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VMS Delivery Franchise Costs & Fees
Year Business Began: 2021
Franchising Since: 2024
Headquarters: Atlanta, Georgia
Estimated Number of Units Available: 19,500 + 50
Franchise Description: The franchisor is The Virtual Mega SuperMall Concierge & Delivery Services, Inc. Franchisees (referred to as Operators) will operate a franchised VMS restaurant delivery business, which is a quick-service restaurant delivery service specializing in food delivery services. VMS Concierge & Delivery is in working with free-standing locations as well as in non-free-standing locations, including mall and in-line units, locations which are drive through only and non-traditional locations where VMS has direct access to the owners or managers of the location premises and can conduct a restaurant business or concession without the need to utilize licensees or prospective licensees (satellite units). Once operators have operated their franchised VMS restaurant delivery business for some period of time, the franchisor may offer them the opportunity to operate one or more delivery zones, or operate one or more custom mobile food trucks to allow them to sell a limited menu of VMS brand products at multiple pre-approved sales locations.
Training Overview: Operators must participate in an initial training program. The program is a hybrid of virtual and in person and lasts approximately one to two weeks, but the actual location and length of the program varies. The program currently utilized by the franchisor covers most aspects of delivery operation, food handling, accounting, service and customer relations, communications, maintenance, purchasing, planning, management styles, policies and marketing. The franchisor intends, though it is not obligated, to prepare and offer various seminars and conferences to operators from time to time in addition to its initial training program. In addition, the franchisor, at its election, offers various programs to or permit the adoption of programs by operators to use in promoting or marketing products, recruiting and retaining restaurant personnel or for other purposes that are not expressly set forth in the Franchise Agreement.
Territory Granted: The operator will be granted the limited right to operate one VMS Zone at a specific location designated by the franchisor. The rights granted to operators under the Franchise Agreement are limited to their franchised VMS restaurant delivery zone business location only and any additional business locations designated under an "additional business amendment” to the Franchise Agreement. Operators will not receive an exclusive or protected territory, express or implied. Operators may face competition from other franchisees or licensees, from outlets that the franchisor or affiliates own and/or operate, or from other channels of distribution or competitive brands that the franchisor or affiliates control.
Obligations and Restrictions: The Franchise Agreement requires operators to devote full time and personal best efforts to operate their franchised VMS restaurant delivery business to attempt to achieve the highest sales and profits possible and diligently develop and promote the reputation of the franchised VMS restaurant delivery business VMS Properties’ marks. The franchisor requires operators to offer and sell only the VMS brand products and other items that VMS has approved. Operators must offer all products that the franchisor designates as required for all operators or for their particular franchised VMS delivery or associated food truck.
Term of Agreement and Renewal: The initial franchise term terminates on the earlier of December 31 of year the agreement is signed or when the lease expires, if earlier. The term is automatically extended for one-year periods unless written notice given at least 30 days prior to end of existing term by either party.
Financial Assistance: The franchisor leases and subleases restaurant premises to its operators. The business terms for these leases and subleases vary depending on the type and the location of the VMS delivery. In addition, the franchisor enters into concession agreements that govern the occupancy of non-traditional satellite unit premises with the owners or managers of the satellite unit premises. The franchisor also provides extended payment terms for certain pre-opening expenditures under the Franchise Agreement and also rents equipment to its operators under the lease at a monthly equipment rental fee based on the fair market rental value as determined by VMS delivery in its sole and exclusive business judgment. Otherwise, neither the franchisor, nor any affiliate of the franchisor, either directly or indirectly, offers any financing arrangements to operators.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee per Zone per Year | $1,500 | $1,500 |
| Opening Inventory | $500 | $2,500 |
| Mandatory Stock Purchase of 5 Shares @ $1,000 per Share in BEDigest | $5,000 | $9,000 |
| First Month's Lease/Sublease of Premises | $75 | $75 |
| First Month's Insurance Expense | $282 | $2,165 |
| Training (per person + housing) & Additional Funds | $1,090 | $1,840 |
| ESTIMATED TOTAL per YEAR | $8,447 | $17,080 |
| Type of Fee | Amount |
|---|---|
| Advertising | May vary (a) between 0% to 3.25%, to be determined by VMS Delivery as a percentage of gross receipts or (b) by vote of operators in local or regional areas. |
| Advertising Support and Services Fee | Advertising support and services fees incurred, if any, will vary based upon the support and services offered by the franchisor, and selected and received by the operator; the current in-house blended hourly rate for services is $100; Operator will pay any additional fees, costs and expenses as applicable. |
| Additional Franchise Fee | $1,000 for each additional VMS delivery zone. |
| Incorporation Business per month Services Fee | $300 |
| Rent (Traditional Office - Optional) | $1,475 to $85,800 (including where applicable, percentage rent) - Optional. |
| Occupancy Charge (Satellite Unit) | Determined under the concession agreement attached as an exhibit to the concession sublicense agreement; currently estimated to range between 8% and 50% of gross receipts. |
| Food Truck Usage Fee (Food Truck) | Currently $2,200 to $2,750, plus additional fees, costs and expenses. |
| Food Truck Insurance Fee (Food Truck) - NA | Currently $320 to $600. |
| Insurance | $282 to $11,165 |
| Equipment Rental - NA | Currently $750 to $5,000. |
| Hardware and Software Support; High-Speed Internet Access | $9,500 to $20,000 (annually). |
| Fines – Minimum Standards and Procedures | Will vary under the circumstances. |
| Indemnification | Will vary under the circumstances. |
| Operating Service Charges | Determined by formula. |
| Credit Cards Fees and Related Processing Fees | Will vary. (.0235 per transaction) |
| Highway Signage | Will vary under circumstances. |
| Interest on Late Payments | The maximum rate permitted by law, or if none, 1.95% per month. |
| Cash Handling System Services | $95 to $590 (monthly) |
| Reimbursement of Cost of Performance | Costs and expenses of performance. |
| Holdover Liquidated Damages | Double the base rent and percentage rent. |
The above information has been compiled from the FDD of VMS Year of FDD: 2021.
VMS Franchise Disclaimer
