Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
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  • Massage Envy
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  • Orange Leaf Frozen Yogurt
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Fro-Yo Files: Yogurtland Franchisee Peter Kim Shares His Greatest Challenge and His Most Important Piece of Advice

by Franchise Chatter on September 5, 2012

in Franchise Chatter Exclusive, Fro-Yo Files, Frozen Yogurt Franchises

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(Ambrosio’s note:  Welcome to this week’s edition of Fro-Yo Files, an exclusive bonus series for Platinum subscribers of Franchise Chatter.)

Fro-Yo Files: California Franchisee Peter Kim Talks Candidly About His Experience with Yogurtland

Peter Kim has been with Yogurtland for two-thirds of the company’s life. I asked him about his experiences as a franchisee during the company’s accelerated growth over the past four years.

Getting Into the Business

Back in 2007, Kim, an accountant by trade, had never dreamed of purchasing a franchise. But his wife, who had recently earned her Psy.D., was less than impressed with the earning power of a psychologist who’d just hung out her shingle. She suggested they buy and develop a franchise; a family member took them to Yogurtland for a taste. Needless to say, they found their match in what was then a relatively small company.

When Kim purchased his first franchise in 2008, his store was only the 21st of what today number almost 200 locations.

Back then, Yogurtland didn’t have the large infrastructure and support channels it has now. New franchisees were on their own, and Kim basically had to wing it with site selection. He got lucky. After hiring a real estate agent to scout out locations, he moved in, pretty much by default, into his Miracle Mile store in Los Angeles.

The location, on busy South La Brea Avenue, proved to be ideal. Today, that store is a tempting short distance from a fitness gym, a pilates studio, a yoga center, and a dance school. Just the kind of places where health-conscious consumers gather, who are a lot more likely to grab a frozen yogurt after a workout than an ice cream cone.

That first store took off, earning the highest sales — $1.6 million — at the time. How long did that take? “About a year,” Kim says.

Marketing, Marketing, Marketing

But Kim had to do quite a bit of legwork, particularly with marketing, to gain that early success. Kim and his wife were aggressive, innovative marketers.

They made postcards with coupons and free T-shirt deals. But they didn’t want their postcards “to look like just another piece of mass-marketed junk mail” in their targets’ boxes. So they bought 30,000 stamps, and Kim and his wife actually applied those stamps by hand. The idea was that a piece of mail with a real stamp looks unique, personal. The scheme worked.

The Kims did a lot of “grassroots marketing.” Kim’s wife went to the local school with free gift certificates. They reached out to “each and every business” in their neighborhood, and got business addresses from the local Chamber of Commerce. They sent out “come check us out” letters, and offered coupons for employees. Those employees came to check out Kim’s store in droves.

The Challenges

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{ 3 comments… read them below or add one }

mghabrial September 22, 2012 at 4:04 pm

looks like Yogurtland changed a lot from the early days. 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.


Franchise Chatter September 22, 2012 at 4:23 pm

Hi mgharial,

Thank you for sharing your experience with Yogurtland. There are two sides to every story and I invite Yogurtland to respond if they see fit.

As for my personal experience, I found my location for a UPS Store franchise several months after the franchise agreement is signed. I was personally very active in the site selection process since I knew that was a very critical factor to the success of my business. I wanted to have the peace of mind knowing that I found the best possible location in my area, and I knew I would be able to accomplish that better than my franchisor.

Wishing you all the best in your franchise journey.

Best regards,



mghabrial October 11, 2012 at 7:07 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


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