Sweetfrog Franchise FDD, Profits, Costs & Fees (2024)
SweetFrog Premium Frozen Yogurt is a self-serve frozen yogurt franchise that offers customers a variety of flavors and toppings to create their own customized desserts. Founded in 2009 by Derek Cha in Richmond, Virginia, SweetFrog has grown rapidly since its inception.
The company is currently headquartered in Richmond and began franchising shortly after its founding, allowing for swift expansion across the United States and internationally.
The franchise specializes in premium frozen yogurt, providing a wide array of flavors and an extensive selection of toppings, including fresh fruits, candies, and nuts.
This self-service model empowers customers to craft their desserts to their liking, setting sweetFrog apart from competitors by offering a personalized and interactive experience. Additionally, the brand emphasizes a family-friendly atmosphere, featuring vibrant store designs and mascots that appeal to all age groups.
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Initial Investment
How much does it cost to start a SweetFrog franchise? It costs on average between $96,000 – $633,000 to start a SweetFrog franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property. SweetFrog offers 3 types of franchises:
| Type of Restaurant | Initial Investment Range |
|---|---|
| SweetFrog Traditional Restaurant | $248,500 to $632,500 |
| Non-Traditional Restaurant (Kiosk & Standard Counter Floorplan) | $96,350 to $377,750 |
| Non-Traditional Restaurant (Vehicle) | $122,900 to $275,300 |
We are summarizing below the main costs associated with opening a SweetFrog Traditional Restaurant. For more information on the costs required to start a SweetFrog franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount (Low-High Range) |
|---|---|
| Initial Franchise Fee | $15,000 – $30,000 |
| Leasehold Improvements/Construction | $110,000 – $252,000 |
| Lease Review Fee (Optional) | $0 – $2,500 |
| Furniture, Fixtures, and Equipment | $59,000 – $231,000 |
| Lease, Security Deposits | $3,000 – $12,000 |
| Utility Deposits | $500 – $2,000 |
| Design and Architectural/Engineering Fees | $7,500 – $16,000 |
| Interior and Exterior Signage; Décor Package | $7,500 – $16,000 |
| Other Equipment | $1,500 – $3,500 |
| Grand Opening Marketing | $10,000 |
| Expenses during Initial Training | $1,000 – $2,000 |
| Insurance | $2,000 – $5,000 |
| Business Licenses & Permits | $1,500 – $3,500 |
| Point of Sale Systems | $3,000 – $5,000 |
| Office Equipment & Supplies (3 months) | $500 – $1,000 |
| Opening Inventory (1 week) | $3,500 – $8,000 |
| Professional Fees | $0 – $10,000 |
| Depository Account | $3,000 |
| Additional Funds – For Initial 3 Month Period | $20,000 |
| Total | $248,500 – $632,500 |
Average Revenue (AUV)
How much revenue can you make with a SweetFrog franchise? A SweetFrog franchised restaurant makes on average $413,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $520,000 yearly revenue for similar ice cream franchises:
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Sweetfrog Franchise Disclosure Document
Frequently Asked Questions
How many SweetFrog locations are there?
As of the latest data, SweetFrog Premium Frozen Yogurt operates over 300 locations across the United States and internationally. The franchise continues to expand, offering opportunities for new franchisees to join the SweetFrog family.
What is the total investment required to open a SweetFrog franchise?
The total investment required to open a SweetFrog franchise ranges from $96,000 to $633,000.
What are the ongoing fees for a SweetFrog franchise?
Operating a SweetFrog franchise involves ongoing fees, including a royalty fee of 5% of gross sales, plus a $10 weekly surcharge. Franchisees also contribute up to 3% of net sales for marketing, split between the System Marketing Fund (1.5%) and local advertising (1%). These fees support brand consistency, national campaigns, and local marketing efforts.
What are the financial requirements to become a SweetFrog franchisee?
To become a SweetFrog franchisee, candidates are required to have a minimum net worth of $500,000 and at least $200,000 in liquid assets. These financial prerequisites ensure that potential franchisees possess the necessary resources to establish and operate a sweetFrog location effectively, covering initial investments and sustaining operations during the startup phase.
How much can a SweetFrog franchise owner expect to earn?
The average gross sales for a SweetFrog franchise are approximately $0.41 million per location. Assuming a 15% operating profit margin, $0.41 million yearly revenue can result in $62,000 EBITDA annually.
Who owns SweetFrog?
SweetFrog Premium Frozen Yogurt is owned by MTY Food Group, a Canadian company based in Montreal, Quebec. MTY Food Group acquired SweetFrog in the fall of 2018, expanding its portfolio of quick-service restaurant brands
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