Investment from $193,500

Summary

Frozen yogurt looks light and simple, but it runs on cold equipment and summer traffic. Neighborhood U.S. rents sit in the mid-$20s/sf/year; prime corridors can be 2–3× higher. Entry-level wages are usually in the mid-teens $/hour. Commercial power ranges from about 9–12¢ to 20–30+¢/kWh by state, and delivery platforms commonly take 15–30% on delivery (~6% on pickup). Model locally before you price.

Frozen yogurt franchise market overview in the U.S.

A frozen yogurt franchise sells customization and “better-for-you” positioning: soft-serve bases (tart, creamy, non-dairy), a toppings bar, and a bright, family-friendly room. The footprint is compact, prep is light, and training is quick, which is why froyo rebuilt after the last cycle with smaller boxes, tighter menus, and more disciplined labor. What actually moves the P&L is outside the cup: rent per square foot, wage bands for counter staff, kWh for compressors and A/C, sales tax on prepared desserts, and marketplace commissions if you do off-premise. Summer brings the volume; strong units smooth the shoulder months with coffee, smoothies, parfaits, or co-branded desserts.

Investment and Fees

Indicative frozen yogurt franchise cost ranges by format. Actual budgets vary by site, build-out scope, machine count, and landlord standards.

Format / Model Initial investment (range) Franchise fee (range) Ongoing fees (royalty / ad fund)
Frozen yogurt kiosk (mall / transit) $90,000 – $220,000 $10,000 – $25,000 4–6% / 0–2%
Inline froyo shop (600–1,000 sq ft) $180,000 – $420,000 $15,000 – $35,000 4–6% / 1–3%
Self-serve / pay-by-weight (larger inline) $250,000 – $550,000 $20,000 – $45,000 4–6% / 1–3%
Co-branded dessert corner (inside café/food hall) $90,000 – $250,000 $10,000 – $25,000 4–6% / 0–2%

Startup costs and ongoing fees

Startup typically covers: leasehold works; power for soft-serve machines (compressors draw real load); back-of-house cold storage; toppings bar with sneeze guards and temperature control; POS/loyalty; signage; opening stock (mixes, toppings, cups/lids); training; and working capital.

Ongoing spend includes: royalties/ad fund; labor for afternoon/evening peaks; mixes, fruit, dry toppings, packaging; occupancy (base rent, CAM, insurance); utilities (24/7 cold + A/C in warm states); and delivery commissions if used. High performers watch two numbers daily: orders per labor hour and average ticket (upsizes + toppings).

Popular frozen yogurt formats (kiosk, inline, self-serve, co-branded)

Kiosk is the speed-to-market play for malls and transit; storage is tight, so the menu stays focused. Inline shops add brand presence, a full toppings bar, and room for pickup shelves or small seating. Self-serve/pay-by-weight leans on weekend families and after-school traffic; labor per dollar sold can be efficient, but food-safety and cleaning discipline must be strict. Co-branded corners bolt onto cafés or food halls to capture dessert without a full build-out.

Requirements & ideal franchisee profile

Franchisors want owners with enough liquidity to finish the build-out at local prices, comfort with schedule planning for seasonal peaks, and discipline on cold-chain and sanitation logs. Prior dessert or café background helps; strong training can get first-timers live. Multi-unit candidates should plan shared purchasing for cups, toppings, and cleaning supplies, and secure reliable service for soft-serve machines.

Trends & unit-economics drivers

Ticket growth comes from upsizes, premium toppings, and tie-ins (shakes, smoothies, acai parfaits) that sell outside peak summer. Throughput improves with clear station roles and a toppings layout that prevents bottlenecks. Second-gen sites compress capex and speed openings. In hot states, A/C and compressor loads make kWh a top-three line; in colder states, winter survival depends on hot drinks and school/office catering. Keep delivery as reach; steer repeat guests to the first-party to protect margin.

How to choose a frozen yogurt franchise

Match the format to the trade area: kiosk for captive mall footfall, inline for neighborhood streets, self-serve for family clusters, co-branded for food halls or cafés. Price real rent, wages, and kWh for your city; confirm electrical capacity for machines and A/C before you sign. Ask for machine specs, cleaning cycles, and toppings-bar temperature controls. Map marketplace commission tiers and launch loyalty/order-ahead on day one so the unit doesn’t live on 25–30% delivery fees.

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