FREQUENTLY ASKED QUESTIONS
Got questions about what to expect when you are looking to become a franchise partner? Explore answers to our most frequently asked questions below:
- What do we do?
Lemon Heaven specializes in freshly squeezed lemonade and cotton candy for quick service take-out. Cin City Donuts specializes in freshly made mini donuts, coffee, hot chocolate, tea, hot apple cider, and other beverages for quick service take-out. Everything is made fresh within our self-contained award-winning mobile carts, kiosks, and trailers designed for high traffic indoor or outdoor locations such as arenas, stadiums, convention centers, zoos, farmers markets, concerts, car races, carnivals, fairs, festivals, big box store parking lots, outdoor outlet malls, stores, catering opportunities, street vending locations, and more.
- What is the minimum liquid capital required to become a Lemon Heaven and/or Cin City Donuts franchise partner?
Depending on the type of operations and equipment needed, Minimum Liquid Capital required ranges from $15,000 to $25,000.
- What locations are available?
We offer “Site Specific Business” franchises that operate at specific locations AND/OR “Special Events Business” franchises that operate at multiple temporary event locations. Currently, we have 15 franchisees that operate in Canada and 2 franchisees that operate in the United States with over 85 equipment units operating in North America.
- What types of Franchise licenses and locations are available?
We have two different types of Franchise licenses:
- "Special Events Business" franchise, where we grant a franchise partner the non-exclusive right to operate a Lemon Heaven and/or Cin City Donuts franchise business at multiple locations, including businesses which require set-up and breakdown at each location, and including carnivals, fairs, festivals, catering, and other temporary events.
A franchisee would book special events at multiple locations. They would store their equipment off-site between events. They would transport their equipment to the special event site just before the event; set up and operate for the duration of the event; and pack up their equipment until the next event. Most of our equipment units take about an hour to set up or break down. Keep in mind that special events organizers typically book their food and beverage vendors six to twelve months before their event.
- "Site-Specific Business" franchise, where we grant a franchise partner the exclusive right to operate a Lemon Heaven and/or Cin City Donuts franchise business at a specific location or address. Some examples of a “Site Specific Location” may be arenas, stadiums, convention, and exhibition centers, zoos, amusement parks, farmers markets, flea markets, night markets, street vending locations, beach locations, race tracks, big-box store parking lot locations, store, and mall locations. For a "Site Specific Business" franchise, we require that all franchise partners live within 100 km (60 miles) of the particular site-specific location.
With a “Site Specific Business” franchise, your equipment is restricted to that specific location. Some “Site Specific Business” locations have on-site storage for your equipment and do not require a load in and load out of your equipment.
The benefit of our franchise model means our award-winning mobile carts, kiosks, trailers, and specified equipment allows you to expand to many different types of events for your “Special Events Business” or to multiple “Site Specific Business” locations without additional franchise fees, provided that you live within 100 km (60 miles) of the particular site-specific location. You will need our approval to operate at additional “Site Specific Business” locations as it will require a separate franchise agreement.
- Do I get exclusivity?
For a “Site Specific Business” franchise, you will have the exclusive right to operate at a specific location.
For a “Special Events Business” franchise that operates as a “Lemon Heaven Business” and/or “Cin City Donuts Business”, we do not provide an exclusive territory.
In Canada, certain franchise partners already have a grandfathered exclusive Special Events “Lemon Heaven Business” protected territory, and you will not be able to operate at a Special Event in their territory without their permission. You can operate anywhere for a Special Events “Cin City Donuts Business” as there are no exclusive territories.
- Why choose Lemon Heaven and Cin City Donuts?
Our franchise partners are passionate about their Lemon Heaven and/or Cin City Donuts franchise for the following reasons:
- award-winning, branded, freshly made products that they're extremely proud to represent.
- our franchise partners love the simplicity of our product offerings allowing us to focus on what we do best.
- lifestyle that facilitates a desirable work/life balance.
- the ability to work with family and/or friends.
- proven systems and equipment designed for high-volume operations.
- lower product and labor costs compared to most other food and beverage operations.
- opportunities for diverse working environments with a wide variety of possible venues and events.
Compared to traditional bricks and mortar franchises, risk is mitigated with lower capital costs, lower overhead, and mobility of equipment investments to the best possible locations. You're not burdened with ongoing overhead costs typical of traditional locations.
- Do I have to sell all of the products available?
We prefer our franchise partners to invest in the capability to provide our full product offering of both Lemon Heaven and Cin City Donuts. Some events or venues may restrict the product offering so having the flexibility to offer one or a combination of our products is often advantageous for obtaining events or locations.
Lemon Heaven franchise partners are required to carry all 11 flavours of our lemonade which provides our customers with a selection of great-tasting lemonade and sets us apart from the competition.
- Can I sell other products?
You cannot sell other products without our approval. Our franchise partners love the simplicity of and are passionate about our Lemon Heaven and Cin City Donuts product offering. We’ve tried other products in the past and always come back to our tried and true Lemon Heaven and Cin City Donuts product offering. By simplifying our menu, it clearly shows our customers that we are the best at what we do.
- Is previous food and beverage industry experience necessary?
No, we provide training to start your Lemon Heaven and/or Cin City Donuts franchise business. We’ll guide you every step of the way!
- Who is responsible for booking special events or obtaining site specific locations?
Although it is the ultimate responsibility of the franchise partners to book their own special events, Lemon Heaven Corporate provides training and support for booking special events and major site specific locations.
One of the greatest aspects of our franchise concept is your ability to secure multiple "Site Specific Business" locations. Once you notify us of a potential desired "Site Specific Business" location, we will approach the venue or permanent location and present the appropriate proposals based on the equipment/products that we feel would best service the location. If you can handle the financial investment including all specified equipment/products and have the available capacity to properly service the new location, we will approve that new location for your operations.
Through our industry contacts, we can also identify potential major “Site Specific Business” locations. Some examples of major "Site Specific Business" locations include NHL hockey arenas, NBA basketball arenas, MLB baseball parks, CFL football stadiums, NFL football stadiums, MLS soccer stadiums, convention centers, zoos, amusement parks, and malls. For major “Site Specific Business” locations, we will offer the new location to an existing or prospective franchise partner that we feel can handle the operation as described above.
Please note prospective franchise partners are unable to book special events or obtain site specific locations until they become franchise partners.
- Can I operate at “Site Specific Business” locations without conflicting with other “Special Events Business” franchise partners?
Yes, “Site Specific Business” locations are a different Franchise license to operate at a specific location. Subject to our approval, you may operate at any “Site Specific Business” location, provided that you live within 100 km (60 miles) of the particular site specific location, and enter into our required franchise agreement for each site specific location.
- If I have a “Site Specific Business” location or multiple “Site Specific Business” locations, can I operate at special events as a “Special Events Business” franchise partner?
Yes, if we approve you as a “Special Events Business” franchise partner which is a separate and specific Franchise license for operating a “Special Events Business”.
- How much will it cost to begin operating at special events or site specific locations?
One of the greatest advantages is that our cost to open is comparatively low for the food and beverage industry. The estimated total investment necessary to begin operation of a Lemon Heaven franchise business typically ranges from $42,500 to $220,500. The estimated total investment necessary to begin operation of a Cin City Donuts franchise business typically ranges from $133,500 to $253,000, which also includes the capability to operate a Lemon Heaven franchise business at the upper end of the range.
Please note these estimated investment ranges include initial estimated operating cash, inventory, equipment, vehicle(s) if applicable, initial training costs, and the franchise fee. Details of the estimated initial investment are set out in our Franchise Disclosure Document (FDD). These costs and ranges do not include amounts for custom built mall or store locations as we have no experience with such locations.
For a “Special Events Business” franchise, you will need a vehicle that can store and frequently transport the equipment and supplies. For a “Site Specific Business” location, you may need a vehicle that can frequently transport supplies and occasionally your equipment. As applicable, your vehicle(s) could be a pick-up truck and enclosed cargo trailer, or a cube van (box truck). Typically, a truck and cargo trailer combination would require a minimum ½ ton truck and 7 x 14 foot cargo trailer. If you already have a suitable vehicle, it will reduce your initial investment.
- If I do not meet the financial or operating requirements, can I partner with someone who does?
Yes, provided we approve your partner and at least one partner is a hands-on operator.
- How much is the Franchise License Fee?
If you initially invest in operating both a Lemon Heaven and Cin City Donuts franchise business, we charge a one-time franchise fee of $7,500 plus applicable taxes for both operations.
If you initially invest in either a Lemon Heaven franchise or a Cin City Donuts franchise, we charge a one-time franchise fee of $7,500 plus applicable taxes. Subject to our approval, if you subsequently invest in adding either Lemon Heaven or Cin City Donuts to your operations, we charge a one-time expansion fee of $7,500 plus applicable taxes and you will need to complete training for that particular operation. The expansion fee covers our costs in coming back to your location for additional training on adding Lemon Heaven or Cin City Donuts to your operation.
The initial franchise fee or expansion fee, if applicable, is only charged for your “Special Events Business” franchise license or first “Site Specific Business” franchise license location. Subject to our approval, you are able to expand to multiple "Site Specific Business" locations without any additional franchise fees as long as you are using our pre-approved corporate designed carts, kiosks, and trailers. This scenario is virtually unheard of in the franchising industry!
Exceptions: For any site specific location that requires a custom build-out, regardless of whether you currently operate, or have previously operated, any other franchise businesses, the franchise fee will be $25,000 for each such location. For any site specific location that does not require a custom build-out, we do not charge an additional franchise fee.
We provide a 33.33% discount on the Franchise Fee to veterans of the Armed Forces with 10 or more years of service.
- How long is the Franchise License Term?
The initial franchise term is 10 years with a renewal period for a further 10 years subject to our approval.
- How much are the Royalties?
Royalties are 5%, payable monthly and are based on total monthly franchise business Gross Receipts (sales) before sales taxes. Royalties are subject to any applicable sales taxes.
- How much is the Advertising and Marketing fee?
One-half percent (0.5%) of Gross Receipts (sales) before sales taxes, payable monthly, are pooled into a national advertising and marketing fund.
- How much money will I make?
We do not make financial earnings claims for franchise businesses, however, we do disclose certain financial information. Please refer to our Franchise Disclosure Document (FDD) for details. When speaking with our Franchise Partners, you should note the length of time they have been part of our system, which is a great indication of how the business performs and how the lifestyle meets their needs.
- What kind of training can I expect?
During training, we teach you how to obtain events, what event organizers are looking for, and provide you with sample letters, references, and marketing material templates you can use for your proposals or applications. We will teach you best practices, methods of operation, mixing recipes, and train you on the type of equipment that you will be using. We will also train you on how to use our custom event management software and custom tools designed to evaluate your everyday success.
We will make every effort to schedule the initial training at a location near you and to include opening day on-site training to guide you through the process and to reinforce your training. If there are scheduling constraints, we will schedule an alternate location and date. Some or the entire classroom portion of the initial training may be conducted by webinar.
For either a Lemon Heaven franchise or a Cin City Donuts franchise, the initial training is typically 3 days. For both a Lemon Heaven franchise and a Cin City Donuts franchise, the initial training is typically 5 days.
Initial training is included in your Franchise Fee, however, you are responsible for all of your travel, meal, staff wages, and lodging expenses if applicable. You must be ready to operate when we arrive for initial training.
- What kind of support can I expect?
We offer ongoing support to our franchise partners and are readily available to help you succeed. We have various custom templates to help you understand your business from both an operations and financial perspective.
Our custom excel event calculator helps with understanding event metrics (estimated sales, costs, etc.) and planning for events (anticipated staffing, supplies needed, etc.). We have custom event management software and you will have access to our online Intranet portal where you will enter your daily event sales, costs, notes on weather, etc. so that you have a historical record of each event from a financial and operations planning perspective.
- Where will I purchase the equipment and what equipment is currently available?
Over the years, we have tried many different types of equipment and through trial and error as well as hours and hours of careful planning, we have evolved to the point where we now have what we consider to be the perfect blend of equipment for any type of special event or site specific application.
We have worked closely with our approved manufacturers to provide streamlined equipment that is attractive and geared for serving large crowds in a short period of time. Almost all units are mobile carts, kiosks, and trailers that have been designed by Lemon Heaven Corporate and are made by our approved suppliers exclusively for our Lemon Heaven and Cin City Donuts franchise partners.
Delivery lead time for our carts, kiosks, and trailers is typically between three to eight months. This should be kept in mind when progressing through our selection process, particularly for the start up of seasonal operations.
- What kind of permits do I need in order to operate?
The main one is health department inspections to obtain equipment operating permits. Fire departments may also conduct equipment inspections for compliance with fire department regulations as applicable. Permits and licenses are dependent on how and where you operate as different jurisdictions may have specific requirements.
- Where will I purchase the supplies?
Many of your ingredients are sourced locally (with our help if needed), however, you must buy your logo cups, logo sleeves, lids, straws, logo bags, logo containers, logo napkins, cotton candy cones, and proprietary flavor mix through Lemon Heaven Corporate or our approved suppliers. Economies of scale from consolidated purchasing results in lower costs to our franchisees.
- What are we looking for and what do we expect from our Franchise Partners?
We are looking for franchise partners that are:
- outgoing, dedicated, and love to have fun.
- focused while maintaining a high priority on family values.
- capable of closely following our proven system and guidelines.
- able to keep their operations spotlessly clean.
- able to maintain and keep their equipment like new.
- committed to providing only the highest level of customer service to our customers, clients, and employees.
Our franchise partners are very passionate about what they do and are extremely proud of the products we sell. We expect the same from all new franchise partners.
Our consistent standards ensure that every single customer enjoys our Brand experience, ultimately promoting stronger system-wide growth, Brand value, and Brand presence; which in turn strengthens our competitive advantage.
- How long does it take to begin operations at a special event or site specific location?
Delivery lead time for our carts, kiosks, and trailers is typically between three to eight months. If we approve you as a Licensee and upon signing our Franchise Agreement and certain other agreements, your time to operation start up will normally be within this timeframe, depending on the equipment configuration of your particular operation.
- How long does our selection process for new Franchise Partners typically take?
We take great care in our Franchise Partner selection and we always strive to find a great match for the benefit of our mutual relationship and building our Franchise System. Our selection process typically takes anywhere from one to three months. Please bear in mind the delivery lead time for our carts, kiosks, and trailers is typically between three to eight months and should be kept in mind when progressing through our selection process, particularly for the start up of seasonal operations.
- Do I need a business office, storage facility, or warehouse premises?
The majority of our franchisees operate out of their home; however, some jurisdictions may require you to operate out of an approved kitchen or commissary. In this case, you would need to set up an approved kitchen or commissary or rent space from an existing restaurant or commissary. Depending on the size of your operations, you may need to rent space at a storage facility or warehouse for your equipment and supplies.
- What types of vehicles do I need?
For a “Special Events Business” franchise, you will need a vehicle that can store and frequently transport the equipment and supplies. For a “Site Specific Business” location, you may need a vehicle that can frequently transport supplies and occasionally your equipment. As applicable, your vehicle(s) could be a pick-up truck and enclosed cargo trailer, or a cube van (box truck). Typically, a truck and cargo trailer combination would require a minimum ½ ton truck and 7 x 14 foot cargo trailer. If you already have a suitable vehicle, it will reduce your initial investment.
- Can I talk with your current Franchise Partners?
Absolutely, we’ll provide the opportunity for you to talk with our Franchise Partners. This is one of the best ways to help determine if this business is a good fit for you. The length of time franchise partners have been part of our system is a great indication of how the business performs and how the lifestyle meets their needs.
Please note any specific questions that may be trade secrets and are subject to confidentiality under our Franchise Agreement will not be answered.
- How do I start the selection process?
Fill in the form below and let’s get going on our selection process! We’re looking forward to finding out if Lemon Heaven and Cin City Donuts is right for you.