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Yogen Fruz Franchise Cost & Fees

Date Incorporation: 1987
Franchising Since: 1987
Headquarters: Ontario, Canada
Country of Origin: Canada

Business Description: The Yogen Fruz franchise system operates Yogen Fruz outlets specializing in the sale of frozen yogurt, yogurt shakes, fruit cups and other fruit and yogurt-based products to the public. The franchisor, Yogen Fruz U.S.A., Inc., is a wholly-owned subsidiary of Yogen Fruz Canada, Inc.

Franchise Offer: The franchise offered is for the right to operate a Yogen Fruz outlet or mini outlet in a specified territory. A Yogen Fruz outlet is a retail location specializing in frozen yogurt, yogurt shakes, fruit cups and other fruit-and yogurt-based products. Yogen Fruz mini outlets are smaller outlets in non-traditional locations such as hospitals, stadiums or inside other types of stores.

Financial Assistance: The franchisor may offer to finance all or part of the Initial Franchise Fee for up to one year. The franchisee will pay interest on the unpaid balance of the financed amount at a rate equal to the prime rate announced by the Wall Street Journal. Interest will compound monthly and be payable monthly in arrears on the 1st day of each month. Security interest is not required for the Note. The franchisor has been accepted by SBA Franchise Registry. It is the franchisor’s understanding that this acceptance may expedite the loan process if franchisees wish to obtain outside financing. Except as described above, the franchisor does not offer financing or arrange for financing from other sources. The franchisor will not guarantee franchisees’ obligations to third parties.

Training and Assistance: The franchisor or master franchisee will provide an initial training program for up to two people. The training program will include training in the sale of franchises and in all phases of the operation of a Yogen Fruz outlet, including shop management, staff training, cost control, purchasing, store layout, product preparation, internal ordering, and selling and merchandising techniques. Franchisees must attend and successfully complete any additional training programs or refresher courses required.

Territory: Under the Unit Franchise Agreement, a Unit Franchisee may sell proprietary products and related merchandise to retail customers and prospective retail customers who live anywhere but who choose to shop in the Unit Franchisee's Outlet. The Unit Franchisee will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that are owned by the franchisor or the master franchisee, or from other channels of distribution or competitive brands that the franchisor controls.

Term of Agreement and Renewal: The length of the franchise term is 20 years, with an option for renew for one additional 10 year term if conditions are met.

Obligations and Restrictions: Franchisees are personally obligated to participate in operating their franchise and must also attend and complete the training program. Franchisees must offer only the authorized products and services listed in the Manuals, as they may be updated periodically.

Estimated Number of franchise Units: 1,130

Investment Tables:
Initial Investment
Name of Fee Low High
Unit Franchise Fee  $25,000
Fixtures, equipment, signs and leasehold improvements  $60,000 $350,000
Inventory $16,000   $40,000
Site Acquisition $5,000   $6,000
Rent and Security Deposit  $2,000   $16,500
Grand Opening Advertising  $6,000
U.S. Passport  $100
Toshiba POS system (3 months) $2,579
Miscellaneous Opening Costs  $5,000   $10,000
Additional Funds - 3 months   $14,000   $16,000
Estimated Total  $135,679 $472,179
Other Fees
Type of Fee Amount
Royalty Fees 
6% of the Gross Revenue of the Yogen Früz outlet
Renewal Fees  50% of the then-current initial franchise fee
Interest/Late Payment Fees  Lesser of (a) 150% of the prime rate as quoted in The Wall Street Journal; or (b) the maximum rate permitted by law
Inspection and Audit  Cost of inspection or audit, plus travel expenses and room and board of your employees or accountant or auditor
Indemnification  Amounts incurred
Advertising Fees  3% of the Gross Revenue of the Yogen Früz outlet
Application for Transfer Fees  $2,000
Transfer Fees  Master Franchisee’s reasonable legal expenses plus a transfer fee equal to the greater of $5,000 or 5% of the sales price
Legal costs  Master Franchisee’s reasonable costs and expenses, including accounting and legal fees
Gift Card Program 

$0.21 per card

$0.05 per gift card transaction

$5.00 per month license fee

Liquidated Damages  Liquidated damages equal to the average monthly Royalties paid during the 12 months of operation preceding the termination’s effective date multiplied by 24 (the number of months during 2 full years) or the number of months remaining during the franchise term, whichever is higher.
Manual Replacement Fee  $5,000 per volume
Supplier Approval  $1,500

The above information has been taken from the FDD of Yogen Fruz along with online sources. Year of FDD: 2014

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