Highlights of fro.zen.yo’s Item 19 Financial Performance Representations (2011 FDD)
- The franchisee will operate a retail store offering frozen yogurt and toppings in a self-serve environment under the name “fro.zen.yo”. A Store operates using the franchisor’s proprietary recipes, formulae, techniques, trade dress, trademarks, and logos.
- The total investment necessary to begin operation of a fro.zen.yo franchise is $354,700 to $588,200. This includes between $25,000 and $30,000 that must be paid to the franchisor and/or its affiliate, as appropriate.
- The franchisor may offer to enter into Multi-Unit Operator Agreements to establish and operate a certain number of fro.zen.yo Stores at specific locations pursuant to individual franchise agreements. The Multi-Unit Operator Fee will be equal to 100% of the initial franchise fee for each Store to be developed under the Multi-Unit Operator Agreement (which means that the Multi-Unit Operator Fee will vary depending on the number of Stores to be developed).
- The franchisor also offers to qualified individuals and entities the opportunity to become its Development Agent within a specific geographical area. A Development Agent will act as the franchisor’s agent in a specific territory, solicit new franchisees, assist existing franchisees, and conduct inspections of Stores in the territory, among other things. A Development Agent must pay the franchisor an initial franchise fee of between $100,000 and $500,000. The franchisor will pay a Development Agent a portion of royalty fees collected and a portion of initial franchise fees.
Actual Sales, Expenses, and Net Income Achieved by One Affiliate-Owned fro.zen.yo Store
- The following represents an example of the actual sales, expenses, and net income achieved by one affiliate-owned store Store, which is owned by fro.zen.yo LLC, and includes results for the 12 month period from March 1, 2010 to February 28, 2011. However, the franchisor did not include expenses for interest, depreciation, amortization, and income taxes.
- The Store represented below has been in operation since February 2010 and occupies 1,540 square feet in an urban location. The Store is open 7 days a week for a total of approximately 85 hours each week. The Store offers the same products and services to the general public as your Store will offer.