |
| Travel and Living Expenses - 2 persons (Non-Traditional) | $2,500 | $5,000 |
| Architectural Fees (Non-Traditional) | $5,000 | $11,000 |
| Leasehold Improvements (Non-Traditional) | $5,000 | $132,000 |
| Restaurant Equipment, Furniture, Small Wares, Interior Signage and Menu Panels (Non-Traditional) | $12,000 | $42,000 |
| Exterior Signage (Non-Traditional) | $9,000 | $13,000 |
| Computer Hardware, Software (POS System) (Non-Traditional) | $2,510 | $10,000 |
| PCI Compliance Costs (Non-Traditional) | $150 | $1,300 |
| Opening Inventory - food and paper (Non-Traditional) | $2,500 | $5,000 |
| Business Insurance (Non-Traditional) | $1,000 | $5,000 |
| Miscellaneous Opening Costs (Non-Traditional) | $4,750 | $17,200 |
| Grand Opening Marketing (Non-Traditional) | $5,000 | $5,000 |
| Depository Account (Non-Traditional) | $3,000 | $3,000 |
| Additional Funds - 3 month initial period (Non-Traditional) | $5,000 | $15,000 |
| TOTAL Non-Traditional | $67,410 | $304,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $7,500 (traditional); $5,000 (non-traditional) |
| Renewal Fee | 50% of then-current Initial Franchise Fee |
| Technology Fee | Up to $75/month data fee; $55/month POS Help Desk Phone Support |
| Audit Fee | Cost of audit plus interest at Default Rate on underpayments |
| Additional Persons Training Fee | $1,250 per person ($500 In-Store + $750 New Owner Training) |
| Additional Training Fee | $300 per person per day |
| Annual Meeting Registration Fee | Up to $1,000 |
| Depository Account | $3,000 minimum balance required |
| Transfer Training Fee | $2,500 for two individuals |
| Relocation Fee | $500 |
| Document Administration Fee | $500 |
| Default Interest | $50 plus 1.5% per month |
| Late Report Fee | $100 per report |
| Non-Sufficient Funds Fee | $50 EFT / $25 check |
| New Supplier Approval Fee | Up to $5,000 |
| Non-Participation Fee | $100 per day |
| Management Fee | 6% of Gross Sales plus out-of-pocket costs |
| Early Termination Damages | Formula based on average monthly royalty/ad fees x remaining months / 2 |
| Surcharge | Up to $10/week (states with additional reporting requirements) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 80 hours total |
| Classroom Training | 40 hours (New Owner Training) |
| On-the-Job Training | 40 hours (In-Store Training) |
| Training Location | New Owner Training: Online or KTEC (Kahala Training & Education Center) in Scottsdale, Arizona. In-Store Training: Training restaurant in Arizona or other designated location. |
| Additional Training | One representative provided during opening week for up to 4 days. Additional training available at $300/person/day. Refresher programs and annual conferences may be held at various US locations. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | No exclusive territory granted. Franchisor and affiliates may establish other franchised or company-owned Surf City Squeeze restaurants anywhere, including across the street or in the same venue. Franchisor may also sell products through other channels of distribution including grocery stores, Internet, catalog sales, vending machines, etc. Multiple other Kahala/MTY brands sell similar smoothie products (NrGize, Planet Smoothie, Maui Wowi, Pinkberry, etc.) and may operate in vicinity. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years (new traditional/transfer); 5 years (renewal) |
| Renewal Term | One 5-year renewal term |
| Renewal Fee | 50% of then-current Initial Franchise Fee |
| Renewal Conditions | Must give 120 days notice; not in default; compliant with agreement and manual; no more than 3 default notices during term or 2 in preceding 5 years; have premises; sign new renewal documents (may have materially different terms); pay renewal fee; remodel if necessary; sign general release; current on all financial obligations |
| Transfer Fee | $7,500 (traditional); $5,000 (non-traditional) |
| Transfer Conditions | Franchisor right of first refusal within 30 days; all obligations paid and satisfied; transferee must qualify, complete training, sign new agreements, pay transfer fees; remodel if necessary; franchisee must sign general release |
| Termination for Cause | Termination for cause including: bankruptcy/insolvency, failure to pay fees, lease default, felony conviction, abandonment (closed 3+ days), unauthorized transfer, trademark misuse, repeated defaults, fraud, health/safety violations, failure to open within required timeframe |
| Non-Compete Period | 2 years |
| Non-Compete Details | During term: no competing business (primarily engaged in sale of smoothies) anywhere. After termination/expiration: no competing business within 10-mile radius of any Surf City Squeeze restaurant for 2 years. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | While not specifically required to personally participate in direct operations, the franchisor intends to select only those who plan to actively participate. The franchise must be personally managed with on-premises supervision by the franchisee, a partner/shareholder/member, or a manager who has completed the Training Program. A full-time Manager is required at all times. Franchisor strongly recommends substantial personal time commitment. |
| Required Suppliers | All food products, ingredients, equipment, computer hardware and software, furniture, fixtures, decor, signs, supplies must be purchased from approved distributors and suppliers. Neptune Equipment (affiliate) is an approved supplier of equipment, signage, menu boards, and smallwares. Kahala Management (affiliate) is the only approved provider of POS phone support maintenance. |
| Supply Restrictions | Franchisees may not use unapproved suppliers without prior written approval. New supplier approval requires inspection and testing at a cost up to $5,000. Over 90% of initial purchases and 80% of annual operating expenses for raw materials must come from approved sources. |
| Franchisor Revenue from Suppliers | MTY USA and subsidiaries derived $43,895,158 in revenues from product sales, services, and vendor allowances (7.5% of total revenue). Vendor allowances of $32,499,276; Neptune Equipment earned $1,652,145; POS support revenue of $1,739,420. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Kahala Franchising does not offer direct or indirect financing. However, if purchasing a corporate-owned restaurant from an affiliate, financing of up to 100% of purchase price may be available at 0-12% interest with 12-60 month repayment terms, at sole discretion of the affiliate. |
Surf City Squeeze Franchise Earnings — Item 19
Surf City Squeeze does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Surf City Squeeze 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.
Surf City Squeeze Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Surf City Squeeze System Growth
Total Units
65
Franchised
64
Company-Owned
1
Surf City Squeeze currently operates 64 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 | 1 | 0 | 73 |
| 2022 | 2 | 6 | 69 |
| 2023 | 0 | 5 | 64 |
Transfers: 2 | Closures: 5
State Registrations
Registered in 13 states: CA, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$580.3M
Net Income
$17.0M
Total Assets
$1459.4M
Audited by PricewaterhouseCoopers LLP for year ending November 30.
Surf City Squeeze Franchise — FAQ
The total investment to open a Surf City Squeeze franchise ranges from $67,410 to $368,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Surf City Squeeze charges a royalty fee of 6% of Gross Sales or $300/week minimum of gross sales, plus a 1% of weekly Gross Sales (up to 4% with 30 days notice) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Surf City Squeeze Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Surf City Squeeze to ensure you have the most up-to-date version.
Surf City Squeeze does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Surf City Squeeze has been franchising since 1994. The FDD shows an investment range of $67,410-$368,000, a 6% of Gross Sales or $300/week minimum royalty, and no Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000 and the total investment ranges from $67,410 to $368,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Surf City Squeeze and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Surf City Squeeze or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com