Orange Leaf Frozen Yogurt Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$136,000

-

$685,000

LOCATIONS

82

Emily

Updated

May 2, 2024

Is

Orange Leaf Frozen Yogurt

a franchise?

Yes,
Orange Leaf Frozen Yogurt
currently
accepts
franchise
applications

Orange Leaf Frozen Yogurt, established in 2008, is a distinguished franchise known for its self-serve, choose-your-own-toppings frozen yogurt concept. Headquartered in Oklahoma City, Oklahoma, the brand began franchising in 2009, a year after its founding in 2008. The franchise's rapid expansion was initiated when Mike Liddell and Reese Travis, recognizing the potential of a successful store in Edmond, Oklahoma, purchased a franchise. 

This move set the stage for the brand's growth, leading to a significant increase in the number of locations across the United States, and eventually international expansionis growth showcases Orange Leaf's broad appeal and adaptability in various markets​​.

The franchise differentiates itself by offering a wide array of flavors, including traditional, unique, no-sugar-added, gluten-free, and dairy-free options, catering to a diverse customer base with varying dietary needs and preferences. The experience Orange Leaf provides goes beyond just frozen yogurt; it's about allowing customers to express their creativity through their choice of flavors and toppings, making each visit a unique and personal experience​​.

Orange Leaf supports its franchisees through flexible real estate options, attractive labor models, and operational simplicity, making it an appealing choice for potential franchise owners. They offer traditional and non-traditional location setups, with franchise fees and requirements tailored to accommodate different types of investments. Additionally, the brand promotes a sense of community and partnership among its franchisees, emphasizing low industry fees and support for veterans through programs like VetFran​​.

How many

Orange Leaf Frozen Yogurt

franchises

are there?

In 2022, there were
82
outlets in
the United
States, of which
80
are franchises, and
2
are corporate-owned.

What are the

Orange Leaf Frozen Yogurt

franchise

fees?

Advertising fee

3.00%

Initial Franchise Fee

The Initial Franchise Fee varies based on the type of store. For a Traditional Store, the fee is $30,000, while for a Non-Traditional Store, it's $15,000. For a co-branded ORANGE LEAF–HUMBLE DONUT CO. Traditional Store, the fee is $30,000, with an additional $5,000 license fee for HUMBLE DONUT CO., which is waived for the first store developed in 2023. The fee remains $30,000 for an ORANGE LEAF Store co-branded with a third-party concept.

Site Selection Fee

A Site Selection Fee of $3,500 is required, which covers the costs associated with selecting a site for the franchise location. This fee ensures that the chosen location meets the franchisor's standards and requirements for a successful operation.

Royalty Fee

Franchisees are required to pay a Royalty Fee equivalent to 5% of the Gross Revenue. This ongoing fee provides franchisees with the right to operate under the franchisor's brand and access ongoing support services.

Marketing Allocation

The Marketing Allocation is 3% of Gross Revenue for Traditional Stores and 1% for Non-Traditional Stores, contributing to the Brand Development Fund. This fund is used for marketing and promotional activities that benefit the entire franchise network.

Technical Services Fee

A Technical Services Fee of $150 per Accounting Period is charged for the use of the franchisor's technical systems and support services, ensuring that franchisees have access to necessary technological resources.

Renewal Fee

The Renewal Fee is set at 25% of the then-current initial franchise fee, allowing franchisees to extend their franchise agreement and continue operating under the franchisor's brand.

Technology Fee

The Technology Fee is capped at the greater of $150 per Accounting Period or $1,950 per calendar year, covering the costs associated with the use of the franchisor's technology and systems.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Orange Leaf Frozen Yogurt

franchise?

It costs between
$136,000
and
$685,000
to start a
Orange Leaf Frozen Yogurt
franchise.
Type Of Expenditure Amount
Initial Franchise Fee $30,000
Site Selection Fee $3,500
Project Management Fee $3,500
Lease Deposits & Rent $8,000 - $12,500
Architect; Engineer; Drawings $7,500 - $14,000
Permits $1,500 - $3,000
Interior Improvements, General Contractor; Lighting; Tile $112,500 - $150,000
Exterior Signage $7,500 - $12,000
Millwork; Smallwares; Furniture; Interior Graphics; Fixtures; Equipment $90,000 - $160,000
POS System $5,000 - $8,000
Soft Serve Machines $100,000 - $120,000
Expanded Offerings $5,000 - $10,000
Inventory; Uniforms $5,000 - $8,000
Pre-opening training expenses $3,000 - $6,500
New Store Marketing Plan Fee $5,000
Additional Grand Opening expenses $500 - $1,000
Insurance - Liability & Workers compensation (initial deposit) $1,000 - $2,000
Professional Fees $2,000 - $6,000
Additional Funds (three months) $10,000 - $20,000
Total $400,500 - $575,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Orange Leaf Frozen Yogurt

provide

training

to its

franchisees?

Yes,
Orange Leaf Frozen Yogurt
provides
training

Initial Training Program

The franchisor, Orange Leaf FC, LLC, provides an initial training program for new franchisees. This training is mandatory for the Managing Owner and must be completed to the franchisor's satisfaction. The program is conducted at a designated training Store chosen by the franchisor and includes the following components:

Welcome and Introduction to Orange Leaf

  • Duration: 6 hours
  • Location: The Orange Leaf Corporate Office
  • Content: An overview of the company, its history, mission, and values.

Marketing Training

  • Duration: Included in the 6-hour session
  • Content: Training on Momentfeed, the marketing portal, local store marketing (LSM), and other marketing tools.

Technology Training

  • Duration: Included in the 6-hour session
  • Content: Training on Revel, Paytronix, Third-Party Delivery, POS Support, and FranConnect.

Distribution Training

  • Duration: Included in the 6-hour session
  • Content: The ordering process, initial order setup, and a question and answer session.

Finance & Accounting Training

  • Duration: Included in the 6-hour session
  • Content: Training on profit and loss (P&L) statements, royalties, price points, inventory management, and competitor analysis.

Catering Training

  • Duration: 2 hours
  • Content: Opportunities in catering, cost breakdown, and execution strategies.

Store Operations Training

  • Duration: 8 hours
  • Location: A certified training Store selected by the franchisor
  • Content: Machine cleaning and breakdown, opening procedures, setup and POS training, creating product offerings, and situational practice.

Does

Orange Leaf Frozen Yogurt

provides

territory

protection?

Orange Leaf FC, LLC provides a form of territory protection to its franchisees, which is outlined in the Franchise Agreement. The franchisee is granted a "Protected Area," which is described in terms of a radius surrounding the Store or a geographic area identified on a map. The size of this Protected Area can vary greatly depending on the location of the Store, with smaller areas in densely populated urban settings and larger areas in less populated suburban settings.

The Protected Area is specific to each franchise and is detailed in the Franchise Agreement. No other Orange Leaf Stores will be allowed within this area, although there might be some overlap with other franchisees' Protected Areas.Territory protection does not control the delivery zones established by third-party delivery service providers.

Orange Leaf reserves the right to operate or license others to operate Orange Leaf Stores outside the Protected Area, to operate or license stores in Closed Markets within the Protected Area, and to distribute products and services through alternative channels of distribution within the Protected Area. Franchisees do not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution or competitive brands controlled by the franchisor.

Can a

Orange Leaf Frozen Yogurt

franchise

be run as

a passive

investment?

The Orange Leaf franchise requires significant involvement from franchisees in the day-to-day operations of their franchises. Specifically, the franchise mandates that the franchised business must be supervised on-premises by a "Managing Owner."

If the franchisee is an individual or part of a general partnership, this Managing Owner would be the individual franchisee or one of the general partners. In cases where the franchisee is a Business Entity, the Managing Owner is required to hold at least a 10% equity interest in that entity.

The Managing Owner must not only complete the initial training program successfully but also devote their full-time efforts to managing and operating the franchised business. If a franchisee operates multiple Orange Leaf stores, or if the Managing Owner cannot commit their full-time efforts to the franchise, an additional individual must be appointed to assist with management and operations.

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