Yogen Früz Master Franchise Cost & Fees

Year Business Began: 1987

Franchising Since: 1987

Headquarters: Markham, Ontario, Canada

Country of Origin: Canada       

Estimated Number of Units: 515

Franchise Description: The franchisor is Yogen Früz U.S.A., Inc. The parent company is Yogen Früz Canada, Inc. The franchise offered is for the right and obligation to act as a master franchisee and, in that capacity, to grant subfranchises to qualified persons for their development and operation of Yogen Früz branded frozen yogurt businesses that specialize in the retail sale of proprietary frozen yogurts, yogurt shakes, fruit cups, fresh-pressed tea, and other yogurt based products and other related products. Master franchisees are also required, through their wholly owned subsidiary, to own and operate at least one Yogen Früz branded yogurt business (affiliate model outlet).
Training Overview: Initial training for the master franchisee and up to two additional employees is provided at the franchisor’s designated training facility in Markham, Ontario, Canada or at another location the franchisor designates in the Greater Toronto, Canada area. Currently, initial training consists of approximately 8 to 10 days of instruction. Master franchisees must complete initial training to the franchisor’s satisfaction before providing any sales services or opening their affiliate model outlet. The franchisor may, at its expense, send one or more representatives to assist with the opening of the affiliate model outlet. Master franchisees will attend and successfully complete, to the franchisor’s satisfaction, any ongoing or refresher training programs required from time to time.

Territory Granted: Master franchisees will not receive an exclusive territory under the Master Franchise Agreement. However, if master franchisees remain in compliance with the terms of their Master Franchise Agreement, and they and their wholly owned subsidiary(ies) are in compliance with each Subfranchise Agreement for they are a party, the franchisor will not authorize the master franchise rights to any other person or entity within the designated territory. A designated territory typically has between 240,000 and 2,400,000 people. Other than the designated territory, master franchisees will not receive a minimum territory.

Obligations and Restrictions: The Master Franchise Agreement obligates the master franchisee to personally participate in operating their master franchise. Master franchisees must supervise and oversee their business and may not hire a supervisor for such a role, but they must maintain sufficient qualified personnel (if applicable) to train and supervise operators of Yogen Früz businesses in the designated territory. Master franchisees must at all times faithfully, honestly and diligently perform the sales services and continuously exert their best efforts to promote and enhance the brand and the development and operation of Yogen Früz businesses with the entire designated territory. The franchisor maintains the right to require master franchisees to only sell products or services that it authorizes, to require master franchisees to sell all goods or services it authorizes, and to change the types of authorized goods or services from time to time, in its discretion.

Term of Agreement and Renewal: The Master Franchise Agreement establishes a development term (during which the master franchisee must provide the sales services) and an agreement term (during which the master franchisee must provide the support services). The development term expires on the earlier of the last Yogen Früz business the master franchisee is required to have opened under the mandatory development schedule. The agreement term expires on the expiration or termination of all subfranchise agreements in the designated territory. Provided the master franchisee is in compliance with all of the conditions for renewal, the master franchisee may renew the development term. The agreement term is not renewable.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s promissory notes, mortgages, leases or other obligations.

Estimated Initial Investment

Name of Fee	Low	High
Master Franchise Fee	$50,000	$500,000
Training Expenses	$2,550	$5,750
Professional Fees	$10,000	$25,000
Insurance Premium	$1,500	$20,000
Grand Opening Advertising	$3,000	$10,000
Additional Funds - 3 months	$10,000	$30,000
Development of Affiliate Model Outlet	$174,900	$580,200
ESTIMATED TOTAL	$251,950	$1,170,950

Other Fees

Name of Fee	Amount
Royalty Fees	3% of the gross sales of each Yogen Früz business in the designated territory.
Renewal Fee (of the Development Term under the Master Franchise Agreement)	50% of the master franchise fee.
Transfer Fee (Under the Master Franchise Agreement)	5% of the total value of all consideration payable by the purchaser to the master franchisee.
Transfer Fee (Related the Subfranchise Agreement)	33% of any transfer fee which any subfranchisee in the designated territory pays to the master franchisee to transfer their subfranchise agreement.
Initial Franchise Fees (Affiliate Model Outlet)	$12,500 for the Affiliate Model Outlet.
Initial Franchise Fees (Subfranchisees)	The greater of $8,000 or 33% of the initial fee charged to a subfranchisee who signs a subfranchise agreement in the designated territory; or the greater of $3,500 or 33% of the initial fee charged to a subfranchisee who executes a subfranchise agreement for a non-traditional Yogen Früz business.
Opening Assistance and Additional Training	The then-current per diem charge, currently $250 per day.
Ongoing and Refresher Training	The then-current per diem charge, currently $250 per day.
Interest/Late Payment Fees	Lesser of (a) 18% per annum; or (b) the maximum rate permitted by law.
Audits	Costs the franchisor incurs in connection with an audit, including interest on any unpaid amounts that an audit may reveal.
Indemnification	Amounts incurred.
Brand Fund	1.5% of the gross sales of each subfranchise operating within the designated territory.
Marketing Materials	Will vary but estimated to be $100 to $1,000 per request.
Legal Costs	Will vary under circumstances.
Manual Replacement Fee	$5,000 per volume.
Liquidated Damages	50% of any liquidated damages fee which any subfranchisee in the designated territory pays to the master franchisee if the master franchisee terminates their subfranchise agreement.

The above information has been compiled from the FDD of Yogen Früz. Year of FDD: 2024.
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