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    9 Replies Latest reply on Sep 29, 2008 12:57 PM by PiperE

    Yogurt Venture / Franchise Opportunity

    smallbiz63 Newbie
      Hello,

      I have an opportunity to possibly get a Pink Berry's or Yogurt Land (major yogurt competitors in CA) franchise. The start up costs for one of them is about half million dollars. The Yogurt fad in California is growing out of control lately and there are shops opening up everywhere, and the more recognized one's have people lined up outside many times. It looks like a promising opportunity.

      Another option would be to save the franchise costs and fees and start my own for about $150K less, but this will require more marketing and something unique about my shop.

      My question to the business community is with the current economic situation how long does it seem like this yogurt fad will last and could the slowing economy put an end to this venture? And do these franchise names really make the big difference or if my marketing and style is up to par would I be able to bring in the customers?

      Thank you.
        • Re: Yogurt Venture / Franchise Opportunity
          PiperE Wayfarer
          Hi SmallBiz63.

          I happened to read your post. I am a business and franchise lender AND I used to be a franchise consultant (I consulted with individuals like you who were looking for a business or franchise.)

          I see a lot of people who have the attitude that they can save the franchise fee and royalty fee and start their own business. You may not want to hear this, but there are huge odds against those who choose this route. I don't make any money promoting franchises any more, I am saying this from experience and observation.

          There is a reason that franchises succeed most of the time and independent businesses fail most of the time. The franchise has a model, a program that has already been tried, tested, reworked, rewritten and hopefully has most of the kinks out of the process. Your ramp-up time (doors open to point of breaking even) tends to be A LOT shorter. This is where many indies fail, they never make it beyond breakeven.

          I could go on about the other differences, but I think I have made my point. There are a lot of franchises out there, not all are good. It requires a lot of due diligence. I know the things to look for to spot a successful franchise because my franchise lender (non-SBA) has successfully ID'd the good ones for years. This lender does not secure the borrower's home like an SBA loan does. So my lender has t be sure the franchise will not fail. And they have not been wrong yet.

          If you want to pick my brain, you are welcome to call me.

          Paula Serber
          SBA, franchise loans and unsecured business lines of credit
          619-793-5559
          • Re: Yogurt Venture / Franchise Opportunity
            LUCKIEST Guide
            Yogurt Venture

            You have an Accounting background. Run the numbers.

            I live on the other coast ( N Y ), but I think that yogurt is here to stay.

            Work up a Business and Marketing Plan and Contact SCORE. SCORE is FREE.

            Good luck, LUCKIEST
            • Re: Yogurt Venture / Franchise Opportunity
              characterco Newbie
              HI,

              I just joined this site and found your post. If you end up deciding to go the independent route, I think you would be really interested in what we do. We can help set you up with the most original and funky wall art, menu boards, signage (and logo design!) that would definitely go a long way in setting you apart from the 'pre-packaged' shops.

              Be sure to view the portfolio page in our website www.charactercompany.com

              (it seems you may be in CA and this is a REALLY long, longshot - But if you're in the Long Beach area, we did logo design and sign/menu board artwork for Miss Priss Cupcakes & Such. If you google her, you'll find pics on Flickr and elsewhere.) But our portfolio has hundreds of pics to see as well.

              Best of luck to you!
              karin
              • Re: Yogurt Venture / Franchise Opportunity
                Bluesuit Adventurer
                I think you hit it on the nail when you said "fad.' - - if you love yogurt I would say go for it! But, if not, I would think about it very carefully. Yogurt maybe big now, but 2 years from now - will it be big still? Maybe not. 10 years ago, we had Penguins and other yogurt shops all across CA and then they all died out.
                • Re: Yogurt Venture / Franchise Opportunity
                  Generation4 Adventurer
                  The difference of $150K is a large sum, but those are well known and well recognized brands. Something is to be said about leveraginng a powerful brand and using their business model. Good luck with your decision.
                  • Re: I Am Interesting In Financing Your Yogurt Venture
                    uawithyaltd Newbie
                    Hello smallbiz63,

                    I am an Angel Investor residing at albany, NY. I came across your message on this site and will be interested to help you with the capital you need. Can you please give me more overview about your vision for the business you want to invest into. Send me details to my email box:mylibrary2006@hotmail.com
                    Until I hear from you remain bless.

                    Mr. Simeon Douglas
                    • Re: Yogurt Venture / Franchise Opportunity
                      LUCKIEST Guide
                      Yogurt Venture / Franchise Opportunity

                      You posted on Sept 16 and have not answered any of the posts.

                      Now there is another post "yogurt business" by uninjoy

                      Maybe you two should talk, LUCKIEST
                      • Re: Yogurt Venture / Franchise Opportunity
                        PiperE Wayfarer
                        Beware of uawithyaltd, aka Mr. Simeon Douglas. Google the email address he entered. Sounds like he is a scammer. If you try working with him, do not, repeat do not, send him any kind of up front money no matter how much sense it makes to you. Usually there is a claim that insurance must be purchased to insure the loan and the borrower much pay for it.