Franchising Since: 2008
Headquarters: Durango, Colorado
Estimated Number of Units: 65 (across all USI brands)
Franchise Description: U-Swirl International, Inc. (USI), the franchisor, offers franchises for the operation of self-service frozen yogurt stores under the marks “U-Swirl Frozen Yogurt”, “CherryBerry”, “Yogurtini”, “Yogli-Mogli”, “Aspen Leaf Yogurt”, “Let’s Yo!” and “Fuzzy Peach”(collectively USI Stores). Stores may also offer beverages and other frozen dessert products. U-Swirl stores will typically offer 10-16 flavors of self-service yogurt with customers filling containers with as much of one or more flavors as desired, selecting from over 20 toppings, and then paying by the ounce for the yogurt and toppings. The franchisor may offer franchisees the opportunity to develop a new co-branded store, or to convert an existing USI store to a co-branded store. A “co-branded store” integrates in one location two concepts by offering U-Swirl Frozen Yogurt products or CherryBerry or Yogurtini products, and specific products offered in a Rocky Mountain Chocolate Factory store as designated by RMCF.
Training Overview: At least one individual who will sign the Franchise Agreement or, if the franchisee is an entity, the person designated by the entity to assume primary responsibility for the management of the store, (general manager) is required to attend and successfully complete the initial training program before commencing operations of the store. The initial training program consists of a total of four days of instruction and all training is currently conducted in North Las Vegas, Nevada. The franchisor may conduct all training via webinar or other remote transmission if circumstances warrant, in its sole discretion. Franchisees may be required to attend additional days of training if they purchase a USI store that is branded with both a U-Swirl and Rocky Mountain Chocolate Factory brands, selling both yogurt and chocolate candies (a co-branded unit). The initial training program includes hands-on training in a retail store. In addition to the initial training program, the franchisor will provide up to three days of opening assistance at the store near the time that the store opens. As often as annually, the franchisor may require franchisees or their general manager to attend in person, at their expense, a national, regional or local meeting, training seminar or conference that the franchisor presents for the purpose of discussing a topic such as advertising programs, new operations methods, training, management, sales, or sales promotion, to the extent that it offers any meetings, seminars or conferences.
Territory Granted: 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 will operate their franchise at a specific location referred to as the “premises” in the Franchise Agreement. The franchisor must approve the premises before franchisees sign a Franchise Agreement.
Obligations and Restrictions: Franchisees are not required by the franchisor to participate personally in the direct operation of the franchised business, and the franchisor neither recommends nor discourages franchisees from doing so. Franchisees or a person designated by them to assume primary responsibility for the overall management of the store (the general manager) is responsible for the overall management of their franchised business. Franchisees or their general manager must participate directly in the operation and management of the store. Franchisees must offer and sell only those goods and services that the franchisor has approved.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing, they can renew the Franchise Agreement for an additional 10-year term.
Financial Assistance: The franchisor does not offer direct or indirect financing to franchisees. The franchisor does not guarantee a franchisee’s lease or other obligations.
Investment Tables:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee (single unit) | $5,000 | $25,000 |
| Real Estate and Improvements | $131,000 | $185,920 |
| Furnitures, Fixtures and Equipment | $150,000 | $190,400 |
| Travel and Living Expenses While Training | $1,000 | $5,000 |
| Signs | $7,000 | $13,440 |
| Opening Inventory | $5,000 | $10,000 |
| Grand Opening | $5,000 | $5,000 |
| Additional Funds – 3 months | $35,000 | $71,000 |
| ESTIMATED TOTAL | $339,000 | $505,760 |
| Type of Fee | Amount |
|---|---|
| Royalty | 6% of net sales. |
| Advertising Fund | 1% of net sales, reduced by any amount allocated to a regional advertising co-op. |
| Cooperative Advertising | 3% of net sales, reduced by advertising fund fee, if any, and local advertising allocation. |
| Local Advertising Allocation | 1% of net sales, reduced by any amounts reallocated to regional advertising co-op. |
| Mandatory Meetings and Additional Mandatory Training | $350 - $1,500, plus program fee. |
| Optional Training | $350 - $1,500, plus attendance fee. |
| Transfer Fee | $10,000 |
| Point of Sale (POS) System Set Up and Annual Maintenance Agreement | Varies, depending on the supplier, but expected to be between $5,000 and $12,000 for initial set up with annual costs ranging between $1,000 and $2,000 per year. |
| Merchant Services Fee | The effective rate may range from 2.5% to 5.5%% of each transaction, depending on usage. |
| Gift Card Services Fee | The franchisor estimates between $15 - $35 per month for gift card servicing. If the franchisee’s POS system is not capable of processing the franchisor’s gift cards, the franchisor must acquire a card reader that is compatible with Worldpay processing systems. |
| Renewal Fee | $5,000 |
| Extension Fee | $200 per month up to a maximum of 12 months. |
| Inspection/Audit | Cost of audit or inspection and underpayment amount, plus interest. |
| Interest and Late Charges | $25 late charge, plus the lesser of 1.5% per month, or highest rate of interest allowed by law. Also, any NSF or similar charge assessed by the applicable financial institution. All charges subject to applicable state law. |
| Insurance | Varies depending on location and insurer. |
| Indemnification | Varies – Franchisees will pay the amount of the liability assessed against USI plus the expenses incurred in defending USI. |
| Costs and Attorneys’ Fees | Varies under circumstances. |
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