Franchise Contract L1 Portable Barista Bar.

📝 DrüZAIH Portable Barista Bar Franchise Agreement (L1 Tier)

This Franchise Agreement (“Agreement”) is made and entered into as of [Date], by and between DrüZAIH Holdings LLC, a [State]-registered limited liability company with its principal office at [Address] (“Franchisor”), and [Franchisee Name], residing at [Franchisee Address] (“Franchisee”).

1. 📦 Grant of Franchise

  • Franchisor grants Franchisee the non-exclusive right to operate a DrüZAIH Portable Barista Bar (L1) within the territory of [City/County/State].
  • Franchisee may use the DrüZAIH trademarks, branding, recipes, and systems solely for the operation of the portable barista bar.

2. 💰 Franchise Fees & Costs

ItemAmountDue
Initial Franchise Fee (L1)$12,000Upon signing
Portable Trailer Cost$18,500Prior to delivery
Monthly Membership Fee$3501st of each month

3. 📋 Legal Compliance

Franchisee agrees to:

  • Comply with the Federal Trade Commission (FTC) Franchise Rule (16 C.F.R. §436).
  • Register or file the Franchise Disclosure Document (FDD) in applicable registration states (e.g., CA, NY, IL).
  • Maintain all required business licenses, sales tax permits, and mobile food vendor permits in their operating jurisdiction.

4. 🧼 Health & Safety Standards

Franchisee must:

  • Adhere to FDA Food Code and state/local health department regulations.
  • Follow Indiana 410 IAC 7-24 or equivalent for sanitation, including:
    • Certified food handler on-site
    • Handwashing stations
    • Proper cold/hot holding temperatures
    • Daily sanitation logs
  • Submit to quarterly health inspections and maintain a minimum “A” rating.

5. 📦 Storage & Transport Requirements

  • All ingredients must be stored in NSF-certified containers.
  • Trailer must include:
    • Commercial-grade refrigeration
    • Dry storage bins
    • Spill-proof chemical storage
  • During transport:
    • Trailer must be hitched to a vehicle with a minimum 3,500 lb towing capacity
    • All equipment must be secured with DOT-compliant straps
    • Beverages must not be pre-mixed unless sealed and labeled

6. ☕ Recipes & Product Standards

Franchisee shall:

  • Use only approved DrüZAIH recipes, ingredients, and branded packaging.
  • Maintain consistency in:
    • Espresso extraction time (25–30 sec)
    • Milk steaming temperature (140–150°F)
    • Signature drinks (e.g., “ZAIH Nitro Bloom”) must follow exact ratios
  • Submit to mystery audits and product quality reviews quarterly.

7. 🧳 Safe Travel & Duty of Care

Franchisee must:

  • Maintain commercial auto insurance with $1M liability coverage
  • Conduct pre-trip safety checks (brakes, tires, refrigeration)
  • Provide staff with:
    • Emergency contact list
    • Local health/emergency protocols
    • Travel safety training (per OSHA and DOT guidelines)

8. 📚 Training & Support

Franchisor will provide:

  • 5-day onboarding at HQ
  • Digital operations manual
  • Access to recipe database and seasonal updates
  • Monthly virtual check-ins

9. 📆 Term & Renewal

  • Initial term: 5 years
  • Renewal: 5-year increments, subject to performance review and updated fees

10. 🛑 Termination

Franchisor may terminate this agreement for:

  • Failure to pay fees within 30 days
  • Health code violations
  • Unauthorized recipe or branding changes
  • Criminal activity or gross negligence

11. ⚖️ Governing Law

This Agreement shall be governed by the laws of the State of [Franchisor’s State], and any disputes shall be resolved in the courts of [County, State].

12. 🖊️ Signatures

Franchisor: Name: ___________________________ Title: ____________________________ Date: ____________________________

Franchisee: Name: ___________________________ Signature: ________________________ Date: ____________________________