Yogurt Mountain logo

Yogurt Mountain Franchise

Audited Financials
Food and BeverageEst. 2009Birmingham, AL
www.yogurtmountain.com

Risk Score

Pending analysis

Investment Range

$271,110 - $930,500

Franchise Fee

$15,000

Min Cash Required

$15,000

Total US Locations

24

Business Summary

Yogurt Mountain Franchising, LLC offers franchises for Yogurt Mountain® stores that feature self-service frozen yogurt and related products. Franchisees also have the option to include a café offering coffee, baked goods, and related products within their store.

Corporate History

Yogurt Mountain Franchising, LLC began offering franchises for Yogurt Mountain Stores in March 2010, focusing solely on franchising. Its parent company is Yogurt Mountain Holding, LLC, which is ultimately owned by Books-A-Million, Inc. An affiliate, Yogurt Mountain, LLC (YMLLC), has owned and operated Yogurt Mountain Stores since September 2009 and licenses the trademarks to Yogurt Mountain Franchising, LLC. Another affiliate, Yogurt Mountain Card Services, LLC, manages gift and loyalty card programs. Books-A-Million, Inc. itself has also operated Yogurt Mountain Stores within its retail bookstores since November 2009 and licenses trademarks for the optional Café Line.

Financial Overview

Investment Range

$271,110 - $930,500

Franchise Fee (Low)

$15,000

Franchise Fee (High)

$30,000

Minimum Cash Required

$15,000

Royalty %

6%

Marketing %

2%

Equipment Costs (Low)

$170,490

Equipment Costs (High)

$773,000

Working Capital

$22,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Yogurt Mountain Franchising, LLC's financial condition, as noted in the FDD's special risks section, calls into question the franchisor's financial ability to provide services and support to its franchisees, despite receiving an unqualified audit opinion for its consolidated financial statements.

Financing Details

Yogurt Mountain Franchising, LLC does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any promissory notes, mortgages, leases, or other obligations to third parties on behalf of franchisees.

Performance Metrics

Total US Locations

24

Franchised Units

19

Corporate Units

5

Avg Square Footage

2,000

Franchising Since

2010

Agreement Terms

Initial Term

5 years

Renewal Term

5 years

Renewal Conditions

To renew, Yogurt Mountain Franchising, LLC franchisees must provide written notice between 180 and 270 days before their agreement expires. They must also repair, replace, and update their equipment and premises to meet current brand standards, ensure they are not in breach of any agreements with the franchisor or its affiliates, satisfy all monetary obligations, and have the right to remain in possession of their premises. Additionally, franchisees must pay a $2,500 successor franchise fee, sign the then-current franchise agreement and a general release (unless prohibited by law), and comply with the franchisor's current qualifications and training requirements. The new franchise agreement may have terms and conditions that are materially different from the previous one.

Training & Support Program

Franchisor Assistance

Yogurt Mountain Franchising, LLC provides pre-opening assistance to its franchisees, including reviewing and approving sites and leases, providing initial training, and offering opening assistance for the first store. Franchisees also receive access to the Operations Manual and specifications for required operating assets, computer systems, furniture, fixtures, and signs, along with lists of approved vendors. After opening, Yogurt Mountain Franchising, LLC continues to provide updates to the Operations Manual and System Standards, administers the Marketing Fund, and offers a list of authorized vendors for operating assets. The franchisor may also set maximum or minimum prices for products, if legally permitted.

Initial Training Hours

38

Training Location

Our headquarters (Birmingham, AL) and a Yogurt Mountain Store in Birmingham, AL

Ongoing Support

Yogurt Mountain Franchising, LLC offers ongoing support to franchisees by continuously providing access to its Operations Manual and System Standards. The franchisor also manages the Marketing Fund and supplies franchisees with a list of authorized vendors for operating assets. Additionally, Yogurt Mountain Franchising, LLC may advise franchisees on operations, purchasing, advertising, marketing programs, and employee training. Franchisees or their designated managers may be required to attend annual conferences and periodic refresher training courses, with franchisees responsible for associated costs and fees.

Franchise Requirements

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

protected

Territory Size Requirements

Yogurt Mountain Franchising, LLC grants a protected territory to its franchisees, which consists of a circle with the franchisee's store at the center and a radius of 1 mile.

Staffing Notes

Yogurt Mountain stores require the franchisee or a Managing Owner (who holds at least a 25% ownership interest) to dedicate their full-time efforts to supervising and conducting the business. If the franchisee or Managing Owner opts not to supervise full-time, they must appoint a Designated Manager. This manager needs to be approved by Yogurt Mountain, complete the initial training program, and not engage in competitive business activities. If a Designated Manager leaves, a replacement must be recruited and approved within 30 days, during which the franchisee or Managing Owner must resume full-time supervision. Yogurt Mountain may also require up to two additional managers to complete the initial training. All employees must meet specific qualifications regarding training, uniforms, and appearance as outlined in the System Standards. The franchisee retains sole responsibility for all aspects of employee management, including hiring, firing, training, compensation, and work assignments, ensuring compliance with all federal, state, and local employment laws.