Playa Bowl Franchise in 2025: Costs, Fee & FDD
Discover the investment potential of Playa Bowls, a rapidly growing franchise in the fast-casual industry. Learn about the brand’s impressive growth, low failure rate, and what it takes to open a location. Explore now!
Table of Contents:
Playa Bowls is a vibrant and rapidly growing franchise that has made a significant splash in the fast-casual food industry. Founded in 2014 by Robert Giuliani and Abby Taylor, the concept began as a humble pop-up stand on the Jersey Shore, inspired by the founders’ love for surfing and the tropical flavors they encountered on their travels. The franchise quickly evolved, becoming a go-to destination for health-conscious consumers looking for a taste of the beach lifestyle. Playa Bowls stands out for its commitment to fresh, high-quality ingredients and a laid-back, community-focused vibe that resonates with its core audience.
At the heart of Playa Bowls are its colorful and nutritious açai bowls, pitaya bowls, smoothies, and juices. These offerings cater to a broad customer base, particularly those interested in healthy eating, active lifestyles, and clean, natural foods. The menu also includes a variety of toppings, from fresh fruits to granola, nut butters, and more, allowing for a customizable experience. Playa Bowls has also expanded its offerings to include poke bowls, oatmeal, and even coffee, broadening its appeal to a diverse market. The brand attracts a mix of young adults, families, and fitness enthusiasts who appreciate both the quality of the food and the vibrant atmosphere of each location.
As of now, Playa Bowls has expanded significantly beyond its Jersey Shore origins. With over 140 locations across the United States, the franchise has established itself as a leader in the healthy fast-casual segment. The brand has grown by tapping into the rising trend of health-conscious eating, offering a fresh and exciting alternative to traditional fast food. Playa Bowls locations are typically found in coastal towns, college campuses, and urban centers, serving thousands of customers daily. This impressive growth reflects the strong demand for their products and the effective scaling of their business model.
Playa Bowls offers a robust support system for its franchisees, which is a key factor in its successful expansion. New franchisees receive comprehensive training that covers everything from product preparation to customer service and operational management. The company provides ongoing support through marketing initiatives, supply chain management, and technology integration, ensuring that each location can deliver the signature Playa Bowls experience. Additionally, the brand emphasizes community involvement, encouraging franchisees to engage with their local areas through events and partnerships, further strengthening customer loyalty and brand presence.
Playa Bowls Franchise Insights
- In 2023, Playa Bowls demonstrated strong growth with a median gross sales of $1,281,578, marking a notable 14% increase from the previous year. This upward trend suggests a robust demand for the brand’s offerings and potential profitability for franchisees.
- Playa Bowls outpaced the industry significantly in 2023, boasting a year-over-year growth rate of 39% compared to the industry average of just 1%
- The brand’s 3-year failure rate is impressively low at 2%, far below the industry average of 11%, indicating strong brand resilience and stability for franchisees.
Playa Bowls Franchise Key indicators
Growth YOY (%)
39%
vs industry 1%
Total U.S. Franchised Units
188
3-Year Failure Rate
2%
vs industry 11%
Sales-to-Investment ratio
3.4:1
How much does it cost to open a Playa Bowls franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Playa Bowls franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Playa Bowls franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Playa Bowls below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Construction and Leasehold Improvements | $50,000 | $300,000 |
| Lease Deposits and Rent – Three Months | $10,000 | $33,333 |
| Furniture, Fixtures, and Equipment | $50,000 | $115,000 |
| Signage | $2,000 | $18,000 |
| Computer, Software, and POS System | $1,300 | $6,000 |
| Grand Opening Marketing | $10,000 | $10,000 |
| Initial Inventory | $10,000 | $30,000 |
| Utility Deposits | $0 | $1,500 |
| Insurance Deposits – Three Months | $1,875 | $2,625 |
| Travel for Initial Training | $1,000 | $10,000 |
| Professional Fees | $5,500 | $20,000 |
| General Licenses and Permits | $2,000 | $15,000 |
| Additional Funds – Three Months | $10,000 | $40,000 |
| Total Estimate | $188,675 | $636,458 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Playa Bowls franchise, the required capital involves both the initial investment costs and specific financial requirements set by the franchise. Let’s take a closer look below:
- Initial Investment The total estimated initial investment for a Playa Bowls franchise typically ranges from $189,000 to $636,000. This includes costs such as the franchise fee, build-out expenses, equipment, initial inventory, and working capital for the first few months of operation. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement Playa Bowls generally requires franchisees to have a minimum of $100,000 in liquid assets. This ensures that the franchisee has the necessary funds to cover any unexpected costs and maintain financial stability during the startup phase.
- Net Worth Requirement It is recommended that potential franchisees have a net worth of at least $350,000. This takes into account the value of assets like real estate, investments, and personal property, minus any liabilities.
These figures are estimates based on typical franchise requirements and may vary depending on the specific location and other factors.
How much does a Playa Bowls franchise owner make?
Calculating the salary of a Playa Bowls franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Playa Bowls franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Playa Bowls Revenue & Gross Sales
In 2023, Playa Bowls franchises achieved a median gross sales of $1,281,578, reflecting a 14% increase from the previous year’s $1,125,976. This impressive growth highlights the brand’s increasing popularity and the potential for strong returns for franchisees.
Which key factors impact the average revenue performance of Playa Bowls franchisees?
The growth of Playa Bowls’ U.S. franchisee median gross sales revenue from 2022 to 2023 can likely be attributed to several key factors. First, the increasing consumer demand for healthy, fresh, and customizable food options has played a significant role, as more people prioritize nutritious eating. Additionally, Playa Bowls’ strategic expansion into new markets and prime locations, such as college campuses and urban centers, has broadened its customer base. The brand’s strong social media presence and community engagement initiatives have also helped to build brand loyalty and drive traffic to its locations. Finally, effective marketing campaigns and seasonal menu offerings have kept customers returning, contributing to consistent revenue growth for franchisees.
Playa Bowls Franchise Operational Costs
When opening a Playa Bowls franchise, there are several key ongoing operational costs to consider:
- Royalty Fees Franchisees typically pay an ongoing royalty fee, which is a percentage of gross sales. For Playa Bowls, this fee is around 6% of gross sales.
- Marketing Fees Franchisees contribute to a national or regional marketing fund, which is usually around 1-2% of gross sales. This helps support advertising campaigns and brand promotion.
- Labor Costs Employee wages, benefits, and payroll taxes are significant ongoing expenses. It’s important to account for staffing needs, including hiring, training, and retention.
- Rent and Utilities Leasing the storefront and covering utility costs like electricity, water, and internet are essential operational expenses.
- Inventory and Supplies Regular purchases of ingredients, packaging, and other supplies are necessary to maintain operations and meet customer demand.
- Maintenance and Repairs Keeping equipment and facilities in good working order requires ongoing maintenance, which can vary depending on the condition of the equipment and the store.
- Insurance Ongoing insurance costs for general liability, property, and workers’ compensation are necessary to protect the business.
- Technology Fees Costs for point-of-sale systems, software subscriptions, and other technology needs should be factored into the budget.
Understanding these costs will help you plan and manage the financial aspects of running a Playa Bowls franchise effectively.
Playa Bowls Franchise Fees
When considering the ongoing operational costs of a Playa Bowls franchise, it’s important to account for several key fees and expenses. These fees are critical to the day-to-day functioning of the franchise and maintaining alignment with the brand’s standards and marketing efforts. Here’s a breakdown:
- Royalty Fee 6% of Gross Sales, debited monthly. This fee is automatically withdrawn from your bank account and covers the continued use of the Playa Bowls brand and support. Notably, some agreements in 2023 had discounted royalty fees of 3%.
- National Marketing Fund Up to 3% of Gross Sales, currently set at 2%, debited monthly. This fee supports nationwide marketing campaigns. In 2023, one franchisee had a discounted rate of 1%.
- Franchisee Directed Local Marketing 1% of Gross Sales, to be spent monthly on pre-approved local marketing efforts within your designated territory.
- Technology Fee Up to $450 per month, currently $90 per month. This fee covers essential technology services and systems needed to operate the business.
In addition to these primary fees, there may be additional costs related to maintenance, insurance, and other operational needs that should be factored into your budget. Understanding these fees will help you plan for the financial obligations of running a Playa Bowls franchise effectively.
Playa Bowls Franchise Earnings
Based on the data from 2023, a Playa Bowls franchise with median gross sales of $1,281,578 could expect estimated earnings of around $192,237 for an owner-operator. This figure reflects a 14% increase from the previous year, indicating a strong performance and potential profitability for hands-on franchisees who actively manage their operations.
For semi-absentee owners, who may not be involved in daily operations, the estimated earnings are slightly lower, at $153,789. This still represents a 14% growth from 2022, showcasing the brand’s ability to generate substantial returns even with less active management. These figures provide a solid estimate of potential earnings, helping prospective franchisees understand the financial prospects of owning a Playa Bowls franchise under different management models.
How to Open a Playa Bowls Franchise
Becoming a Playa Bowls franchisee involves a series of steps designed to ensure that both the franchisee and the franchisor are well-aligned and prepared for success. Here’s an overview of the process:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Preliminary Application After your inquiry, you’ll be asked to complete a preliminary application. This application gathers information about your financial background, experience, and overall interest in the franchise.
- Discovery Day After reviewing the FDD, you’ll be invited to a Discovery Day. This is an opportunity to meet the Playa Bowls corporate team, visit a franchise location, and get a firsthand look at the business operations. It’s also a chance for both parties to assess fit.
- Final Approval and Agreement Signing If both you and Playa Bowls decide to move forward after Discovery Day, you’ll receive final approval. You’ll then sign the Franchise Agreement, officially becoming a franchisee.
- Site Selection and Lease Negotiation Once the agreement is signed, the next step is finding a suitable location for your franchise. Playa Bowls will assist with site selection and lease negotiations to ensure you choose a prime spot for your business.
- Training Program Before opening, you’ll undergo a comprehensive training program. This program covers everything from daily operations, customer service, and product preparation to marketing and management. Training typically takes place at Playa Bowls headquarters and includes hands-on experience.
- Store Build-Out and Setup While you train, the build-out process for your store begins. Playa Bowls provides support with design, construction, and setting up the store to meet brand standards. This includes equipment installation, interior design, and more.
- Grand Opening Preparation As your store nears completion, you’ll prepare for the grand opening. This involves finalizing your staffing, conducting a soft opening, and working with the Playa Bowls marketing team to promote the launch.
- Start of Operations Finally, after all preparations are complete, your Playa Bowls franchise officially opens for business. You’ll receive ongoing support from the corporate team to ensure a smooth start and continued success.
Pros & Cons
Pros
Strong Brand Recognition: Playa Bowls has established a solid reputation in the fast-casual healthy food segment, appealing to health-conscious consumers who are increasingly looking for nutritious and fresh options.
High Growth Potential: The brand has shown impressive growth, with median gross sales increasing by 14% from 2022 to 2023. This indicates a strong demand for its products and potential for continued revenue growth.
Low Failure Rate: With a 3-year failure rate of just 2%, compared to the industry average of 11%, Playa Bowls demonstrates strong stability and a proven business model.
Health-Conscious Market: The franchise taps into the growing trend of healthy eating, making it attractive to a broad customer base, including millennials, families, and fitness enthusiasts.
Cons
High Competition: The healthy fast-casual food market is competitive, with many brands vying for the same health-conscious consumer base. This could pose challenges in standing out in certain markets.
Seasonal Sales Fluctuations: Given the nature of its products, Playa Bowls may experience seasonal sales variations, with potentially lower sales during colder months in some regions.
Labor Costs: As with any food service business, managing labor costs and staffing can be a challenge, particularly in maintaining quality customer service and product consistency.
Market Saturation: Rapid expansion could lead to market saturation in certain areas, which may affect the profitability and growth potential of new locations.
