16 Handles
16 Handles offers frozen yogurt in self-serve retail stores under proprietary recipes and branding. Known for its variety of toppings and flavors, it operates in the quick-service restaurant sector.
About 16 Handles
16 Handles is a self-serve frozen yogurt company that allows customers to create their own customized frozen yogurt desserts. It was founded in 2008 by Solomon Choi. The company's name, "16 Handles", refers to the 16 rotating flavors of frozen yogurt available at any given time and is also a play on the name of the movie Sixteen Candles.
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16 Handles franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment required to open the initial Franchised Store is not specified in the exact amount but falls within a range. According to [p.22], it includes all items outlined in Chart 7.A., except for the $30,000 Franchise Fee since no fee is required for opening the first store under a development obligation.
What is the initial franchise fee?
The initial franchise fee is $30,000 for a first franchise, $25,000 for a second franchise, and $20,000 for a third or later franchise [p.10]. However, payment of this fee is deferred until the franchisor has completed its pre-opening obligations under the franchise agreement [p.171, p.193, p.194].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of the Gross Sales of the Franchised Store, to be paid on the 15th and the last day of each month [p.72]. Additionally, franchisees must contribute 2% of their Gross Sales to the Brand Development Fund for advertising and marketing purposes [p.31].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
The FDD does not specify exact net worth or liquid capital requirements [p.98]. However, it emphasizes the need for adequate financial resources and capital to operate the Franchised Store [p.98].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands controlled by the company [p.40].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training overseen by Lisa Mallon, VP of Operations and Training [p.37], and may also offer additional or refresher training courses funded from the Brand Development Fund [p.32]. For Area Developers, there is a requirement to train managerial personnel for third and subsequent stores after meeting certain standards [p.34]. The franchisor reserves the right to require franchisees to pay for such training if conducted by them [p.77]. ServSafe certification may also be required, though provided by an unaffiliated third party [p.37].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were a total of 31 Franchised Stores. The provided excerpts do not specify the number of stores that have closed or been terminated. [p.50]
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet's financial performance upon request, but does not make representations about future financial performance without a reasonable basis. [p.52] Additionally, if such information is provided, it must be reported to the franchisor’s management and relevant regulatory bodies. [p.52]
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling Products only at the Approved Location to retail customers for on-premises consumption, carry-out, or through specific online third-party delivery channels. You may not sell products by alternative distribution channels without prior written consent [p.44]. For supplies, you must purchase all Store Items from manufacturers, distributors, and suppliers approved by the franchisor, which may include purchasing some items exclusively from a designated supplier that could be the franchisor or one of its affiliates [p.3; p.22].