Orange Leaf Frozen Yogurt
Orange Leaf Frozen Yogurt offers frozen yogurt, smoothies, and treats in traditional and non-traditional store formats. Known for its wide variety of yogurt-based products and co-branded concepts, it operates in the quick-serve restaurant sector.
Orange Leaf Frozen Yogurt franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of an ORANGE LEAF Traditional Store ranges from $349,000 to $521,500. For an ORANGE LEAF Non-Traditional Store, the range is from $196,500 to $390,000. The total investment for an ORANGE LEAF-HUMBLE DONUT CO. Co-Branded Traditional Store ranges from $396,500 to $605,500. For an ORANGE LEAF Store co-branded with a Third-Party Concept, the range is from $106,500 to $232,500. [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on the type of store and any applicable discounts. For a Non-Traditional Store or an ORANGE LEAF Store co-branded with a third-party concept (excluding military veteran's program), the initial franchise fee is $15,000. For a Traditional Store, it is $30,000, also subject to the military veteran's program discount if applicable. [p.13, p.14]
What are the ongoing royalty and advertising fees?
This isn't specified in the excerpts. The provided FDD excerpts do not detail the specific percentages for royalty fees or advertising obligations that franchisees must adhere to. These terms may vary based on the Store Development Agreement, which can be different from the current agreement [p.155].
How long is the initial franchise agreement, and can I renew it?
The initial term for traditional stores is generally 10 years, while non-traditional stores have a 5-year initial term, with both options allowing two additional 5-year terms upon renewal [p.196]. Subject to the company's approval, you may renew your franchise agreement at the end of its term [p.196].
Can I sell or transfer my franchise, and what does that require?
According to [p.154], Orange Leaf may transfer or assign its rights or obligations under the agreement to any person or legal entity, including in connection with certain business activities like asset sales or mergers. If such an assignment results in the subsequent performance of all of Orange Leaf's obligations by the assignee, you expressly affirm that the assignee shall assume and agree to perform those obligations from the date of assignment. This means your ability to sell or transfer your franchise is subject to Orange Leaf’s discretion and any resulting assignment would make the new entity responsible for your obligations under the agreement.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.67]. Additionally, the franchisor can terminate store development agreements if franchisees fail to open stores on schedule [p.196], and may also refuse to renew the franchise under conditions generally available to other franchisees [p.6(e)].
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a transferee, you must demonstrate sufficient equity capital to operate the Franchised Business [p.99, p.155]. This isn't specified in the exact net worth or liquid capital amount required, but it indicates that financial stability and adequate capital are necessary [p.99, p.155].
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, and other channels of distribution or competitive brands controlled by Orange Leaf [p.44]. However, during the franchise term, Orange Leaf will not own or operate, or grant anyone else the right to operate, an ORANGE LEAF Store within your Protected Area, except for certain specified exceptions [p.43, p.74].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs on an as-needed basis but no less than once per year, subject to certain conditions [p.40]. Ongoing support includes pre-opening services such as site selection and training, which are typically provided alongside franchise rights and ongoing services [p.196].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The provided FDD excerpts only detail the number of operating franchised outlets for each brand as of December 29, 2024, but do not mention any closures or terminations.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of an existing store if purchased, but generally does not make representations about a franchisee's future financial performance. Financial performance information provided must have a reasonable basis and can be supplemented under specific conditions [p.59]. The franchisor also requires that any other financial performance information received should be reported to specified contacts [p.60].
What am I restricted to selling, and where must I buy supplies?
You are restricted from owning or operating any retail business that specializes in the sale of frozen yogurt, ice cream, smoothies, shakes, confectionary items, other frozen desserts, or related products, except for an ORANGE LEAF Store under a valid franchise agreement. This restriction applies within the United States and its territories or commonwealths, as well as any other country where Orange Leaf operates under similar marks [p.118, p.169]. You must purchase supplies from designated suppliers identified by Orange Leaf, which may include items like fixtures, food products, beverages, merchandise, and promotional materials [p.4, p.85, p.30, p.33].