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Orange Leaf Frozen Yogurt Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
Orange Leaf Frozen Yogurt Franchise Overview
The Orange Leaf Frozen Yogurt franchise offers a unique and customizable dessert experience with a variety of flavors and toppings. With an initial investment ranging from $204,750 to $722,000, potential franchisees can enter a growing market that emphasizes health-conscious choices. The franchise fee is set at $30,000, and ongoing royalty and marketing fees are 5% and 3%, respectively. This model supports entrepreneurs looking to tap into the booming frozen yogurt sector, which appeals to a diverse customer base.
Financial Performance Insights
Orange Leaf Frozen Yogurt units have shown a wide range of financial performance, with average annual revenue per unit at approximately $627,557 and a median of $608,899. The highest annual revenue reported is $885,809, while the lowest is $54,118. Franchisees can expect to break even within 12 months and achieve investment payback in around 24 months, making this an attractive opportunity for those seeking a profitable venture in the dessert industry.
Operational Requirements and Costs
To successfully operate an Orange Leaf Frozen Yogurt franchise, potential owners should prepare for a total initial cash requirement between $204,750 and $640,000. This includes costs such as lease deposits, insurance, professional fees, and marketing expenses. The estimated total annual running expenses can range from $22,500 to $71,000. Understanding these costs is crucial for franchisees to effectively manage their financial commitments and ensure operational success.
Market Trends and Growth Potential
The frozen yogurt market continues to expand, driven by consumer demand for healthier dessert options. As of 2023, Orange Leaf has seen a decline in franchised units, from 82 in 2021 to 61 in 2023, indicating a need for strategic growth initiatives. However, the brand's commitment to quality and customer experience positions it well to capitalize on market trends. Aspiring franchisees should consider the long-term potential of the brand and the evolving preferences of health-conscious consumers when evaluating this opportunity.
Orange Leaf Frozen Yogurt Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Orange Leaf Frozen Yogurt Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 82 | 70 | 61 |
| Net Change YoY | -12 | -9 | |
| Franchised Units | 82 | 70 | 61 |
| Net Change YoY | -12 | -9 | |
| Corporate Units | 0 | 1 | 0 |
| Net Change YoY | 1 | -1 |
Initial Investment
The Orange Leaf Frozen Yogurt franchise offers a range of initial investment costs, with a low end of $204,750 and a high end of $722,000. The franchise fee is set at $30,000, making it accessible for aspiring entrepreneurs. Additionally, potential franchisees should be prepared for a cash requirement ranging from $204,750 to $640,000, alongside a net worth requirement between $340,706 and $597,363.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $627,557 per unit, with a median revenue of $608,899. The revenue range is quite wide, with the lowest annual revenue recorded at $54,118 and the highest at $885,809, indicating varying performance levels across locations.
Royalty and Marketing Fees
Orange Leaf Frozen Yogurt charges a royalty fee of 5% on gross sales, along with a marketing fee of 3%. These fees are essential for maintaining brand presence and supporting franchisee growth, ensuring that franchisees benefit from collective marketing efforts while contributing to the brand's overall success.
Breakeven and Payback Period
The franchise has a breakeven time of approximately 12 months, allowing new franchisees to recover their initial investments relatively quickly. The investment payback period is around 24 months, which is favorable for those looking to gauge the return on their investment in a timely manner.
Franchise Growth
Over the past few years, the number of franchised units has seen a decline, with 82 units in 2021, 70 in 2022, and 61 in 2023. This trend may reflect market challenges or strategic shifts within the company, indicating potential considerations for prospective franchisees regarding brand stability and growth opportunities.
Operating Expenses
The average operating expenses for an Orange Leaf Frozen Yogurt unit can range from $22,500 to $71,000 annually. Key expenses include lease deposits, insurance, professional fees, marketing fees, and additional funds for opening expenses. Understanding these costs is crucial for effective financial planning and ensuring profitability.
Frequently Asked Questions
The initial investment for an Orange Leaf franchise ranges from $204,750 to $722,000. This includes the franchise fee, equipment, and other startup costs.