SweetFrog Franchise Startup Cost, Profit & Opportunities
SweetFrog franchise is one of the leading yogurt franchises open for investment. It first opened its doors as a business in 2009. Its growth and expansion plans led to the commencement of its franchising operations. This began in the year 2012.
Since it began its franchising operations, SweetFrog has grown its units to about 300 and counting. This franchise opportunity is in the business of selling franchises to retail shops that offer or sell soft-serve yogurt among its other products and services.
As a prospective franchisee seeking to take advantage of this investment opportunity, you’ll need to fulfill all its terms and conditions. This includes meeting its estimated initial investment.
After successfully meeting its financial requirements, you’re taken through a training program. Such a program seeks to acquaint you with SweetFrog’s operational procedures. What more? New franchisees also benefit from support in the form of ongoing training, and marketing among others.
Estimated Initial Investment
The SweetFrog franchise requires prospective franchisees to meet its estimated initial investment. This sum ranges from $95,600 to $477,500. The cost incurred depends on the franchise type or model you choose to operate.
For more clarity, you get to choose between operating a SweetFrog traditional store or a mobile store. Also, your initial investment will be determined by the size and number of stores. So, what are the cost details or fees contained in the estimated initial investment?
There are several. Without further delay, let’s provide you with the details you need. It’s important to note that the franchisor reserves the right to effect changes to these figures. Therefore, you shouldn’t be surprised by such changes.
The estimated initial investment includes an Initial Franchise Fee ranging from $15,000 to $30,000, a Leasehold Improvement or Construction Fee of between $10,000 to $190,000, and a Furniture, Fixtures & Equipment investment sum of between $35,000 to $190,000.
Other cost details include a Lease and Security Deposit of between $0 to $12,000, Utility Deposits from $500 to $2,000, and Design & Architectural Fees ranging from $0 to $15,000. Interior & Exterior Signage Fees range from $0 to $15,000. The cost range of Other Equipment Starts from $1,500 to $3,500.
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More Details
Additional details of the estimated initial investment include a Grand Opening Marketing fee of between $5,000 to $10,000 and a Travel & Living Expenses (during initial training) of about $1,000 to $2,000. Insurance costs about $2,000 to $5,000 while Business Licenses & Permits falls within the $1,500 to $3,500 mark.
There’s more! The cost of Point of Sale Systems range from $3,000 to $5,000, Office Equipment & Supplies (for 3 months) costs anywhere from $100 to $1,000 while Opening Inventory costs around $6,000 to $8,000.
There are also professional fees. These may cost from $0 to about $10,000. Additional Funds covering a 3 month period ranges from $15,000 to $20,000. All of these have an estimated total of between $95,600 to $477,500.
Other Fees
There are other fees you will incur as a SweetFrog franchisee. They include the Royalty Fee which consists of 5% of net sales, a Marketing Assessment fee of up to 3% of net sales, and a System-wide Marketing Fund consisting of about 1.5% of net sales.
Local advertising fees take up about 1% of net sales. This isn’t static but subject to change. Advertising and Promotional Material fees do not exceed $1,000. Website Review and Hosting may not attract charges.
For Additional Training or Training of an Additional Successor, a fee of about $1,250 per individual is charged. There are also Alternative Product or Supplier Inspection and Testing fees. This does not exceed $2,000 per new supplier or product.
Audit Fees start at $5,000 and covers all expenses incurred. The Cost for Correction of Deficiencies doesn’t exceed $1,500 per violation. Customer Satisfaction Program fees start at about $100 per visit for secret shoppers.
There are also Enforcement Costs and Expenses. These costs and expenses are those incurred by the franchisor while enforcing franchise agreement terms. Indemnification varies according to loss.
There’s a long list of fees. Details on these are supplied by the franchisor in the Franchise Disclosure Document (FDD). These include Interim Management after Termination, Interest, Intranet Fee, Insurance Fee, Liquidated Damages, Merchandise for Resale; Equipment; Décor Items as well as On-site Additional or Remedial Training.
Renewal Fee, Relocation, Securities Offering, Software or Systems Modifications, Taxes, Transfer, Transfer Training, and Non-Cash Payment System Reimbursement fees are also included.
Financing Options
A lot of prospective franchisees are on the lookout for available financing options. This helps them realize their dreams of owning a SweetFrog franchise. SweetFrog itself doesn’t provide financing. However, it has a relationship with financing sources that provide financing covering several key areas.
Such areas include inventory, franchise fees, equipment, and startup costs. As a veteran, you get rewarded for your service through its 20% discount off the franchise fee for all honorably discharged veterans.
Support
SweetFrog Franchise offers support covering many key areas of operations. These include training, marketing, and ongoing support. Such support ensures new and existing franchisees succeed in operating their franchises, thus creating a win-win situation for all parties concerned.
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Training
The initial training support provided by this franchisor includes an on-site training session as well as another at its headquarters. For its onsite training, it lasts about 38 hours while that held at its headquarters lasts for about 40 hours.
Additional training is provided as needed. This includes refresher courses aimed at helping existing franchisees keep up with new developments within the franchise.
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Marketing
Marketing support covers several areas. These include access to its loyalty program or app, cooperative advertising, email marketing, and the provision of ad templates. Other forms of marketing support include national media advertising, web development, regional advertising, SEO, and social media advertising.
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Ongoing
Ongoing support includes access to SweetFrog’s purchasing cooperatives, franchisee intranet platform, periodic newsletters, proprietary software, meetings or conventions, and field operations. Others include a toll-free line, security and safety procedures, a grand opening ceremony as well as online support.
Applying for this Franchise Opportunity
The process of owning a SweetFrog franchisee isn’t difficult at all. The franchisor has made the process easy by providing an online application form. You are contacted after carefully filling the form for further discussions as well as a comprehensive guide on what to do.
The information provided above should serve as a guide for investors seeking to own a part of the SweetFrog franchise. Further details are made available by the franchisor upon contact. Such details will show you how to begin the process.
