Yogen Fruz
Date Incorporation: 1987
Franchising Since: 1987
Headquarters: Ontario, Canada
Country of Origin: Canada
Business Description: The Yogen Fruz franchise system operates Yogen Früz outlets specializing in the sale of frozen yogurt, yogurt shakes, fruit cups and other fruit and yogurt-based products to the public.
Franchise Offer: The franchise offered is for the right to operate a Yogen Früz outlet or mini outlet in a specified territory. A Yogen Früz outlet is a retail location specializing in frozen yogurt, yogurt shakes, fruit cups and other fruit-and yogurt-based products. Yogen Früz 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.
Training and Assistance: Yogen Fruz provides a training program in Markham, Ontario for its Master Franchisees. Yogen Fruz provides this training to Master Franchisees so that they can train their Unit Franchisees, including Affiliates, in the operation of Yogen Friiz outlets. Most days of training will last for 8-10 hours each, but this will vary due to situations arising during an individual training program.
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 may not engage in any promotional activities or sell proprietary products or similar products or services, whether directly or indirectly, through or on the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system (collectively, the "Electronic Media"); through catalogs or other mail order devices sent or directed to customers or prospective customers located anywhere; or by telecopy or other telephonic or electronic communications, including toll-free numbers, directed to or received from customers or prospective customers located anywhere. The Unit Franchisee may not place advertisements in printed media and on television and radio that are targeted to customers and prospective customers located outside of its territory, if one is granted. The Unit Franchisee has no options, rights of first refusal, or similar rights to acquire additional franchises within the territory or contiguous territories. The Unit Franchisee may not sell proprietary products to any business or other customer for resale.
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: The franchisee is personally obligated to participate in operating their franchise and must also attend and complete the training program.
Total Number of franchises Units: Approximately 890 locations worldwide
Investment Tables:
Initial Investment:
| Name of Fee | Low | High |
|---|---|---|
| Unit Franchise Fee | $25,000 | $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 | $6,000 |
| U.S. Passport | $100 | $100 |
| Transax POS system | $2,465 | $2,465 |
| Miscellaneous Opening Costs | $5,000 | $10,000 |
| Additional Funds - 3 months | $14,000 | $16,000 |
| Total | $135,565 | $472,065 |
Ongoing fees:
| Name 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 |
| Transax POS system | $0.05 per transaction $3.50 per month software license fee $17.95 per month maintenance fee |
| Supplier Approval | $1,500 |
Date of FDD: 2010
The above information has been taken from the FDD of Yogen Fruz along with online sources
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