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FreshBerry Franchise Cost & Fees

Date Incorporation:  2007

Franchising Since:  2007

Headquarters: Tulsa, Oklahoma
Description: A Freshberry franchise features a specialized menu including, Natural Frozen Yogurt with fresh fruits, cereals, chocolates, candies and other toppings, smoothies, coffee, and other beverages on a dine-in, take¬out, catering and delivery basis. The franchisers distinguishing characteristics include distinctive exterior and interior design, decor, color scheme and furnishings. A franchise is typically located in one of the following types of settings: a food court in a shopping mall, an in-line shopping center, or an in-line urban unit.

Franchise Offer:

  1. Franchise Unit: Under a Franchise Agreement, the franchisee will be granted the right to establish and operate a Fresh Berry franchise at an agreed upon location.
  2. Area Development Agreements, will grant the franchisee the right  to establish an agreed-upon number of Fresh Berry franchise within an agreed-upon designated area

Financial Assistance:  FreshBerry does not offer direct or indirect financing nor do they guarantee any note, lease or obligation.

Training and Assistance: The training program consists of 12 days of instruction by the current management team concerning all aspects of the operation and management of the franchised business. The franchisor will send in a designated number of its training staff for a period of three days prior to opening and two days following the opening of a new franchise. A representatives sent by the franchisor will advise and assist in opening the franchise by coordinating the pre-opening activities and being available to assist with the operations for up to 14 days during the opening weeks, or as reasonably needed.

Territory: Under the franchise agreement, FreshBerry franchise system will grant the right to operate a franchise at a specific location. They will grant the franchisee a protected territory. If the Unit is in an urban area, the protected territory will be up to a one-quarter mile radius around the franchise. If the franchise is in a rural area, the protected territory will be a one-mile radius around the franchise.

Term of Agreement and Renewal:
The term of the franchise agreement is 10 years.  The franchise agreement can be renewed for ½ of the then-current initial franchise fee for an additional consecutive 10 year term.

Obligations and Restrictions:  The franchisee must at all times directly supervise the operation of the franchise or they may employ a manager for this purpose. The manager need not have an ownership interest in a corporate, limited liability company or partnership franchisee, but he or she must have substantial food service experience, demonstrate strong management abilities and promote the "FreshBerry" image to the public. The franchisee must offer for sale and sell only those products and services that FreshBerry Franchise System, LLC has approved.

Total Number of Units in 2009:  5

Total Number of franchises Units 2009:  4

Investment Tables:
Initial Investment:

Expenditure Low High
Initial Franchise Fee $25,000 $25,000
Leasehold Improvements, Construction Cost $15,000 $75,000
Equipment $10,000 $70,000
Architect $5,000 $10,000
Electrical, Plumbing Drywall, Tiles, Installation $10,000 $63,000
Ancillary Real Estate  fees $2,000 $3,000
Opening inventory and Supplies $2,000 $4,000
Miscellaneous Opening Costs $2,500 $5,000
Security /Utility deposits, Licenses and Prepaid fees $1,500 $3,000
Initial Operating Capital $3,000 $10,000
Additional Funds (3 months) $2,000 $5,000
Total $78,000 $273,000*

*These figures do not include any tenant Improvement Allowance

Ongoing fees:

Name of Fee Amount
Royalty 6% of Gross Sales
Transfer fee $5,000 for a single franchise
Local Advertising 1% of Gross Sales
National Creative Fund contributions 1 % of Gross Sales
Renewal One-half of the then-current initial franchise fee
Interest on late payment Lesser of 2% above prime or highest contract rate of interest allowed by law
Indemnification Will vary under circumstances
Audit fee Cost of the audit, plus any
understated amount due with interest


The above information has been taken from the UFOC/FDD of FreshBerry

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