In this FDD Talk 2017 post, you’ll learn the following:
- Section I – Background information on the TCBY franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a TCBY franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a TCBY franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of TCBY’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average gross revenue, royalty expense, and marketing expense for the 180 franchised TCBY Stores (excluding non-traditional, licensed, and corporate Stores) that were open and operating in 2016 (each, a “Representative Franchised Store”)
- 2016 average cost of goods sold and income before variable cost for the 41 franchised TCBY Stores (excluding non-traditional, licensed, and corporate Stores) that were open and operating in 2016 and systematically report COGS information to TCBY
Section I – Background Information
11 Things You Need to Know About the TCBY Franchise
Working to Give Customers Easier Access to Frozen Yogurt
1. A couple of years ago, Famous Brands International, the parent company of TCBY and Mrs. Fields, announced that the business was up for sale. Dustin Lyman, CEO of Famous Brands, said that the company was working on growing both brands to help it attract interested buyers.
2. Lyman said that the company was working on ways to make it easier for customers to purchase TCBY frozen yogurt. The chain had been testing self-service yogurt formats in the form of kiosks set in convenience stores and airports.
3. TCBY was also testing vending machines in various settings to determine the best fit. The vending machines are now available for franchisees to purchase. The machines are self-sustaining and the total investment starts at just $37,925.
Standing Out From the Competition by Offering a Wide Variety of Flavors and Formulas
4. To help TCBY stand out from other frozen yogurt franchises, the chain offers numerous types and flavors of frozen treats. In fact, TCBY was the first to offer non-dairy frozen yogurt in 2013. The company teamed up with Silk to offer customers chocolate almond and vanilla almond frozen yogurt that is not only dairy-free, but also soy-free, gluten-free, and vegan.
5. In addition to the almond milk frozen yogurts, TCBY offers non-dairy sorbets, sugar-free frozen yogurts, and gluten-free frozen yogurts. The chain also offers “Super FroYo” flavors, which meet the following guidelines per serving: 3 grams or more of fiber, 4 grams or more of protein, a good source of Vitamin D and calcium, 120 calories or less, 7 types of live and active cultures, and low in fat.
6. Not only does TCBY offer many different types of frozen treats, but there are also a wide variety of flavors on rotation. Some unique flavors include: Greek Honey Vanilla, Pink Lemonade Sorbet, Bananas Foster, White Chocolate Macadamia, and Mrs. Fields Chocolate Chip Cookie.
7. The first TCBY store was opened in 1981 by Frank D. Hickingbotham in Little Rock, Arkansas. The company began franchising a year later and by the mid-80s, there were over 100 TCBY stores in the U.S.
8. Initially, the company’s name was “This Can’t Be Yogurt,” but it had to change its name to TCBY after facing a lawsuit from a competing company with a similar name. Eventually, TCBY came to stand for “The Country’s Best Yogurt.”
9. In 2000, TCBY was acquired by Mrs. Fields and together the two companies became Mrs. Fields Famous Brands. Today, both companies are owned by Famous Brands International.
10. At one point, TCBY had nearly 2,000 locations in the U.S. However, the brand has been shrinking for most of the last decade. There are currently around 360 U.S. locations and about 100 international locations, mostly in Canada.
Entrepreneur’s Franchise 500
11. TCBY is franchised as TCBY and Mrs. Fields. The company has only appeared once in the last decade on Entrepreneur’s annual Franchise 500 list at No. 456 in 2015.
Section II – Estimated Costs
- Please click here for detailed estimates of TCBY franchise costs, based on Item 7 of the company’s 2017 FDD (updated).
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on TCBY’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.