Signing out of account, Standby...
- 2022 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$150K - $289K
- Units as of 2020
2 100.0% over 3 years
Here’s what you need to know if you’re interested in opening a Sumo Snow franchise.
Sumo Snow was launched in 2017 by Avina Pham and Kevin Nguyen. The team developed the Sumo Snow brand to provide Japanese and Taiwanese-inspired drinks, treats, and desserts. With a thriving business, Sumo Snow soon partnered with Franchise Creator, a Miami-based franchise consulting firm led by Hossein Kasmai.
With a menu packed full of unique hot dogs, boba teas, smoothies, and more, there may be something on the menu for everyone. Sumo Snow also has seasonal and featured items that change regularly. An ideal Sumo Snow franchisee will embrace the Sumo Snow culture and be willing to follow a proven business model.
Why You May Want To Start a Sumo Snow Franchise
Sumo Snow is a unique concept that strives to provide customers with the best customer service, ingredients, and products. Sumo Snow ingredients are all made in-house, with truly unique product offerings.
Customers enjoy boba teas, matcha tiramisu, ube cream puffs, dessert ramen, Japanese raindrop cake, and more unique items. Sumo Snow has mutiple locations in Arizona and is headquartered in Surprise, AZ, just northeast of Phoenix.
What Might Make a Sumo Snow Franchise a Good Choice?
The Sumo Snow franchising team believes it is set up to make things easier for you. After an approval process, the team will connect you with a real estate agent to find the best location. It also may offer help with construction if that proves to be necessary.
From there, you will receive hands-on training from the Sumo Snow franchise team. You will learn how to best market and advertise your brand as you begin operations. The training team will offer assistance up to the location's soft-opening period and continue to help grow and promote your business.
How To Open a Sumo Snow Franchise
As you decide if opening a Sumo Snow franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a Sumo Snow franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
To be part of the Sumo Snow team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. A typical term of agreement with Sumo Snow lasts for ten years that are renewable if you meet the Sumo Snow qualifications.
Sumo Snow has partnered with third-party financial lenders that may help cover the costs of the franchise fee, startup, equipment, inventory, accounts receivable, and payroll if you qualify,
Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Sumo Snow franchising team questions.
About Sumo Snow
- Franchising Since
- 2019 (3 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees in the following US states:
This company is seeking new franchisees in the following international regions:
- # of Units
- 2 (as of 2020)
- Corporate Address
16487 W. Bell Rd., #105
Surprise, AZ 85374
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Sumo Snow franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $149,770 - $288,500
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Sumo Snow has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 45 hours
- Classroom Training
- 15 hours
- Ongoing Support
Grand OpeningSite Selection
- Marketing Support
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Are you eager to see what else is out there? Browse more franchises that are similar to Sumo Snow.
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