How to Identify a Good Frozen Yogurt Franchise Opportunity

n a world where health consciousness is increasing rapidly, good opportunities and revenue generation exist in a Frozen Yogurt Franchise. However, contrary to perceptions, frozen yogurt is not just yogurt that has been frozen. The presentation, the flavor, and the nutrient profile are markedly different from that of regular yogurt. For a time pinched generation, frozen yogurt is a quick, convenient and healthy option. Here is a look at what businesses should look for in a Frozen Yogurt Franchise opportunity.

Look for available business locations

This needs to be the first aspect that needs to be checked. A franchise opportunity will be of little or no use if it is for a distant location. Establishing a franchise in a location that is closer to yours is a good option, as you would be in a position to manage it better. The only exception is if you intend to let it be managed by employees without the need for your presence/leadership.

The amount required – franchise fee

Typically frozen yogurt franchises operate in the business format franchise model. This essentially involves the payment of a franchise fee and other expenses towards establishing and operational expenses. Check out if the model suits your budget. There are financing options that are available, but this needs to be pursued after due diligence to understand if the returns are good enough to take a loan.

Approvals – SBA

A franchise needs to obtain approval from regulators. For instance, it may be necessary to seek approval from the Small Business Administration. While frozen yogurt does not require FDA approval, it is regulated in some states. Hence, you need to understand the nature of approvals required and the processes involved.

These are important aspects that need to be considered even if you happen to be looking at the top brands in the business. Some of the brands may be the hottest, but if the opportunities and the above are a mismatch, then you need to look at alternatives.

Overheads of the business

A business that has high overheads with low volumes or periodic sales patterns is not sustainable. If you have been offered a business that claims to be profitable despite high overheads and low volumes, then you need to stay away from the deal. The ideal profit margins in a business that sells products should be nothing less than 15%, and this needs to combine with reasonable overheads.

Consistent sales

Look for a product that enjoys consistent sales. Most food products are typically in demand throughout the year, but certain categories are preferred as per climatic conditions. Ensure that the business location makes it suitable for year-round sales of the product. In the case of frozen yogurt, locations with warm climates are a better option than regions that experience cold climates for a major portion of the year.

Machinery and product portfolio

The next aspect that you need to check is the product portfolio and the machinery available at the business. Frozen yogurt machines are important to ensure higher food safety levels, portioning, and greater efficiency. Check if the machines are good enough to handle the volumes and the different product mix that is in demand or that you propose to make available. If you are opting for a franchise model, the need for complying with product standards, packaging, and flavor makes it more important to have the right machinery.