Franchise FAQ

how to open a frozen yogurt franchise

by Prof. Derick Walker Published 1 year ago Updated 1 year ago
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Start a frozen yogurt business by following these 10 steps:

  1. Plan your Frozen Yogurt Business
  2. Form your Frozen Yogurt Business into a Legal Entity
  3. Register your Frozen Yogurt Business for Taxes
  4. Open a Business Bank Account & Credit Card
  5. Set up Accounting for your Frozen Yogurt Business
  6. Get the Necessary Permits & Licenses for your Frozen Yogurt Business
  7. Get Frozen Yogurt Business Insurance
  8. Define your Frozen Yogurt Business Brand

Full Answer

How much does a frozen yogurt franchise cost?

The average franchise fee is around $35,000 and the average total upfront investment is around $355,000. How much do frozen yogurt shop owners make? For the purposes of this guide, figure anywhere from $7,500 to $15k per month in labor. About $7,300 a month for an average store doing about $350,000 a year. How do I start a frozen yogurt shop?

How profitable is the typical frozen yogurt franchise?

Is frozen yogurt franchise profitable? Is a Frozen Yogurt Business Profitable? Some chain yogurt shops report and average of $750,000 – $800,000 in annual sales volume of assuming the location has been open 2 years or more (Source). Not this is a gross sales figure that does not factor labor, taxes, and other typical business expenses.

Is frozen yogurt really better than ice cream?

Is Frozen Yogurt Better Than Ice Cream? In a manner of speaking, yes. While we love the classic, creamy taste of ice cream, frozen yogurt is the healthier choice. Frozen yogurt delivers the same sweetness with less of the sugar. For an even healthier alternative, you can use Greek yogurt in the recipe above.

Does frozen yogurt taste the same as ice cream?

Yes, they are both aerated desserts that have a similar consistency and taste. However, some frozen yogurt brands go through a longer freezing process, making it denser and less fatty than soft serve ice cream. It also has less air whipped in, so it is thicker. But ice creams have a fluffy texture.

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Is frozen yogurt business profitable?

Is a Frozen Yogurt Business Profitable? The profitability of the frozen dessert business remains strong… Mainly because the core product cost is low. Whether you decide to go the self-serve route and charge by weight or simply have a flat rate, you'll can make a substantial profit.

How much does it cost to franchise a Froyo?

The exact costs to open a frozen yogurt franchise vary widely, but the average franchise fee is between $30,000 and $40,000.

How much does a yogurtland make a year?

Average Sales / Revenue per Year Yogurtland has a revenue of $66.9 million per year.

How much do Pinkberry franchise make?

The Average Gross Sales of All Pinkberry Stores is $449,597* While it is impossible to guarantee any level of revenue for any Pinkberry franchisee, this number is a testament to the strength of our brand.

How much is a Tutti Frutti franchise?

At Tutti Frutti Frozen Yogurt our franchise fee is $25,000. What are the royalty fees? At Tutti Frutti Frozen Yogurt our royalty fees consists of 5% of gross revenue which is calculated on a monthly basis.

How much is Yole franchise?

How much does the Yole franchise cost? YOLE is looking for Multi-franchisees or Master-franchisees willing to expand the brand into a region. The total initial investment range from $120,000 to $400,000. The total initial investment for the one single outlet ranges from $50,000 to $120,000.

How much does it cost to start up a Yogurtland?

Yogurtland Franchise Cost / Initial Investment / Yogurtland Franchise Income. The franchise fee to join the Yogurtland team is $35,000. A total investment of $300,000-$700,000 is required to open a Yogurtland franchise.

Who owns Yogurtland?

owner Phillip ChangWhen Yogurtland opened its doors, in 2006, in Fullerton, CA, owner Phillip Chang had one goal in mind: provide a self-serve frozen yogurt experience that gives customers the highest quality ingredients and flavors to fill their cups.

Are menchies franchises profitable?

Average revenue for a Menchie's franchise shop is nearly $470,000. Profits could hit $200,000, and even top that amount if sales go well, Mr. Manning said. He said there are no frozen-snack stores nearby, such as ice cream shops.

How much does it cost to start a Pinkberry?

The initial franchise fee for Pinkberry is $45,000 per location. A 6% royalty fee on gross sales is paid to the company, as well as a marketing fee of 2% of gross sales. Pinkberry estimates monthly sales potential of $250,000 per Pinkberry franchise store.

Is Pinkberry a good franchise?

Profitable and Responsible Growth The Pinkberry brand still carries a strong image in the frozen yogurt industry and the support from corporate has been very positive. If you are thinking about getting into a franchise business, based on our experience, we highly recommend Pinkberry!”

How many Pinkberry franchises are there?

PinkberryTypeSubsidiaryFoundedJanuary 2005 in West Hollywood, CaliforniaFounderShelly Hwang Young LeeHeadquartersScottsdale, Arizona, USANumber of locations260 restaurants8 more rows

How much do menchies owners make?

Average revenue for a Menchie's franchise shop is nearly $470,000. Profits could hit $200,000, and even top that amount if sales go well, Mr. Manning said.

How much does it cost to franchise Sweetfrog?

InvestmentFeeCostInitial Franchise Fee$30kPOS System$3k – $5kSignage$7k – $15k*Total Costs$239,500 – $588,0004 more rows•Jun 4, 2022

What are the costs involved in opening a frozen yogurt business?

When it comes to equipment, you’ll need an industrial mixer, which can cost up to $15,000. A cash register can cost up to $1,000, and a display cas...

What are the ongoing expenses for a frozen yogurt business?

Those opening their own frozen yogurt business may have to budget for the following expenses: Equipment repairs Employee wages Permit renewal Suppl...

Who is the target market?

The best client is someone who lives close to you, so you can develop a core base of customers who come to depend on your menu. Your clientele don’...

How much can you charge customers?

Typically, you can charge customers about three or four times the cost of the ingredients. So if one frozen yogurt serving costs $0.50, then you ca...

How much profit can a frozen yogurt business make?

Frozen yogurt had a revenue of $1.8 billion in 2014, and many people actually prefer this product over ice cream or gelato. Your profits are made u...

How can you make your business more profitable?

Consider offering gourmet coffee to your customers, or setting up your own stand or food truck at different events (e.g., farmers markets, sports g...

Is this Business Right For You?

Owners should have experience both with making and selling frozen yogurt. A specialty recipe and production methods ensure customers get a quality...

What happens during a typical day at a frozen yogurt business?

To entice customers and keep them coming back, an owner should focus on the following daily activities: Ordering ingredients and non-food supplies...

What are some skills and experiences that will help you build a successful frozen yogurt business?

Anyone hoping to get started in this business should have a decent amount of experience working in different positions in food service. This should...

What is the growth potential for a frozen yogurt business?

A frozen yogurt business has a lot of room for growth, but certain areas may be difficult to expand in. For example, a market like Los Angeles is s...

How many rotating toppings does Menchie's have?

Regardless of the item they are purchasing, customers seek commercial experiences that cater to them specifically. As a response, a myriad of choices are available in frozen yogurt shops, where customers can choose from various flavors and toppings. For example, Menchie’s has been known to have 100 rotating yogurt flavors and 70 rotating toppings to choose from at a given time.

What is the tactic employed by frozen yogurt franchises to keep customers engaged?

Creating new flavors to keep customers coming back is a tactic employed by frozen yogurt franchises to keep customers engaged.

How old is the typical customer for frozen yogurt?

The typical customer for a frozen yogurt franchise is the young adult female aged between 18 and 35 years of age. The cultured milk content in FroYo gives the product a tangier flavor than ice cream. However, less tangy yogurt varieties such as strained Greek yogurt tend to have a more neutral taste.

How much does it cost to franchise frozen yogurt?

Like all franchise opportunities, frozen yogurt franchises require a cash investment, starting at around $50K. Most of us would need to seek funding to achieve that type of collateral, and this is another reason to consider the franchise model.

When did frozen yogurt become popular?

The popularity of frozen yogurt (also referred to as FroYo) really gained momentum in the 1980s when the founders of TCBY observed consumers were turning towards the sweet treat that was considered healthier, but still tasted like ice cream.

When was frozen yogurt invented?

H.P. Hood is credited with developing the first frozen yogurt in the 1970s in the United States as a soft-serve treat called “Frogurt.”. Frozen yogurt is a frozen dessert made of yogurt and other dairy, and sometimes non-dairy, products. Frozen yogurt is similar to ice cream in look, texture, and flavor and is usually soft served.

When was the peak of frozen yogurt?

Facts About Frozen Yogurt Franchises. According to the International Frozen Yogurt Association, the peak of FroYo production was in 1995, with an annual output of 152.1 million gallons. After dipping a little in the early 2000s, its popularity has revived and thrived over the past decade.

Is this Business Right For You?

Owners should have experience both with making and selling frozen yogurt. A specialty recipe and production methods ensure customers get a quality product. Owners should also have a good idea of the specialty flavors and toppings customers want. One neighborhood may want the classics, such as strawberry, cherry, and chocolate. Other neighborhoods may want to see more inventive flavors, such as bacon or churro.

What should a yogurt owner know?

Owners should have experience both with making and selling frozen yogurt. A specialty recipe and production methods ensure customers get a quality product. Owners should also have a good idea of the specialty flavors and toppings customers want. One neighborhood may want the classics, such as strawberry, cherry, and chocolate. Other neighborhoods may want to see more inventive flavors, such as bacon or churro.

How much money did frozen yogurt make in 2014?

Frozen yogurt had a revenue of $1.8 billion in 2014, and many people actually prefer this product over ice cream or gelato. Your profits are made up of the costs left over after you purchase ingredients and pay your employees. The exact amount you make will have to do with how well your run your business.

How much does frozen yogurt cost?

Typically, you can charge customers about three or four times the cost of the ingredients. So if one frozen yogurt serving costs $0.50, then you can charge the buyer around $2. If you’re in the major cities like LA or NYC, then you can likely charge closer to $4 or $5.

What is a CO for frozen yogurt?

A frozen yogurt business is generally run out of a storefront. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

Why do owners set prices for each menu item?

Owners must set the prices for each menu item to cover business expenses and create a profit margin. People who are looking for fancy frozen yogurt are willing to pay a little more for quality flavors. Your prices will have to factor in all of the costs of the business (not just the cost of the ingredients.)

What is the best way to ensure consistency in frozen yogurt?

Your menu items should taste exactly the same no matter when they're ordered. Liquid mix (as opposed to dry) is generally the best way to ensure consistency.

What is red mango?

Red Mango. Red Mango is a frozen yogurt and smoothie brand known for its all-natural frozen yogurt, fresh fruit smoothies, yogurt parfaits, and fresh juices . Daniel Kim opened the first Red Mango store in 2007, near the University of California in Los Angeles and quickly began franchising the frozen yogurt shop.

How many Pinkberry stores are there?

There are currently over 260 stores in 20 countries. The chain serves both frozen and fresh Greek yogurts with a variety of toppings, along with yogurt smoothies and shakes. All Franchisees have dedicated operations, marketing, and development support team members who they can reach out to for operating and training matters.

How much is the royalty fee for Tutti Frutti frozen yogurt?

Ongoing Royalty Fee: 5% . Tutti Frutti Frozen Yogurt is an American retail chain of self-serve frozen yogurt and is the largest specialty frozen yogurt retailer in the world. Company has over 100 outlets in California and other states in the US, Indonesia, Vietnam, Tahiti, and Mexico, and around the world.

What is the royalty fee for orange leaf yogurt?

Ongoing Royalty Fee: 5%. Orange Leaf Frozen Yogurt (or simply Orange Leaf) is an Oklahoma City-based chain of self-serve frozen yogurt franchises founded in 2008 which offers sugar-free, gluten-free, non-dairy, and vegan alternatives which include flavors, cups, and cones, to smoothies, shakes, and cakes.

When did Red Mango open?

Daniel Kim opened the first Red Mango store in 2007, near the University of California in Los Angeles and quickly began franchising the frozen yogurt shop. Red Mango® Yogurt Café Smoothie & Juice Bar is an established leader among frozen yogurt and healthy eating franchises.

Where is Yogen Früz located?

Yogen Früz, founded by brothers Michael and Aaron Serruya in 1986 in Toronto, Ontario, is a chain of frozen yogurt and smoothie stores that also serves healthy alternative food products. In 1989, they expanded into the United States, and for now operates worldwide. The chain is run through company-owned, franchised, and non-traditional partnerships.

Is frozen yogurt healthy?

Being keen on health, Americans prefer frozen yoghurt or smoothie which contain healthy ingredients and fewer calories to traditional sweets. Therefore, frozen dessert restaurants, bars and stores are very popular throughout the USA. Many of them are operating under famous franchise brands like Tutti Frutti, Red Mango, Pinkberry, etc.

Frozen Yogurt Franchise

According to information published by the US Census Bureau, the frozen yogurt franchise industry has been – and continues to be – one of the most exciting franchise opportunities in the biz op realm.

Assess your market ruthlessly

Above all else – and we mean above ALL else – the market that you are thinking about establishing your new frozen yogurt machine franchise in will make or break your business success.

Figure out your numbers before you dive right in

Different frozen yogurt franchise opportunities are going to involve different startup costs, different operating costs, different franchise fees, etc. and you’ll need to make sure that you understand ALL of your facts and figures before you sign on the dotted line and open up your new operation.

Marketing and advertising are everything

As we highlighted above, the market that you are establishing your new frozen yogurt operation it has the ability to make or break your success – with the marketing and advertising that you send out to this market (the message that you convey) will have a huge determining factor on your success, too.

Closing thoughts

At the end of the day, running a frozen yogurt franchise (or even a chain of frozen yogurt franchises) can provide you with the kind of entrepreneurial opportunity you have been looking for.

How Do I Get Started?

Just fill out the form. A member of our franchise development team will get in touch with you quickly to have a conversation about how to get the ball rolling. We'll answer all your questions and hopefully help you get started on a great new adventure.

Is Menchie's frozen yogurt a franchise?

households regularly consume frozen desserts. Why? Frozen desserts are an affordable luxury, and Menchie's, with its devotion to serving smiles and creating a positive guest experience, is an industry leader. We are the largest self-serve yogurt franchise in the world, and we continue to grow. Please click the research button below to learn more about our company and how you can become a Menchie's franchisee. We've been opening up stores across the country and around the world. We support our franchisees and provide them with the tools they need to be successful.

Where is Menchie's located?

Menchie's started out as a single store in Southern California and has evolved into a global presence that is synonymous with good times. Children are drawn to our swirly, froyo-hatted mascot Menchie and his Sweet Friends, and families are attracted to the laid-back, relaxing and welcoming atmosphere.

Is Menchie's yogurt a national brand?

As an emerging leader in the frozen dessert industry, Menchie’s continues to be noted for its many accomplishments through local and national media. Menchie’s buzz is spreading far and wide, and the frozen yogurt franchise has received numerous awards in the country’s top media publications. Awards that Menchie’s yogurt franchise has won recently include:

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