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Franchise Costs: Detailed Estimates of Zoyo Neighborhood Yogurt Franchise Costs (2014 FDD)

by Franchise Chatter on June 9, 2014

in Franchise Costs, Frozen Yogurt Franchises



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Zoyo Neighborhood Yogurt

Detailed Estimates of Zoyo Neighborhood Yogurt Franchise Costs Based on Item 7 (Estimated Initial Investment) of Zoyo’s 2014 Franchise Disclosure Document

1.  Initial Franchise Fee:  $35,000

  • The Initial Franchise Fee is non-refundable.

2.  Travel and Living Expenses While Training:  $600 to $6,000

  • While Zoyo does not charge for the initial training for up to three (3) attendees, you must pay for transportation to and from the training site and pay for living arrangements and food during the time of training for you and any of your employees who attend the training.
  • Zoyo estimates costs of $150 per day, per person, for lodging, food, and other miscellaneous expenses, plus travel expenses to and from each attendee’s personal residence. However, if the attendee lives near the training location, the travel expenses will be minimal.
  • This amount does not include any wages or salary for you or your employees during training.

3.  3 Months’ Lease/Rent:  $3,000 to $9,000

  • Your actual rent payments may vary, depending upon your location and your market’s retail lease rates. Zoyo estimates, but does not require, that the site where you operate your Zoyo Unit Franchise will be at least 1,200 to 1,400 square feet in size.
  • Zoyo Unit Franchises are typically located and operated in strip malls, shopping centers, or other suitable retail locations.
  • If you purchase instead of lease the premises for your Zoyo Unit Franchise, then the purchase price, down payment, interest rates, and other financing terms will determine the amount of your monthly mortgage payments.

4.  Leasehold Improvements:  $15,000 to $125,000

  • This estimate does not include any construction allowances that may be offered by your landlord.
  • Building and construction costs will vary depending upon the condition of the premises for the Zoyo Unit Franchise, the size of the premises, and local construction costs.
  • If the location was previously equipped with commercial freezers and other ice cream or food service material, the modifications you need to make may be minimal.

5.  Security Deposits:  $0 to $3,000

  • This estimate includes security deposits required by the landlord and utility companies but not your telecommunications service, and varies depending on where you decide to operate your Zoyo Unit Franchise.

6.  Equipment:  $80,000 to $100,000

  • You will need to furnish your Zoyo Unit Franchise with equipment that the franchisor requires as described in the Manuals. The equipment includes 6 Taylor yogurt machines, 1 reach in fridge and reach in freezer, shelving, and 3 sinks.

7.  Signs:  $3,000 to $6,000

  • Zoyo estimates that the cost for signage will range from $3,000 to $6,000 depending on the signage requirements imposed by your landlord.

8.  Opening Inventory:  $1,000 to $4,000

  • You will be required to purchase a certain amount of Zoyo branded products for your Zoyo Unit Franchise. Zoyo’s estimate includes the cost to purchase Zoyo products and other inventory to support your franchise for the first three months of operation.

9.  Advertising – 3 Months:  $500 to $3,000

  • You must conduct grand opening advertising and spend between $500 and $3,000 in advertising during a 90 day period beginning 30 days before you open your Zoyo Unit Franchise and ending 60 days after you open your Zoyo Unit Franchise.

10.  Licenses and Permits:  $500 to $1,000

  • You may be required to obtain business licenses from local government agencies to operate your Zoyo Unit Franchise. Zoyo estimates these costs will range from $500 to $1,000 depending upon the jurisdiction.

11.  Insurance:  $400 to $1,500

  • You must obtain and maintain, at your own expense, insurance coverage for the buildings and vehicles you use or operate in connection with your franchise. Annual premiums are typically paid to the insurer immediately, with refunds being issued if you cancel the insurance.

12.  Materials and Supplies:  $500 to $2,000

  • You may need other small material and supplies to operate your Zoyo Unit Franchise in addition to your inventory and equipment.

13.  P.O.S. and Computer System:  $6,000 to $9,000

  • Currently, the upfront cost to purchase the required computer system, including the point-of-sale system (POS) and other computer hardware and software to keep track of your business records, is approximately $6,000. Based on this, Zoyo estimates that your initial investment for your computer system will be between $6,000 and $9,000 depending on whether you must purchase additional computer equipment and the type of computer equipment you purchase.
  • This figure does not include the monthly costs to maintain an internet connection.

14.  Professional Fees:  $3,000 to $5,000

  • You may incur legal fees, accounting fees, and other professional fees in order to incorporate your business, perform all necessary tax filings, and set up a small business, including a general ledger, tax reports, payroll deposits, etc.

15.  Telecommunications Systems:  $200 to $1,000

  • Zoyo estimates that the telecommunications system for your Zoyo Unit Franchise will cost between $200 and $1,000. This cost includes the cost of at least one telephone line and monthly service. Your cost will vary depending on the type of equipment and monthly service plan you select.

16.  Additional Funds – 3 Months:  $1,500 to $5,000

  • The estimate of additional funds is based on an owner-operated business and does not include any allowance for an owner’s draw. The estimate is for a period of three months.
  • Zoyo estimates that, in general, you may expect to put additional cash into the business during at least the first three months, and sometimes longer, but it cannot estimate or promise when or whether you will achieve a positive cash flow or profits.

17.  Total Estimated Initial Investment:  $150,200 to $315,500

  • Zoyo has relied on its experience in this industry in compiling these estimates.



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