Pinkberry Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$30,750 - $663,050
Franchise Fee
$10,000
Min Cash Required
$1,000
Total US Locations
59
Business Summary
Pinkberry operates health-conscious, customer-oriented restaurants that specialize in frozen yogurt with fresh fruit and other toppings. Pinkberry may also offer yogurt drinks, smoothies, frozen desserts, and other beverages and products.
Corporate History
Kahala Franchising, L.L.C. was formed in Arizona on December 29, 2008, and is in the business of franchising quick-service restaurants. Kahala Franchising is a subsidiary within a larger corporate structure, with its parent company being Kahala Brands, Inc., which became part of MTY Food Group, Inc. in 2016. The Pinkberry brand itself has a history predating Kahala Franchising, with Pinkberry Franchising Company (PFC) offering franchises from 2006 to 2007, and Pinkberry, Inc. operating corporate restaurants from 2008 to 2016. Kahala Franchising has been offering Pinkberry franchises since June 2016.
Financial Overview
Investment Range
$30,750 - $663,050
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$35,000
Minimum Cash Required
$1,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$18,000
Equipment Costs (High)
$495,000
Working Capital
$25,000
Audited Financials
Yes
Offers Financing
Yes
Financing Details
Pinkberry does not offer direct or indirect financing to its franchisees. However, Pinkberry or its affiliates may, in their sole discretion, guarantee a franchisee's lease for their restaurant location if required by the landlord, for which the franchisee would pay a lease guarantee fee of up to $10,000 or 10% of the total guaranteed rental obligations, whichever is less. Additionally, if a franchisee purchases an existing corporate-owned Pinkberry restaurant, the franchisor's affiliate may finance up to 100% of the purchase price. These loans would have an annual interest rate between 0% and 12%, with repayment terms ranging from 12 to 60 months. A first position lien on all equipment would secure such a loan.
Performance Metrics
Total US Locations
59
Franchised Units
59
Corporate Units
0
Avg Square Footage
1,000
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
20
Litigation Summary
Pinkberry, through its franchisor Kahala Franchising, L.L.C. and its various affiliates, has been involved in several legal disputes. Historically, there were cases related to misrepresentation and breach of contract, primarily involving predecessor entities like The Extreme Pita Franchising USA, Inc., and Pinkberry Ventures, Inc. These older cases, some dating back to 2013-2015, involved claims such as violations of franchise investment protection acts, misrepresentation of financial performance, and breach of contract. Some of these cases, like those involving Famous Dave's of America, Inc. and Papa Murphy's International, LLC, and Wetzel's Pretzels, L.L.C., were settled or dismissed between 2015 and 2021. There were also past state administrative actions against predecessors, such as SweetFrog Enterprises, L.L.C. and Maui Wowi Franchising, Inc., for registration and disclosure violations, which were resolved through consent orders. More recently, within the last year (December 1, 2023, through November 30, 2024), Kahala Franchising, L.L.C. initiated two lawsuits against franchisees, one for breach of contract and another for forcible entry and detainer. The FDD does not provide details on the specific outcomes or current status of these recent cases, other than their filing within the last fiscal year.
Bankruptcy History
Pinkberry, through its franchisor Kahala Franchising, L.L.C., has no bankruptcy information to report. Item 4 of the Franchise Disclosure Document explicitly states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew a Pinkberry franchise, franchisees must provide at least 120 days' notice before their current agreement expires. They must be in good standing, meaning they have no outstanding defaults and are fully compliant with the franchise agreement and the confidential operations manual. Franchisees should not have received more than three notices of default during the entire term, or more than two in the five years leading up to renewal. They must also have an approved location, pay a renewal franchise fee, and agree to remodel or refurbish their restaurant if required to meet Pinkberry's current system standards. Additionally, franchisees are required to sign a general release of claims against the franchisor and be current on all financial obligations.
Training & Support Program
Franchisor Assistance
Pinkberry provides franchisees with pre-opening and ongoing support to establish and operate their restaurants. Before opening, Pinkberry may assist with site selection by reviewing proposed locations, and provides design drawings for construction or remodeling. Franchisees receive a confidential operations manual outlining system standards. Pinkberry offers an initial training program of 120 hours, consisting of 40 hours of New Owner Training (online or in Scottsdale, Arizona) and 80 hours of in-store training at a designated location in Arizona (not required for vending machines). Pinkberry also provides a representative for up to two days of on-site support during the opening week of the restaurant. Ongoing assistance includes a continuing advisory relationship, offering consultation in marketing, merchandising, and general business operations. Pinkberry maintains operating standards and conducts periodic inspections. It administers an advertising fund, directing all promotional programs, and offers guidance on approved computer systems, including an electronic point-of-sale (POS) system and credit/loyalty card processing. Franchisees are also required to complete a food safety manager training program.
Initial Training Hours
120
Training Location
Online or at the franchisor training and education center in Scottsdale, Arizona, and/or a training store in Arizona.
Ongoing Support
Pinkberry provides franchisees with continuous operational guidance through a continuing advisory relationship, including consultation on marketing, merchandising, and general business operations. Pinkberry offers information on its operating standards and conducts periodic inspections and quality service checks of franchised restaurants. Franchisees have access to information on software from approved third-party vendors for administrative, bookkeeping, accounting, and inventory control. Pinkberry may hold additional training programs, conferences, and seminars, which franchisees are required to attend, potentially incurring a registration fee and travel expenses. Pinkberry provides ongoing support for its approved POS system, offering phone support maintenance services for both software and hardware. Pinkberry may also provide updated information on operating standards and other materials related to the franchised business.
Franchise Requirements
Ideal Candidate Profile
Pinkberry intends to select franchisees who plan to actively participate in the direct operation and daily affairs of their restaurant, rather than those merely seeking a passive investment. Franchisees are strongly encouraged to devote a substantial amount of time to their Pinkberry restaurant. The business must be personally managed with on-premises supervision by the franchisee or another owner, or a manager who has successfully completed the required training program. Owners and managers must be able to read and write English adequately to complete the training program and communicate effectively with employees, customers, and suppliers. Franchisees must also employ at least one full-time, on-premises supervisor (manager) who meets Pinkberry's criteria as a qualified restaurant operator, except for vending machine locations where the supervisor does not need to be on-premises. Managers are required to devote their entire time during normal business hours to the management, operation, and development of the franchised business.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
Pinkberry franchisees do not receive an exclusive territory. The franchise is granted only for the specific location approved by Kahala Franchising. Franchisees may face competition from other franchised Pinkberry restaurants, company-owned Pinkberry restaurants, or other channels of distribution or competitive brands controlled by Kahala Franchising. These competing locations, including company-owned stores, may be established even across the street from a franchisee's location or in the same venue. Kahala Franchising also reserves the right to market Pinkberry products through other distribution channels, such as the internet, grocery stores, vending machines, and mobile units, which may compete with the franchisee's location without compensation.
Staffing Notes
Pinkberry franchisees are required to employ a full-time, on-premises supervisor or manager for their restaurant, except for vending machine locations. This manager must meet Pinkberry's operator criteria, successfully complete the training program, and dedicate their full time during normal business hours to managing and developing the business. All Pinkberry personnel must adhere to specified standards for sanitation, cleanliness, and demeanor, and wear approved uniforms. Employees whose duties involve customer service must have sufficient English literacy and fluency to effectively serve the public in the restaurant's market.