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
|Name of Fee||Low||High|
|Unit Franchise Fee||$25,000|
|Fixtures, equipment, signs and leasehold improvements||$60,000||$350,000|
|Rent and Security Deposit||$2,000||$16,500|
|Grand Opening Advertising||$6,000|
|Toshiba POS system (3 months)||$2,579|
|Miscellaneous Opening Costs||$5,000||$10,000|
|Additional Funds - 3 months||$14,000||$16,000|
|Type of Fee||Amount|
|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|
|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|
The above information has been taken from the FDD of Yogen Fruz along with online sources. Year of FDD: 2014
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