If you like yogurt or some similar dessert like ice cream and sorbet, you have probably been to Yogurtland at least once.
They are a big business with branches in several states in the US and abroad.
That’s why it is obvious that they could be a great business to own if you are looking to expand your portfolio or enter into entrepreneurship.
Yogurtland is one of the international companies that offer franchises both domestically and internationally.
After conducting thorough research on the market, it is found that this franchise opportunity is so incredible that it is also one of the best franchises that one must own.
That’s why you have the option to actually own a Yogurtland branch if you wish to.
This Yogurtland article will take a look at the Yogurtland franchise, the opportunity, associated costs, and other important details to get started.
About The Yogurtland
Yogurtland is a popular self-serve frozen international yogurt franchise chain. Yogurtland offers a wide variety of flavors and toppings for customers to mix and match.
Yogurtland is headquartered in California, United States, but they have stores in other states and countries.
It is considered that Yogurtland is the pioneer of the self-serve format in the restaurant industry.
That’s why Yogurtland is known for its innovative approach to self-service. This is one of the things that made Yogurtland quickly popular.
The company prides itself on using real, high-quality ingredients to create delicious frozen yogurt that is both healthy and satisfying.
Customers can choose from a range of flavors. These include classic favorites like chocolate and vanilla and more unique options like taro, passion fruit, and cake batter.
Yogurtland History
Yogurtland was founded in 2006 by entrepreneur Phillip Chang. Chang was inspired to start the company after seeing the popularity of self-serve frozen yogurt shops in Asia and realizing that there was no similar concept in the United States.
He opened the first Yogurtland location in Fullerton, California, and the company quickly gained a loyal following.
His main goal was to give the customers high-quality ingredients with their offerings.
Today, after more than 15 years in operation, Yogurtland has over 320 locations in 25 countries around the world. They are one of the largest frozen yogurt chains in the world.
Yogurtland has won numerous awards for its high-quality yogurt and innovative business model, and it continues to expand and grow each year.
Yogurtland Franchise Model
| Cost or Fee | Amount or Percentage |
|---|---|
| Initial Investment | $182,500-$486,000 |
| Franchise | YES |
| Franchising Since | 2007 |
| Franchise-Fee | $35,000 |
| Royalty-Fee | 6% |
| Liquidity | $1 million |
| Estimated Outlets | 250+ |
How Much Does It Cost To Open A Yogurtland Franchise?
Starting a Yogurtland franchise comes with several different costs.
It depends on whether you are opening a traditional or a non-traditional location and whether it is domestic or international.
However, the only fixed cost is the franchise fee, which is $35,000, no matter where or what kind you are starting.
The total investment could range from $182,500 to $486,000. This number is mostly for domestic franchises, and there are no average costs for international franchise branches because it differs quite a lot.
The initial investment includes all kinds of costs, such as the franchise fee, lease, training, equipment, and other operational costs. Based on these, the costs could be higher than the average numbers.
Yogurtland Franchise Requirements
The requirement to open a Yogurtland franchise is mostly financial and real-estate related and not related to personal background.
Yogurtland requires the franchisee to have access to $1 million in liquid funds for domestic US branches.
For international branches, they are looking for $1 million in liquid funds and a $5 million net worth. There is no net worth requirement for domestic US branches.
In the case of the store’s location, they are looking for areas with community centers, lifestyle centers, retail centers, and other similar playful areas around.
Typical space size should be between 1,000 to 1,400 square feet and have easy accessibility. There are also other big and small requirements that you can learn more about on their FDD.
Yogurtland Profit & Revenue
Yogurtland is not a publicly traded company, and that means that they don’t have to reveal its financials to the public.
This is why we don’t know exactly how much Yogurtland makes each year, and it’s hard to get an estimation.
However, there are some reports on the internet that give us a sort of glimpse into how much they might be making annually.
These numbers might not be fully accurate and might differ from the actual numbers. According to Mobile Cuisine, on average, Yogurtland makes about $66.9 million annually.
But it’s likely that this number has dropped significantly because of the COVID pandemic over the years.
They are still very profitable and have a good return on investment in a short period of time.
Yogurtland Franchise Training and Support
Yogurtland offers an extensive training program and ongoing support for operational things.
Their training programs are multi-tiered that teach you about branding, business management, and operational details.
You learn more about the levels of training after you get approved for the Yogurtland franchise.
The main aim of the training and ongoing support of Yogurtland is to keep a certain level of quality in your branch.
It ensures that you give service and customer support. Their ongoing support also includes marketing and advertising help, such as SEO, graphic design, and so on.
Yogurtland Franchise Terms of Agreement and Renewal
The initial term of the agreement varies depending on the type of store you are going to operate.
For traditional stores, it’s 10 years unless you are taking over another store with an existing franchise agreement.
For non-traditional stores, it’s five years. Both of these options have the chance for renewal.
The renewal is for one additional period of five years if you meet all the conditions and the franchisor is satisfied with you.
The franchisor has the option to reject your renewal if they are not happy with you and you don’t meet the criteria. There might be additional fees for renewal.
Yogurtland Franchise Obligations and Restrictions
Yogurtland franchisees are obligated to strictly follow the business system and the operations manual provided by the franchisor.
They must adhere to the approved suppliers’ and the franchisor’s specifications and standards for products, equipment, and store design.
This means you can’t change or sell anything that the franchisor hasn’t approved of before.
Franchisees are required to attend and complete the franchisor’s initial training program and any other additional training programs.
They must also operate the franchise only under the Yogurtland brand and follow the franchisor’s marketing and advertising plans.
They are also prohibited from engaging in business activities that may harm the reputation of the franchise system.
Yogurtland Franchise Financial Assistance
Yogurtland doesn’t offer direct financial assistance in any form or method to its prospective franchisees.
This means that the franchisor is obligated to find the required financing by themselves and not rely on Yogurtland for any kind of financial support.
FDD of Yogurtland mentions the support options that prospective franchisees can consider, such as loans from third-party sources.
Yogurtland Payback Period
With a total investment (Traditional location and Non-Traditional location) of $700,000, the (EBITDA) is $196,454 with an estimated 10% profit on the average net sales from 2021, the yearly profit is $1,964,45.4.
So, to find out how long it will take to earn back the initial investment:
Payback Period = Total Investment / Yearly Profit = $700,000 / $196,445.4 = 3.5 years
Based on these figures, it would take around 3.5 years to pay back the initial investment for a Yogurtland franchise.
Yogurtland Failure Rate
For Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 256 | 252 | -4 |
| 2020 | 252 | 217 | -35 |
| 2021 | 217 | 202 | -15 |
For the Franchised outlets:
- In 2019, the failure rate was (4)/256×100≈1.56%
- In 2020, the failure rate was (35)/252×100≈13.89%
- In 2021, the failure rate was (15)/217×100≈6.91%
According to the above-mentioned data, the failure rate for franchised outlets for the given period of time was drastically high, lying in the range between 1.56% and 13.89% over the span of 3 years.
Yogurtland Comparison
| Company | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Orange Leaf Frozen Yogurt | $15,000-$45,000 | 5% | $381,000-$578,000 |
| Menchie’s Frozen Yogurt | $40,000 | 6% | $219,116-$457,446 |
| Yogurtland | $35,000 | 6% | $182,500-$486,000 |
Conclusion
Yogurtland is one of the most popular yogurt franchise stores that operates both domestically in the US and internationally in about 10 countries.
Their popularity helps them to be a profitable business and a good option to expand your portfolio or enter into the entrepreneurship world.
You need $1 million in liquid assets if you are looking to open a Yogurtland store domestically.
If you want to open it internationally, you need a $5 million net worth in addition to $1 million in liquid assets.
They provide training and support to get you updated on the Yogurtland brand and keep the quality in your store.
There is no information on their financials, but the estimations show that they are profitable thanks to their loyal customer base and stores all over the US and abroad.
FAQ
Who is the CEO of Yogurtland?
Phillip Change is the current CEO of Yogurtland. He is also the founder of the company.
Can everyone open a Yogurtland franchise?
If you satisfy the requirements of Yogurtland as a prospective franchisee, you can get approved to open a franchise.
If you are not approved, you can’t open it, so it depends on the decision of the company.
How many locations does Yogurtland have?
Currently, there are 250+ outlets of Yoghurtland in the United States.
Who owns Yogurtland?
The Yogurtland is owned by Phillip Chang, who is also the founder and CEO of the company.
Where is Yogurtland Headquartered?
Yogurtland is an international frozen yogurt franchise headquartered in Irvine, California, United States.
Sources
https://www.yogurt-land.com/franchise
https://www.yogurt-land.com/ourstory
https://en.wikipedia.org/wiki/Yogurtland
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.