TCBY Franchise Costs, Fees & FDD

Year Business Began: 1981

Franchising Since: 1982

Headquarters: Salt Lake City, Utah

Estimated Number of Units: 170

Franchise Description: The franchisor is TCBY Systems, LLC. The ultimate parent company is Famous Brands International, LLC. TCBY franchises offer products approved or required by the franchisor from time to time, including premium soft serve frozen yogurt, hand-dipped frozen yogurt and other frozen and non-frozen dessert and treat items, such as cakes and pies, sorbet, smoothies, fresh yogurt, mix-ins, toppings, chocolate, dried fruit, nuts, candies, popcorns and drinks. The franchisor offers franchises to own and operate TCBY-branded retail outlets in two different formats: a store and a kiosk.
Training Overview: The franchisor will provide franchisees with access to its initial training program on the operation of stores. Before opening the store for operation, the franchisee, and at least one of the entity owners (if the franchisee is an entity), and the initial store manager must successfully complete, to the franchisor’s satisfaction, the initial training program. The training course will include classroom, in-store/on-the-job, computer based training and self-study. The franchisor may require franchisees and/or their previously trained and experienced representatives to attend periodic refresher training programs and training programs or courses regarding specific products or processes. Franchisees or at least one of the entity owners (if the franchisee is an entity) and, when the franchisor requests, the manager of the store (and/or an approved trainer if the franchisee is a multi-unit franchisee) must attend all national conventions and regional meetings that the franchisor designates as mandatory.

Territory Granted: Franchisees may not operate their store at any site other than the designated premises without the franchisor’s prior written consent. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. Franchisees receive no minimum territory, and franchisees must obtain the franchisor’s approval of the location of the store.

Obligations and Restrictions: The franchisor recommends that franchisees participate personally in the direct operation of their store, although the Franchise Agreement does not specifically obligate them to do so. However, franchisees must either manage the store themselves or use a full time “on premises” manager. The manager need not have an equity interest in the franchisee entity to act as manager. Both the franchisee (or one of the entity owners, if franchisees are an entity) and the manager of the store must be certified by the franchisor as having completed all phases of the training program to its satisfaction and must participate in all other activities required to open the store. If franchisees are an entity, each entity owner must guarantee the obligations under the Franchise Agreement. The franchisor also will require the entity owner’s spouse(s) to sign the guaranty. In operating the store or machine, franchisees must use and offer for sale all of, and only, the approved products and any other products or services that the franchisor mandates or approves from time to time for them to sell at the premises.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the date the Franchise Agreement is fully executed. Franchisees may renew for one additional 10-year term, subject to conditions.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or any other obligation. The initial franchise fee is reduced to $25,000 if franchisees are an honorably discharged veteran of the United States military or if they are an existing franchisee. The franchisor also offers a first responders discount of 20% off the initial franchise fee for law enforcement officers, firefighters, and emergency medical technicians who have at least 10 years of experience.

Estimated Initial Investment

Store

Name of Fee	Low	High
Initial Franchise Fee	$35,000	$35,000
Travel and Living Expenses While Training	$2,000	$3,000
Real Estate Lease	Varies
Equipment	$238,000	$278,617
Improvements	$180,130	$322,300
Opening Product and Soft Goods Inventory	$1,500	$10,000
Grand Opening Promotion (if opening a new store)	$10,000	$10,000
Local Store Marketing	$2,000	$2,000
Deposits and Other and Prepaid Expenses	$4,000	$5,000
Professional Fees	$3,000	$10,000
Insurance (3 months)	$2,500	$3,500
Computer Hardware and Software	$1,500	$8,050
Additional Funds (3 months)	$8,000	$12,000
ESTIMATED TOTAL	$487,630	$699,467

Kiosk

Name of Fee	Low	High
Initial Franchise Fee	$35,000	$35,000
Travel and Living Expenses While Training	$2,000	$3,000
Real Estate Lease	Varies
Equipment	$41,200	$101,500
Improvements	$21,200	$88,200
Opening Product and Soft Goods Inventory	$5,000	$10,000
Grand Opening Promotion (if opening a new store)	$10,000	$10,000
Local Store Marketing	$2,000	$2,000
Deposits and Other and Prepaid Expenses	$4,000	$5,000
Professional Fees	$3,000	$10,000
Insurance (3 months)	$2,500	$3,500
Computer Hardware and Software	$1,500	$5,150
Additional Funds (3 months)	$8,000	$12,000
ESTIMATED TOTAL	$135,400	$285,350

Other Fees

Type of Fee	Amount
Royalty Fees	6% of gross revenue.
Brand Fund Contribution	3% of gross revenue.
Local Store Marketing	Monthly minimum of $2,000, beginning at month 3 of operations and continuing for 9 months after opening. After the first year of operations, franchisees must spend a minimum of 2% of gross revenue or $1,000 per month, whichever is greater.
Technology Fee	None currently but may be charged in the future.
Training Fee	None currently but may be charged in the future.
Refresher/Additional Training	Then-current fees for such training, currently estimated at $500 per day per person plus travel expenses.
Computer System Compliance Fee	The greater of $500 per month, or the then current monthly rate of the software license.
Delinquent Opening Fee	$1,000 per month.
Late Payment Fee	$100 for each delinquent payment.
Late Reporting Fee	$100 for each delinquent report.
Interest Expenses	A rate equal to the lesser of the highest rate allowed under applicable law or 1.5% per month.
New Supplier Testing	The costs the franchisor incurs in evaluating a proposed supplier.
Advertising Cooperative	Not currently applicable.
Audit	Cost of financial audit.
Transfer Fee	50% of then-current initial franchise fee for existing franchisees.
Renewal Fee	20% of then-current initial franchise fee.
Interim Management Fees	10% of gross revenues during the period of management.
Costs and Attorney’s Fees; Indemnification	Will vary under the circumstances.
Lost Revenue Damages	Will vary under the circumstances.
National Convention and Regional Meetings Fee	A reasonable fee for each of the attendees, although, currently, the franchisor does not charge this fee.
Fee for Failing to Attend Mandatory National Convention or Regional Meeting	A reasonable fee for the franchisee and each of their required representatives, although, currently, the franchisor does not charge this fee.

The above information has been compiled from the FDD of TCBY. Year of FDD: 2025.
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