Apple Spice Franchise

Café & Bakery Group, LLC, the Apple Spice franchisor, was organized in Utah in October 2011 and began offering the current Apple Spice box lunch delivery and catering franchises in December 2016. Its principal office is in Salt Lake City. The company’s earlier Apple Spice Café & Bakery offering combined a quick-service café with box lunch delivery, but that is a different format from the current delivery and catering business. The FDD also distinguishes the legacy Apple Spice Junction café franchises offered by an affiliated company.

An Apple Spice franchise operates from an approved central kitchen and supplies box lunches and catering to customers such as businesses, medical facilities, government offices, private schools and universities. A franchise agreement can cover one territory or multiple contiguous territories. A separate area development agreement covers the development of multiple franchise businesses under an agreed schedule. These arrangements have different obligations and should be evaluated separately when reviewing the opening budget, capacity and delivery area.

The territory is not exclusive. Item 12 describes protection against another traditional Apple Spice brick-and-mortar location within the assigned area, while reserving nontraditional locations and other distribution channels. Serving customers outside the assigned territory requires written permission. Multiple contiguous territories can require supplemental kitchens when delivery drive times exceed the FDD’s threshold. Kitchen capacity and delivery distances are central to planning how each territory will be served.

Initial operations and sales training includes designated pre-class preparation, estimated at up to 40 hours, followed by a program generally lasting two weeks in Salt Lake City or another selected location. The operating principal and day-to-day manager must complete the required training; at least two people should train for the first unit. Item 11 lists bread and sandwich preparation, catering, order expediting, delivery coordination, point-of-sale use, purchasing, food-cost control, scheduling and daily records. The $10,000 training fee covers up to three attendees in one session. Travel, living expenses and wages are the franchisee’s responsibility, and additional participants or later training can cost extra.

Before opening, the franchisor designates the territory, reviews the proposed site and lease, supplies general layout and equipment specifications, identifies approved suppliers and provides access to the operations manual. Site identification and lease negotiation must be handled through an approved supplier; the franchisee remains responsible for selecting the location, permits, construction and adapting the specifications to local requirements. Item 11 estimates eight to twelve months from signing to opening, with site availability, financing, construction and approvals affecting timing.

The FDD provides for two weeks, or ten business days, of on-site opening assistance at no additional charge. Rescheduling can create reimbursement obligations, and extra assistance can carry additional fees. Ongoing support includes updated operating standards and manuals, with consultation, inspections, marketing materials and additional training subject to the terms and discretion described in Item 11. Additional requested on-site assistance is currently priced at $350 per representative per day plus expenses. Conferences, when held, require attendance and may involve a fee and travel costs.

Owners must use the required point-of-sale and online ordering systems, maintain operating and financial records and follow approved purchasing and marketing procedures. Except for nontraditional businesses, local marketing spending must equal at least 2% of gross sales each quarter, subject to the franchisor’s right to increase the requirement. The franchisee hires, manages and trains employees and remains responsible for food safety and employment compliance. At least one manager must be on-site during business hours, and at least one person must be ServSafe certified whenever the business is open.

Apple Spice may suit an owner who wants to combine business-to-business selling with food-service production and delivery management. The system provides a defined menu, preparation procedures, training and ordering tools, while the local operator develops customer relationships and coordinates production and delivery capacity. Evaluate the concentration of potential organizational customers, competitors, travel times, labor availability and order sizes in the proposed market. Repeat orders depend on local service and sales execution; the format does not establish a particular revenue, profit or lifestyle outcome.

The operating principal need not personally manage every shift, but must oversee accounting and reporting, complete required training, participate in meetings and remain involved in site, construction and financial decisions. A trained manager provides on-site coverage. The standard business must operate at least Monday through Friday except holidays, subject to the agreement; that minimum is not a promise that additional hours will never be needed. For an owner who enjoys building organizational customer relationships and coordinating a food-service team, the delivery and catering format offers a focused way to combine local selling with disciplined kitchen operations.

For questions about equipment, staffing, customer demand and operating budgets, use our food-franchise buyer checklist. Evaluate each offering’s actual scope and requirements separately.