Yogurtini
Yogurtini offers self-service frozen yogurt and beverages under brands like 'U-Swirl Frozen Yogurt' and 'Yogurtini.' Known for a variety of frozen dessert options, it operates in the quick-serve restaurant sector.
Yogurtini franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a single Franchised Business is between $418,500 and $630,320 [p.1]. This includes $27,500 that must be paid to the franchisor or its affiliate(s) [p.1].
What is the initial franchise fee?
The initial franchise fee is fully earned immediately upon receipt and is non-refundable once the Franchise Agreement has been signed [p.185]. The amount of the Initial Franchise Fee depends on whether it's your first franchise agreement, a renewal, or a transfer, and may also be discounted for certain conditions such as being an existing franchisee, a veteran, a system employee, or a university program participant [p.83].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of Gross Sales, due on Wednesday of each week [p.83]. There is also an ongoing Technology Fee for using certain technologies in the Franchised Business, which can be modified by the company at its discretion based on changes to software or third-party fees [p.83]. However, specific amounts for these fees are not provided in the excerpts.
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement has a term of 10 years ('Term') starting from the Effective Date [p.80]. You may enter into one successor franchise agreement if you meet the conditions for renewal specified in the FDD, but the terms of this agreement may vary significantly from the current one [p.80].
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit a transfer of ownership of the franchise except for good cause, which includes but is not limited to unspecified factors [p.6]. Additionally, any transfer must comply with applicable laws governing the offer and sale of franchises and satisfy other conditions reasonably required by the franchisor as a condition to approval [p.100].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on grounds such as the franchisee's failure to comply with any lawful provision of the franchise agreement and failing to cure such failure after being given written notice and a reasonable opportunity, which cannot exceed 30 days [p.6(c)]. Additionally, termination is permitted on any grounds available by law [p.158]. However, under Virginia Retail Franchising Act, terminating without 'reasonable cause' may not be enforceable if the stated grounds do not constitute it [p.161].
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 [p.39], you may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands controlled by the franchisor. Your territory can also be modified upon renewal based on current demographics and standards for territories.
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that includes both you or your Responsible Owner and any required Franchise Manager. This initial training fee is $2,500 for up to two people attending together [p.36]. Additionally, multi-unit franchisees may apply to have one of their locations serve as a training store if it meets corporate standards [p.38]. Ongoing support includes participation in national or regional meetings where you are responsible for any associated travel and expenses [p.38]. The franchisor also reserves the right to develop proprietary software or technology that must be used by franchisees, requiring a license agreement with commercially reasonable fees [p.97].
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 can disclose actual records of an existing outlet being considered for purchase. However, they do not make any representations about future financial performance or past financial performance of company-owned or franchised outlets, nor authorize their employees to make such claims [p.50].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those products and services authorized by the franchisor, which may vary based on operating season and geographic location [p.45]. You must purchase or lease items from the franchisor, a limited group of suppliers designated by them, or their affiliates [p.27, p.32], and you cannot deviate from these methods without prior written consent [p.28].