Pinkberry Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$269,000

-

$607,000

LOCATIONS

64

Emily

Updated

April 11, 2024

Is

Pinkberry

a franchise?

Yes,
Pinkberry
currently
accepts
franchise
applications

Pinkberry, the trailblazer in the frozen yogurt industry, embarked on its journey in Los Angeles, CA, in 2005, quickly becoming a symbol of the frozen yogurt renaissance. Headquartered in Scottsdale, AZ, under the parent company Kahala Brands™, Pinkberry has been franchising since its inception, attracting entrepreneurs and investors with its strong brand identity and commitment to quality​​​​. 

Pinkberry differentiates itself from competitors through its focus on fresh, high-quality ingredients, and a unique store design that offers customers a modern and inviting atmosphere. The brand is dedicated to providing a distinctive product lineup that includes its signature tart frozen yogurt, alongside a variety of toppings, offering customers a personalized experience​​​​.

The franchise prides itself on its values, which emphasize uncompromising quality, fostering emotional connections, delighting customers, promoting team member excellence, encouraging an entrepreneurial spirit, and pursuing profitable and responsible growth​​. Pinkberry's commitment to these values is evident in its comprehensive support system for franchisees, which includes dedicated operations, marketing, and development support, as well as extensive training programs​​​​.

How many

Pinkberry

franchises

are there?

In 2022, there were
64
outlets in
the United
States, of which
64
are franchises, and
0
are corporate-owned.

What are the

Pinkberry

franchise

fees?

Advertising fee

4.00%

Initial Franchise Fee

The Initial Franchise Fee is $35,000, which is due upon the signing of the franchise agreement. This fee grants the franchisee the rights to use the franchisor's brand, systems, and support to establish their new franchise location.

Royalty Fee

Franchisees are required to pay a Royalty Fee of 6% of their total Gross Sales on a monthly basis. This fee contributes to ongoing support provided by the franchisor, including brand development, operational support, and more.

Advertising Fee

The Advertising Fee is set at no more than 4% of weekly Gross Sales, but it can be increased by the franchisor with a 30-day notice. This fee funds the franchisor's marketing and advertising efforts, which aim to benefit all franchise locations.

Document Administration Fee

A Document Administration Fee of $500 is charged for the preparation of amendments to the franchise documents, covering the administrative costs associated with document changes.

Renewal Franchise Fee

When renewing the franchise agreement, the Renewal Franchise Fee is 50% of the then-current initial franchise fee. This fee allows the franchisee to continue operating under the franchisor's brand for an additional term.

Transfer Franchise Fee

For a full transfer of the franchise agreement to a new franchisee, a Transfer Franchise Fee of $7,500 is required. This fee covers the costs associated with transferring the franchise rights and ensuring the new franchisee meets the franchisor's standards.

Lease Review Fee

If the franchisor or its affiliate is asked to review the franchisee's lease, a Lease Review Fee of $2,500 is applicable. This fee compensates for the time and expertise involved in reviewing lease agreements to protect the franchisee's interests.

Grand Opening Marketing

Franchisees must invest in a Grand Opening Marketing campaign, which costs $10,000 for traditional stores and $5,000 for non-traditional stores. This fee, payable prior to lease execution or the start of construction, ensures a strong marketing push to launch the new franchise location successfully.

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

Pinkberry

franchise?

It costs between
$269,000
and
$607,000
to start a
Pinkberry
franchise.
Type of Expenditure Amount
Initial Franchise Fee $14,000 - $35,000
Lease Review Fee $0 - $2,500
Architect, engineer and other design professionals $7,000 - $15,000
Expenses While Training $3,000 - $7,500
Acquisition of Real Estate / Deposits and Initial Rent $9,340 - $23,350
Construction $75,000 - $190,000
Furnishings $10,000 - $25,000
Equipment $88,000 - $215,000
Inventory $10,000 - $15,000
Utility Deposits and Fees $0 - $3,000
Business License $300 - $600
Insurance $2,000 - $3,000
PCI Compliance Costs $150 - $1,300
Catering/Delivery Service $0 - $7,500
Information Systems $3,000 - $5,000
Telephone $150 - $300
Signage $7,000 - $15,000
Legal and Accounting $2,500 - $5,000
Additional Funds - 3 months $25,000 - $25,000
Total $269,440 - $607,050

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

Pinkberry

provide

training

to its

franchisees?

Yes,
Pinkberry
provides
training

The franchisor provides a structured training program that includes several key components:

  1. Training Program Composition: The training is designed for up to two individuals, ideally one with an ownership interest in the Franchised Business and the other with management responsibility. The program consists of "In-Store Training," which is approximately 80 hours, and "New Owner Training," which is approximately 40 hours, making a total of 120 hours of training.
  2. Training Delivery and Location: The New Owner Training may be conducted either online or in person, at the franchisor's discretion. If in-person, it takes place at the franchisor's training and education center in Scottsdale, Arizona, or another designated location. In-Store Training is conducted at a training store in Arizona or another designated location.
  3. Responsibility for Expenses: Trainees are responsible for all transportation costs, food, lodging, and other personal expenses incurred during the Training Program.
  4. Additional and Continuing Training: Beyond the initial training, franchisees and/or their managers may be required to attend additional training sessions, which may cover a variety of subjects including sales and marketing techniques, personnel training, and advertising programs. These sessions are mandatory, may involve a nominal registration fee, and take place in the metropolitan Phoenix, Arizona area, or other locations in the United States chosen by the franchisor.
  5. Post-Opening Assistance: In addition to the Training Program, the franchisor may provide a representative to assist at the franchisee's location during the opening week for up to two days, focusing on the grand opening and operational and marketing aspects of the business.
  6. Mandatory Employee Training: Franchisees must ensure all their employees are adequately trained in Pinkberry restaurant procedures, particularly those involved in customer service, who must also be able to speak and read English and any other necessary languages to meet public needs effectively.

Does

Pinkberry

provides

territory

protection?

Pinkberry does not offer an exclusive territory for franchisees. The franchise is granted only for a specified location approved by the franchisor, and franchisees may face competition from other franchisees, company-owned restaurants, or other distribution channels controlled by the franchisor. 

There are no rights provided under the franchise agreement for the franchisee to acquire additional franchises, and the franchisor retains the right to establish other franchised or company-owned locations without restriction.

Can a

Pinkberry

franchise

be run as

a passive

investment?

The Pinkberry franchise does not explicitly support a purely passive investment model. The franchise requires significant involvement from the franchisee or a designated manager in the day-to-day operations of the franchise. While a franchisee can delegate daily management responsibilities to a qualified manager, the franchisee's active involvement and oversight are crucial for the successful operation of the franchise​​.

Key operational roles include training and supervising employees, conducting inventory checks, reviewing sales and food costs, engaging in local store marketing, bookkeeping, and ensuring efficient operations. Additionally, each Pinkberry restaurant must have at least one on-premises supervisor (referred to as a "Manager") at all times, who is a qualified restaurant operator. 

This Manager is not required to have an equity interest in the Franchised Business but must devote their entire time during normal business hours to the management, operation, and development of the Franchised Business. They must also maintain the confidentiality of trade secrets and proprietary information and comply with the use of the franchisor's proprietary marks​​.

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