TCBY
TCBY offers frozen yogurt franchises through retail stores and kiosks, known for their customizable yogurt treats; part of the broader quick-serve restaurant industry.
About TCBY
TCBY is an American chain of frozen yogurt stores. It is one of the largest U.S. retailers of soft-serve frozen yogurt.
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TCBY franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a retail store ranges from $487,630 to $699,467, while for a retail kiosk, it ranges from $135,400 to $285,350. [p.1]
What is the initial franchise fee?
The initial franchise fee is $35,000 for each Store, which you must pay upon signing the Franchise Agreement [p.12] and is nonrecurring and non-refundable [p.81].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of your store's gross revenue, due each Wednesday based on the preceding week's revenue [p.81]. For advertising, you must spend at least $2,000 per month for marketing purposes in the geographic area of your store for nine months after opening, and then continue to spend either 2% of gross revenue or a minimum of $1,000 each month, with approval from the company [p.88].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement typically lasts for a term of 10 years [p.61]. You may be able to renew the agreement, but this depends on various factors as specified in the FDD, including whether you are prohibited from operating a similar business under another trademark after the expiration and if you receive at least 6 months' notice of non-renewal intentions [p.5].
Can I sell or transfer my franchise, and what does that require?
You can transfer ownership of your franchise, but the franchisor has the right to refuse such transfers except for good cause. Good cause includes scenarios like failing to comply with required computer systems [p.80]. Additionally, you must obtain the franchisor's consent before transferring and may need to pay a transfer fee equal to 50% of the current initial franchise fee [p.93].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the franchise agreement on any grounds available by law [p.145]. Additionally, the franchisor can terminate the agreement if the franchisee fails to comply with any lawful provision of the franchise agreement and does not cure such failure within a reasonable time frame [p.5].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific net worth or liquid capital requirements for qualifying as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive or protected territory. You may face competition from other franchisees, MFF outlets, and other channels of distribution or competitive brands controlled by the company [p.29]. However, if you enter into an Area Development Agreement, you will have certain protected rights to develop multiple stores within a designated geographic area, but this does not provide exclusivity [p.30].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that includes access to materials such as worksheets, web-based programs, PowerPoint presentations, and other specified materials. This training is typically offered through their online Learning Management System (LMS). Additionally, they offer ongoing services like development of training materials and store location monitoring and inspections [p.61]. The franchisor also requires franchisees to comply with specific training requirements for both the franchisee and their managers before opening a store and may charge additional fees for certain training programs beyond the initial one [p.25, p.80].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations [p.40], and it is not authorized to provide such representations either orally or in writing [p.40]. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that outlet's performance [p.40]. This isn't specified in the excerpts for new franchises.
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering all Approved Products initially authorized by the franchisor, which are detailed in the Operations Manual. The franchisor has the right to change or add to these products in the future [p.34]. For supplies, you may have to purchase or lease items from the franchisor or a limited group of suppliers designated by them, which could be more expensive than other options [p.3].