Yogen Fruz
Yogen Fruz offers master franchises to develop frozen yogurt businesses, specializing in proprietary yogurts, shakes, and fresh-pressed tea. Known for its innovative yogurt-based treats, it operates in the retail food service industry.
About Yogen Fruz
Yogen Früz is a Canadian chain of frozen yogurt and smoothie stores that also serves healthy alternative food products. The chain is run through company-owned, franchised, and non-traditional partnerships. The chain operates worldwide and has its global headquarters in Markham, Ontario in the Greater Toronto Area of Canada.
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Yogen Fruz franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation as a master franchisee ranges from $251,950 to $1,170,950. This includes between $53,000 and $510,000 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee is $25,000 and it is a one-time payment due upon execution of the agreement. This fee is non-refundable [p.86].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of Gross Sales paid weekly [p.86]. For advertising contributions, Franchisees must pay 3% of Gross Sales each week to an Advertising Fund administered by Master Franchisee [p.96]. This isn't specified in the excerpts for the royalty and advertising fees applicable to Unit Franchisees directly; they pertain to Subfranchisees and Master Franchisees.
How long is the initial franchise agreement, and can I renew it?
The initial development term is not specified in terms of duration in the provided excerpts. However, renewal is possible; you may opt to renew the right to perform sales services for one additional 10-year period under certain conditions, as detailed on [p.45].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot directly or indirectly transfer any interest in your franchise without the franchisor's prior written consent (which they will not unreasonably withhold) [p.60]. This includes transferring all Unit Franchise Agreements and all rights under this Agreement, as transfers of interests can only be made together with a transfer to the same purchaser of all related agreements [p.60].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the master franchise agreement on any grounds available by law [p.202]. However, termination without reasonable cause is unlawful under Virginia Retail Franchising Act Section 13.1-564, unless specific grounds for default or termination stated in the agreement do not constitute 'reasonable cause' as defined by law [p.203].
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisee needs to have a certain net worth and liquidity as appropriate to satisfy obligations post-transfer [p.61]. Additionally, when purchasing or transferring the franchise, the prospective purchaser must provide information regarding their financial capacity and stability, including latest financial statements and personal net worth statements [p.100]. However, specific minimum net worth requirements are not detailed in these excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory under the Master Franchise Agreement. While competition from other master franchisees, company-owned outlets, or other competitive brands is restricted while you comply with the terms of your agreement, there is no guaranteed exclusivity outside of your designated territory [p.24].
What training and ongoing support does the franchisor provide?
The franchisor provides ongoing and refresher training programs to franchisees from time to time [p.20]. Additionally, unit franchisees receive initial and supplemental general training on all aspects of operations, as well as periodic telephone calls and visits for monitoring compliance with operational manuals at least once per month [p.51].
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 may provide actual records of an existing outlet you are considering buying [p.32], but generally does not make representations about future financial performance or past financial performance of company-owned, master franchisees, subfranchises, or projections for your potential income [p.33, p.121]. If any such information is received, it should be reported to the franchisor's Legal Department and relevant regulatory agencies [p.33].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling specific items, but you may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate [p.3]. For supplies, you should locate sources of supply for food and beverage products, supplies, and services and take advantage of bulk purchasing where possible [p.85].