SweetFrog
SweetFrog offers frozen yogurt and dessert franchises with self-serve formats; known for innovative flavors and customization options in the quick-service food industry.
About SweetFrog
Sweet Frog is a chain of frozen yogurt retail restaurants. Derek Cha and Annah Kim co-founded the first sweetFrog shop in Richmond, Virginia in 2009. The "FROG" part of the name, according to Cha, is an acronym for "Fully Rely on God".
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SweetFrog franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a sweetFrog franchise ranges from $122,900 to $285,300 for a non-traditional restaurant (vehicle), as specified on [p.1]. This includes the initial fees and other costs detailed in the FDD excerpts.
What is the initial franchise fee?
The initial franchise fee varies based on the type of business and whether it's a first or subsequent traditional franchise. For a first traditional franchise, the fee is $30,000, which reduces to $15,000 for each additional traditional franchise. Non-traditional franchises have different fees depending on their type: $15,000 for each Kiosk or Standard Counter Floorplan and $10,000 for each Vehicle. [p.32, p.175, p.380]
What are the ongoing royalty and advertising fees?
The ongoing royalty and advertising fees for the franchisee are not specified in detail within the provided excerpts. However, it is clear that these fees are separate from any initial fees and must be paid separately from the royalty fee and advertising fee payable under a different franchise agreement [p.380]. The franchisor has no fiduciary obligation regarding the operation of the Advertising Fund and does not provide warranties or representations about the quality or effectiveness of the advertising activities funded by these fees [p.177, p.243].
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?
To sell or transfer your franchise, you must first give the franchisor a right of first refusal at the same price offered by any bona fide buyer [p.41]. Additionally, before any transfer, the franchisor must approve any new franchisee, transferee, stockholder, or assignee [p.41]. This requirement also applies to selling more than 50% of the equity in your business [p.41].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.106]. 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.499][p.114].
What financial requirements — net worth and liquid capital — do I need to qualify?
You need to have at least $15,000 in working capital as of the Effective Date and throughout the Term [p.303, p.238, p.172]. This isn't specified in the excerpts regarding net worth or liquid capital requirements.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. The FDD states that for all Franchised Businesses other than Vehicles, you will not receive an exclusive territory [p.67]. This isn't specified in the excerpts for Vehicles.
What training and ongoing support does the franchisor provide?
The franchisor provides a comprehensive training program consisting of In-Store Training (24 hours) and New Owner Training (40 hours), totaling approximately 64 hours. This training covers the fundamentals of operating the Franchised Business and is conducted either online or in person at designated locations, such as their training center in Scottsdale, Arizona. Additionally, the franchisor reserves the right to require further training if the franchisee does not operate the business according to System Standards [p.238, p.303].
How many franchised outlets are there, and how many have closed or been terminated?
As of November 30, 2024, there were 206 franchised stores open in the United States. Of these, 193 were not temporarily closed as of fiscal year end and reported sales based on gross sales. Additionally, during the last three years, a high percentage (more than 16%) of franchised outlets, totaling 41, were not renewed or ceased operations for other reasons [p.103].
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations except for providing actual records of an existing outlet if you are purchasing one. However, they can provide such information if there is a reasonable basis and it is included in the disclosure document [p.83]. This isn't specified in the excerpts for all cases where financial performance or earnings information might be shared.
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling only specific items; however, certain goods, supplies, or services may need to be purchased exclusively from the franchisor or sources designated by them [p.3]. For supplies and inventory items required by System Standards, you must submit sufficient specifications and obtain approval from the franchisor before purchasing from new suppliers [p.321].