Franchising Since: 1987
Headquarters: Markham, Ontario, Canada
Country of Origin: Canada
Estimated Number of Units: 465
Franchise Description: The franchisor is Yogen Früz U.S.A., Inc. The parent company is Yogen Früz Canada, Inc. The franchise is the right to develop and operate a single business location that specializes in the retail sale of proprietary frozen yogurts, yogurt shakes, fruit cups, fresh-pressed tea, and other fruit and yogurt based products and other related products under the “Yogen Früz” brand.
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Territory Granted: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from Yogen Früz businesses that the franchisor or its affiliates own or from other channels of distribution or competitive brands that it controls. However, if franchisees are in compliance with the Franchise Agreement, neither the franchisor, nor its affiliates will operate or grant a franchise for the operation of another Yogen Früz business in substantially the same format, the physical premises of which are located within a territory that will be described in the Franchise Agreement. The description, size and scope of the territory will be contained in the Franchise Agreement.
Obligations and Restrictions: The franchisor recommends that franchisees actively participate in the operation of their business. If franchisees are not individuals, they must designate and retain at all times an individual to serve as the “operating principal” under the Franchise Agreement. If franchisees are individuals, they must perform all obligations of the operating principal. If franchisees are a corporation, partnership or other form of entity, the operating principal must hold an ownership interest of at least 10% in the franchise or any entity that directly or indirectly controls the franchise, and work on a full-time basis in the business. The operating principal must either serve as the general manager or may, at his/her option and subject to the franchisor’s approval, designate an individual to perform the duties and obligations of the general manager described in the Franchise Agreement and in the Franchise Disclosure Document.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. The agreement may be renewed at the franchisee’s option for two additional five-year terms if requirements are met.
Financial Assistance: The franchisor does not offer, either directly or indirectly, any financing arrangements to franchisees. The franchisor does not guarantee a franchisee’s notes, leases or other obligations.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $25,000 | $25,000 |
| On-Site Evaluation | $0 | $5,000 |
| Leasehold Improvements, Construction Cost | $100,000 | $300,000 |
| Blueprints & Design Fees | $10,000 | $40,000 |
| Lease Payments/ Rental Expenses | $10,000 | $60,000 |
| Frozen Dessert Machinery | $7,600 | $41,200 |
| Other Equipment, Furnishings, & Signage | $68,000 | $160,000 |
| Point of Sale System | $6,500 | $7,500 |
| Travel & Living Expenses While Training | $500 | $25,000 |
| Security Deposits | $4,000 | $30,000 |
| Professional Fees | $8,000 | $30,000 |
| Licenses and Permits | $5,000 | $10,000 |
| Insurance | $2,500 | $5,000 |
| Grand Opening Advertising | $5,000 | $10,000 |
| Opening Inventory | $3,000 | $6,000 |
| Additional Funds – 3 Months | $30,000 | $100,000 |
| ESTIMATED TOTAL | $285,100 | $754,700 |
Other Fees
| Type of Fee | Amount |
| Royalty Fee | 6% of gross sales. |
| Brand Development Fee | 2% of gross sales. |
| Opening Assistance | Estimated to be between $2,000 and $10,000. |
| Advertising & Promotional Materials | Varies, depending on the franchisee's advertising needs. |
| Interest | 18% or highest legal rate. |
| Prohibited Product or Service Fine | $500 for each day unauthorized products or services are used. |
| Initial Training of Additional or Replacement and Successor Personnel | The then-current per person training fee (currently, $1,750 per person), plus expenses. |
| Additional On-Site Training | The then-current per diem rate per trainer (currently, $250), plus expenses. |
| Transfer Fee | $5,000 or 5% of the purchase price, whichever is greater, plus $2,500 to cover the franchisor's expenses for document review and preparation. |
| Renewal Fee | 50% of the then-current initial franchise fee. |
| Product and Supplier Evaluation Fee | $1,000 |
| Audit Fee | Cost of audit (estimated to be between $1,000 and $5,000). |
| Late Reporting Fee | $100 per day for each occurrence of late report owed to the franchisor. This fee is payable daily until the required report is received. |
| Manuals or Training Video Replacement Fee | $5,000 |
| Liquidated Damages | Will vary. |
| Costs and Attorneys’ Fees | Will vary under circumstances. |
| Indemnification | Will vary under circumstances. |
| Insurance Premiums | Reimbursement of the franchisor's costs (estimated to be $1,000 to $1,500), plus 15%. |
| Management Fee | 15% of gross sales, plus expenses. |
| Relocation Fee | $2,500, plus out-of-pocket expenses. |
| Purchase of Branded Products | Will vary as inventory is sold. |
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