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TCBY Franchise Startup Cost: All You Need To Know
Everyone craves frozen yogurt every now and then. So if you’re looking for one of the best yogurt franchises, this TCBY franchise article will help you decide. Here are all the essential details about starting a TCBY franchise.
TCBY Franchise: Overview
TCBY was founded in 1981 in Broomfield, Colorado. It started franchising a year after, and due to its award-winning Fro-Yo innovations, it managed to accumulate over 400 units. As a franchisee, TCBY Systems, LLC will approve the establishment serving the following:
- Frozen yogurt and fresh yogurt
- Hand-dipped frozen yogurt
- Frozen and non-frozen desserts
- Cakes and pies
- Sorbet
- Smoothies
- Other treat items
Training Program
The franchisor will provide the franchisee access to necessary training programs. Overall, the training course will include the following:
- In-store training
- On-the-job training
- Computer-based training
- Self-study
Franchisees are required to undergo the training with a store manager, or at least with another owner. Approximately, the training hours required is 30 hours and will be conducted in an operating store. It’s essential to take note that the franchisor has the sole discretion to require any additional training, conventions, and regional meetings.
What You Need To Know
As a potential franchisee, here’s what you need to know about owning a TCBY franchise:
- Franchisees are not granted exclusive territory.
- As per the Franchise Agreement, there will be no minimum territory. However, the franchisor must approve the store’s location.
- The franchisor recommends that the franchisee must personally direct the operation of the store. If not, the store is required to have a full-time manager.
- TCBY’s initial franchise term is ten years starting from the Franchise Agreement effective date.
- TCBY Systems, LLC does not offer any direct or indirect financial assistance.
Did You Know
Now that you have the gist of what’s expected of a potential franchisee, here are some interesting facts for you to know.
- TCBY means The Country’s Best Yogurt!
- Back in the 80’s TCBY initially stood for “This Can’t Be Yogurt.”
- The yogurt sold at TCBY is sweeter than the average yogurt.
- In 2020, it reported that TCBY continues as the category leader for frozen yogurt.
- TCBY has been awarded the Excellence in Innovation Award from Prepared Food due to their Fro-Yo innovations.
Your Investment
In this section, we’ll go over the whole cost breakdown of a TCBY franchise. As a potential franchisee, you need to know how much you need to invest in the franchise. Take note that the information below is compiled for TCBY’s 2020 FDD.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Travel and Living Expenses While Training | $2,000 | $3,000 |
| Real Estate Lease | Varies | |
| Improvements and Equipment | $249,340 | $542,812 |
| 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 | $3,500 | $4,500 |
| Additional Funds (first 3 months) | $8,000 | $12,000 |
| ESTIMATED TOTAL | $319,840 | $635,812 |
Other Costs
Other than the full investment detail above, you also have to be aware of other fees. We don’t want any sudden costs to suddenly present themselves, right? Here are other fees that you should know:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Travel and Living Expenses While Training | $2,000 | $3,000 |
| Real Estate Lease | Varies | |
| Improvements and Equipment | $103,450 | $166,687 |
| 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 | $3,500 | $4,500 |
| Additional Funds (first 3 months) | $8,000 | $12,000 |
| ESTIMATED TOTAL | $173,950 | $259,687 |
For other franchise ventures, explore Franchise How.