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

• Section I – Background information on the Menchie’s Frozen Yogurt franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Menchie’s Frozen Yogurt franchise, based on Item 7 of the company’s 2018 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Menchie’s Frozen Yogurt franchise, based on Items 5 and 6 of the company’s 2018 FDD

• Section IV – Number of franchised and company-owned Menchie’s Frozen Yogurt outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD

• Section V – Presentation and analysis of Menchie’s Frozen Yogurt’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:

• 2017 average gross sales earned by the 264 franchised Menchie’s Frozen Yogurt locations that were procured under Menchie’s Real Estate 2.0 platform, were open and operating for the entire Measurement Period from January 2, 2017 until December 31, 2017, and were not located in non-traditional locations

• 2017 actual gross sales earned by Menchie’s Frozen Yogurt’s only company-owned location in operation during the entire Measurement Period

Section I – Background Information

13 Things You Need to Know About the Menchie’s Frozen Yogurt Franchise

Partners With Hormel to Create SKIPPY Peanut Butter Frozen Yogurt Flavor

1.  At the beginning of 2018, Hormel, the makers of SKIPPY peanut butter, announced that it had partnered with Menchie’s Frozen Yogurt to create a limited-edition frozen yogurt flavor: Menchie’s Peanut Butter Brownie. The flavor was available until the end of February and featured swirls of SKIPPY peanut butter in chocolate brownie froyo.

2.  Continuing its commitment to provide flavors that are “better for you,” Menchie’s Peanut Butter Brownie flavor was made with real SKIPPY peanut butter and real cocoa powder, and contained no artificial flavors, no artificial colors, no high-fructose corn syrup, and no partially-hydrogenated oils.

3.  Amit Kleinberger, CEO of Menchie’s, said, “Menchie’s produces the highest quality frozen yogurt by sourcing the best ingredients; therefore, when we came up with the peanut butter brownie concept, we knew the flavor had to contain SKIPPY peanut butter. We consistently offer new frozen yogurt flavors to our fans so that they can have a unique experience with every store visit, and we are confident that our new SKIPPY peanut butter flavor will make our guests smile in January.”

Stands Out by Partnering With National Brands

4.  Unlike other frozen yogurt franchises, Menchie’s Frozen Yogurt often partners with national brands to develop froyo flavors and toppings for its permanent menu as well as for limited-time offers. The brand’s newest LTO froyo is Wild Raspberry Sorbet made with Sour Patch Kids flavoring. Menchie’s is also currently offering Kellogg’s Cinnamon Frosted Flakes as a topping. Both LTO items are available at participating Menchie’s locations while supplies last.

5.  In addition to these summer items, Menchie’s has several froyo flavors featuring brands such as Jolly Rancher, OREO, Nestlé Crunch, York Peppermint Patties, Nutella, Dole Whip, Hershey’s Kisses, Butterfinger, and Mrs. Thinster’s Cookie Thins.

6.  Menchie’s also offers several toppings from national brands including Andes Mints; Blue Diamond Almonds; Cap’n Crunch’s Crunch Berries; Dole Mandarin Oranges; Heath Milk Chocolate Toffee Bits; Hershey’s Chocolate Shell, Classic Caramel, Milk Chocolate Fudge, Mini Kisses Milk Chocolate, Premier White Chips, and Special Dark Mildly Sweet Chocolate Chips; Honey Maid Graham Cracker crumbs; Jolly Rancher pieces; OREO crumbs; and many more toppings from popular brands.

7.  To help the brand come up with new flavors, Menchie’s website allows customers to submit ideas through the “What’s Your Flavor” link.

Offers Fundraising Events and Parties

8.  Menchie’s Frozen Yogurt encourages its franchisees to stay involved with their local communities. Menchie’s franchisees often work with local schools, organizations, sports teams, and members of their communities to help raise money for worthy causes. Interested organizations can submit a fundraising request on Menchie’s website and franchisees can create a program to help raise funds for the organization.

9.  Fundraising options include frozen yogurt parties, custom frozen yogurt cake drives, or integrated campaigns. For birthdays and other special occasions, Menchie’s offers party services, which include custom decorated frozen yogurt cakes.

Company History

10.  Menchie’s Frozen Yogurt was started in 2007 by Danna and Adam Caldwell in the San Fernando Valley, California near Los Angeles. The Caldwells were inspired to open their own self-serve frozen yogurt shop after having a successful first date at a yogurt shop in 2004. They wanted their self-serve yogurt to have lots of topping options and an atmosphere that was fun and vibrant.

11.  The couple named their new business after Adam’s nickname for Danna — “Menchie,” which Adam came up with after Danna felt that “mensch” (someone full of honor and integrity) referred to an older man. Adam wasn’t sure that the name Menchie’s would be memorable enough, so he tested it at the University of California, Irvine, where he was going to school. Menchie’s was included in a list of potential names and Adam’s fellow students liked Menchie’s the best.

12.  The Caldwells started franchising the Menchie’s Frozen Yogurt concept in 2008 and brought in Amit Kleinberger to serve as CEO and help the company grow. Today, there are Menchie’s Frozen Yogurt shops in the United States, Puerto Rico, Canada, Japan, India, China, Bahrain, the Bahamas, England, Kuwait, United Arab Emirates, Kingdom of Saudi Arabia, and Qatar.

Entrepreneur’s Franchise 500

13.  Menchie’s Frozen Yogurt did not rank on Entrepreneur’s 2018 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Menchie’s Frozen Yogurt franchise costs, based on Item 7 of the company’s 2018 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Menchie’s Frozen Yogurt’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

• Outlets at the Start of the Year:  321
• Outlets at the End of the Year:  394
• Net Change:  +73

2016

• Outlets at the Start of the Year:  394
• Outlets at the End of the Year:  418
• Net Change:  +24

2017

• Outlets at the Start of the Year:  418
• Outlets at the End of the Year:  431
• Net Change:  +13

Company-Owned

2015

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2016

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2017

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

• Menchie’s Item 19 contains certain historical data relating to the operation of its franchised and company-owned locations.

• The franchisee data included in this Item 19 was taken from the information reported to Menchie’s by its franchisees through the company’s electronic point-of-sale system.

• The franchised and company-owned data included in this Item 19 reflects information for the 53-week annual period from January 2, 2017 until December 31, 2017 (the “Measurement Period”).

• Menchie’s has not audited this information, nor independently verified this information.

Part 1 – Average Gross Sales of Locations Selected Under Real Estate 2.0 Platform

• As of January 1, 2018, Menchie’s had 431 franchised locations operating domestically under the Menchie’s trademarks. Of these 431 locations, 362 were open and operating for the entire Measurement Period and were not located in non-traditional locations.

• 264 of these locations operated from franchised locations that were procured under Menchie’s Real Estate 2.0 platform.

• Part 1 of this Item 19 includes the average Gross Sales earned by the 264 of the 362 franchised locations that were procured under Menchie’s Real Estate 2.0 platform.

• In 2012, Menchie’s changed its real estate site criteria.