Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
  • Yogurt Land
  • And Hundreds More...

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Considering an Orange Leaf Frozen Yogurt Franchise? Don’t Overlook These 23 Important Franchise Fees

by Franchise Chatter on July 4, 2017

in Franchise Fees, Frozen Yogurt Franchises



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Don't Invest in a Franchise Until You Check Out This List

Orange Leaf Frozen Yogurt Franchise Photo by kdwalker91

If you are considering an Orange Leaf Frozen Yogurt franchise, don’t get blindsided by these 23 important franchise fees (from the initial franchise fee, to the royalty fee, to 21 other fees found in Items 5 and 6 of Orange Leaf Frozen Yogurt’s 2017 FDD).

1.  Initial Franchise Fee:  $10,000 to $15,000



  • You must pay Orange Leaf an initial franchise fee (the “Initial Franchise Fee”) in a lump sum when you sign the Franchise Agreement. Orange Leaf’s Initial Franchise Fee under the Single Unit Franchise Program is $15,000.
  • If you already own or operate an Orange Leaf Frozen Yogurt Store pursuant to a Franchise Agreement and Orange Leaf approves you as a franchisee for an additional Orange Leaf Frozen Yogurt Store, the Initial Franchise Fee is $12,000 for each additional franchise.
  • Under the Kiosk Program, Orange Leaf’s Initial Franchise Fee is $10,000.
  • Orange Leaf participates in the International Franchise Association’s VetFran program. Under this program, a veteran of the U.S. Armed Services who has been honorably discharged and who has had at least one year of active service may receive a 10% reduction on the Initial Franchise Fee.
  • The Initial Franchise Fee is due at the time you sign the Franchise Agreement and is fully earned when paid. In no event is the Initial Franchise Fee refundable.

2.  Certain Furniture and Fixtures:  $500 to $12,000

  • As described in Item 8, you may purchase from Orange Leaf or one of its affiliates certain furniture and fixtures for your Store. You are not required to purchase these items from Orange Leaf or its affiliates. If you do, Orange Leaf estimates that you will need to spend between $4,000 and $12,000 before you open the Store (other than for an Orange Leaf Kiosk).
  • If you are opening an Orange Leaf Kiosk and choose to purchase these items from Orange Leaf or its  affiliates, Orange Leaf estimates that you will spend between $500 and $12,000 before you open the Store.
  • In either event, you must pay for these items at the time of their delivery.

3.  Multi-Unit Development Fee:  $12,000 for each additional unit, after the first, to be opened by you under the Multi-Unit Development Agreement

  • If you are part of Orange Leaf’s Multi-Unit Development Program, you must sign a Franchise Agreement to open your first Orange Leaf Frozen Yogurt Store and pay Orange Leaf the full Initial Franchise Fee of $15,000, and then you must pay Orange Leaf a multi-unit development fee equal to $12,000 for each additional MUD Unit to be opened and operated by you in the MUD Locations under the MUD Agreement (the “MUD Fee”).
  • The portion of the MUD Fee attributable to each MUD Unit will be credited against the amount of the Initial Franchise Fee you must pay when you sign the Franchise Agreement for each MUD Unit (as determined above under “Initial Franchise Fee”).
  • The MUD Fee is payable on execution of the MUD Agreement and is fully earned when paid. In no event is the MUD Fee refundable.

4.  Royalty Fees:  4% of Net Sales

  • Due Date:  Payable each month on or before the 10th day of the month (based on Net Sales of the previous month).
  • At Orange Leaf’s sole discretion, it may require you to pay the Royalty Fee on a weekly basis.
  • Payments may be required to be made via electronic funds transfer (“EFT”).

5.  Advertising Fee:  1% of Net Sales

  • Due Date:  Payable each month on or before the 10th day of the month.
  • At Orange Leaf’s sole discretion, it may require you to pay the Advertising Fee on a weekly basis.
  • Payments may be required to be made via EFT.

6.  Advertising Cooperative Contribution:  1% of Net Sales

  • Due Date:  Payable each month on or before the 10th day of the month.
  • Payable only if your Store is a member of an advertising cooperative Orange Leaf establishes.
  • Payments may be required to be made via EFT.

7.  Orange Leaf Technology Fund Contribution:  $155 per month, which may adjust from time to time, but not more than $25 in any one calendar year



  • Due Date:  Payable each month in which your Store is open for business.
  • Payments may be required to be made via EFT.

8.  Transfer Fee (in Franchise Agreement and MUD Agreement):  $250 to $4,000 under the Franchise Agreement; $4,000 per undeveloped MUD Unit under the MUD Agreement

  • Due Date:  Prior to consummation of transfer.
  • Payable when you sell your franchise or your development rights.

9.  Renewal Fee:  $2,000 under the Franchise Agreement

  • Due Date:  At the time of renewal.
  • Payable when you renew the franchise or the development rights.

10.  Additional Training and Assistance:  reasonable fee and all expenses

  • Due Date:  Upon request or as Orange Leaf requires.
  • This is for additional assistance or training that you need, Orange Leaf requires, or you request.

11.  Interest on Late Payments:  lesser of 1 1/2% per month or maximum legal rate

  • Due Date:  On all overdue payments.
  • Payable on all overdue amounts owed to Orange Leaf or its affiliates.

12.  Late Report Fee:  $100, plus $100 for each month a report is late

  • Due Date:  Upon demand.
  • Payable on all late reports.

13.  Audit:  cost of audit



  • Due Date:  Upon demand.
  • If Orange Leaf determines that you have been deficient by more than 2% on payment of fees.

14.  Opening Authorization Fee:  up to $1,000 and all expenses

  • Due Date:  Upon request or as Orange Leaf requires.
  • This fee is charged if, upon Orange Leaf’s inspection of your Store prior to opening, you have not complied with all of Orange Leaf’s pre-opening requirements.

15.  Indemnification (in Franchise Agreement and MUD Agreement):  will vary under circumstances

  • Due Date:  As incurred.
  • You must reimburse Orange Leaf if it is held liable for claims from the operation of your Store or your development business.

16.  Costs and Attorneys’ Fees (in Franchise Agreement and MUD Agreement):  will vary under circumstances

  • Due Date:  As incurred.
  • Due when you do not comply with the Franchise Agreement or MUD Agreement and Orange Leaf has to seek assistance to enforce the Agreement, or if you request Orange Leaf to amend an Agreement after it has been signed.

17.  Liquidated Damages:  $100 to $1,000 per day

  • Due Date:  Upon demand.
  • Depending on the nature of the violation, these amounts are payable for each day you fail to comply with the mandatory terms of the Manual, or offer for sale or sell unauthorized products or services.

18.  Taxes (in Franchise Agreement and MUD Agreement):  actual costs

  • Due Date:  Upon demand.

19.  Collateral Advertising Material:  fees

  • Due Date:  As incurred.
  • Paid to Orange Leaf for marketing plans and materials it may sell to you.
  • Payments may be required to be paid via EFT.

20.  Guest Experience Monitoring Fee:  actual costs, up to $250 per year

  • Due Date:  As incurred.
  • Paid to Orange Leaf for conducting its secret shopper program at your Store.

21.  Fee for Testing Alternative Supplier’s Goods:  the actual cost of the test made by Orange Leaf or by an independent testing laboratory designated by Orange Leaf

  • Due Date:  Upon demand.
  • Only if you want Orange Leaf to test a proposed supplier to become an approved supplier.

22.  Costs for Approving a Relocation:  actual costs

  • Due Date:  Upon demand.
  • Only if you want to relocate your Store and Orange Leaf incurs costs to consider the proposed relocation site.

23.  Product Purchases:  price list

  • Due Date:  Upon demand.
  • Payment must include cost of goods, taxes, shipping, and handling.
  • Payments may be required to be paid via EFT.

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