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How Much Does It Cost to Open Froyo Franchise?

Do you want to start a frozen yogurt business by buying Froyo franchise? If YES, here is how much it cost to open a Froyo franchise and their requirement. In the summer of 2010, FroyoWorld opened its first Frozen Yogurt Lounge in Yale University campus in the town of New Haven, Connecticut. With their award winning Original Tart froyo recipe in hand, they introduced the self-serve frozen yogurt in Connecticut. They had overwhelming support for their product from the community, so they opened a few more stores.

FroyoWorld Franchising USA, Inc. sells franchises for retail shops that offer and sell soft-serve yogurt and other authorized products and services that use a self-service format which allows customers to create individualized yogurt-based desserts.

FroyoWorld became a franchise so that entrepreneurs and business folks could bring the success they’ve built to their area. In less than a year, they had gone from a start-up to a successful franchising business.

FroyoWorld now has nearly 40 locations open in New England and Puerto Rico, over 100 flavors that rotate in every store, and tons of amazing toppings and frozen yogurt treats.

How to Get Froyo Franchise

If you are cool with the requirements and finance involved in acquiring this franchise, then you would need to follow these steps;

  • Fill the application at the website for opening a store. You will need to include your name, address, city and state. You will need a phone number and email address. Then choose the amount of capital you will have to invest.
  • Wait for the email that confirms that your application was received and is being reviewed. This email will tell you if you will be approved for the location. It will also go into more specifics regarding the financing. You will be asked to schedule a time for an associate to call you and talk more.
  • Ensure to have your financial papers ready when you have your phone conversation. This is when you will find out if you have enough money to open the store or if you will need financing. If you need help with financing, you can apply for an SBA prequalified loan.
  • Note that approval is expected to me quick once you meet the requirements. You should already have a building with all the hookups. After you are approved, the organization will start sending fixtures and merchandise to your building.
  • You will then be mandated to attend a workshop at the headquarters before the opening of your store.

How Much It Cost to Open a Froyo Franchise

Estimated Initial Investment

  • Initial Franchise Fee: $15,000 – $30,000
  • Leasehold Improvements/Construction: $10,000 – $140,000
  • Furniture, Fixtures and Equipment, Including Soft-Serve Machines: $35,000 – $120,000
  • Lease, Security Deposits: $0 – $12,000
  • Utility Deposits: $500 – $2,000
  • Design and Architectural/Engineering Fees: $0 – $7,000
  • Interior and Exterior Signage; Décor Package: $0 – $7,500
  • Other Equipment: $1,500 – $3,500
  • Grand Opening Marketing: $5,000 – $10,000
  • Travel & Living 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
  • Construction Management: $0 – $18,000
  • Additional Funds – for initial 3 month period: $15,000 – $60,000
  • ESTIMATED TOTAL = $95,600 – $444,500

Below are other fees you should take note of;

  • Royalty Fee: 5% of Net Sales.
  • Marketing Assessment: Up to 3% of Net Sales to be divided among the System-wide Marketing Fund (SMF) and Local Advertising (or a co-operative). Currently, the total Marketing Assessment will be 2.5% of Net Sales as follows: 1.5% for SMF and 1% for Local Advertising.
  • Systemwide Marketing Fund (SMF): 1.5% of Net Sales.
  • Co-operative: Amount determined by the co-operative when established.
  • Local Advertising: Currently, 1% of Net Sales.
  • Advertising and Promotional Material: Reasonable fee, which currently will not exceed $1,000 for each set of materials.
  • Website Review and Hosting Fee: Reasonable fee per Website review and per year for hosting services. Currently, no charge.
  • Additional Training or Training Additional, Successor or Replacement Personnel: Reasonable fee, which is currently $1,000 per training session.
  • Alternative Product or Supplier Inspection and Testing: Cost of inspection and of the test (including the franchisor’s administrative expenses), which currently will not exceed $2,000 for each new supplier or product.
  • Audit Fee: All cost and expenses the franchisor incurs, which currently will not exceed $5,000.
  • Costs and Attorneys’ Fees: The franchisor’s costs and expenses.
  • Costs for Correction of Deficiencies: Reasonable fee for the franchisor’s expenses in taking corrective action (including costs of re-inspection), which currently will not exceed $1,500 per violation.
  • Customer Satisfaction Programs: All costs related to the shop for these programs, which currently includes up to $100 per visit for secret shoppers.
  • Enforcement Costs and Expenses: Any and all costs and expenses incurred by the franchisor in enforcing the terms of the Franchise Agreement. The franchisor can collect these costs and expenses upon franchisees’ default without filing an action against them.
  • Indemnification: Varies according to loss.
  • Interim Management After Termination: Reasonable fee for management services, which is currently $5,000 per month.
  • Interest: Lesser of: 18% per year or the maximum lawful rate.
  • Intranet Fee: A reasonable amount based on our actual cost to support franchisees’ usage (which will not exceed $700 annually).
  • Insurance Fee: Cost of insurance plus the franchisor’s reasonable expenses incurred in obtaining the insurance on the franchisee’s behalf.
  • Liquidated Damages: For early termination of the Franchise Agreement, a lump sum equal to the royalty fee percentage multiplied by the weekly average of the Net Sales for the 52 week period preceding the effective date of termination multiplied by the lesser of (i) 104 weeks (2 years or (ii) the number of weeks remaining in the term.
  • Merchandise for Resale; Equipment; Décor Items: Reasonable cost, which currently ranges from $3,000 to $10,000.
  • On-site Additional or Remedial Training: Then-current per diem fee plus expenses incurred by the franchisor’s representatives. Currently, the per diem fee is $250.
  • Renewal Fee: 50% of the then-current initial franchise fee.
  • Relocation: The greater of: (i) $5,000; or (ii) the franchisor’s costs and expenses connected with the relocation.
  • Securities Offering Fee: The franchisor’s reasonable costs and expenses (including legal and accounting fees and costs) associated with reviewing the offering materials.
  • Software or Systems Modifications: Reasonable fee for any software or systems modifications enhancements made for the franchisor that it or its affiliates license to franchisees.
  • Taxes: Franchisees must reimburse the franchisor for any taxes imposed on the franchisor by reason of furnishing products, intangible property (including the trademarks) or services to franchisees.
  • Transfer Fee: Greater of: (i) $5,000; or (ii) the franchisor’s costs and expenses connected with transfer
  • Non-Cash Payment System Reimbursement: Amounts specified in the franchisor’s gift card program.

Why Buy Froyo Franchise?

  • Brand Recognition

Become a part of FroyoWorld’s international brand as they expand to markets all over the globe. Their brand continues to grow because of their exceptional tasting yogurt and great customer service that is associated with the FroyoWorld brand.

  • Collective Purchasing Power

The FroyoWorld Development Team has established global contacts and nurtured valuable relationships with distributors and vendors. This allows them to purchase goods internationally, in bulk, and at discounted rates. They then pass these discounts on to their Franchisees.

  • Marketing

The FroyoWorld Development Team will support you with all the necessary tools needed to market your FroyoWorld store. They help their franchisees with social media, advertising, graphic design, and more.

  • Low Cost

At FroyoWorld, they have developed a low cost business model that has a successful and proven track record. Their brand enjoys high quality, exceptional tasting frozen yogurt that will make your taste buds happy. With the help of the FroyoWorld Development Team, their delicious yogurt, and the FroyoWorld business model, opening a FroyoWorld just makes sense.

  • Operation Support

The FroyoWorld Development Team includes professionals with multi-unit restaurant business expertise who can be great resources and consultants to your business. From start to finish, FroyoWorld team will be with you all the way, assisting you in every aspect of opening your very own FroyoWorld.