Risk Score
Pending analysis
Investment Range
$189,000 - $441,000
Franchise Fee
$40,000
Total US Locations
5
Business Summary
NuYo Frozen Yogurt operates retail stores specializing in self-serve frozen yogurt, offering various flavors and other menu items for on-premises consumption and carryout. The stores feature an upscale yogurt shop look with custom-designed interiors, furniture, and fixtures, using the NuYo Marks and system. Their concept provides customers with a wide selection of yogurt flavors and other menu items, utilizing specific marketing techniques, trade secrets, and recipes.
Corporate History
NuYo Frozen Yogurt, Inc. was incorporated in California on January 2, 2008, under the name Pure Frozen Yogurt, Inc. It later changed its name to NuYo Frozen Yogurt, Inc. on April 25, 2008. The company opened its first company-owned store in Chula Vista, California, in 2008, and operated it until 2011 when it was sold to a franchisee. NuYo Frozen Yogurt began marketing franchises in January 2010.
Financial Overview
Investment Range
$189,000 - $441,000
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$40,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$73,000
Equipment Costs (High)
$175,000
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
NuYo Frozen Yogurt, Inc. received an unqualified audit opinion for its financial statements as of December 31, 2023, indicating that the statements present fairly in all material respects. The auditors did not identify any conditions or events that raise substantial doubt about NuYo Frozen Yogurt, Inc.'s ability to continue as a going concern. As of December 31, 2023, NuYo Frozen Yogurt has $53,114 in cash and cash equivalents and $46,894 in restricted cash for franchisee marketing, with a total stockholder's equity of $38,807. The company's net income for 2023 was $115,672, up from $101,717 in 2022. It is also noted that the company will retain at least $5,000 in its bank account to meet its obligations to franchisees.
Financing Details
NuYo Frozen Yogurt does not offer any direct or indirect financing to franchisees. This means franchisees will not receive loans, deferred payments for fees, or guarantees for third-party financing from NuYo Frozen Yogurt. Franchisees are responsible for securing their own financing through banks or other lenders for all obligations.
Performance Metrics
Total US Locations
5
Franchised Units
5
Corporate Units
0
Avg Square Footage
1,425
Franchising Since
2010
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
NuYo Frozen Yogurt has no litigation required to be disclosed in this item. This means NuYo Frozen Yogurt has no material legal disputes to report.
Bankruptcy History
NuYo Frozen Yogurt has no bankruptcy history to disclose in this item. This indicates that neither the franchisor nor its executives have been involved in any reportable bankruptcy proceedings.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, NuYo Frozen Yogurt franchisees must comply with the agreement throughout its term and at renewal. They need to provide written notice of their intent to renew 90 to 120 days before the current term expires. Franchisees must also pay a renewal fee of $5,000, sign NuYo Frozen Yogurt's then-current franchise agreement (which may have different terms and higher fees), sign a general release of claims, and remodel or upgrade their store to meet current standards. Additionally, all amounts due to NuYo Frozen Yogurt and its affiliates must be current.
Training & Support Program
Franchisor Assistance
Before opening, NuYo Frozen Yogurt will approve or disapprove the franchisee's chosen site and provide a preliminary floor plan layout, equipment lists, and material specifications for a $5,000 fee once as-built drawings are received. The company also provides information on requirements for signage, equipment, and other products, along with a list of approved suppliers. Initial training for up to two people (franchisee and a manager) is provided at NuYo Frozen Yogurt's main store location in Roseville, California, lasting typically one week, for a non-refundable fee of $7,500. This training includes both classroom and hands-on instruction covering various operational aspects. NuYo Frozen Yogurt may also provide up to five business days of on-site opening assistance, with the franchisee covering all related travel and living expenses for the franchisor's staff. During operation, NuYo Frozen Yogurt offers reasonable operating assistance and guidance on methods, standards, equipment, and promotional programs, communicated through an Operations Manual, bulletins, telephone, or electronic messages. They also keep franchisees informed of new product developments and help with operating problems.
Initial Training Hours
40
Training Location
Roseville, California
Ongoing Support
NuYo Frozen Yogurt provides ongoing support to franchisees during the operation of their business by offering reasonable operating assistance and guidance. This includes advice on methods, standards, specifications, pricing, general operating procedures, approved equipment, and local advertising and promotional programs. This guidance is delivered through the Operations Manual, bulletins, other written materials, telephone consultation, or electronic computer messages. NuYo Frozen Yogurt also keeps franchisees informed of new product developments and offers help with any operating problems they may encounter.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
full-time
Territory Type
Protected
Territory Size Requirements
NuYo Frozen Yogurt grants franchisees a geographic area, designated as an "Assigned Territory," where NuYo Frozen Yogurt will not operate or grant franchises to others for other NuYo Frozen Yogurt stores. This Assigned Territory is intended to be an area approximating a one-driving-mile radius from the franchisee's store location. However, this protection does not apply to "Non-Traditional Locations" (such as kiosks within other businesses, institutional settings, or food courts), where NuYo Frozen Yogurt reserves the right to establish or franchise other stores without geographic restriction.
Staffing Notes
NuYo Frozen Yogurt requires franchisees to ensure that all employees are trained in their store procedures. At least one member of the staff must be certified by NuYo Frozen Yogurt as having successfully completed the training program and must be on schedule for at least forty hours per week. Additionally, during all shifts, at least one staff member certified by the franchisee as a supervisor/manager, as outlined in the manual, must be on schedule. Franchisees must properly staff their store with employees who are fully trained to the specifications outlined in the manual. If a manager operates the store, NuYo Frozen Yogurt recommends the franchisee remain personally involved in the business.