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FDD Talk: Breakdown of the Initial Investment for a Yogurtland Store, With a Few Important Changes from Last Year’s FDD

Last updated on December 14, 2013 by Franchise Chatter 3 Comments
in Franchise Earnings, Frozen Yogurt Franchises

This is an estimate of a Yogurtland franchisee’s initial investment from the period the store opens for business through about 3 months of operations.

  • Initial franchise fee:  $35,000
  • Training fee per person for additional trainees:  estimated amount to cover Yogurtland’s expenses.  Yogurtland provides initial training at no additional charge for two persons responsible for store management.  This training may be conducted at Yogurtland’s headquarters, an affiliate-owned location, a franchised location, or some other location the company may designate.
  • Travel and living expenses while training:  $500 to $6,000.  The low estimate assumes you do not incur travel and lodging expenses for you or your manager during the initial training program. The high estimate assumes you and your manager incur travel and lodging expenses during training.
  • Travel and living expenses for Yogurtland’s staff to provide on-site opening assistance for up to 5 days:  $500 to $3,000.  The low estimate assumes minimal travel expenses because your store is located near Yogurtland’s headquarters.  The high estimate assumes Yogurtland’s staff incurs airfare and lodging costs during on-site opening assistance.
  • Rent and lease deposit:  $3,000 to $20,000.  This estimate assumes rent for 3 months, security deposit, and last month’s rent. The typical Yogurtland store will be approximately 1,000 to 1,500 square feet.  The high estimate assumes your store is in a high cost rental market such as on the Las Vegas strip or a major shopping mall.
  • Utility deposits:  $1,000 to $25,000.  For telephone, Internet, gas, water, electricity, and other utility services.  These amounts may be refundable.
  • Leasehold improvements:  $123,000 to $280,000.  Refers to estimated labor cost for construction of tenant improvements for a new store.  Amount depends on size and condition of the premises, the local cost of contract work, layout, and location of the store.  The range is for the cost of reasonable renovation or leasehold improvements, and may be less if the lessor provides you a tenant improvement allowance.
  • Signs (indoor and outdoor) and exterior branding:  $5,500 to $22,000.  The low estimate assumes minimal use of fixed (one exterior sign) and temporary (“coming soon” and “now open”) banner signage. You are required to install at least one exterior sign, one crest sign, and various sized interior graphics. Awnings are required, where allowed.
  • Franchisor-supplied decor and other items:  $2,000.  For menu boards, POS light shields, Gemstar dispenser, topping bar label holders, yogurt flavor label holders, spoon dispenser, and syrup dispenser.


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Tagged as: Yogurtland

Reader Interactions

Comments

  1. mghabrial says

    September 22, 2012 at 4:01 pm

    This is my experience with Yogurtland franchise: after spending couple of months and reaching the final stage (signing the agreement) they refused to provide me location details or investment options….. they wanted me to first sign the agreement, pay the fees then they will provide me the location.

    I don’t have any right in the agreement to refuse the location they will select.. and they will not refund me the franchise fees if I don’t agree with them on their selected location…

    It looks to me as if Yogurtland wants to take any investor for a ride. They take your money (franchise fees and the built up costs) then dictate on new investors everything without giving them any option? They seem to be so arrogant in their answers…..

    I stopped the discussion and walked away. Cash is king and for them to find investors with $400K-450K in cash to invest in their franchise is not an easy thing these days and they should act as real partners and not just money collectors.

    Reply
    • Franchise Chatter says

      September 22, 2012 at 4:32 pm

      Thanks for your comment, mghabrial. I welcome the response of Yogurtland if they choose to address this issue in the comments section.

      In my case, I found my retail location several months after I signed the franchise agreement, and I took a very active role in that search. The franchisor sent two different representatives on different occasions to survey the city of San Francisco and they also put me in contact with a local broker (This was already after I had signed the franchise agreement).

      But I was the one who found the location I finally chose, and I negotiated the contract myself (not by choice, but because my landlord refused to work with the broker representing The UPS Store). I wish I had more help from the franchisor, but at the end of the day, I still would have gone with the same location. I felt I knew my neighborhood the best because I lived within a five minute walk from my UPS Store, which turned out great!

      Best of luck with your franchise journey.

      Best regards,

      Ambrosio

      Reply
  2. mghabrial says

    October 11, 2012 at 7:04 pm

    When did you establish your store? I am sure it was before 2012.. Strategy have changed and that’s what I explained in my first comment.

    Reply

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