Risk Score
Pending analysis
Investment Range
$251,950 - $1,170,950
Franchise Fee
$50,000
Min Cash Required
$10,000
Total US Locations
28
Business Summary
Yogen Früz U.S.A., Inc. offers master franchises, granting individuals or entities the right to act as a master franchisee. In this role, Yogen Früz master franchisees are responsible for granting subfranchises to qualified individuals to develop and operate Yogen Früz branded frozen yogurt businesses. These businesses specialize in selling proprietary frozen yogurts, yogurt shakes, fruit cups, fresh-pressed tea, and other fruit and yogurt-based products. Master franchisees are also required to own and operate at least one Yogen Früz business through their wholly-owned subsidiary, which serves as a sales and training tool.
Corporate History
Yogen Früz U.S.A., Inc. was established as a Nevada corporation on May 8, 1989, and promptly began offering Master Franchises in the United States that same month. The company is part of a broader corporate family, with its parent company, Yogen Früz Canada, Inc. (YFCI), an Ontario, Canada corporation, initiating master franchise offerings in Canada in August 1989. YFCI currently oversees 28 unit franchisees in Canada and has diversified its reach by licensing Yogen Früz products to various businesses, including restaurants, frozen yogurt vending machine operators, and movie theaters. The ultimate parent company is International Franchise Inc. (IFI). Additionally, Yogen Früz U.S.A. has affiliates with other brand ventures; YF Franchise LLC, formed in 2000, offered Swensen's-branded ice cream master franchises until 2015. More recently, in December 2018, Holy Sweet U.S.A., Inc., another affiliate, began offering unit franchises for Sweet Jesus quick-serve ice cream shops in the United States, following its Canadian parent company's acquisition of the Sweet Jesus brand.
Financial Overview
Investment Range
$251,950 - $1,170,950
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$500,000
Minimum Cash Required
$10,000
Royalty %
3%
Marketing %
1.5%
Equipment Costs (Low)
$174,900
Equipment Costs (High)
$580,200
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Yogen Früz U.S.A., Inc. provides audited financial statements in Exhibit D for the fiscal years ending August 31, 2021, 2022, and 2023. The independent auditors have issued an unqualified opinion, indicating that the financial statements present fairly. There are no "going concern" qualifications noted in the auditor's report, and the balance sheets show positive working capital, suggesting a stable financial position.
Financing Details
Yogen Früz U.S.A., Inc. does not offer any direct or indirect financing options to its master franchisees. The company also does not guarantee any promissory notes, mortgages, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
28
Franchised Units
28
Corporate Units
0
Franchising Since
1989
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
3
Litigation Summary
Yogen Früz U.S.A., Inc. (or its affiliates) has been involved in three disclosed litigation cases. One case, filed in 2016 by a Yogurty's® franchisee against Yogurty's Yogurt Inc. and its associates, alleges a materially deficient disclosure document and misrepresentations. Yogurty's denies these claims and has filed a counterclaim. No further legal steps have been taken in this case since the FDD issuance date. Another case, commenced in 2017, involves Yogen Früz Canada Inc.'s master franchisee in British Columbia, who claimed wrongful deductions from royalty payments. Yogen Früz Canada Inc. denied these allegations and stated the master franchisee was indebted to them. A trial for this case, scheduled for July 2020, was halted due to the COVID-19 pandemic, and both parties agreed not to proceed. The Master Franchise Agreement was terminated in April 2018. The third case, initiated in 2016 by a Yogen Früz® franchisee against Yogen Früz Canada Inc., alleges a breach of contract regarding the non-renewal of a head lease for a store location. Yogen Früz Canada Inc. disputes these claims, asserting it was not obligated to renew the lease. Yogen Früz Canada Inc. has filed a defense and intends to file a third-party claim against the landlord. All these cases are older than three years from the FDD issuance date, and no recent legal actions have been taken in any of them.
Bankruptcy History
Yogen Früz U.S.A., Inc. has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew the development term of their master franchise agreement, Yogen Früz U.S.A., Inc. master franchisees must provide written notice of their election to renew. They must not be in default of their agreement and must have substantially complied with all terms. They are required to sign Yogen Früz U.S.A., Inc.'s then-current form of Master Franchise Agreement, which may have materially different terms. Master franchisees must also pay a renewal fee equal to 50% of the initial Master Franchise Fee, comply with current qualification and training requirements, execute a general release, and reimburse Yogen Früz U.S.A., Inc. for all reasonable renewal costs.
Training & Support Program
Franchisor Assistance
Yogen Früz U.S.A., Inc. provides several forms of assistance to its master franchisees. Before opening, master franchisees and up to two representatives receive 8 to 10 days of initial training at a designated facility in Markham, Ontario, Canada, and are given access to confidential Operations and Construction Manuals. During the term of the agreement, Yogen Früz U.S.A., Inc. continues to provide access to these manuals and administers the Brand Fund for the benefit of the entire system. Master franchisees are also offered ongoing and refresher training programs. Yogen Früz U.S.A., Inc. may send representatives, at its own expense, to assist with the opening of the master franchisee's Affiliate Model Outlet, which is a required training facility. Upon request, Yogen Früz U.S.A., Inc. may also provide samples of marketing and promotional materials. The franchisor periodically reviews master franchisee operations and may offer additional guidance as needed.
Initial Training Hours
80
Training Location
Designated training facility in Markham, Ontario, Canada or other location in the Greater Toronto, Canada area.
Ongoing Support
Yogen Früz U.S.A., Inc. provides master franchisees with continued access to its Operations and Construction Manuals, which are updated periodically. The company also directs and administers the Brand Fund for the overall benefit of the Yogen Früz System. Master franchisees are required to attend and successfully complete any ongoing or refresher training programs deemed necessary by Yogen Früz U.S.A., Inc. These training programs are currently conducted in Canada.
Franchise Requirements
Ideal Candidate Profile
Yogen Früz U.S.A., Inc. seeks master franchisees who are qualified parties committed to personally participating in and supervising the operation of their master franchise business. The ideal candidate must be able to oversee their business directly, as they cannot hire a supervisor for this role. They also need to be capable of maintaining sufficient qualified personnel to train and supervise the operators of Yogen Früz Businesses within their Designated Territory.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
Yogen Früz U.S.A., Inc. defines its master franchise territories based on population. A typical Designated Territory includes between 240,000 and 2,400,000 people. No minimum territory size is provided other than this population-based definition for the Designated Territory itself.
Staffing Notes
Yogen Früz U.S.A., Inc. requires its master franchisees to maintain sufficient qualified personnel to train and supervise the operators of Yogen Früz Businesses within their Designated Territory. While there are no non-competition restrictions on these employees, they are obligated to protect the franchisor's confidential information.