Froyo Franchise Startup Cost, Revenue, and Profit Margin

Are you looking for a low-cost, yogurt franchise opportunity that offers immense possibilities?

Think Froyo franchise. Included in the Froyo menu are flavors, specialty products, and toppings & drippings. Founded in 2010, this business opened its franchising arm 2 years later in 2012.

This expanding franchise opportunity has a presence in over 40 locations throughout Connecticut, Puerto Rico, and New England.

The Froyo Brand

The Froyo franchise has steadily grown into a respectable brand all thanks to its aggressive marketing drive and exceptional products. Also, this franchise is known for its efficient customer service which has endeared it to many.

As a prospective franchisee, there’s a natural desire to become part of a respectable brand as it can impact on your success. The opportunities presented are quite impressive. Read on to discover more about the Froyo franchise.

Financial Requirements

To be considered for a Froyo Frozen Yoghurt franchise, you’ll need to fulfill set financial requirements. These are included in its initial investment. This initial investment includes the initial franchise fee.

Apart from its initial investment sum, other financial requirements include the net-worth requirement, liquid cash requirement as well as the ongoing royalty fee and an ad royalty fee. Let’s briefly look at each.

  • Initial Investment

Part of the requirements to qualify for this franchise opportunity includes having an initial investment sum within the $305,120 to $470,000 range. This is the total amount needed to open the franchise.

A breakdown of the initial investment sum includes startup expenses, working capital, and real estate. Others include business license fees as well as equipment & supplies.

  • Initial Franchise Fee

This fee starts at $25,000. It must be paid as part of the conditions for joining the Froyo franchise. Now, the initial franchise fee sum may vary depending on experience, or size of the territory. In other cases, this may be a flat fee.

It is a one-time up-front payment you must make. It must be paid at the signing of the franchise contract and covers the right to use the Froyo franchise’s business systems, name, and trademark.

  • Net-Worth Requirement

The net-worth requirement to own a part of this franchise is $300,000. This is the minimum net worth you must have as a prospective franchisor. It is the value of your assets excluding liabilities.

Assets here include real estate, cash, retirement accounts, and stocks while liabilities include credit card debt, mortgages, and car payments.

  • Liquid Cash Requirement

To qualify as a Froyo franchisee, you must meet its liquid cash requirement of $250,000. Asides the liquid cash requirement, there are ongoing royalty fee requirements of 6% and an ad royalty fee of 1% of gross sales.

Are There Financing Options?

For prospective franchisees wondering if there are financing options, the Froyo franchise offers multiple financing options. First, there’s in-house financing provided to franchisees. This covers only the franchise fee.

Additional financing options include its third-party financing which is made possible through the franchisor’s relationship with third-party financing sources.

Here, financing is offered to cover vital areas of its operations such as the payroll, startup costs, accounts receivable, inventory, and equipment.

Additionally, honorably discharged veterans are offered a waiver of 50% off the franchise fee. As a veteran, this is a gesture of appreciation from the franchisor of your sacrifices to the country.

Support

One of the ways FroyoWorld Frozen Yoghurt helps its franchisees to succeed is through the support it provides. This support covers critical areas of operating including marketing, training as well as ongoing support.

Specific areas covered by this support are further broken down to include;

  • Marketing Support

Here, new franchisees get the marketing assistance they need through cooperative advertising as well as regional advertising. This enables them to reach a wider audience with their products and services. At the end of the day, you get to increase your sales significantly.

  • Training

Training is one of the key areas that help equip new franchisees. This guides you on the workings of Froyo and how to best serve your clients. It includes a week of on-site training.

This is followed by another week of intense training at the franchisor’s headquarters.

The number of employees needed to run an average Froyo franchise outlet is 10. Training is provided to managers to enable them to impart their knowledge on staff for greater productivity.

  • Ongoing Support

For Froyo, the relationship with its franchisees only begins from the moment you join the franchise.

This goes on throughout the length of your franchise term. You benefit from ongoing support that includes periodic newsletter releases, meetings, and conventions as well as a grand opening ceremony.

Low-Cost Business Model

One of the benefits prospective franchisees stand to gain is the opportunity to own a profitable, yet low-cost business model.

According to the franchisor, its successful and proven track record makes it the go-to place for those seeking viable yogurt franchise opportunities to invest in.

How Much Profit Can I Make as a Froyo Franchise?

It’s commonplace for questions on earnings to be asked by prospective franchisees. This is perfectly normal as investors want to assess their options. However, there’s no direct answer to this question.

In other words, profitability depends on multiple factors. These include how efficient our operations are run, your location as well as the size of your franchise unit. Operational efficiency involves cutting down on expenses while increasing sales.

Being able to cut down on expenses involves carrying out an audit of items used. This way, possible wastage is identified and stopped. It also helps streamline your operations which eventually contribute to increased profitability in the long run.

Certain FroyoWorld Yoghurt franchise locations experience more foot traffic than others.

Naturally, more customers flock into such outlets. The franchisor does its best in helping you locate in a viable area which in turn aids profitability. Effective marketing operations also help increase sales and profitability.

The information above provides you with a basic understanding of what you get with this franchise opportunity. It highlights important areas of operation as well as the requirements for joining.

If you meet such requirements, you can proceed with the application by contacting the franchisor for further details.