In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the sweetFrog franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a sweetFrog franchise, based on Item 7 of the company’s 2020 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a sweetFrog franchise, based on Items 5 and 6 of the company’s 2020 FDD
- Section IV – Number of franchised and company-owned sweetFrog outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of sweetFrog’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- 2019 average and median gross sales for the top 10%, bottom 10%, and all 236 franchised sweetFrog shops that operated in the United States for the entire fiscal year 2019 (December 1, 2018 through November 30, 2019)
Section I – Background Information
17 Things You Need to Know About the sweetFrog Premium Frozen Yogurt Franchise
Introduces New Dole Soft Serve Watermelon Flavor
1. In mid-March 2021, sweetFrog Premium Frozen Yogurt launched a new soft serve flavor in time for the warmer weather. Dole Soft Serve Watermelon is available for a limited time in sweetFrog stores until May 31. In addition to being dairy free, Dole Watermelon is bursting with juicy, true-to-fruit flavor.
2. Brittany Goetz, national marketing manager for Kahala Brands, parent company of sweetFrog, said, “We wanted to capture the essence of Spring and turn it into a frozen treat. Our guests are always looking for more non-dairy menu options, so we knew it was time to introduce a light and refreshing flavor like Dole Watermelon.”
Teamed Up with Kidz Bop for Limited-Edition Frozen Yogurt
3. In mid-August 2020, sweetFrog Premium Frozen Yogurt and Kidz Bop teamed up for a special frozen yogurt deal. Starting on August 16, fans could enjoy the first-ever Kidz Bop fro-yo flavor, Kidz Bop Cookie Remix, and exclusive Kidz Bop-themed cups, available at participating sweetFrog locations nationwide for a limited time.
4. Kidz Bop Cookie Remix was available for call ahead orders, curbside pickup orders, or in-store pick up following all safe social distancing guidelines. For delivery options, customers could look for sweetFrog on delivery apps.
Kicked Off 2019 March of Dimes Fundraiser
5. At the end of August 2019, sweetFrog Premium Frozen Yogurt joined the fight for the health of all moms and babies with its month-long, nationwide in-store fundraising campaign for March of Dimes. Beginning September 1, guests who made a donation were rewarded with a BOGO coupon as a thank you.
6. The United States is in the midst of a maternal and child health crisis with more than 380,000 babies born prematurely each year, as well as more than 50,000 women experiencing life-threatening complications as a result of pregnancy and childbirth. March of Dimes is working in communities across the country to reduce the rising rates of premature birth, as well as maternal mortality and morbidity. The organization supports women before, during, and after pregnancy to ensure all moms and babies are healthy.
7. Linda Vines, executive director of market development for March of Dimes Virginia, said, “We’re grateful to sweetFrog for supporting the work of March of Dimes this September. This campaign will go a long way to help us improve health outcomes and pave a healthier future for moms and babies.”
8. Morgan Harrison, senior national marketing manager for sweetFrog, added, “We’re proud to support March of Dimes and bring awareness to their vital programs in our local sweetFrog communities.”
Offers a Wide Range of Franchise Models
9. sweetFrog franchises come in many different shapes and sizes to meet any franchisee’s needs and goals. Franchisees can choose from traditional storefronts, mobile trucks and trailers, and froyo kiosks and other non-traditional locations found within amusement parks or airports.
10. Traditional Store Franchise Model – The traditional sweetFrog model is a classic storefront that encourages customers to come in and stay awhile to enjoy their delicious self-made frozen yogurt. sweetFrog’s shops are a place for the community to gather and enjoy sweet treats. Scoop and Cookie (the brand’s frog mascots) also host events like Christmas parties, back-to-school celebrations, and birthday parties in brick-and-mortar stores.
11. Traditional storefronts give franchisees the opportunity to create a kid-friendly environment that encourages families to make a sweetFrog stop. In the traditional stores, sweetFrog frozen yogurt, sorbet, and ice cream are self-serve, giving customers control over their dessert and allows shops to operate with fewer staff members. The initial investment for a traditional new store buildout starts at $226,500.
12. Mobile Franchise Models – The brand’s mobile franchise models give franchisees the freedom to bring sweetFrog’s sweet treats to exactly where customers are. sweetFrog franchisees have been invited to festivals, offices, and even weddings. There are two different types of mobile options:
- sweetFrog Trucks – sweetFrog trucks take the convenience of self-serve froyo to another level by bringing delicious frozen yogurt directly to customers. The brand’s dedication to innovation means that it has figured out how to keep its signature frozen yogurt self-serve, even when operating from a sweetFrog truck. Each truck is decked out with three frozen yogurt machines, two toppings bars, and all of the state-of-the-art kitchen equipment a franchisee could ever need to bring sweetFrog to the masses.
- Trailers – sweetFrog trailers are the other mobile franchise model. With a trailer, as long as a franchisee has a vehicle to hitch it to, the sweetFrog business can be moved, traveling to community events and special occasions bringing along delicious frozen yogurt and fun toppings.
13. Non-Traditional Franchise Models – Beyond mobile frozen yogurt franchise models, sweetFrog offers other non-traditional models including kiosks and non-traditional locations.
- Kiosks – sweetFrog kiosks are less than 1,000 square feet and are the perfect way to bring a sweetFrog to a local mall or shopping center. Kiosks require less equipment and fewer staff members all while bringing the same fun flavors and sweetFrog’s signature kid-friendly energy. Kiosk franchisees will have sweetFrog’s support when it comes to negotiating and understanding their leasing terms and requirements.
- Non-Traditional Locations – Some of the non-traditional locations where you can find a sweetFrog include military bases and amusement parks. Some of these locations are kiosks that don’t take up too much real estate and others are full sweetFrog stores that just happen to be on a non-traditional site.
Company History
14. sweetFrog Premium Frozen Yogurt was founded in 2009 by Derek Cha in Short Pump, Virginia. At the time, frozen yogurt shops were incredibly popular, but primarily located on the West Coast of the United States. sweetFrog was the first self-service frozen yogurt shop in the area and was an instant success.
15. A few months after opening the first store, Cha opened a second location in Chesterfield, Virginia, that was more successful than the first shop. Over the next few years, Cha opened additional sweetFrog stores around Virginia through franchising. The brand grew quickly and by 2012, there were 100 sweetFrog Premium Frozen Yogurt shops opened throughout the East Coast.
16. On April 17, 2012, Boxwood Capital Partners, LLC announced that it had made a growth capital investment in sweetFrog Enterprises, LLC. sweetFrog used this minority investment to fuel its growth plans both domestically and internationally. A few years later, in 2015, Boxwood Capital Partners acquired majority ownership of sweetFrog. The brand continued to expand around the U.S. over the next few years.
17. In the fall of 2018, sweetFrog was acquired by Kahala Brands, a wholly-owned subsidiary of Canada-based MTY Food Group Inc. of Montreal, Quebec. At the time of the acquisition, sweetFrog operated 332 locations in the United States and abroad. Today, there are still sweetFrog Premium Frozen Yogurt shops around the country as well as a few international locations.
Entrepreneur’s Franchise 500
17. sweetFrog Premium Frozen Yogurt did not rank on Entrepreneur’s 2021 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of sweetFrog franchise costs, based on Item 7 of the company’s 2020 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on sweetFrog’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
Franchised
2017
- Outlets at the Start of the Year: 194
- Outlets at the End of the Year: 189
- Net Change: -5
2018
- Outlets at the Start of the Year: 189
- Outlets at the End of the Year: 258
- Net Change: +69
2019
- Outlets at the Start of the Year: 315*
- Outlets at the End of the Year: 289
- Net Change: -26
*2019 figures include franchisees that signed license agreements, which are no longer offered, and were not previously included in 2018 counts. Thus, franchised outlets at the end of 2018 and beginning of 2019 are not the same. Licensed outlets have fewer obligations than franchised outlets.
Company-Owned
2017
- Outlets at the Start of the Year: 65
- Outlets at the End of the Year: 73
- Net Change: +8
2018
- Outlets at the Start of the Year: 73
- Outlets at the End of the Year: 0
- Net Change: -73
2019
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
- The average gross sales amounts contained in the table below pertain to the historic performance of sweetFrog franchised stores located in the United States that reported sales. The time period measured was December 1, 2018 through November 30, 2019.
Franchised Stores Only
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