Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Yogurt Lab Franchise Costs (2015 FDD)

by Franchise Chatter on June 4, 2014

in Franchise Costs, Frozen Yogurt Franchises

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Yogurt Lab 2

This post was updated on August 10, 2015 to reflect information from Yogurt Lab’s 2015 FDD (Item 7).

Detailed Estimates of Yogurt Lab Franchise Costs Based on Item 7 (Estimated Initial Investment) of Yogurt Lab’s 2015 Franchise Disclosure Document

1.  Initial Franchise Fee:  $35,000

  • The Initial Franchise Fee is $35,000 for an individual franchise. If you sign a Multi-Unit Development Agreement, the Initial Franchise Fee will be $25,000 per Store, half of which is payable upon signing the Multi-Unit Development Agreement and the balance of which is payable upon signing the individual Franchise Agreement.

2.  Design and Branding Fee:  $2,500

3.  Training Expenses:  $500 to $2,500

  • Yogurt Lab will not charge you a fee for you and one additional person to attend the initial training program. You, however, are responsible for all hotel, transportation, and other costs and expenses for the people you designate to attend the initial training program.
  • The amount in the table represents the estimated costs and expenses you will incur for you and one additional person to attend the initial training program.

4.  Architectural/Design Fees:  $10,000

5.  Rent and Deposit:  $0 to $15,000

  • A Yogurt Lab Store occupies about 600 to 1,800 square feet of space. Rent depends on geographic location, size, local rental rates, businesses in the area, site profile, and other factors and could be considerably higher in large metropolitan areas than in more suburban or small town areas.
  • Stores can be located in strip shopping centers, shopping malls, free-standing units, and other venues in commercial areas and in residential areas.
  • Yogurt Lab anticipates that you will rent the Store’s premises.

6.  Leasehold Improvements:  $100,000 to $225,000

  • Leasehold improvement costs, including floor coverings, wall treatments, counters, ceilings, painting, window coverings, electrical, carpentry and similar work, and contractor’s fees depend on the site’s condition, location, and size; the demand for the site among prospective lessees; the site’s previous use; the build-out required to conform the site for your Store; and any construction or other allowances the landlord grants.
  • The lower figure assumes that you have a unique real estate model; the higher figure assumes a high square footage model.
  • The estimates included in the table reflect the average deduction provided by landlords for tenant improvements and other allowances.

7.  Furniture, Fixtures, and Equipment:  $125,000 to $175,000

  • These amounts include the frozen yogurt-making machines that you must purchase and costs for refrigerators, freezers, and other equipment, such as office equipment, furniture, and a telephone system.

8.  Computer (POS) System:  $10,000 to $15,000

  • You must purchase a Computer System that meets Yogurt Lab’s standards and specifications.

9.  Signage:  $5,000 to $15,000

  • This includes inside and outside signage.

10.  Opening Inventory:  $8,000 to $16,000

  • This includes food and beverage products, paper products, cleaning supplies, promotional material, and other supplies.

11.  Uniforms, Merchandise, Equipment, and Sales:  $3,000

12.  Initial Marketing:  $1,000 to $2,000

  • Initial marketing expenses are primarily comprised of donations to two local schools.

13.  Utility Deposits, Security Deposits, Business Licenses, etc.:  $2,000 to $6,000

  • You must obtain business licenses as dictated by local regulations. You will need to provide monies for deposits for utilities.

14.  Inspection Fee:  $0 to $1,500

  • Yogurt Lab will inspect your Store prior to opening. If your Store does not pass initial inspection, you will be charged for all costs and expenses Yogurt Lab incurs in conducting any subsequent inspection, which amount will not exceed $1,500.

15.  Insurance Premium:  $1,000 to $2,000

16.  Professional Fees:  $500 to $1,500

17.  Additional Funds – 3 Months:  $10,000 to $30,000

  • This item estimates your expenses during the initial period (first three months) of operation of your Yogurt Lab Store (other than the items identified separately in the table). This estimate includes payroll costs.
  • These figures are estimates and Yogurt Lab cannot guarantee that you will not have additional expenses starting the business.

18.  Total:  $313,500 to $557,000

  • Yogurt Lab relied on its Affiliates’ experience operating Yogurt Lab Stores to compile these estimates.

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