Hello Sugar charges a royalty fee of 6.0% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.

The total ongoing fee rate for a Hello Sugar franchise is approximately 8.0% of gross sales (2025 FDD). This includes the royalty fee, a 2.0% marketing/advertising fund contribution, a $75/month technology fee, and other recurring charges.

Hello Sugar has been involved in 0 litigation cases over the past 3 years (2025 FDD). There are no class action lawsuits pending.

No, the Hello Sugar franchisor has no bankruptcy filings in their disclosure history (2025 FDD).

Hello Sugar offers exclusive territory rights to its franchisees (2025 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales rights are shared between the franchisor and franchisee.

Hello Sugar currently operates 108 locations (2025 FDD) (93 franchised, 15 company-owned). The system grew by 44.0% over the past year. The 3-year compound annual growth rate is 75.4%.

The 1-year franchisee turnover rate for Hello Sugar is 3.7% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.

The initial franchise agreement term for Hello Sugar is 10 years (2025 FDD). The total potential term is 10 years.

Hello Sugar's post-termination non-compete clause restricts former franchisees from operating a competing business for 1.5 years within 25 miles of the former location (2025 FDD).

Yes, Hello Sugar's franchise agreement requires mandatory arbitration for dispute resolution (2025 FDD).

Hello Sugar provides 58 hours of initial training over approximately 2 weeks (2025 FDD). Ongoing field support is provided on a as-needed basis.

Yes, Hello Sugar provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.