The average price to start a business was over $600,000 in 2018. If you’ve ever dreamed of owning your own business, you’ve probably considered becoming a franchisee. Franchisees benefit from a pre-established brand and proven business idea. Franchises also have much lower startup costs than other types of businesses.
The average cost of an Orange leaf franchise is $276,150. You may open an Orange Leaf franchise for as little as $135,000. However, depending on the business model you choose, though, you may have to pay up to $417,300 in initial investment expenses.
The initial investment isn’t the only thing to consider when it comes to the Orange Leaf franchise cost. You’ll also need to consider ongoing franchising fees, annual royalties, and more.
We’re guiding you through all of these cost factors in this guide. But first, let’s talk about Orange Leaf: what it is, why you should consider franchising with Orange Leaf, and how much you’ll need to get your business started today.
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The Orange Leaf Franchise Cost Breakdown
If we haven’t convinced you yet that this frozen yogurt company is the franchise for you, this should do the trick: Orange Leaf boasts one of the most competitive cost structures in the franchise world.
A turnkey Orange Leaf shop will cost you between $189,900 and $417,300. And when we say turnkey, we mean it. This cost includes the initial franchise fee, grand opening advertising, and everything in between.
If you go the non-traditional shop route, you can expect even lower investment costs! Orange Leaf estimates that it only takes $135,000 to $226,000 to get your fro-yo kiosk off the ground and running.
These figures make Orange Leaf the franchise with one of the lowest startup requirements in the industry. For a breakdown of the initial investment costs, keep reading below.
What Do You Need to Qualify for an Orange Leaf Franchise?
Orange Leaf requires its investor partners to have specific net worths to qualify as a franchisee. Entrepreneurs also need a particular amount of cash on hand before the fro-yo company will accept your application.
Traditional storefront owners need to prove they have a net worth of $350,000 or more to qualify. You’ll also need $100,000 in cash to get started.
Orange Leaf kiosk investors don’t have to make as much, needing a net worth of only $250,000 to qualify. The company also requires less cash on hand to get started. Kiosk franchisees only need $70,000 in liquidity to apply for a non-traditional store.
How Long Does It Take to Get Up and Running?
As an entrepreneur, you know time is money. That’s why considering how long it will take you from application to store opening is important for factoring in all startup costs. Orange Leaf estimates that it takes an average of six months to open an Orange Leaf store. This includes the time it takes franchisees to complete the application process.
The exact time it will take you to open your fro-yo store or kiosk also depends on how quickly you find a location. Permitting processes vary by state, so make sure you research what’s required for a business permit in your jurisdiction.
Once you’ve secured a location and a permit, the store delivery is up to Orange Leaf. The company designs your store end-to-end, a process that takes anywhere from 8 to 10 weeks for kiosks. Traditional stores take longer to design, but the franchisor estimates that setting up a traditional storefront only takes 2 to 5 days.
Orange Leaf Startup Costs
| Type of Expense | Traditional Storefront | Non-traditional Kiosk |
|---|---|---|
| Initial Franchise Fee | $25,000 | $15,000 |
| Lease Deposit + Rent | $5,000–$12,000 | $5,000–$7,000 |
| Remodeling + Decorating | $66,000–$165,000 | $63,000–$93,500 |
| Architectural Fee | $3,500–$5,000 | $3,500–$5,500 |
| Initial Inventory Purchase | $4,800–$6,500 | $4,300–$6,000 |
| Initial Equipment Purchase | $4,300–$6,000 | $30,000–$72,000 |
| Networking | $1,000–$2,000 | $1,000–$2,000 |
| Licenses, Deposits, etc. | $3,500–$5,000 | $3,500–$5,000 |
| Food Safety Training | $125–$200 | $125–$200 |
| Training Expenses (per employee) | $1,000–$2,000 | $1,000–$2,000 |
| Professional Fees | $1,250–$3,500 | $1,500–$2,500 |
| Insurance | $2,000–$4,000 | $2,000–$4,000 |
| 3-Month Emergency Fund | $10,000–$15,000 | $7,000–$12,000 |
| Grand Opening Costs | $1,000–$3,000 | $500–$1,000 |
| Total | $189,900–$417,300 | $135,000–$226,000 |
The chart above breaks down some of the most common expenses new franchisees run into. As you can see, the Orange Leaf franchise cost differs depending on whether you want to open a smaller kiosk or a traditional storefront operation.
The most significant cost differences come from the fact that storefronts are much larger, require more equipment, and need more human capital to operate than kiosks.
Of course, make sure to consider revenue when you’re determining which type of store you want to invest in. Kiosks require significantly less upfront investment. But they’ll also bring in far lower profit margins than a traditional, full-size fro-yo shop.
Ongoing Orange Leaf Franchise Costs
Once you get your fro-yo store up and running, the work isn’t over yet. And you aren’t finished investing in your franchise business either. Like all franchisors, Orange Leaf charges a royalty fee, ongoing advertising and marketing fee, and a technology fee.
Royalty fees for both traditional and kiosk business models are 5%. That means you’ll have to pay 5% of your net sales to Orange Leaf each year. The Orange Leaf marketing and advertising fee is 2% of net sales paid annually, and the technology fee is a flat rate of $199 per year.
What Orange Leaf Franchise Income Can You Expect?
Unfortunately, it’s illegal to disclose franchise income information. So, it’s hard to say precisely how much you can expect to bring in after your first, third, or even fifth year of operation.
However, if your franchisee application is approved, Orange Leaf will supply more information about potential revenues. In general, top-performing franchisees in the US earn over $200,000 per year. And if you work for a leading franchise brand like Orange Leaf, you may be able to make 15%–20% more than that average.
Orange Leaf Franchise: Explained
Orange Leaf is a network of nearly 160 self-serve frozen yogurt (“fro-yo”) shops in the US and Mexico. The company as it’s known today was founded in 2010 in Oklahoma City, OK.
The original Orange Leaf business was actually known as Orange Tree. It had a few locations sprinkled around California. Then, founders Mike Liddell and Reese Travis bought the company in 2009, moved it to Oklahoma, and renamed it Orange Leaf.
Where Can You Open an Orange Leaf Franchise?
Orange Leaf is currently accepting registration in all states but California, Hawaii, and Alaska. States like Florida, New York, and Washington are considered high-growth markets for Orange Leaf. Emerging markets include Texas, Louisiana, Michigan, and Virginia. There are also opportunities to own an Orange Leaf franchise in Mexico. Orange Leaf considers Mexico one of its markets that is ready for rapid expansion.
Orange Leaf Stores
Orange Leaf offers franchisees two options: a traditional storefront or a non-traditional kiosk. Storefronts are perfect for retail spaces with the potential for high foot traffic. More compact kiosks are ideal for non-traditional retail locations, including universities, airports, hospitals, and sports stadiums.
The traditional storefront features 1000–2000 square feet of commercial space.
This space accommodates 6–8 fro-yo machines, the self-serve topping bar, and room for 2–4 employees to operate. Orange Leaf’s non-traditional store layout is compact at only 50–1000 square feet. It has room for 4–6 fro-yo machines, the self-serve topping bar, and 1–2 team members. This non-traditional layout offers the potential for smaller startup costs, perfect for entrepreneurs on a budget.
Orange Leaf and Humble Donut Co.
Frozen yogurt isn’t the only opportunity Orange Leaf has to offer. The fro-yo company also recently partnered with Humble Donut Co. to provide a co-branded space for entrepreneurs who just can’t choose between the two.
Humble Donut Co. specializes in customizable mini donuts. Customers can choose their own glazes, frostings, and toppings, and the Humble team will have the mini donut(s) made to order.
Want to open up a fro-yo/donut shop combo? Orange Leaf and Humble offer the chance to do just that. Franchisees can invest in a 1500–2000 square foot shop with space for 2–4 employees and the equipment needed for both donut and fro-yo operations.
The Benefits of Becoming an Orange Leaf Franchisee
By now, you may be wondering: why Orange Leaf? After all, there are hundreds of franchises you could invest in. Orange Leaf’s network of support, proprietary product, and advertising partners are three of the top reasons to consider this franchise group.
Advice and Support
Orange Leaf prides itself as a franchise group that feels more like a community. It provides a level of communication and support that’s bar-none in the industry, hosting monthly webinars and training workshops and providing a 24/7 web portal with hundreds of digital resources for its franchisees.
But that’s not all. The company also offers regional support coaches who offer each franchisee in the network one-on-one advice. And the Orange Leaf Franchise Advisory Council and its marketing, operations, and product sub-committees make sure franchisees are always in the loop.
Best of all, Orange Leaf offers financial support to all of its business owners. Franchisees can sign up for a loan product with BoeFly, a well-known franchise lender. Through Orange Leaf’s partnership with BoeFly, franchisees get access to a variety of loan products with a range of terms to suit your unique needs.
A Product to Be Proud Of
Orange Leaf’s fro-yo is unlike any frozen yogurt you’ve had before. The company’s proprietary recipes and fro-yo machine technology make for the richest, smoothest frozen yogurt in the game. And the dehydrated yogurt base used to make Orange Leaf fro-yo reduces production costs, which is good news for franchisees’ bottom line.
Customers can access over 70 flavors. Even those with dietary restrictions will love Orange Leaf’s fro-yo. From Orange Leaf vegan options to sugar-free, gluten-free, and dairy-free fro-yo, there’s truly something for everyone at an Orange Leaf store. Health nuts and sweet tooths are fully covered, too, with fresh fruit smoothies and creamy fro-yo shakes.
When you invest in an Orange Leaf franchise, you’ll get the added benefit of leveraging the brand’s partnerships. Hershey, Mars, and Ghirardelli are only a few of the industry-leading names Orange Leaf partners with to offer customers the best dessert toppings the world has to offer.
Marketing to Ensure Franchisee Success
Orange Leaf boasts a library of over 1000 branded assets, all available to its franchise owners and partners. Its assets include efforts for social media, traditional public relations, and proven content marketing strategies.
Because of its well-known brand, Orange Leaf can provide marketing on the national and local levels. The brand’s family-friendly, quirky vibe and intelligent local content efforts make it easy to reach nearby customers. And the Orange Leaf local store marketing portal allows store owners to present a consistent advertising experience to customers near you.
Finally, the company’s national recognition helps franchisees leverage advertising partnerships with some of the country’s leading agencies, influencers, and brands. Store owners can seamlessly communicate with Orange Leaf’s partners via the mobile app, RemarkableMe.
Ready to Invest in an Orange Leaf Franchise?
Hardworking entrepreneurs like you can start a low-cost fro-yo business with the help of Orange Leaf. It costs $135,000 to a little over $417,000 to get your shop off the ground. The good news is that Orange Leaf partners with lenders to finance your startup and provides marketing support, advice, and more to all its franchisees. Want to compare the Orange Leaf franchise cost to the initial investment price of other leading franchisors? Then keep browsing our blog for more articles like this one.
Sources
https://www.orangeleaffranchises.com/assets/images/franchises/2019-ol-franchisee-guide.pdf
