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Description
Investment Icon

What is the Initial Investment for a sweetFrog Franchise?

To open a sweetFrog franchise, you'll need to prepare for a range of initial investments. The total investment can vary significantly, with a low end of $96,350 and a high end reaching $632,500. This includes a franchise fee of $30,000. Additionally, you’ll need to have a minimum cash requirement of $15,000 and a net worth ranging from $150,000 to $500,000. Understanding these financial commitments is crucial to determining if this opportunity aligns with your budget and financial goals.

Fees Icon

What are the Ongoing Fees for sweetFrog Franchisees?

As a sweetFrog franchisee, you will be responsible for ongoing fees that contribute to the brand’s marketing and operational support. This includes a royalty fee of 5% of your gross sales and a marketing fee of 2.5%. These fees help maintain the brand's presence and support franchisees in driving customer engagement and sales growth. Being aware of these ongoing costs is essential for effective financial planning and ensuring profitability.

Revenue Icon

What is the Average Revenue for a sweetFrog Unit?

sweetFrog franchises can be quite lucrative, with an average annual revenue of approximately $429,665 per unit. The revenue can vary, with the lowest reported annual revenue at $130,340 and the highest at $760,970. Understanding the revenue potential is vital for assessing the return on investment and the financial viability of operating a sweetFrog location.

Breakeven Icon

What is the Breakeven Time for a sweetFrog Franchise?

The breakeven time for a sweetFrog franchise is typically around 12 months. This means that franchisees can expect to recover their initial investment within the first year of operation, assuming they manage their business effectively. Additionally, the investment payback period is also estimated at 12 months, highlighting the potential for a relatively quick return on investment in this franchise model.

sweetFrog 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.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$150,000 - $500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

12 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$30,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

2.50%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$96,350 - $632,500
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$15,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$429,665
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$412,960
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$760,970
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$130,340
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Food Franchises
Category icon A more specific division within the broader industry.

i Category:

Ice Cream & Frozen Yogurt
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Patrick Galleher
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

9311 E Via De VenturaScottsdale, Arizona 85258
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2012
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

SFF, LLC

sweetFrog Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

216
The number of locations owned by independent franchisees.

Franchised Units i

216
The number of locations owned and run by the franchisor.

Corporate Units i

0
Units 2021 2022 2023
Total Units 238 221 216
Net Change YoY -17 -5
Franchised Units 238 221 216
Net Change YoY -17 -5
Corporate Units 0 0 0
Net Change YoY 0 0
Investment About

Initial Investment

The sweetFrog franchise offers a range of initial investment amounts, with a low end of $96,350 and a high of $632,500. This investment covers various startup costs, including equipment, inventory, and location setup, allowing franchisees to establish their frozen yogurt business effectively.

Potential About

Franchise Fees

Franchisees are required to pay an initial franchise fee of $30,000. This fee grants access to the sweetFrog brand, training programs, and ongoing support, helping new owners navigate the early stages of their business.

Metrics About

Royalty and Marketing Fees

sweetFrog charges a royalty fee of 5% on gross sales and a marketing fee of 2.5%. These fees contribute to the overall brand marketing efforts and provide franchisees with the tools needed to attract and retain customers in their local markets.

Fees About

Financial Performance

The average annual revenue per sweetFrog unit is $429,665, with a median revenue of $412,960. This strong financial performance indicates a healthy market for frozen yogurt, showcasing the potential profitability of investing in a sweetFrog franchise.

Breakeven About

Breakeven and Payback

Franchisees can expect to reach breakeven within 12 months, with an investment payback period also estimated at 12 months. This quick return on investment is appealing for aspiring entrepreneurs looking to enter the franchise space with a manageable risk profile.

Units About

Franchise Growth

As of 2023, sweetFrog operates a total of 216 franchised units, demonstrating a slight decline from previous years. Despite this decrease, the franchise continues to maintain a focus on supporting existing franchisees and optimizing operational efficiency for sustained growth.

Frequently Asked Questions

The initial investment for a sweetFrog franchise ranges from $96,350 to $632,500. This includes the franchise fee, equipment, and other startup costs.