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Franchise Costs: Detailed Estimates of SweetDuet Frozen Yogurt & Gourmet Muffins Franchise Costs (2014 FDD)

by Franchise Chatter on August 11, 2014

in Franchise Costs, Frozen Yogurt Franchises



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SweetDuet Frozen Yogurt & Gourmet Muffins

Detailed Estimates of SweetDuet Frozen Yogurt & Gourmet Muffins Franchise Costs Based on Item 7 (Estimated Initial Investment) of SweetDuet’s 2014 Franchise Disclosure Document

1.  Franchise Fee Deposit:  $10,000

  • If you enter into a Preliminary Agreement, you must pay SweetDuet a deposit in the amount of $10,000. If you ultimately sign a Franchise Agreement, you must pay SweetDuet the balance of the applicable initial franchise fee at the time you sign the Franchise Agreement.

2.  Initial Franchise Fee:  $20,000

  • You will pay an initial franchise fee of $20,000 when you sign the Franchise Agreement. If you sign a Preliminary Agreement and paid the deposit, you will pay the balance of $10,000 when you sign the Franchise Agreement.
  • The $20,000 is for your first Franchise Agreement; if you sign more than one Franchise Agreement, the franchise fee is $12,500 for your second and subsequent SweetDuet Stores.
  • If you are a Developer, for each subsequent store developed under an Area Development Agreement, the franchise fee is $10,000 for your second and subsequent SweetDuet Stores.

3.  Training:  $1,600 to $4,000

  • SweetDuet does not charge you an additional fee for your initial training. You are responsible for transportation and paying the expenses for your meals and lodging while you attend the training program. These costs will depend on your method of transportation, airfare costs (if applicable), whether you rent a car, and the type of accommodations you choose.
  • SweetDuet based the estimates on 2 persons attending the training.

4.  Leasehold Improvements:  $87,000 to $135,000

  • The leasehold improvements you must make include, but are not limited to, flooring, ceiling, lighting, plumbing (including compliance with the Americans With Disabilities Act), electrical upgrades and services, telephone line installation for the Store and for the POS (Point of Sale) System, and cabinetry.
  • The cost of leasehold improvements will vary depending upon the size, condition, and location of the premises; price differences between suppliers; and terms negotiated with the lessor.

5.  Furniture, Fixtures, Equipment, Exterior and Interior Signage, and Display:  $110,000 to $130,000



  • This estimate is for, but is not limited to, the purchase of the following items:  frozen yogurt machines, oven, display case, coffee equipment, walk-in cooler, freezer, shelves, tables, chairs, counters, fax machine, exterior and interior signage, and display accessories.
  • You must also purchase a POS System, credit card processor, computer, monitor, and internet service provider that meet SweetDuet’s specifications.
  • All equipment must be in operating condition throughout the term of your franchise. Your fax machine must have a dedicated line in your Store.
  • These estimates do not include sales taxes, which vary from state to state, or shipping costs. You should factor in the sales taxes and shipping costs to these estimates.

6.  Opening Inventory, Supplies:  $7,000 to $10,000

  • This estimate is for the initial basic inventory and miscellaneous supplies necessary to begin operating the Store, including yogurt, muffin batter, coffee, teas, other drinks, food products, paper goods, and private label merchandise, including, but not limited, to coffee mugs.
  • These estimates do not include sales taxes, which vary from state to state or shipping costs. You should factor in sales taxes and shipping costs to these estimates.

7.  First Month’s Rent and Security Deposit:  $4,000 to $10,500

  • The estimate is for the first month’s rent and security deposit typically required to be paid when you sign a lease. The amount will vary depending on the location of the premises, the size of the Store, and the then current rental market.

8.  Marketing Deposit:  $5,000

  • You must pay SweetDuet a $5,000 Marketing Deposit when you sign your Franchise Agreement. The Marketing Deposit will be used in connection with your grand opening as well as for local advertising for your Store during the initial few months of operation.

9.  Insurance:  $5,200 to $7,200

  • You must purchase the insurance required by SweetDuet. The estimate is for a 1 year premium (exclusive of vehicle coverage). The cost of insurance will vary based on the types and limits of the insurance you purchase and other factors affecting risk exposure.

10.  Prepaid Expenses, Deposits:  $500 to $2,000

  • This estimate covers utility deposits, and license and permit fees.

11.  Professional Fees:  $2,500 to $7,000

  • You will need to employ a local architect, and may employ an attorney, accountant, or other consultants.

12.  Additional Funds – 3 Months:  $7,500 to $22,100

  • This estimate covers business operating costs, including payroll, rent, and other initial costs and expenses for the first 3 months. These figures do not include a draw or salary for you.
  • You should not assume that you will break even by the end of the 3 month period. These figures are estimates and SweetDuet cannot guarantee that you will not have additional expenses in starting your Store.

13.  Totals:  $250,300 to $352,800

  • SweetDuet has compiled these estimates based on its experience in establishing Stores under the Big Apple Bagels and My Favorite Muffin brands and on its general knowledge of and research into construction costs, equipment costs, and inventory costs.


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