Risk Score
Pending analysis
Investment Range
$135,400 - $699,467
Franchise Fee
$25,000
Total US Locations
125
Business Summary
TCBY offers franchises for retail outlets in two formats: a store and a kiosk. These outlets sell TCBY-branded frozen yogurt and related dessert products. Approved products include premium soft-serve frozen yogurt, hand-dipped frozen yogurt, cakes, pies, sorbet, smoothies, fresh yogurt, and various mix-ins and toppings. Kiosks are smaller, free-standing structures often found in malls, while stores are larger retail spaces.
Corporate History
TCBY Systems, LLC was formed on May 30, 2000, as a Delaware limited liability company. It began offering franchises for TCBY-branded stores in June 2000, continuing until March 2015, and then again from January 2017 to the present. The company became a wholly owned subsidiary of TCBY Franchising Holdco, LLC, following an acquisition by Famous Brands International Parent, LLC on October 19, 2023, and a subsequent restructuring on August 1, 2024.
Financial Overview
Investment Range
$135,400 - $699,467
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$35,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$62,400
Equipment Costs (High)
$600,917
Working Capital
$10,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for TCBY Franchising Holdco, LLC, as of December 31, 2024, show current assets of $746,137 and current liabilities of $1,144,060, resulting in negative working capital. The company also reported a net loss of $427,498 for the period from August 1, 2024, to December 31, 2024. The auditor's report does not include a going concern qualification, but these figures indicate that current liabilities exceed current assets and the company has incurred losses during its initial operating period under the new structure.
Financing Details
TCBY does not offer any direct or indirect financing to its franchisees. This means that franchisees will need to secure all necessary funding, including loans for initial investment and working capital, from third-party sources. TCBY also does not guarantee any notes, leases, or other obligations of its franchisees.
Performance Metrics
Total US Locations
125
Franchised Units
125
Corporate Units
0
Avg Square Footage
750
Franchising Since
2000
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
TCBY has no litigation to report. The company has not been involved in any material litigation cases that require disclosure in this document.
Bankruptcy History
TCBY does not have any bankruptcy history to report for the franchisor or its key personnel. No bankruptcy proceedings are required to be disclosed in this FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, TCBY franchisees must provide written notice between 90 and 180 days before the initial term expires. They must agree to sign TCBY's then-current franchise agreement, which may have different terms and fees, and the franchisee and their affiliates must sign a general release of all claims against TCBY. Franchisees are also required to refurbish their store to meet current brand standards, remain in good standing with TCBY, fulfill all financial obligations, maintain possession of their premises for the renewal term, pay a renewal fee, and follow TCBY's latest renewal process, which can include additional training and financial reporting.
Training & Support Program
Franchisor Assistance
Before a TCBY franchisee opens their store, TCBY assists with site approval and lease approval for the location. They provide prototypical plans and specifications for building out the store and access to an Operations Manual containing brand standards. TCBY also provides an initial training program for the franchisee and their first store manager. During operation, franchisees have electronic access to the Operations Manual, and TCBY provides training for replacement managers and additional refresher courses. TCBY also administers the Brand Fund and provides advertising and marketing services. Additionally, TCBY may offer periodic advice on various operational aspects and may set maximum or minimum prices for products.
Initial Training Hours
41
Training Location
LMS, Salt Lake City, Utah or other designated locations
Ongoing Support
After opening, TCBY franchisees receive ongoing support including electronic access to the Operations Manual, training for existing or replacement store managers, and additional or refresher training programs. TCBY also administers the Brand Fund and provides advertising and marketing services. Additionally, TCBY may offer periodic advice on various aspects of store operations, such as System Standards, purchasing, and promotional programs. TCBY may also set maximum or minimum prices for products and services offered.
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
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
For individual unit franchisees, TCBY does not grant an exclusive or protected territory, meaning there are no defined size requirements for individual store territories. For Area Development Agreements, TCBY territories are defined as a 'Designated Area' which is a geographic area described by a written description or map, showing metropolitan areas, zip codes, cities, counties, or other political subdivisions or market areas, designated by physical boundaries like streets, highways, or physical landforms. The size of these Designated Areas varies based on the number of stores the franchisee intends to open, population density, and demographics in the area.
Staffing Notes
TCBY requires that each franchise store be managed by either the franchisee themselves or a full-time, on-premises manager. The manager is not required to have an ownership interest in the franchise. TCBY does not restrict who the franchisee hires as a manager, but both the franchisee (or an Entity Owner) and the manager must successfully complete TCBY's initial training program. TCBY emphasizes that franchisees are solely responsible for all decisions regarding their employees, including hiring, firing, training, compensation, scheduling, and ensuring compliance with all employment laws. Managers and key employees may be required to sign confidentiality and non-competition agreements.