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sweetFrog Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
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.
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.
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.
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.
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sweetFrog 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 | 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 |
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.
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.
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.
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.
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.
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.