Yogurtland Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$45,000 - $637,600
Franchise Fee
$15,000
Min Cash Required
$1,000
Total US Locations
201
Business Summary
Yogurtland Franchising, Inc. operates retail stores that specialize in selling frozen desserts, beverages, and other designated food and merchandise items. These stores can be traditional in-line locations with seating or non-traditional locations within another business or institutional setting, potentially offering a reduced menu. Yogurtland provides customers with a wide selection of frozen yogurt and various toppings for on-premises consumption and carryout.
Corporate History
Yogurtland Franchising, Inc., the current franchisor entity, was formed on January 12, 2023, as a Texas corporation. This entity acquired substantially all of its assets from its predecessor, Yogurtland Franchising, Inc. (YFI CA), a California corporation, which had been offering and selling Yogurtland franchises from March 2007 until January 2023. The first Yogurtland retail store was opened by an affiliate, Higher Ground Development Corp., on September 26, 2008. Over the years, other affiliates like PMC Enterprise, Inc. and MCP Enterprise, Inc. also opened and operated Yogurtland retail stores.
Financial Overview
Investment Range
$45,000 - $637,600
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$40,000
Minimum Cash Required
$1,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$95,615
Equipment Costs (High)
$230,315
Working Capital
$17,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Yogurtland Franchising, Inc. received an unqualified audit opinion for its financial statements as of and for the years ended December 31, 2023, 2022, and 2021, indicating that the statements present fairly its financial position. The company corrected prior year accounting errors related to depreciation expense and contract liabilities, which resulted in an overstatement of contract liabilities. Yogurtland Franchising, Inc. has significant related party transactions, including amounts due from and to related parties, notes receivable, and loans payable. The company has identified these related parties as variable interest entities, and while it is the primary beneficiary, it is not required to consolidate them into its financial statements under specific FASB ASU No. 2018-17 conditions. Notably, $1,370,000 in 'RRF' loans from its corporate stores are unsecured, noninterest-bearing, and classified as long-term liabilities.
Financing Details
Yogurtland Franchising, Inc. does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
201
Franchised Units
194
Corporate Units
7
Avg Square Footage
1,250
Franchising Since
2007
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
3
Litigation Summary
Yogurtland Franchising, Inc. has disclosed three concluded litigation cases. Two of these cases, Steven Mitnick v. Yogurtland Franchising, Inc. and Catherine Youngman v. Yogurtland Franchising, Inc., involved claims from a former franchisee and a bankruptcy trustee, respectively. These cases, filed in 2016 and 2017, alleged breach of contract, fraudulent inducement, and violations of franchise practice acts. Both were compelled to arbitration and settled in February 2019, with Yogurtland Franchising, Inc. making no payments. The third case, a claim from Martino Investment Group, LLC, was an arbitration proceeding initiated in March 2015 by a former franchisee alleging breach of contract, fraud, and franchise law violations. This case was settled in June 2016, where Yogurtland Franchising, Inc. paid $607,500 to the claimant and an additional $220,000 for attorney's fees, plus about $60,000 to the landlord. Yogurtland Franchising, Inc. denied any wrongdoing in the settlement. All disclosed litigation has been concluded prior to the FDD issuance date of August 30, 2024.
Bankruptcy History
Yogurtland Franchising, Inc. has no bankruptcies that are required to be disclosed in this item.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew the franchise agreement for an additional term, Yogurtland franchisees must continuously comply with the agreement throughout the current term. They need to provide written notice of their intent to renew between 180 and 365 days before the current term expires. Franchisees must also pay a renewal fee, sign Yogurtland Franchising, Inc.'s then-current franchise agreement for the renewal term, sign a general release of claims, remodel and upgrade their store to meet current brand standards, and be current on all amounts owed to the franchisor and its affiliates. Franchisees must also ensure they have adequate lease rights for the renewal term.
Training & Support Program
Franchisor Assistance
Yogurtland Franchising, Inc. provides extensive support to its franchisees both before and during operation. Before opening, Yogurtland assists with site selection and review, provides a prototype design package, equipment lists and specifications, and material specifications. It offers limited construction project management services for a $6,000 fee, which includes general guidance during construction, two site visits, and assistance with equipment layout. Yogurtland also provides initial training for two management individuals, at no additional charge. During operation, franchisees receive information on approved product sources, ongoing guidance via an Operations Manual, bulletins, and electronic communications, and help with new product developments or operational problems. Yogurtland conducts store inspections, offers additional training programs for a fee, and suggests pricing. It also manages a Marketing Fund, which franchisees contribute to, for national, regional, and local advertising campaigns. Yogurtland provides direct access to the franchisee's POS System for remote data review and assistance, and offers a Confidential Business Operations Manual.
Initial Training Hours
110
Training Location
Yogurtland Support Center in Irvine, California, and/or corporate stores in Los Angeles, Orange, or San Diego counties, California.
Ongoing Support
After opening, Yogurtland franchisees receive ongoing support through various channels. They get information regarding approved product and service sources, along with guidance and operating assistance on methods, standards, equipment, and local advertising programs via the Operations Manual, bulletins, written materials, telephone, and electronic messages. Yogurtland also informs franchisees about new product developments and offers help with operating problems. The franchisor conducts store inspections and may offer additional training programs for new store managers or as deemed appropriate, typically for a fee. Suggested pricing is also provided. Franchisees contribute to a Marketing Fund used for system-wide advertising, marketing, public relations, and promotional items. Yogurtland's Technology Department can remotely access franchisees' POS systems for data review and assistance. The Confidential Business Operations Manual is available, and additional training programs covering new products, procedures, and marketing are periodically offered.
Franchise Requirements
Ideal Candidate Profile
Yogurtland Franchising, Inc. seeks franchisees or designated managers who are committed to dedicating a minimum of 40 hours per week to on-site management of their franchised business. This key individual must successfully complete Yogurtland Franchising, Inc.'s initial training program. At least one employee at the store must also hold an approved American National Standards Institute (ANSI) Food Safety certification. The business model assumes the franchisee will manage the store and have sufficient funds to cover initial operating expenses.
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
Non-Exclusive
Territory Size Requirements
Yogurtland Franchising, Inc. does not grant exclusive territories for single-unit franchises, and there are no minimum distance requirements that would prevent the franchisor from developing or approving new stores near an existing location. For Area Development Agreements, territories are defined as a mutually agreed upon geographical area.
Staffing Notes
Yogurtland Franchising, Inc. requires that the franchisee or a designated manager dedicate a minimum of 40 hours per week to on-site management of the franchised business. This designated person must successfully complete the initial training program. During every shift of the store's operation, at least one employee on staff must hold an approved American National Standards Institute (ANSI) Food Safety certification. All replacement store managers must also complete the franchisor's training program to its satisfaction before starting employment. Yogurtland Franchising, Inc. provides initial training for two store management persons.