Orange Leaf Frozen Yogurt Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$106,500 - $605,500
Franchise Fee
$7,500
Total US Locations
61
Business Summary
Orange Leaf operates quick-serve restaurants specializing in authentic frozen yogurt, treats, yogurt and non-yogurt based smoothie beverages, shakes, frozen cakes, and other confectionary items. Orange Leaf offers several franchise formats: Traditional Stores, which are typically 1,000 to 1,300 square feet and located in retail areas; Non-Traditional Stores, which are smaller at 350 to 900 square feet and found in places like food courts or kiosks; ORANGE LEAF-HUMBLE DONUT CO. Co-Branded Traditional Stores that also offer Humble Donut Co. products; and ORANGE LEAF Stores Co-Branded with a Third-Party Concept.
Corporate History
Orange Leaf FC, LLC was formed in Texas on December 14, 2020. It is a wholly-owned subsidiary of Orange Leaf, LLC, which holds the trademarks for the Orange Leaf system. The current franchisor acquired its assets from its predecessor, Orange Leaf Holdings, LLC, which had offered Orange Leaf franchises from 2010 until December 2020. Orange Leaf FC, LLC itself started offering franchises on August 19, 2022. The company also has several affiliates that franchise other food and beverage concepts, including Smoothie Factory, Red Mango, Souper Salad, Friendly's, Clean Juice, and Humble Donut Co.
Financial Overview
Investment Range
$106,500 - $605,500
Franchise Fee (Low)
$7,500
Franchise Fee (High)
$30,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$70,000
Equipment Costs (High)
$494,000
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The independent auditor has issued an unqualified opinion on Orange Leaf's financial statements and concluded that there is no significant doubt about the company's ability to continue as a going concern, citing positive earnings and cash flows from operations. However, the Franchise Disclosure Document also includes a specific warning under "Special Risks to Consider About This Franchise" (page 6) stating that Orange Leaf's financial condition "calls into question the franchisor's financial ability to provide services and support" to franchisees.
Financing Details
Orange Leaf does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any of a franchisee's notes, leases, or obligations.
Performance Metrics
Total US Locations
61
Franchised Units
61
Corporate Units
0
Avg Square Footage
1,150
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Orange Leaf has no litigation or legal disputes to report.
Bankruptcy History
Orange Leaf has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Orange Leaf franchisees must first notify Orange Leaf in writing of their intent to renew at least 12 months, but no more than 24 months, before their current term ends. They must be in good standing, meaning they have not defaulted on any major part of their agreement and have met all terms and conditions throughout the franchise period. All outstanding payments to Orange Leaf, its affiliates, and third-party suppliers must be current. The franchisee must also have the legal right to continue operating at their current location or have secured new premises that Orange Leaf has approved. They are required to meet Orange Leaf's current qualifications for new franchisees and complete any updated training requirements. Additionally, the franchisee must sign Orange Leaf's then-current Franchise Agreement, which may include different terms, conditions, and fee structures. Finally, they must provide a walkthrough video of their store to demonstrate compliance with Orange Leaf's standards and sign a general release of claims against Orange Leaf and its affiliates.
Training & Support Program
Franchisor Assistance
Before opening an Orange Leaf store, the franchisor provides assistance with site approval within 30 days of receiving all information, and offers initial training for two individuals at no tuition cost, though franchisees cover travel and living expenses. For the first store, Orange Leaf offers three days of on-site opening assistance, with franchisees reimbursing travel, lodging, and dining costs. Additional on-site assistance is available for a per diem fee plus expenses. Franchisees also receive a loan of the operational Manual, pre-opening consultation on store development, layout, purchasing, and inventory control, a list of designated suppliers, and marketing for the grand opening. Ongoing support includes consultation on new product development, store operations and management, marketing and financial advice, updates on approved suppliers, and administration of the Brand Development Fund.
Initial Training Hours
48
Training Location
Franchisor's corporate office and a designated training store selected by Orange Leaf
Ongoing Support
Orange Leaf provides ongoing consultation and advice to its franchisees on matters such as new product development, instruction on store operation and management, advertising and marketing strategies, and financial and accounting guidance. This support may be delivered through various channels including store visits by Orange Leaf personnel, meetings, seminars, conferences, and the dissemination of electronic or printed materials. Additionally, Orange Leaf communicates information about its Designated Suppliers and Distributors and administers the Brand Development Fund.
Franchise Requirements
Ideal Candidate Profile
Orange Leaf seeks qualified candidates who are able to commit to active, full-time involvement in the management and operation of their franchised business, either as a Managing Owner or a designated Key Person. These individuals must successfully complete Orange Leaf's initial training program. Military veterans, including active-duty personnel, are offered a discount if they or their entity maintains at least 51% ownership. Franchisees are expected to meet Orange Leaf's educational, managerial, financial, and business standards, possess good moral character, business reputation, and credit rating, and demonstrate the aptitude and ability to operate the business with sufficient equity capital.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Limited
Territory Size Requirements
Orange Leaf territories are defined as a "Protected Area" which is mutually agreed upon and identified in the Franchise Agreement's Attachment B. This area can be described as a radius around the store or a geographic area on a map. The minimum size can be as small as an office or retail building in densely populated urban areas like New York City, and will be larger in suburban, less populated areas. For multi-unit agreements, the "Store Development Area" is defined in terms of cities, counties, or states.
Staffing Notes
Orange Leaf requires franchisees to maintain a competent, conscientious, and trained staff sufficient to serve customers promptly and properly. This includes having at least a manager or shift leader on duty whenever the store is open. Employees must maintain good customer relations, provide courteous and knowledgeable service, and meet Orange Leaf's minimum standards, including wearing designated uniforms and presenting a neat and clean appearance. Orange Leaf explicitly states that franchisees are exclusively responsible for all aspects of employee management, including hiring, setting wages and benefits, determining work hours, and handling discipline or discharge, without interference from Orange Leaf.