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TCBY Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
What is the Initial Investment for a TCBY Franchise?
To open a TCBY franchise, the initial investment ranges from $141,400 to $699,467. This includes a franchise fee of $35,000. Potential franchisees should also consider the cash required, which falls between $141,400 and $285,350, along with a net worth requirement of $200,000 to $300,000. Understanding these financial commitments is crucial for anyone looking to join the TCBY brand.
What are the Ongoing Fees for TCBY Franchisees?
TCBY franchisees need to be aware of ongoing fees that can impact their profitability. The royalty fee for operating a new unit is set at 6%, while the marketing fee is an additional 3%. These ongoing financial obligations are essential for maintaining brand presence and operational support, and franchisees should factor them into their overall business strategy.
What is the Financial Performance of TCBY Units?
On average, TCBY franchise units generate annual revenues of approximately $404,999, with a median revenue of $340,612. The range of annual revenues can vary significantly, from as low as $119,793 to as high as $1,357,629. Understanding these figures can help prospective franchisees gauge the potential profitability of their investment.
How Quickly Can a TCBY Franchise Break Even?
Franchisees can expect to reach their breakeven point within 12 months of operation. This quick return on investment is a significant factor for many entrepreneurs considering a TCBY franchise. Additionally, the investment payback period is also estimated at 12 months, making it an appealing option for those looking to enter the frozen yogurt market.
TCBY 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:
TCBY 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 | 172 | 168 | 151 |
| Net Change YoY | -4 | -17 | |
| Franchised Units | 172 | 168 | 151 |
| Net Change YoY | -4 | -17 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY |
Franchise Overview
TCBY, known as "The Country's Best Yogurt," is a well-established frozen yogurt franchise that has been delighting customers since 1981. With a focus on high-quality, delicious yogurt and a variety of toppings, TCBY has built a loyal customer base. The brand emphasizes health and wellness, offering a range of low-fat and non-dairy options, making it a popular choice among health-conscious consumers.
Investment Requirements
Starting a TCBY franchise requires a financial commitment ranging from $141,400 to $699,467. The initial franchise fee is set at $35,000, with ongoing royalty and marketing fees of 6% and 3%, respectively. Prospective franchisees need to have a cash reserve of $141,400 to $285,350 and a net worth of $200,000 to $300,000 to qualify for this opportunity.
Financial Performance
TCBY units have an average annual revenue of $404,999, with a median revenue of $340,612. The financial metrics indicate a gross profit margin of 70.4%, after accounting for cost of goods sold (29.6% of revenue) and operating expenses (65.5% of revenue). The average EBITDA per unit stands at $51,445, representing 12.7% of revenue, showcasing the brand's potential for profitability.
Unit Growth
In recent years, TCBY has experienced a decline in the number of franchised units, with 172 units in 2021, 168 in 2022, and 151 in 2023. This trend highlights the importance of strategic planning and market adaptation for current and prospective franchisees. Despite the decrease in units, the brand remains committed to its franchise partners and community engagement.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 12 months of opening their TCBY location. The investment payback period is also around 12 months, making it a relatively quick path to financial recovery for new franchisees. This rapid return on investment is attractive for those looking to enter the franchise market.
Marketing and Support
TCBY provides comprehensive marketing support to its franchisees, including national advertising campaigns and local store marketing initiatives. The marketing fee of 3% of gross sales contributes to these efforts, ensuring brand visibility and customer engagement. Franchisees benefit from ongoing training and operational support, helping them to successfully manage their businesses and drive sales.
Frequently Asked Questions
The initial investment for a TCBY franchise ranges from $141,400 to $699,467, which includes the franchise fee, equipment, and other startup costs.