TCBY and Mrs. Fields Franchise Costs $134K – $697K (2024)
TCBY (The Country’s Best Yogurt) and Mrs. Fields are iconic brands under Famous Brands International. TCBY, which started in 1981, offers a healthier alternative with its variety of frozen yogurts. Mrs. Fields, on the other hand, was founded in 1977 by Debbi Fields and became famous for its fresh, high-quality cookies and brownies.
Both brands, headquartered in Broomfield, Colorado, benefit from a dual-branding strategy that allows them to cater to a wider audience by combining their product offerings. This strategy includes a variety of store formats, such as traditional counter services, interactive self-serve stations, and convenient kiosks designed to fit different spaces and customer preferences.
As they continue to expand globally, TCBY and Mrs. Fields are adapting their products and store designs to meet consumers’ changing tastes and maintain a competitive edge in the dessert market. Their focus on innovation and franchisee support has led to their ongoing growth and success in the food industry.
Initial investment
Here’s what you can expect to spend to start a TCBY and Mrs. Fields franchise.
Type of Expenditure | Amount |
---|---|
Initial franchise fee | $35,000 |
Travel and living expenses while training | $2,000 – $3,000 |
Improvements and Equipment | $418,130 – $600,917 |
Opening Product and Soft Goods Inventory | $1,500 – $10,000 |
Grand opening promotion, if opening a new store | $5,000 – $10,000 |
Security deposits, utility deposits, business licenses, and other deposits and prepaid expenses | $4,000 – $5,000 |
Professional fees | $9,000 – $10,000 |
Insurance (3 months) | $2,500 – $3,500 |
Computer hardware and software | $1,500 – $8,050 |
Additional funds (3 months) | $8,000 – $12,000 |
Total* | $486,630 – $697,467 |
Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.
Franchise fees & Royalties
Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.
Initial Franchise Fee
Upon signing the franchise agreement, you must pay a non-recurring, non-refundable initial franchise fee of $35,000. Fees may also be reduced to $25,000 for honorably discharged U.S. military veterans or existing franchisees.
Royalty Fee
The franchise charges a royalty fee of 6% of Gross Revenue, which is due weekly based on the Store’s Gross Revenue for the preceding week.
Marketing Fee
The marketing fee is 3% of Gross Revenue, payable at the same time as the royalty fee.
Computer System Compliance Fee
If you fail to comply with the required Computer System, a fee of the greater of $500 per month or the current monthly rate of the software license is due.
Delinquent Opening Fee
If you do not secure the Premises for your Store within six months, a Delinquent Opening Fee of $1,000 per month may be required until you execute a lease or terminate the Franchise Agreement.
Audit
You must cover the cost of a financial audit if it shows an understatement of Gross Revenue by more than 2% or if an audit is required due to your failure to provide timely records and reports.
Transfer Fee
A Transfer Fee of $12,500 is payable before or upon the final closing of a transfer, except if the transfer is among your existing Entity Owners and the ownership structure remains unchanged.
How to apply
Opening a TCBY and Mrs. Fields franchise involves several steps designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a TCBY and Mrs. Fields franchise.
1. Research the Franchise
- Understand the brands: Research TCBY (The Country’s Best Yogurt) and Mrs. Fields to understand their market presence, brand appeal, and customer base.
- Market analysis: Analyze your local market to assess demand for frozen yogurt and freshly baked cookies.
- Competitor analysis: Look into existing competitors in your area to evaluate market saturation and potential challenges.
2. Review the Franchise Disclosure Document (FDD)
- Obtain the FDD: Request the FDD from the franchisor, which will provide detailed information about the franchise.
- Legal and financial review: Have a lawyer and an accountant review the FDD to understand your legal obligations and the financial aspects, including fees, potential earnings, and other disclosures.
3. Secure Financing
- Estimate total investment: Calculate the total cost required to start and operate the franchise, including franchise fees, equipment, initial inventory, and working capital.
- Explore financing options: Look into loans, investors, or personal savings to fund your franchise. Check if the franchisor offers financing support or has partnerships with lenders.
4. Choose a Suitable Location
- Site selection criteria: Identify the criteria provided by the franchisor for selecting a suitable location.
- Demographics and foot traffic: Choose a location based on demographics alignment and high foot traffic to maximize customer exposure.
5. Complete Franchise Application
- Submit application: Fill out the franchise application form to formally express your interest in opening a franchise.
- Background checks and interviews: Be prepared for the franchisor to conduct background checks and interviews to assess your suitability as a franchisee.
6. Attend Franchise Training
- Initial training programs: Participate in mandatory training programs offered by the franchisor to understand the operational, administrative, and customer service standards of TCBY and Mrs. Fields.
- Operational procedures: Learn about specific procedures and recipes, staff training, customer service, and use of point-of-sale systems.
7. Setup and Launch Your Franchise
- Store setup: Follow the franchisor’s guidelines to set up your store, including design, layout, and equipment installation.
- Hire staff: Recruit and train employees based on the standards provided in the training.
- Soft opening: Consider a soft opening to iron out operational kinks before the official opening.
Disclaimer
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