Pinkberry
Pinkberry offers health-conscious frozen yogurt shops with fresh fruit toppings, known for their smoothies and frozen desserts in casual restaurant settings. Part of the frozen dessert and yogurt franchise industry.
About Pinkberry
Pinkberry is a franchise of frozen dessert restaurants headquartered in Scottsdale, Arizona. There are currently over 260 stores in 20 countries. The first store was opened in January 2005 by Hye Kyung (Shelly) Hwang and Young Lee. The restaurant allows customers to customize their yogurt with a variety of toppings.
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Pinkberry franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation ranges from $285,440 to $663,050 for traditional and non-traditional locations other than vending machines. For vending machines, the range is between $30,750 and $120,900 [p.1].
What is the initial franchise fee?
The initial franchise fee is $35,000 for all traditional and non-traditional Pinkberry restaurants. For a nontraditional location that is a vending machine, the fee is $15,000, reduced to $10,000 if purchasing three vending machines at once [p.30, p.261, p.372].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is not specified in detail, but it is mentioned that the Advertising Fee does not exceed four percent (4%) of your monthly Gross Sales. [p.36] Additionally, the fees for a Pinkberry restaurant must be paid separately from those under another brand's franchise agreement. [p.376]
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD excerpts provided do not include information about the length of the initial franchise agreement or details on renewal terms beyond mentioning a Renewal Franchise Fee of 50% of the current initial fee when you renew the Agreement [p.170, p.307].
Can I sell or transfer my franchise, and what does that require?
According to the FDD excerpts, you cannot freely sell or transfer your franchise without the franchisor's approval, except for good cause. Good cause includes but is not limited to specific reasons determined by the franchisor [p.93, p.481]. The franchisor also retains a right of first refusal to purchase the franchise in such cases [p.93, p.481].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.98]. Additionally, the franchisor can change its business model without your consent, which might require additional investments or harm your franchise business [p.3]. However, under Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause [p.496, p.106], and any termination grounds not constituting 'reasonable cause' may not be enforceable.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory according to the FDD excerpts [p.98, p.59]. You may face competition from other franchisees and company-owned restaurants, as well as other channels of distribution or competitive brands controlled by the franchisor.
What training and ongoing support does the franchisor provide?
The franchisor provides a Training Program consisting of In-Store Training (approximately 80 hours) and New Owner Training (approximately 40 hours). This program is conducted either online or at the Franchisor's training center in Scottsdale, Arizona. Additionally, the franchisor reserves the right to require franchisees and their managers to attend additional training and pay an Additional Training Fee if they are not operating the business according to the Franchisee Systems Standards.
How many franchised outlets are there, and how many have closed or been terminated?
As of November 30, 2024, there were 59 franchised stores open in the United States. This number does not specify how many have closed or been terminated; it only indicates the current count of active franchised locations. [p.75]
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of an existing outlet if you are purchasing one, but generally does not make financial performance representations [p.76]. However, they may include such information in the disclosure document if there is a reasonable basis for it and it meets certain conditions [p.75].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling only certain items; however, you may have to purchase or lease specific items from the franchisor or a limited group of suppliers designated by them [p.3]. This could potentially result in higher costs compared to sourcing these items independently.