Risk Score
Pending analysis
Investment Range
$242,500 - $645,000
Franchise Fee
$20,000
Min Cash Required
$7,500
Total US Locations
29
Business Summary
16 Handles operates retail stores that offer self-serve frozen yogurt and various toppings, along with other proprietary and non-proprietary food and beverage items. These stores are designed with a distinctive interior and exterior to be welcoming and are typically found in downtown, strip center, or mall locations. The business uses 16 Handles' proprietary recipes, techniques, and a comprehensive operating system covering everything from design and products to marketing and training.
Corporate History
16 Handles Franchising LLC was established as a Delaware limited liability company in June 2022 and started franchising in September 2022. The brand "16 Handles" itself has a longer history, with a predecessor company, Yo Fresh Inc., offering franchises for this concept from November 2011 until July 2022. In August 2022, the current franchisor acquired all assets and franchise agreements from Yo Fresh Inc. While 16 Handles Franchising LLC primarily focuses on franchising and supporting its franchisees, its affiliates own and operate seven 16 Handles stores in New York City.
Financial Overview
Investment Range
$242,500 - $645,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$30,000
Minimum Cash Required
$7,500
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$176,500
Equipment Costs (High)
$511,000
Working Capital
$13,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The financial condition of 16 Handles Franchising LLC raises questions about its ability to provide services and support to franchisees. The auditors have expressed substantial doubt about 16 Handles Franchising LLC's ability to continue as a going concern. The company has experienced net losses in both 2022 and 2023, and its current liabilities significantly exceed its current assets, indicating negative working capital.
Financing Details
16 Handles does not currently offer any direct or indirect financing to franchisees, nor does it guarantee their loans or other financial obligations.
Performance Metrics
Total US Locations
29
Franchised Units
29
Corporate Units
0
Avg Square Footage
1,600
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
16 Handles has no litigation history to report.
Bankruptcy History
16 Handles has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew the franchise agreement, 16 Handles franchisees must provide written notice to the franchisor between six and twelve months before the current term ends. They must have no outstanding monetary or other obligations and not be in default of any agreements. Franchisees are required to sign a mutual general release of claims, execute the then-current franchise agreement (without an initial franchise fee, but potentially with higher ongoing fees), and meet current qualification and training requirements. They must also renovate and modernize their store to reflect current brand standards, provide proof of their right to occupy the premises for the renewal term, demonstrate financial responsibility, and pay a $10,000 renewal fee.
Training & Support Program
Franchisor Assistance
16 Handles provides comprehensive assistance to its franchisees. Before opening, they help with site approval, offer initial training for up to three people (covering operations, management, marketing, and food handling), provide prototype plans and specifications for store construction, and conduct pre-opening inspections. They also offer up to four days of on-site supervision and assistance during the initial opening, and grant access to a 390-page operations manual via an extranet. The franchisor also helps with developing a grand opening marketing program and provides a list of approved suppliers. Ongoing support includes periodic inspections and evaluations, additional training programs, advisory assistance on operations and promotion, administration of a Brand Development Fund, and updates to System standards and pricing.
Initial Training Hours
110
Training Location
Corporate headquarters in New York City, affiliate or franchisee-owned stores in New York City or Fairfield, CT, or other designated locations, including remote online video calls.
Ongoing Support
16 Handles provides ongoing support to franchisees through periodic inspections and evaluations of their stores. The franchisor offers additional training programs, refresher courses, seminars, and may hold periodic franchisee meetings to discuss system improvements and new products. Franchisees also receive continuing advisory assistance on store operation and promotion, benefit from the Brand Development Fund, and must comply with updated system standards and pricing guidelines.
Franchise Requirements
Ideal Candidate Profile
16 Handles seeks qualified individuals or legal entities for its franchisees. The franchisor relies on the business skill, financial capacity, and personal character of its franchisees or their principals. An individual designated as the primary supervisor (Designated Principal) must hold at least a 10% ownership interest. Ideal candidates for 16 Handles are expected to possess educational, managerial, social responsibility, and business skills, maintain good moral character and business reputation, and have a good credit rating. They should demonstrate the aptitude and ability to operate a store, have no conflicting interests, and possess adequate financial resources and capital.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Limited
Territory Size Requirements
For single-unit franchisees, 16 Handles provides an exclusive site selection search area for three months. After a lease is signed within this area, a Designated Territory is granted, with its size and scope determined by demographics, population, and local competition, and whether the location is urban or suburban. For multi-unit area developers, the Development Area's size and scope are agreed upon on a case-by-case basis and outlined in the Development Agreement.
Staffing Notes
16 Handles franchisees are required to maintain a competent and conscientious staff that provides prompt, courteous, and knowledgeable service, adhering to prescribed uniforms and dress codes. A minimum of one certified manager (who can be the franchisee) or hourly employees trained in management activities must be on duty at all times. Franchisees are entirely responsible for all employment decisions, including hiring, firing, wages, record-keeping, supervision, and discipline. The franchisor provides optional personnel policies, procedures, and job descriptions for roles such as Manager, Shift Leader, Team Member/Cashier, and Utility Member, but franchisees must ensure compliance with all applicable labor laws.