Reis & Irvy’s Franchise Cost [Startup & Ongoing]
If you’ve ever experienced a frozen yogurt robot, you’ve probably experienced an automated cup given to you by Reis & Irvy’s.
These yogurt vending machines give consumers a unique experience that has helped the franchise explode over the years. As consumers lean toward healthier options, Reis & Irvy’s has come in with a solution that is cost-efficient and healthy.
A Reis & Irvy’s franchise will cost you an average of $375,000. The initial investment can range from $150,000 to $550,00, depending on the machine you choose and your location.
Reis & Irvy’s will also help you find a location for your yogurt vending machine. They are always looking for new areas, so it may be beneficial to reach out to them before exploring where you want to put your franchise.
Let’s examine the cost you will incur when becoming a franchise owner.
How Much Does a Reis & Irvy’s Franchise Cost? ($16k-$58k)
The initial expense for a Reis and Irvy’s franchise will average $35,000. This cost can vary from $16,000 to $58,000, depending on the package you choose from the company.
The company requires a potential franchisee to have a net worth of at least $250,000 and liquidity of $120,000.
The various packages offered by the company allow franchisees to choose how hands-on or hands-off they would like to be with their yogurt kiosk.
Choosing Your Vending Machine ($170k – $620k)
There are many different options you can choose from when it comes to your yogurt vending machine. You can decide how many choices the vending machine will dispense like frozen yogurt, soft-serve ice cream, sherbet, or sorbet.
The company offers 20 different flavors to choose from, allowing you to customize your customers’ experience.
You can choose the size of your yogurt cups, whether it be small, medium, or large. The vending machine also features a self-serve touchscreen that can give consumers nutritional information about each flavor offered.
Based on the functionality and options of your yogurt vending machine, you can expect to pay $170,000 to $620,000
3 Robot Machine – $170,000
6 Robot Machine – $340,000
9 Robot Machine – $470,000
12 Robot Machine – $620,000
Depending on the experience and options you want your kiosk to have, you can choose from 3, 6, 9, or 12 robot machines packages. There is a franchise fee of $5,000 per unit for each vending.
Choose Your Location ($10-$150 per month)
The location you choose for your new yogurt vending machine will be a crucial part of the success of your franchise. Reis & Irvy’s provides services to help you find a location for your new device.
Locations can range from $10 to $150 per month, depending on where you choose to put your franchise. Some sites will make you pay a monthly fee and a percentage of each purchase from customers.
How Much to Put a Vending Machine in a Mall? ($50-$100 per month)
Malls are an excellent option for your new Reis & Irvys franchise. There is usually plenty of traffic and people walking around the mall to help boost your sales.
You can expect to pay $50 to $100 per month for a mall location, depending on the mall’s destination and how much foot traffic it receives every month.
Location fees will depend on where you choose to put your yogurt vending machine within the mall. Some malls will charge a percentage of sales, which can range from 5% to 15%.
How Much to Put a Vending Machine in an Airport? ($50-$75)
Airports are another great place to put your new yogurt vending machine. Many people fly in and out of airports daily, which allows you to continually capture new customers.
Many smaller regional airports get a lot of traffic, and it may be easier to obtain a location for your new yogurt vending machine.
You can expect to pay $50-$75 per month at an airport, but it may be beneficial for you to contact the airport first before signing any contracts.
Fees will depend on which airport you choose and the airport’s destination but expect to pay 5%-10% of gross sales.
How Much to Put a Vending Machine in an Amusement Park? ($80-$100)
Amusement parks may be one of the more challenging places you attempt to find a location for your new yogurt vending machine.
You can expect to pay $80-$100 per month for a spot in an amusement park, but it will depend on which amusement park you try to get into. Some amusement parks will charge between 2%-7% of your sales.
Amusement parks close at certain times during the day and may shut down operations if inclement weather occurs, so you will want to determine their operating hours before signing any contract.
They also may be seasonal, which means you will only receive revenue during certain parts of the year.
How Much to Put a Vending Machine in an Office Building? (Free-$50 per month)
If you choose to put your yogurt vending machine in an office building, expect to pay around $0-$50 depending on which location you decide to go with. Some office buildings will charge tenants anywhere from 2%-10% of your gross sales.
How Much to Put a Vending Machine in an Outlet Mall? ($15-$35 per month)
Outlet malls are one of the best options when it comes to finding a location for your yogurt vending machine. You can expect to pay $15-35 per month at an outlet mall, but it depends on which outlet mall you go with and what location you prefer.
Some outlet malls charge a percentage of sales, but others only require a flat fee to place your yogurt vending machine at their location.
How Much to Put a Vending Machine in a Stadium? ($50-$100)
Stadiums and arenas can be another excellent place for you to put your new yogurt machine. Many stadiums and arenas may offer more affordable rents than amusement parks or airports, but it will depend on which stadium or arena you choose.
Expect to pay anywhere from $50-$100 per month for a stadium location, but it will depend on which stadium or arena you go with. Fees will vary, but most stadiums charge 5%-15% of sales.
Maintenance Costs ($1k-$10k Per Year)
The following cost is probably one of the most important and frequently overlooked, and it’s maintenance. Your vending machine goes through a lot in a year: you need to change its paper, restock items, check temperatures for food safety reasons, and much more that can add up quickly.
It’s not unusual for your maintenance costs to be between $1,000-$10,000 per year. Reis & Irvy’s offers various packages that include complete maintenance and restocking or partial maintenance and restocking.
If you plan on completing restocking yourself, make sure to factor in the time it will take you away from your other responsibilities.
If you don’t do well with maintenance and upkeep… you may want to go with the maintenance package offered by Reis & Irvy’s.
Product Liability Insurance ($2k-$5k Per Year)
Depending on the location of your vending machine and where it’s located (ex., indoors versus outdoors), you also need to factor in product liability insurance.
Some locations will require you to have product liability insurance ranging from $1 million to $5 million per incident, which can cost you anywhere from $2000-$5000 per year depending on the number of vending machines you own and coverages.
Product liability insurance covers any damages or injuries that your customers may incur from using your product.
Commercial Property Insurance ($1k-$5k Per Year)
You will also need to factor in commercial property insurance, which is basically the same as homeowner’s insurance. This provides protection for your yogurt vending machine itself in case of any damages caused by storms or malicious acts.
The cost of commercial property insurance varies depending on where you are located, but most commercial property insurance will cost you anywhere from $1,000-$5,000 per year.
Business License ($50-$100)
You also need to factor in the price of a business license which is usually around $50 to $100, and they’re relatively inexpensive and easy to obtain.
As long as you meet the minimum guidelines for your city or county, then you should be good to go after paying a fee and completing some paperwork.
Reis & Irvy’s have ongoing fees that come from a percentage of gross sales. They charge a 12% royalty fee on gross sales.
This can be a lot for someone to take in, but the good news is that Reis & Irvy’s does most of the heavy lifting. They get locations with high traffic, negotiate with the location, and handle all of the backend.
This is one of the most attractive things about Reis & Irvy’s. You can put your mind at ease because they do most of the work that comes with putting your yogurt machine business on the map.
Is a Reis & Irvy’s Franchise Right For You?
If you’re still reading, then it’s safe to assume that this business sounds right up your alley. And hey, maybe it is!
But before you make the leap, it’s crucial to know the cost and investigate the return on investment.
Now for those of you who want a quick recap: Reis & Irvy’s is great because they already have high traffic locations secured, and their experienced team does a large majority of the work that comes with starting up your yogurt machine franchise.
It will cost you an average of $375,000 to secure a location, purchase your yogurt machine, and get everything else settled.
Having the right location can make or break your business, so make sure to do your due diligence in scouting out the best possible place that meets your needs.