sweetFrog Frozen Yogurt Franchise Costs, Fees & FDD

Year Business Began: 2009

Franchising Since: 2012

Headquarters: Scottsdale, Arizona

Estimated Number of Units: 205

Franchise Description: MTY Franchising USA, Inc. is the franchisor. Franchisees operate a restaurant called sweetFrog which offers frozen yogurt and other frozen dessert products (prepared using proprietary recipes) customarily using a self-serve delivery format on a take-out or eat-in basis, and branded, licensed products.
Training Overview: The franchisor will make a training program available to franchisees and their designated representative after they sign the Franchise Agreement. Initial training currently consists of 40 hours of classroom training and 24 hours of on-the-job training. The classroom portion of the Training Program will be held online or from KTEC (Kahala Training & Education Center), which is located at the franchisor’s corporate offices in Scottsdale, Arizona, or at such other location(s) as it designates in its sole discretion and the in-store portion of the training program will be held at one of its affiliated restaurants in the metropolitan Phoenix, Arizona area (if any), or at such other location(s) as it may designate in its sole discretion. The franchisor will provide one of its representatives to come to the franchised business during opening week for up to five days, or if they are operating a non-traditional vehicle then for one day during one of the franchisee’s initial events, to work with franchisees and their manager on the franchisee’s grand opening, and on operating and marketing the franchised business. The franchisor may, in the future, hold refresher or additional training programs, conferences and seminars. The franchisee’s attendance at these programs is mandatory.

Territory Granted: The franchise is granted only for the location specified in the Franchise Agreement or a location to be approved by the franchisor. For all franchised businesses other than vehicles, franchisees will not receive an exclusive territory. Vehicles will receive partial exclusivity to an authorized territory, meaning the franchisor will not operate or grant any third party the right to operate another vehicle in the authorized territory; however, the franchisor may undertake any other activities in the authorized territory, including operating and granting a third party the right to operate any other type of franchised business other than a vehicle.

Obligations and Restrictions: While the Franchise Agreement does not specifically require franchisees or their principals to personally participate in the direct operation of the franchise, it is the franchisor’s intention to select as franchisees only those who plan to actively participate in the direct operation and daily affairs of the franchised business. The franchise must be personally managed with on-premises supervision and directly operated by franchisees or another partner, shareholder or member of their business organization, or a manager who must have successfully completed the training program. Spouses must sign agreements as well. Franchisees must employ on a full time basis at least one on-premises supervisor for the franchised business. The franchisor requires that the business is solely that of a sweetFrog restaurant, and franchisees may not conduct any other business or activity at the site of the franchised business without our prior written approval. For traditional restaurants, franchisees must offer the full menu prescribed by the franchisor, subject to change from time to time in its sole discretion. Non-traditional restaurants may offer a more limited menu than the traditional restaurant, as detailed in the confidential manual.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are not in default and satisfy certain conditions, they may renew for a single renewal term of five years, with no further right to renew at the end of the renewal term.

Financial Assistance: The franchisor does not offer any direct or indirect financing or financing arrangement, nor will we guaranty a franchisee’s obligations under any note or other obligation, except potentially for the lease for the site or if the franchisee purchases a restaurant corporate-owned “as-is” by one of the franchisor’s affiliates, and only in its sole and absolute discretion and potentially for a corresponding fee. If franchisees are currently an active or active reserve member of the U.S. Armed Forces, have been honorably discharged from the U.S. Armed Forces, or are a 501(c)(3) organization, they will receive a 20% discount on the initial franchise fee.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$12,750	$30,000
Leasehold Improvements/Construction	$10,000	$262,000
Optional Lease Review Fee	$0	$2,500
Furniture, Fixtures and Equipment, including Soft-Serve Machines	$40,000	$242,000
Lease, Security Deposits	$0	$12,000
Utility Deposits	$500	$2,000
Design and Architectural/Engineering Fees	$5,000	$20,000
Interior and Exterior Signage; Décor Package	$5,000	$17,000
Other Equipment	$1,500	$3,500
Grand Opening Marketing	$5,000	$10,000
Expenses During Initial Training	$1,000	$2,000
Insurance	$2,000	$5,000
Business Licenses & Permits	$1,500	$3,500
Point of Sale Systems	$3,000	$5,000
Office Equipment & Supplies (3 months)	$100	$1,000
Opening Inventory (1 week)	$6,000	$8,000
Professional Fees	$0	$10,000
Depository Account	$3,000	$3,000
Additional Funds – for initial 3 month period	$15,000	$20,000
ESTIMATED TOTAL*	$111,350	$658,500

*The estimated initial investment range covers from a non-traditional location (kiosks and standard counter floorplans) size up to a traditional location size. Estimate for the mobile unit franchise can be found in the FDD.

 
Other Fees

Type of Fee	Amount
Royalty Fee	5% of gross sales plus a maximum surcharge of $10 per week.
Advertising Fees (traditional franchised business)	2.5% of weekly gross sales.
Advertising Fees (non-traditional franchised business)	1% of weekly gross sales.
POS Help Desk Phone Support Maintenance Contract Fee (if applicable)	$55 per month.
Additional Persons Training Fee	$1,250 per person ($500 per person for the in-store portion of the training program, and $750 per person for the new owner training portion of the training program).
Additional Training Fee	$300 per person per day.
Annual Meeting Registration Fee	Up to $1,000 plus incidental costs to attend.
Depository Account	$3,000 (Must be replenished on a regular basis.)
Charitable Contributions	To be determined by the franchisor.
Data Fees	Up to $100 per month (subject to reasonable annual and/or service enhancement increases).
Gift Card Redemption Fee	$0.05 per activity.
Renewal Franchise Fee	50% of the then-current initial franchise fee not including any discounts or reductions.
Transfer Franchise Fee	$7,500 for traditional franchised business; or $5,000 for non-traditional franchised business.
Transfer Training Fee	$1,500 for two individuals ($500 for each additional individual).
Relocation Fee (does not apply to vehicles)	$500
Non-Participation Fee	$100 per day if franchisees fail or refuse to participate in any required national, local, regional, seasonal, promotional or other program, initiative and campaign or in any new or modified product or service test or offering.
Document Administration Fee	$500
Default Interest	$50 plus interest at 1.5% per month or maximum legal rate, if less.
Document Late Charge	$100 per week or partial week.
Draft Draw Charge	$100 per day.
Late Charge	5% of the unpaid amount or $100, whichever is greater, on royalties, advertising payments, and other amounts unpaid when due.
Sublease Late Charge	5% of the late or unpaid amount plus any late charges and interest incurred under the master lease as a result of the late payment (where applicable).
Collection Costs	All collection costs including reasonable attorneys' fees.
Non-Sufficient Funds Fee	$50 for each electronic funds transfer returned for non-sufficient funds; $25 for each check or draft returned for nonsufficient funds.
Audit	Cost of audit plus interest at default rate on underpayments.
Early Termination Damages	The average monthly royalty and advertising fees paid for any consecutive 12 month period within the preceding 48 month period multiplied by the number of months remaining in the term of the Franchise Agreement, and the product is divided by 2.
Attorneys’ Fees and Costs	Will vary under the circumstances.
Indemnification of the Franchisor and/or its Affiliates for Damages Suffered or Incurred for the Franchisee’s Actions or Omissions (including amounts paid on the franchisee’s behalf or to cure breaches under the Franchise Agreement)	Will vary under the circumstances.
Liquidated Damages for Breach of Non- Compete Obligations under the Franchise Agreement	Will vary under the circumstances.
Management Fee	6% of the franchised business’ gross sales (in addition to the royalty fee and advertising fee) plus the franchisor’s direct out-of-pocket costs and expenses.
Customer Satisfaction Programs	All costs related to the franchised business for these programs, which currently includes up to $100 per visit for secret shoppers.
Merchandise for Resale; Equipment; Décor Items	Reasonable cost, which currently ranges from $3,000 to $10,000.

The above information has been compiled from the FDD of sweetFrog Frozen Yogurt. Year of FDD: 2025.
Franchise Direct's Disclaimer