FDD Talk Daily: Average Total Revenue, Cost of Goods Sold, Labor, and Rent of Yogurt Mountain Shops

Highlights of Yogurt Mountain’s Item 19 Financial Performance Representations (2012 FDD)

• The franchise is to develop, own, and operate a retail store featuring self service frozen yogurt and other related products and services under the trademark and name “Yogurt Mountain.”

• The total investment necessary to begin operation of a Yogurt Mountain Store ranges from $419,000 to $540,500. This sum includes the initial franchise fee of $30,000 payable to the franchisor or its affiliates.

• If you want development rights, you must pay a development fee equal to $5,000 for each Yogurt Mountain Store you agree to develop after the first one (for which you will immediately sign a Franchise Agreement and pay the full initial franchise fee). The franchisor will apply the development fee, in $5,000 increments, toward the initial franchise fee due as you sign Franchise Agreements (after the first one).

2011 Average Total Revenue, Labor %, and Rent % of 12 Affiliate-Owned Yogurt Mountain Stores

• As of the end of the company’s last fiscal year (December 31, 2011), the franchisor’s affiliate, Yogurt Mountain, LLC, owned and operated 19 Yogurt Mountain Stores, 12 of which were in operation for all of calendar year 2011. All 12 of the affiliate-owned Yogurt Mountain Stores are operated in the southern states of Alabama, Arkansas, Florida, Georgia, North Carolina, South Carolina, and Tennessee.

• There are no characteristics of these 12 affiliate-owned Stores that are unique to them or that would be different from the Store that you would operate that would materially affect your Total Revenue. However, as noted above, all 12 of these Stores are operated in southern states with generally warmer climates, and since the Store’s core product is frozen yogurt, the location of your Store might have an impact on your Total Revenue.

• The following section shows certain results only for the 12 affiliate-owned Yogurt Mountain Stores that were in operation for the full 2011 calendar year.

Tagged as: Yogurt Mountain