CherryBerry Self-Serve Yogurt Bar Franchise Costs & Fees
Date of Incorporation: 2008
Franchising Since: 2008
Headquarters: Durango, Colorado
Business Description: U-Swirl International, Inc. (USI), the franchisor, offers franchises for the operation of self-service frozen yogurt stores under the marks “CherryBerry”, “U-Swirl Frozen Yogurt”, and “Yogurtini”, which may also offer beverages and other frozen dessert products.
Franchise Offer: USI grants franchisees the right to operate self-service retail frozen yogurt stores under the “CherryBerry” mark. Stores will typically offer 10-16 flavors of self-service yogurt with customers filling containers with as much of one or more flavors as desired, selecting from over 40 toppings, and then paying by the ounce for the yogurt and toppings.
Financial Assistance: USI does not offer direct or indirect financing to franchisees. USI does not guarantee franchisees’ lease or other obligations.
Training and Assistance: USI will provide an initial training program for up to three people. The initial training program consists of five days of training, including classroom instruction and on-the-job training. The classroom portion will be conducted in Henderson, NV or in Durango, Colorado, or at another location designated by USI. In addition to the initial training program, USI will provide up to three days of opening assistance at the franchisee’s unit near the time that the unit opens. As often as annually, USI may require franchisees and/or their General Manager to attend in person, at their expense, a national, regional or local meeting, training seminar or conference that USI presents for the purpose of discussing a topic such as advertising programs, new operations methods, training, management, sales, or sales promotion, to the extent that USI offers any meetings, seminars or conferences.
Territory: Under the terms of the Franchise Agreement, franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that USI owns, or from other channels of distribution or competitive brands that USI controls. Franchisees will operate their franchise at a specific location.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing, they can renew the Franchise Agreement for an additional 10-year term.
Obligations and Restrictions: Franchisees are not required by USI to participate personally in the direct operation of the franchised business, and USI neither recommends nor discourages franchisees from doing so. The franchisee or the Principal Representative is responsible for the overall management of the franchised business. The franchisee or the Principal Representative must participate directly in the operation and management of the store. Franchisees must offer and sell only those goods and services that USI has approved.
Estimated Number of Units: 185 (all 3 brands combined)
|Name of Fee||Low||High|
|Initial Franchise Fee (single unit)||$25,000||$25,000|
|Travel and Living Expenses While Training||$1,000||$5,000|
|Additional Funds – 3 months||$10,000||$26,000|
|Type of Fee||Amount|
|Royalty||6% of Net Sales.|
|Advertising Fund||Up to 2% of Net Sales, reduced by any amount allocated to a Regional Advertising Co-op.|
|Cooperative Advertising||3% of Net Sales, reduced by Advertising Fund Fee, if any, and Local Advertising Allocation.|
|Local Advertising Allocation||1% of Net Sales, reduced by any amounts reallocated to Regional Advertising Coop.|
|Initial Training Program||Varies.|
|Mandatory Meetings and Additional Training||Varies.|
|Electronic Cash Register and Computer System Annual Maintenance Agreement||Varies, depending on the supplier, but expected to be between $6,200 and $10,000 per year, subject to annual increases.|
|Merchant Services Fee||Varies, depending on usage.|
|Gift Card Services Fee||Varies, depending on usage.|
|Renewal||20% of the then current initial franchise fee for a Unit Franchise or $5,000, whichever is higher.|
|Inspection/Audit||Cost of audit or inspection and underpayment amount, plus interest.|
|Interest and Late Charges||$25 late charge, plus the lesser of 1½ % per month, or highest rate of interest allowed by law. Also, any NSF or similar charge assessed by the applicable financial institution.|
|Insurance||Varies depending on location and insurer.|
|Indemnification||Varies – Franchisees will pay the amount of the liability assessed against USI plus the expenses incurred in defending USI.|
|Costs and Attorneys’ Fees||Varies under circumstances.|
The above information has been taken from the FDD of CherryBerry Self-Serve Yogurt Bar. Year of FDD: 2015
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