Yogurtland Franchise in 2024: Costs, Fee & FDD
Thinking about investing in a frozen yogurt franchise? Explore the ins and outs of Yogurtland, from startup costs and franchise support to potential earnings and what makes it a standout in the dessert industry.
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Yogurtland was founded in 2006 by Phillip Chang in Fullerton, California, with the vision of offering a premium self-serve frozen yogurt experience. What sets Yogurtland apart from its competitors is its commitment to quality ingredients and innovative flavors, which quickly earned the brand a reputation as a leader in the frozen dessert industry. Since its inception, Yogurtland has positioned itself as an affordable, family-friendly destination for customizable, healthy treats, appealing to a wide range of customers, from health-conscious consumers to those seeking indulgent, fun dessert experiences.
At its core, Yogurtland specializes in self-serve frozen yogurt, where customers can choose from a wide array of yogurt flavors and toppings. These range from fresh fruits to candy, nuts, and syrups, allowing for endless combinations. The brand also offers dairy-free and vegan options, catering to those with dietary restrictions. Ancillary products like smoothies and shakes have been added to diversify the menu. Yogurtland’s core market includes young families, health-conscious individuals, and dessert lovers, with a loyal customer base in suburban areas and shopping centers.
Yogurtland has grown significantly, with over 250 locations across the U.S. and international locations in countries like Japan, Australia, and Thailand. The brand’s presence continues to expand, serving millions of customers daily. The franchise model capitalizes on the growing demand for healthier dessert options, and its simple, efficient self-serve setup ensures a steady stream of customers throughout the day, particularly during the warmer months.
For franchisees, Yogurtland offers a robust support system. From initial training to ongoing operational guidance, new franchisees receive help with everything from site selection to marketing strategies. Yogurtland also provides continuous training for staff, helping to ensure consistency across locations. Their support program extends to help with equipment, supply chain management, and access to a network of fellow franchisees for knowledge sharing, making it a strong option for those new to the food industry.
Yogurtland Franchise Insights
- Yogurtland requires investment between $271K and $554K, making it accessible for a wide range of investors depending on location and buildout.
- With 209 U.S. locations (202 franchised and 7 corporate units), Yogurtland maintains a solid national presence, supporting steady growth opportunities for new franchisees.
- Franchisees benefit from Yogurtland’s consistent consumer base, with the average store serving approximately 300 customers per day, driving steady sales year-round.
- Yogurtland offers over 200 unique flavors of frozen yogurt, with a focus on high-quality, real ingredients, including its own proprietary yogurt blend sourced directly from California.
Yogurtland Franchise Key indicators
Growth YOY (%)
-6%
vs industry 0%
Total U.S. Franchised Units
202
3-Year Failure Rate
32%
vs industry 10%
Sales-to-Investment ratio
1.3:1
How much does it cost to open a Yogurtland franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Yogurtland franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Yogurtland franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Yogurtland below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $25,000 | $35,000 |
| Training Fee (per person) | $0 | $2,000 |
| Travel and Living Expenses While Training | $1,000 | $4,000 |
| Travel Expenses for On-Site Opening Assistance | $1,000 | $3,000 |
| Rent & Lease Deposit | $5,000 | $20,000 |
| Leasehold Improvements | $105,000 | $210,000 |
| Signs (indoor/outdoor, branding) | $5,000 | $19,000 |
| Franchisor-Supplied Décor and Other Items | $1,000 | $4,000 |
| Equipment & Fixtures | $83,000 | $175,000 |
| POS System | $5,600 | $6,200 |
| Opening Inventory | $4,000 | $6,000 |
| Utilities Deposits, Professional Fees, Business Licenses | $1,000 | $5,000 |
| Insurance | $1,000 | $3,000 |
| Opening Advertising | $6,000 | $6,000 |
| Architect, Permits | $10,000 | $20,000 |
| Limited Construction Project Management Services Fee | $6,000 | $8,000 |
| Attorney and Other Professional Fees | $1,000 | $3,000 |
| Additional Funds (First 3 months) | $10,000 | $25,000 |
| Total | $270,600 | $554,200 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Yogurtland franchise, the required capital involves both the initial investment costs and a net worth requirement set by Yogurtland. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $271K to $554K. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets For franchises in this investment range, it’s typical to have liquid assets (cash or easily accessible funds) of at least $100K to $150K. This helps ensure that you can cover startup costs, operational expenses, and have enough cash flow until the business becomes profitable.
- Net Worth The required net worth for a franchise in this industry often ranges between $500K and $1M, depending on the location and scope of the franchise. This ensures that franchisees have the financial stability to weather any initial business challenges.
How much does a Yogurtland franchise owner make?
Calculating the salary of a Yogurtland franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Yogurtland franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Yogurtland Revenue & Gross Sales
Yogurtland has not publicly disclosed its recent median gross sales figures, but based on industry performance for similar frozen yogurt franchises, annual revenue can vary widely depending on location and market conditions. High-traffic areas and warm climates tend to drive stronger sales, especially during peak seasons like summer.
Which key factors impact the average revenue performance of Yogurtland franchisees?
The performance of U.S. franchisee median gross sales for Yogurtland in recent years has been influenced by several key factors. One major contributor could be the post-pandemic shift in consumer behavior, with more people returning to in-person dining and seeking out treat-based experiences, like frozen yogurt, as part of their social outings. Additionally, inflation and rising costs may have impacted consumer spending, leading to more cautious spending on non-essential items. Location-specific factors, such as competition from other dessert or fast-casual chains, weather patterns, and local marketing efforts, also play a role in driving or hindering sales. Lastly, supply chain disruptions may have affected inventory management, impacting the ability to offer a full product lineup, thus influencing sales performance year over year.
Yogurtland Franchise Operational Costs
If you were to open a Yogurtland franchise, several key primary ongoing operational costs would be essential to consider:
- Lease/Rent Costs The location of your store will greatly impact rent costs, which can be a significant part of your ongoing expenses, especially in high-traffic areas or popular shopping centers.
- Employee Wages Staffing your store, including shift managers, cashiers, and cleaning staff, will be a regular expense. Labor costs will vary depending on local wage laws and the number of employees you need based on the store’s size and operating hours.
- Ingredients and Supplies Regular restocking of yogurt ingredients, toppings, and any ancillary products like smoothies or beverages is necessary to maintain quality and variety. Ingredient costs can fluctuate based on suppliers and market conditions.
- Utilities Running machines, refrigeration, air conditioning, and lighting in a self-serve frozen yogurt store can lead to high electricity and water bills, especially during peak seasons.
- Equipment Maintenance Frozen yogurt machines and other kitchen equipment require regular maintenance to function efficiently, so you’ll need to budget for repairs and service contracts.
- Marketing and Local Promotions While national marketing may be covered by franchise fees, local marketing and promotions are key to driving foot traffic and will require additional ongoing investments.
Careful planning and budgeting for these operational costs are crucial for the financial health and success of your Yogurtland franchise.
Yogurtland Franchise Fees
When considering the ongoing fees for a Yogurtland franchise, it’s important to understand the recurring costs that will be part of your monthly operations. These fees help maintain brand consistency and provide ongoing support for franchisees. Here are the key ongoing fees to expect:
- Royalty Fee Yogurtland charges 6% of gross sales or $1,500 per month, whichever is higher. This fee is due on the 15th of each month and ensures you receive continuous operational support from the franchisor.
- Marketing Fund Fee You’ll also contribute 2% of gross sales (or 2.5% if your payments are late) to the marketing fund. This supports national and regional advertising to help drive traffic to your location.
- Additional Fees There might be additional fees such as technology support, training, or local marketing costs depending on your agreement and specific needs of the business.
Being aware of these ongoing costs will help you budget effectively and manage your franchise’s financial health over the long term.
Yogurtland Franchise Earnings
While specific earnings for a Yogurtland franchise may vary widely based on location, market conditions, and management style, you can estimate potential earnings by looking at industry trends. As an owner-operator, you would have direct involvement in daily operations, which can improve efficiency and profitability by reducing labor costs.
How to Open a Yogurtland Franchise
The process to become a Yogurtland franchisee begins with a few key steps that will take you from initial inquiry to the opening of your franchise location. Here’s an overview of the process:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application After the inquiry, you’ll be asked to complete a more detailed franchise application. This includes financial disclosures to ensure you meet the net worth and liquid capital requirements. Yogurtland’s team will review your application for approval.
- Discovery Process Once approved, you’ll enter the discovery phase. This typically includes a meeting or ‘discovery day’ with the franchisor to learn more about the business, franchise model, and expectations. You may visit existing locations and meet the corporate team.
- Franchise Agreement Upon agreement, you’ll sign the franchise contract and pay the initial franchise fee. Once finalized, you’re officially a Yogurtland franchisee.
- Site Selection & Build-out Yogurtland’s support team will assist you in finding the right location, which is crucial for success. After site approval, the build-out and design process begins, along with equipment installation.
- Training Before opening, you will undergo comprehensive training. This covers daily operations, product preparation, staff management, and customer service.
- Grand Opening After your build-out is complete and staff trained, you’ll plan for a grand opening event with help from Yogurtland’s marketing team to generate local buzz and start attracting customers. Then, your operations officially begin!
Pros & Cons
Pros
Strong Brand Recognition: Yogurtland is a well-known brand with a loyal customer base, providing a solid foundation for franchisees.
Self-Serve Model: The self-serve concept lowers labor costs and allows for more streamlined operations, which can positively impact profitability.
Flexible Menu Options: With a wide range of yogurt flavors, toppings, and dietary-friendly options, you can cater to a broad customer demographic.
Growing Industry: The frozen yogurt industry continues to appeal to health-conscious consumers, especially as demand for low-fat, gluten-free, and dairy-free options grows.
Cons
Seasonal Sales Variability: Frozen desserts can be heavily influenced by seasonal demand, with slower sales during colder months in certain regions.
Market Saturation: Competition in the frozen yogurt space is high, both from other franchises and independent shops, which may impact profitability in some areas.
Lease Costs: Location is key, but high-rent areas can significantly eat into profits, particularly in urban or highly competitive regions.
