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Cherry Berry self-serve Yogurt bar Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
What Are the Initial Investment Requirements for a Cherry Berry Franchise?
To open a Cherry Berry self-serve yogurt bar franchise, you'll need to prepare for an initial investment ranging from $339,000 to $505,760. This includes a franchise fee that can vary between $5,000 and $25,000. Additionally, prospective franchisees must have a net worth of at least $150,000 to $250,000 and sufficient cash on hand to cover startup costs. Understanding these financial requirements is crucial for anyone considering joining the Cherry Berry franchise family.
What Are the Ongoing Fees for Cherry Berry Franchisees?
As a Cherry Berry franchisee, you'll be responsible for ongoing fees that include a royalty fee of 6% on gross sales and a marketing fee of 1%. These fees are essential for maintaining brand standards and supporting national marketing efforts. It's important to factor these costs into your financial planning to ensure your franchise remains profitable while benefiting from the collective strength of the brand.
What Is the Average Revenue Potential for Cherry Berry Units?
Cherry Berry franchise units have shown promising revenue potential, with an average annual revenue of approximately $232,328 per unit. The median revenue stands at $200,000, while the highest-performing units can generate an impressive $3,698,463 annually. Understanding these figures can help you gauge the potential return on your investment and set realistic financial goals for your franchise.
How Quickly Can You Expect to Break Even with a Cherry Berry Franchise?
One of the appealing aspects of owning a Cherry Berry franchise is the relatively quick breakeven time of just 12 months. This means that with effective management and marketing strategies, you could recover your initial investment within the first year of operation. Additionally, the investment payback period aligns with this timeframe, making it an attractive option for aspiring franchisees looking to see a return on their investment swiftly.
Cherry Berry self-serve Yogurt bar Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Cherry Berry self-serve Yogurt bar Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 49 | 53 | 58 |
| Net Change YoY | 4 | 5 | |
| Franchised Units | 45 | 50 | 55 |
| Net Change YoY | 5 | 5 | |
| Corporate Units | 4 | 3 | 3 |
| Net Change YoY | -1 | 0 |
Investment Overview
The Cherry Berry self-serve yogurt bar franchise offers a low initial investment range of $339,000 to $505,760, making it accessible for aspiring entrepreneurs. The initial franchise fee varies between $5,000 and $25,000, while ongoing royalties are set at 6% of gross sales, along with a 1% marketing fee. This structure provides a clear financial framework for potential franchisees to evaluate their investment.
Financial Performance
Franchisees can expect an average annual revenue of $232,328 per unit, with a median revenue of $200,000. The revenue range showcases significant potential, with the highest annual revenue recorded at $3,698,463. This financial performance indicates a strong market demand for Cherry Berry’s offerings, making it an appealing opportunity for investors.
Breakeven Analysis
The breakeven time for Cherry Berry franchises is approximately 12 months, which is a compelling aspect for new franchisees. This rapid return on investment suggests that with effective management and marketing strategies, franchise owners can quickly recoup their initial investment and start generating profits.
Franchise Growth
Since its inception, Cherry Berry has demonstrated steady growth in franchised units, expanding from 45 units in 2020 to 55 units in 2022. This growth trajectory reflects the brand's increasing popularity and the successful adoption of its business model, providing a solid foundation for future expansion opportunities.
Corporate Structure
Cherry Berry is operated by a well-established corporate entity that oversees the franchise network. The company maintains a small number of corporate-owned units, which allows for direct oversight and quality control, ensuring that franchisees benefit from the brand's operational expertise and support.
Marketing and Support
Franchisees receive comprehensive marketing support, including a 1% marketing fee dedicated to national and local advertising initiatives. This support is crucial for driving customer traffic and building brand awareness. Additionally, ongoing training and operational assistance are provided to help franchisees optimize their business performance and ensure consistent customer experiences.
Frequently Asked Questions
The initial investment for a Cherry Berry franchise ranges from $339,000 to $505,760, which includes the franchise fee and other startup costs.