This post was updated on July 2, 2017 to reflect information from Orange Leaf Frozen Yogurt’s 2017 FDD (Item 7).
Detailed Estimates of Orange Leaf Frozen Yogurt Franchise Costs Based on Item 7 (Estimated Initial Investment) of Orange Leaf Frozen Yogurt’s 2017 Franchise Disclosure Document
For a Single Outlet (Other Than an Orange Leaf Kiosk)
- The chart below describes the estimated initial investment for an Orange Leaf Frozen Yogurt Store, whether it is a single franchise under the Single Unit Franchise Program or an MUD unit under the Multi-Unit Development Program.
- The following expenses are merely estimates. This table does not include the cost of real estate or constructing a building if you purchase the land.
1. Initial Franchise Fee: $15,000
- The Initial Franchise Fee is $15,000. If you already own and operate an Orange Leaf Frozen Yogurt Store, your Initial Franchise Fee is $12,000.
- Under the Multi-Unit Development Program, when you sign the MUD Agreement, you must pay Orange Leaf an MUD Fee equal to the number of MUD units to be opened under the MUD Agreement multiplied by $12,000, and you will receive a $12,000 credit against the Initial Franchise Fee owed for each MUD Unit being opened.
2. Lease Deposit and Rent: $5,000 to $12,000
- The size of a typical in-line store can range from 500 to 1,600 square feet.
- In most cases, the landlord will require a security and/or rental deposit. Usually, the landlord will require you to pay the equivalent of 1 month’s rent.
- Rental rates will most likely depend on the size and location of the Store. These costs will vary greatly depending on the metropolitan area where the Store will be located.
- These estimates are based on one month’s rent for a security deposit and the first month’s rent in a 1,500 square foot space in and around Oklahoma City, Oklahoma.
- The initial investment assumes you will rent. If you purchase the property, your initial expenses will dramatically increase.
3. Improvements, Construction, and Interior Decorating: $66,000 to $141,000
- The cost of construction, improvements, or building varies widely by the size of the space, the existing improvements, and local construction rates.
- Sometimes you may receive a construction allowance from the landlord or you may lease a location which was already built out as a restaurant, and if so, the costs may be reduced accordingly.
4. Architect Fees: $3,500 to $5,000
- When a site has been selected, Orange Leaf will provide you with layout, drawings, and design of a typical Orange Leaf Frozen Yogurt Store. The services of a licensed architect are usually required to detail the layout into construction plans.
5. Initial Inventory: $4,800 to $6,500
- These costs include your initial inventory of the food and beverage products you will sell at your Store.
6. Equipment, Furniture, Fixtures, Smallwares, Uniforms: $54,000 to $95,000
- This estimate includes a range of 4 to 8 used yogurt machines at approximately $5,000 per machine, cold pans, chiller at approximately $9,000, refrigerators and other equipment used in operating the Store, and the furniture, fixtures, smallwares, wall decor, and uniforms for the Store and your employees. Also included is the POS system equipment.
- The costs shown are for used equipment. If purchasing new equipment, you could expect the costs to be between $75,000 and $139,000. The cost is turn-key, including installation.
- You will be required to purchase a specific brand and model of yogurt machine that has been specifically designed for the Orange Leaf product.
7. Networking Equipment: $3,000 to $7,000
- This estimate includes the cost to install the computer networking equipment that may be necessary to build a structured network in your Store consisting of a security/firewall device, one or more switching devices, one or more wireless access points, and one or more beacons.
- The range is dependent on the number of devices that may connect to the network.
8. Licenses, Dues, Deposits, Etc.: $3,500 to $5,000
- These amounts represent the business license and estimated utility deposits and sales tax deposits. The amount of your actual deposits will vary depending on the size of your Store, the number of utility companies that require a deposit, and the state in which your Store is located and its regulations concerning sales tax deposits.
- Usually, a landlord will require you to pay all utilities servicing your Store.
- Typically, utility providers require a deposit equal to 1 month’s average charge for that utility.
9. Travel and Living Expenses While Training Per Person: $1,000 to $2,000
10. ServSafe Training: $125 to $200
- You or a designated manager are required to attend the ServSafe Online Manager Course and become ServSafe Certified prior to attending the initial training program. This is the estimated cost for one attendee to enroll.
11. Professional Fees: $1,250 to $3,500
12. Insurance: $2,000 to $4,000
- These amounts represent an estimate of the annual premium for the required insurance, including statutory workers’ compensation deposits your state may require.
- The amount of workers’ compensation deposits will vary depending on the state in which your Store is located.
13. Additional Funds – 3 months: $10,000 to $15,000
- This item estimates your expenses during the initial period of operation of the Store (other than the items identified separately in this table).
- These expenses include estimated rent, payroll costs, benefits, utilities, additional inventory requirements, supplies, etc. but do not include Royalty Fees, Advertising Fees, or an owner’s draw or salary.
14. Grand Opening: $2,000 to $7,000
15. Total: $171,175 to $318,200
- These figures are based on the experience of the Orange Leaf Frozen Yogurt Stores operated by the company’s franchisees.
For an Orange Leaf Kiosk
- The total estimated initial investment necessary to begin operation of an Orange Leaf Frozen Yogurt kiosk ranges from $119,925 to $194,700.