TCBY Franchise Information | FranchiseDirect.com

TCBY

Date Incorporation: 2000

Franchising Since: 1982

Headquarters: Salt Lake City, Utah

Description: TCBY Stores offer and sell TCBY brand products which may include premium soft-serve frozen yogurt, hand-dipped frozen yogurt and other frozen dessert and treat items, such as cakes and pies, sorbet, smoothies, fresh yogurt, mix-ins, toppings and drinks to retail customers. TCBY Stores may be established in a variety of locations, including a strip shopping center, a free-standing building (with or without drive-up window) and a regional shopping mall, and most likely will be located in cities and smaller urban areas.

Franchise Offer:

The traditional TCBY store: Typically has 800 to 1,300 square feet, seats 10 to 34 customers and caters to both carry-out and eat-in business. Sometimes a traditional store will have drive-thru facilities. In some instances, a traditional store may be smaller, having no more than 800 square feet, and may be operated as part of a food court or other shared dining opportunity, or serve small urban or even rural communities.

The Non-traditional Store: Co-branded store, which is a relatively smaller TCBY store, is established within a premises operated under trade names or trademarks belonging to another concept approved by the franchisor for co-branding with a TCBY store.

Financial Assistance: Neither TCBY Systems, LLC nor an affiliate offer direct or indirect financing. They do not guarantee any note, lease, or obligation.

Training and Assistance: The training program consists of classes conducted at the offices in Salt Lake City, Utah, or at other designated locations. Classes are held periodically, and will last approximately 9 days. However, the franchisor may require that the franchisee continues the training for a longer period of time as they may deem reasonably necessary, but not to exceed 20 days. The training program includes instruction relating to equipment usage, costs and cash control, food preparation, customer service, employee scheduling and methods of controlling operating costs. Training covers the management role and each job function of hourly employees

Territory: Franchises are granted for a specific location and are not exclusive. The rights granted to a franchisee under the franchise agreement are for a specific site, and valid only for the approved location. The franchisee will not receive an exclusive territory. The franchisee may face competition from other franchisees, from outlets owned by the franchisor, or from other channels of distribution or competitive brands controlled by TCBY systems.

Term of Agreement and Renewal: The term of the franchises agreement is for a period of 10 years from the date the franchisee obtains the approval of and secured the premises for a store. The renewal term is for the current agreement term, the fee is currently $2,000 for one year of additional term; $6,250 for an additional 5-year term.

Obligations and Restrictions: The store must always be under the direct, day-to-day, full-time supervision of the owner of the franchise or a manager. If a manager supervises the store, the franchise owner must remain active in overseeing the operations of the store.The franchisee must offer and sell only those goods and services approved by the franchisor. Without the franchisor’s prior written consent, the franchisee may not offer TCBY products approved for sale or services of the store or any materials, supplies, or inventory bearing the TCBY marks at any site other than the store premises. In addition, the franchisee may not use the premises of the store for any purpose other than the operation of a TCBY Store.

Total Number of Units (2007): 312

Investment Tables:

Initial Investment:

Expenditure	Low	High
Initial Franchise Fee	$0	$20,000
Travel and Living Expenses While Training	$2,500	$3,500
Leasehold improvements or Construction	$33,000	$125,000
Equipement Furniture and Signs	$75,000	$125,000
Opening Inventory and Supplies	$5,800	$10,000
Prepaid Expenses and Deposits	$5,000	$7,500
Grand Opening Promotional Expenses	$0	$2,500
Working Capital	$20,000	$40,000
Additional Funds (3 months)	$0	$20,000
Total	$141,300	$353,500

Ongoing Fee:

Name of Fee	Amount
Royalty and Service Fee	6% of Net Revenue
Advertising Contribution	3% of Net Revenue
Local Advertising; Cooperative Advertising	Will vary
Late Payment Fee	$100 for each delinquent payment
Late Reporting Fee	$100 for each delinquent payment
Interest or Late Payments	Lesser of 1,5% Per month and the highest applicable legal rate
New manager Training Charge	Cost; Currently from $800 to $3,000
Assignment Fe	Currently $5,000
Development Agreement Assignment Fee	$10,000 plus the assignment Fee due under each Franchise Agreement being assigned and any Accelerated Initial Franchise fee
Indemnification	Actual losses and cost
Advertising, Marketing and Promotional Materials	Will vary under circumstances
Audit Cost	Actual Costs
Development Agreement Termination Fee	Will vary under circumstances

The above information has been taken from the UFOC/FDD of TCBY.
Franchise Direct's Disclaimer

You may be interested in the following franchises...

Pure Health Offer a flavorful, healthy alternative to fast food with Pure Health, now expanding around the globe! Minimum Cash Required: $60,000.

Yo-Good Become your own boss with Yo-Good's delicious frozen yogurt and smoothie franchise opportunity! Easy to operate,... Minimum Cash Required: $50,000.