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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)

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee (single unit) $25,000 $25,000
Real Estate Varies
Site Development $10,000 $15,000
Equipment $150,000 $170,000
Leasehold Improvements $120,000 $150,000
Travel and Living Expenses While Training $1,000 $5,000
Signs $9,000 $15,000
Miscellaneous Expenses $25,000 $45,000
Opening Inventory $5,000 $10,000
Grand Opening $5,000 $5,000
Additional Funds – 3 months $10,000 $26,000
ESTIMATED TOTAL $360,000 $466,000
Other Fees
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.
Optional Training Varies.
Transfer Fee $10,000
Training Fee $1,000
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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