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- 2023 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$478K - $662K
- Units as of 2022
65 22% over 3 years
Here’s what you need to know if you’re interested in opening a Zoup! Eatery franchise.
In 1998, spice merchant Eric Ersher decided to dedicate his life to making delicious soup. The company initially rotated over ten different soups daily in his first Zoup! Eatery in Southfield, Michigan. In the coming years, Zoup! Eatery opened up five more locations in the Detroit area, with franchise development starting in 2003. The fast-casual dining chain added salads, sandwiches, and mac n' cheese to the menu and soon found itself several stores strong across the U.S. and Canada.
Why You May Want to Open a Zoup! Eatery Franchise
Zoup! Eatery is over two decades old and has a strong sense of culture and community. The company offers plenty of franchise support, including annual franchise reunions. Franchisees should be equally enthusiastic about the brand and joining the Zoup! Eatery community.
Zoup! Eatery holds community fundraisers, like its Ladling Love Fundraising program. Through Ladling Love, customers can mention their nonprofit of choice between certain hours and Zoup! Eatery will donate 20% of those sales to their group of choice. Nonprofits and other organizations can also schedule an event with Zoup! Eatery.
As a franchisee, you'll work with proprietary technology, including digital menus, POPs, and third-party integrations. You'll also go through multiple weeks of hands-on training and grand opening support. You'll be part of a company that cares about giving back to its community.
What Might Make a Zoup! Eatery Franchise a Good Choice?
Zoup! Eatery commits to its customers as the company takes steps to help franchisees build a loyal customer base. Besides the philanthropy and healthy lifestyle choices on the menu, they have an Insiderz Reward program and special promotions.
For example, to celebrate National Soup Month, customers may receive a free cup of soup every Friday in January between 2 PM and 4 PM. These efforts to bring in and keep customers may be appealing to franchisees who value customer service and loyalty.
The brand is committed to menu innovation. Since its inception, they've tested new ingredients, recipes, and techniques to keep things fresh. A franchisee may find this innovation part of how they keep loyal customers and bring in new ones.
How Do You Open a Zoup! Eatery Franchise?
An ideal candidate for a Zoup! Eatery must meet the company's financial requirements. This will include an initial investment, which is made up of a franchise fee and other startup costs. This will also include ongoing fees, including royalty fees, advertising fees, and renewal fees. A potential franchisee should also conduct their own research into the brand to make sure it is the right choice for them. If they wish to continue with the process, they may go on to learn about Zoup! Eatery's marketing strategies, training, and building development process.
Franchisees should prepare to travel for training at headquarters in Farmington Hills, Michigan. Training covers in-store experience and hands-on practice. While in Michigan, franchisees may also meet the executive team. If everything pans out, you'll sign the franchise agreement and start working with the real estate and construction team to open your Zoup! Eatery.
About Zoup! Eatery
- Franchising Since
- 2003 (20 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees in the following US states: Alabama, Arkansas, Arizona, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, North Dakota, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, West Virginia, Wyoming
This company is offering new franchisees in the following international regions: Canada
- # of Units
- 65 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Zoup! Eatery 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
- $477,634 - $662,474
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.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 25% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- 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?
- Third Party Financing
- Zoup! Eatery has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory
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
- 80-130 hours
- Classroom Training
- 15-20 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
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.
- # of employees required to run
- 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.
Interested in ownership opportunities like Zoup! Eatery? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Zoup! Eatery landed on this year’s Franchise 500 Ranking versus previous years.
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