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Earnings Claims of Top Franchises Revealed

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FDD Talk 2015: The Pinkberry Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on June 22, 2015

in FDD Talk 2017: Food Franchises, Franchise Earnings, Frozen Yogurt Franchises



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Pinkberry Frozen Yogurt Franchise Photo by mezzoblue

In this FDD Talk 2015 post, you’ll learn the following:

  • Section I – Background information on the Pinkberry franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Pinkberry franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of Pinkberry’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • average gross sales for the 52-week period ending February 22, 2015 for the 98 licensed Traditional Pinkberry Shops that were open and in operation during all of the preceding 52-week period
  • average gross sales for the 52-week period ending February 22, 2015 for the 14 affiliate-owned Traditional Pinkberry Shops that were open and in operation during all of the preceding 52-week period
  • average gross sales for the 52-week period ending February 22, 2015 for the 112 Traditional Pinkberry Shops (licensed and affiliate-owned) that were open and in operation during all of the preceding 52-week period
  • number and percentage of licensed and affiliate-owned Traditional Pinkberry Shops that generated annual gross sales of over $800,000; $600,001 to $800,000; $400,001 to $600,000; and $400,000 or less, respectively, for the 52-week period ending February 22, 2015

Section I – Background Information

Pinkberry, known for upscale frozen yogurt, celebrated its 10th birthday in 2015, marking the milestone by selling small frozen yogurts with toppings for 10 cents from 7-10 p.m. Jan. 30.

The chain, which also sells frozen-yogurt shakes and Greek-yogurt smoothies, started in 2005 in Los Angeles when Hye Kyung (Shelly) Hwang and her business partner, Young Lee, opened a small frozen yogurt shop that quickly drew long lines of people and led to notable numbers of parking tickets. The chain sparked a return to the frozen yogurt craze that first erupted in the 1980s. A second store opened in 2006, and franchising began for Pinkberry that same year.

The trendy frozen yogurt chain, which now has more than 250 stores in 21 countries, offers a number of different flavors of frozen yogurt, as well as many toppings that customers can mix and match to create their own taste sensations.

Yogurt flavors reflect standard offerings as well as more upscale fare such as Lychee, Tangerine, Green Tea Latte, Cinnamon Churro and Sea Salt Chocolate, and the original tart flavor. Customers can choose numerous fruit toppings as well as sweets such as brownie bites, Nutella, shortbread cookies and Fruity Pebbles, and pour-overs from chocolate sauce to pomegranate juice.

Non-Dairy Option Added; May Become Permanent

A dairy-free soft-serve frozen yogurt was added to the menu in May 2015 for a two-month trial run. Starting with Tropical Mango flavor, the new dessert may join the menu full time if it proves popular. The frozen treat, which contains no added sugar, combines fruit, fruit juice, water and natural flavors. It provides a flavor option for vegans and those who are lactose-intolerant or have other health issues with dairy products.

Pinkberry also launched three new summer flavors in July 2014: Watermelon Cooler, S’mores and Banana Split.

Chain on Top 500 List

Pinkberry was No. 245 on Entrepreneur’s Franchise 500 list for 2015. The awards were announced in December 2014. The placement was the second for Pinkberry, which was No. 251 in the 2014 list.

After Bankruptcy, DC Locations Get Boost With New Owner

After Pinkberry Mid-Atlantic LLC filed for Chapter 7 bankruptcy liquidation in December 2014, the future of the franchisee’s seven shops in the Washington, D.C., area was uncertain. But in February, a pair of buyers won an auction to purchase the assets of the shops. Amandeep Brar and Kamran Ahmed, who won the auction with a bid of $91,000, planned to reopen most of the locations.

The Clarendon location reopened in May, followed by reopenings of the Gainesville, Georgetown, Fairfax and National Harbor shops. The Dupont Circle and Tysons Corner shops remain closed.

Pinkberry in Panama

The chain entered Panama in January 2015 as Pinkberry partnered with Royal Food Services to open a new store in Panama City, with a second store to follow.

Frozen Yogurt Creations Captured in Instagram Contest

Pinkberry started its Summer Obsession Contest on Instagram in June 2014, asking customers to snap photos of their Pinkberry frozen yogurt creations and post them to Instagram, along with their recipes. Prizes of $1,000, $500 and $250 went to the top three winners.

Section II – Estimated Costs

  • Please click here for detailed estimates of Pinkberry franchise costs, based on Item 7 of the company’s 2015 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis



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