About sweetFrog Franchise
sweetFrog is a franchise system of retail quick-service restaurants specializing in soft-serve frozen yogurt and other frozen dessert products.
Franchisees operate restaurants that use a self-service format, allowing customers to create individualized yogurt-based desserts with approximately 40 or more toppings.
The restaurants serve the general public and people of all ages, offering products on a take-out or eat-in basis, along with branded and licensed products.
sweetFrog Franchise Cost & Fees
Minimum Investment
$96K
Average Investment
$352K
Maximum Investment
$608K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2.5% of Gross Sales (traditional); 1% of Gross Sales (non-traditional) | National brand fund |
| Total Investment Range | $96,350 – $607,500 | Includes build-out, inventory, working capital |
The investment range of $96K–$608K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (2.5% of Gross Sales (traditional); 1% of Gross Sales (non-traditional)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $15,000 | $30,000 |
| Leasehold Improvements/Construction | $105,000 | $240,000 |
| Lease Review Fee (Optional) | $0 | $2,500 |
| Furniture, Fixtures and Equipment, including soft-serve machines | $56,000 | $220,000 |
| Lease, Security Deposits | $3,000 | $12,000 |
| Utility Deposits | $500 | $2,000 |
| Design and Architectural/Engineering Fees | $7,000 | $15,000 |
| Interior and Exterior Signage; Décor Package | $7,000 | $15,000 |
| Other Equipment | $1,500 | $3,500 |
| Grand Opening Marketing | $10,000 | $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 | $3,000 |
| Additional Funds – For Initial 3 Month Period | $20,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $7,500 (traditional); $5,000 (non-traditional) |
| Renewal Fee | 50% of then-current Initial Franchise Fee |
| Technology Fee | Up to $100 per month (POS support/data fees) |
| Audit Fee | Cost of audit plus interest at 1.5% per month on underpayments |
| Surcharge | Up to $10 per week (states with additional reporting requirements) |
| Additional Persons Training Fee | $1,250 per person ($500 In-Store + $750 New Owner Training) |
| Additional Training Fee | $300 per person per day |
| Annual Meeting Registration Fee | Up to $1,000 |
| Gift Card Redemption Fee | $0.05 per activity |
| Non-participation Fee | $100 per day |
| Document Administration Fee | $500 |
| Late Charge | 5% of unpaid amount or $100, whichever is greater |
| Default Interest | $50 plus 1.5% per month |
| Management Fee | 6% of Gross Sales plus direct out-of-pocket costs |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 64 hours total (40 hours New Owner Training + 24 hours In-Store Training) |
| Classroom Training | 40 hours |
| On-the-Job Training | 24 hours |
| Training Location | New Owner Training: Online or KTEC (Kahala Training & Education Center) in Scottsdale, AZ; In-Store Training: Training store in Arizona or other designated location |
| Additional Training | $300 per person per day for additional training after completing Training Program. One representative provided for up to 5 days during opening week at franchisor's expense. Mandatory attendance at annual conferences and refresher programs. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | No defined territory for traditional or non-traditional locations (except Vehicles which receive partial exclusivity in an Authorized Territory defined by zip codes up to 150,000 population) |
| Description | Franchisees do not receive an exclusive territory. Franchisor and affiliates may establish other franchised or company-owned sweetFrog restaurants that may compete with franchisee's location, including across the street or in the same venue. Franchisor may also market sweetFrog products through other channels of distribution including grocery stores, Internet, catalog sales, vending machines, etc. Vehicles receive limited exclusivity: franchisor will not operate or grant another Vehicle in the Authorized Territory but may operate any other type of sweetFrog business there. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 5 years (single renewal, no further right to renew) |
| Renewal Fee | 50% of then-current Initial Franchise Fee |
| Renewal Conditions | Must give 120 days notice; not be in default; be in compliance with all terms; not have received more than 3 default notices during term or 2 in preceding 5 years; have premises; sign new franchise agreement (which may have materially different terms); pay renewal fee; remodel/refurbish if necessary; sign general release; be current on all financial obligations |
| Transfer Fee | $7,500 (traditional); $5,000 (non-traditional) |
| Transfer Conditions | All obligations fully paid; not in default; transferee must qualify, complete training, sign new agreements; general release signed by transferor; remodel if necessary; franchisor has right of first refusal |
| Termination for Cause | Franchisor can terminate for defaults including bankruptcy, failure to pay fees, lease default, felony conviction, abandonment (closed 3+ days), unauthorized transfer, trademark misuse, repeated defaults, health/safety violations, underreporting sales, and false representations. Cure periods range from immediate to 14 days depending on the type of default. |
| Non-Compete Period | 2 years |
| Non-Compete Details | No competing business (primarily selling frozen yogurt/frozen desserts) within 10 miles of any sweetFrog restaurant for 2 years after termination/expiration. During the term, no competing business anywhere. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | While not specifically required by the Franchise Agreement, the franchisor intends to select only franchisees who plan to actively participate in direct operation and daily affairs. The franchise must be personally managed with on-premises supervision by the franchisee, a partner/shareholder/member, or a manager who has completed the Training Program. A full-time on-premises Manager is required at all times. Franchisor strongly recommends substantial personal time commitment, noting that owner-operated restaurants generally perform better. |
| Required Suppliers | All food, drink products, ingredients, equipment, computer hardware/software, furniture, fixtures, décor, signs, and supplies must meet franchisor standards and be purchased only from approved distributors and suppliers. Neptune Equipment (affiliate) is an approved supplier of certain logoed merchandise, furniture, and interior décor. |
| Supply Restrictions | Over 90% of total purchases to begin operations and over 80% of annual operating expenses for raw materials must comply with franchisor specifications. Franchisees must use designated approved third-party design architect. All requests for alternative suppliers must be submitted in writing and approved within 60 days. |
| Franchisor Revenue from Suppliers | MTY USA and subsidiaries derived $31,789,676 from sales of products, services, and vendor allowances (approximately 12% of total revenue of $263,686,000). Rebates/allowances from suppliers typically range 1-5% of franchisee purchases. Neptune Equipment earned $1,308,262 from franchisee purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Franchisor does not offer direct financing for franchise fees. However, if purchasing a corporate-owned restaurant from an affiliate, franchisor may finance up to 100% of the purchase price at 0-12% annual interest, repayable in 12-60 monthly installments, secured by a first position lien on all equipment. Franchisor or affiliate may also guarantee franchisee's lease (at their sole discretion) for a fee of 10% of total guaranteed rental obligations up to $10,000. |
sweetFrog Franchise Earnings — Item 19
Average Revenue
$387K
Median Revenue
$357K
Revenue Range
$167K – $656K
Sample Size
218 units
Past financial performance does not guarantee future results. Individual results will vary.
sweetFrog Litigation & Risk Flags
3 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
sweetFrog System Growth
Total Units
221
Franchised
221
Company-Owned
0
sweetFrog currently operates 221 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 6 | 35 | 257 |
| 2021 | 3 | 22 | 238 |
| 2022 | 3 | 20 | 221 |
Transfers: 23 | Closures: 20
State Registrations
Registered in 13 states: CA, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$263.7M
Net Income
$19.6M
Total Assets
$1182.5M
Audited by PricewaterhouseCoopers LLP for year ending November 30.
sweetFrog Franchise — FAQ
The total investment to open a sweetFrog franchise ranges from $96,350 to $607,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
sweetFrog charges a royalty fee of 5% of Gross Sales of gross sales, plus a 2.5% of Gross Sales (traditional); 1% of Gross Sales (non-traditional) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the sweetFrog Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from sweetFrog to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, sweetFrog franchise owners report average revenue of $387K and median revenue of $357K. This is based on a sample of 218 units. Past performance does not guarantee future results.
sweetFrog has been franchising since 2018. The FDD shows an investment range of $96,350-$607,500, a 5% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There are 3 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000 and the total investment ranges from $96,350 to $607,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from sweetFrog and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with sweetFrog or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com