Risk Score
Pending analysis
Investment Range
$191,644 - $619,344
Franchise Fee
$182,000
Min Cash Required
$5,000
Total US Locations
18
Business Summary
Yonutz Franchising, Inc. offers the right to own and operate an Area Representative Business. This business is responsible for promoting, establishing, and supporting Unit Franchises. These Unit Franchises operate quick-service restaurants, known as Yonutz® Restaurants, which serve donuts, ice cream, donuts filled with ice cream, milkshakes, FroYos, and smoothies to the general public at specific locations.
Corporate History
Yonutz Franchising, Inc. was formed as a Florida corporation in November 2019. It operates under the name Yonutz® and does not engage in other lines of business or own any franchised businesses. Its affiliate, Dinky Donuts, Inc., formed in November 2017, held the intellectual property for Yonutz® and operated a Yonutz® restaurant in Sunrise, Florida, until it was sold in July 2022. Yonutz Franchising, Inc. started offering Unit Franchises in January 2020 and Area Representative Businesses in May 2020.
Financial Overview
Investment Range
$191,644 - $619,344
Franchise Fee (Low)
$182,000
Franchise Fee (High)
$567,750
Minimum Cash Required
$5,000
Equipment Costs (High)
$5,000
Working Capital
$5,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD highlights a special risk regarding Yonutz Franchising, Inc.'s financial condition. As stated in the Special Risks section, the franchisor's financial situation, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees.
Financing Details
Yonutz Franchising, Inc. does not offer any direct or indirect financing to franchisees. It also does not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
18
Franchised Units
18
Corporate Units
0
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Yonutz Franchising, Inc. has no litigation history to report.
Bankruptcy History
Yonutz Franchising, Inc. has no bankruptcy history to disclose.
Agreement Terms
Initial Term
15 years
Renewal Term
10 years
Renewal Conditions
To renew their Yonutz® Area Representative franchise, franchisees must have substantially complied with their Area Representative Agreement and provided timely notice of their intent to renew. They must sign a new Area Representative Agreement, which may have different terms and conditions, including potentially different renewal periods or higher fees. Franchisees are also required to sign a general release of claims against Yonutz Franchising, Inc. and its related parties, pay the applicable renewal fee, cure any existing defaults, and settle all amounts owed to Yonutz Franchising, Inc.
Training & Support Program
Franchisor Assistance
Yonutz Franchising, Inc. provides several forms of assistance to its Area Representative franchisees. Before opening, Yonutz Franchising, Inc. offers an initial training program for up to three attendees at no extra cost, requiring the franchisee to cover travel and living expenses. They also loan a confidential Manual for Area Representative Businesses and prepare and register the necessary disclosure documents for Unit Franchises, with the franchisee assisting in providing information and covering applicable costs. Yonutz Franchising, Inc. also reviews and approves the franchisee's advertising and marketing materials. After opening, ongoing support includes additional or refresher training programs, which may involve fees and travel expenses, and continued access to the Manual. Yonutz Franchising, Inc. provides general guidance through bulletins and, upon request, special guidance or training for a fee. They approve or disapprove prospective Unit Franchisees and their proposed sites, and pay commissions to the Area Representative for Unit Franchises sold and a percentage of royalty fees collected from Unit Franchisees.
Initial Training Hours
20
Training Location
Corporate offices in Weston, FL, or another designated location, with the option for some or all training to be conducted online.
Ongoing Support
After the Yonutz® Area Representative franchise opens, Yonutz Franchising, Inc. provides additional or refresher training programs, which may be mandatory, including periodic webinars, sales calls, and an annual national business meeting. Franchisees may be required to attend up to two additional training courses each year. While fees may be charged for these programs, franchisees are responsible for all travel, lodging, meal, and personal expenses. Yonutz Franchising, Inc. continues to lend a copy of its Manual for Area Representative Businesses and provides general guidance through various materials. They also approve or disapprove prospective Unit Franchisees and their proposed site locations, and pay the Area Representative a portion of the initial franchise and royalty fees.
Franchise Requirements
Ideal Candidate Profile
Yonutz Franchising, Inc. seeks Area Representative franchisees who have prior business management experience, which is considered very important. Previous business ownership experience is also highly desirable. The Owners of the Area Representative Business must personally participate in its direct operation. If an Owner is not involved full-time, a fully trained Manager must operate the franchise. All Owners and individuals directly involved in the operation, including a general manager, must successfully complete the initial training program.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Hands-On
Territory Type
Exclusive
Territory Size Requirements
Yonutz Franchising, Inc. grants exclusive Development Areas for its Area Representative franchisees. These territories are generally defined by county boundaries or fixed geographical landmarks like rivers, streets, or highways. There is no specific minimum or maximum size for a Development Area, as the size is determined by factors such as demographics, the franchisee's capacity to recruit and provide services, and the estimated number of Unit Franchises that can operate within that area.
Staffing Notes
Yonutz Franchising, Inc. requires its Area Representative franchisees to employ a sufficient number of qualified staff to meet their Minimum Development Obligation and to supervise, assist, train, and provide services to Unit Franchisees. Owners must personally participate in the direct operation of the Area Representative Business. If an Owner is not involved full-time, a fully trained Manager must be employed to operate the franchise. Any Manager hired at the launch of operations must complete the initial management-training course required by Yonutz Franchising, Inc., and all subsequent Managers must be trained according to their standards by either the Area Representative or the company.