sweetFrogFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A sweetFrog franchise requires a total initial investment of $111K – $659K, including a $30K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $519K[2]. SBA 7(a) loans show a 27.3% charge-off rate across 18 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $111K – $659K
- 11th pct Service Resta…
- Avg gross sales
- $519K
- 10th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 206
- 82nd pct Service Resta…
- SBA default
- 27.3%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
27.3% of SBA loans charged off across 18 loans, above the 16% franchise average.
Franchised units fell from 238 to 206 over 3 years. Investigate why operators are leaving.
20 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $111K – $659K including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $519K/year (median $491K).
- Verdict F (Bottom Quintile) with a risk score of 100/100. SBA loan charge-off rate of 27.3% across 18 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 20 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- MTY Franchising USA, Inc.
- Parent company
- MTY Food Group, Inc.
- CEO title
- Chief Executive Officer
- Eric Lefebvre
- Incorporated in
- TN
- HQ
- 9311 E. Via De Ventura, Scottsdale, Arizona 85258
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $580.3M
- vs $597.5M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
sweetFrog franchisees operate frozen yogurt retail locations where customers self-serve yogurt from dispensers, add toppings, and pay by weight. Daily operations include inventory management, equipment maintenance, customer service, cleaning, staffing, and managing point-of-sale systems. Franchisees are responsible for local marketing, lease management, and meeting corporate standards for store appearance and food safety.
- CEO
- Eric Lefebvre
- Headquarters
- AZ
- Founded
- 2001
- FDD year
- 2025
- States available
- 22
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $10K | $25K |
| Equipment, build-out, other | $71K | $604K |
| Total initial investment | $111K | $659K |
Source: sweetFrog 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$81K
15.5% margin
Unlevered ROIC
20%
EBITDA / total invested capital
Payback
5.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $111K – $659K
- Better than avg vs category
- Liquid capital req'd
- $10K – $25K
- Better than avg vs category
- Franchise fee
- $10K – $30K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.5% of gross sales |
| Technology fee | $100 |
| Training fee | $1K |
| Transfer fee | $8K |
| Renewal fee | $15K |
| Total fee load | 6.5% of rev |
A 6.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $519K
- Per unit, per year
- Median gross sales
- $491K
- Item 19 type
- Historic Sales
- Sample size
- 193 units
- vs category median 28 · large
- Range (low → high)
- $259K→$852K
- Cohort dispersion (min → max)
- Quartile band
- $259K→$852K
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How sweetFrog Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 206
- Opened
- 3
- Last reporting year
- Closed
- 13
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 7
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -6.8%
- Net unit change last year
- 3-yr CAGR
- -13.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 16
- Transfer rate
- 7.8%
- Owners selling to other franchisees
- Termination rate
- 3.4%
- Franchisor-initiated terminations
- Ceased ops
- 2.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 24 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 18
- Loan volume
- $4.8M
- Median loan
- $270K
- 50th percentile
- Charge-off rate
- 27.3%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 80.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 3
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into sweetFrog's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 9 states
- Startup risk premium and job creation velocity
- 10-year lending trend
Instant access. No subscription.
A 27.3% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
sweetFrog represents HIGH RISK due to a contracting franchise system, extensive franchisor litigation for violations, non-protected territories, undisclosed profitability, and parent company going concern issues, despite moderate investment and reasonable royalty rates.
Litigation (Item 3)
Case 1: Purav Enterprises, L.L.C., et al. v. The Extreme Pita Franchising USA, Inc., et al. (Washington Superior Court, Case No. 15-2-15120-7). Filed June 22, 2015. Claims: FIPA violations, misrepresentation of financial performance, unregistered broker. Settled March 11, 2016 for $20,000. Case 2: KOHO, Inc. v. Kahala Franchising, L.L.C. (California Superior Court, Case No. BC572565). Filed February 17, 2015. Claims: breach of contract, unjust enrichment, declaratory relief. Cross-complaint filed by Kahala alleging breach, fraud, negligent misrepresentation, conversion, negligence. Bench trial June 15-16, 2016. Court granted judgment in favor of Kahala. Kahala awarded $205,000 in attorney's fees (July 18, 2016). Koho filed notice of appeal but failed to post appeal bond. Settlement reached June 19, 2017: Kahala repurchased territory for $75,000 and forgave $130,000 in remaining damages.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 100 / 100 rating
- 01MEDSignificant unit decline of 6.8% YoY (206 units) indicates system contraction and potential market saturation or operational issues
- 02HIGHExtensive litigation history involving MTY USA across multiple brands (Famous Dave's, Papa Murphy's, Wetzel's) for franchise law violations, misrepresentations, and breach of contract raises systemic compliance concerns
- 03MEDNo protected territory disclosed, creating direct competition risk where multiple franchisees can operate in same area and cannibalize sales
- 04MEDNet income not disclosed in Item 19, preventing franchisees from validating actual profitability claims; only gross revenue of $519k provided
- 05HIGHGoing Concern status is False, suggesting potential financial instability of the parent company (MTY USA) and uncertainty about franchisor support
- 06MEDHigh investment ceiling of $658,500 paired with declining unit count and undisclosed net margins creates significant ROI uncertainty
- 07MINOR5% royalty on gross sales means no reduction during low-revenue periods, pressuring franchisees during economic downturns
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Mandatory arbitration | Yes |
| Arbitration location | county and state where the Franchised Business is located |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 20 |
View Item 3 litigation summary
Case 1: Purav Enterprises, L.L.C., et al. v. The Extreme Pita Franchising USA, Inc., et al. (Washington Superior Court, Case No. 15-2-15120-7). Filed June 22, 2015. Claims: FIPA violations, misrepresentation of financial performance, unregistered broker. Settled March 11, 2016 for $20,000. Case 2: KOHO, Inc. v. Kahala Franchising, L.L.C. (California Superior Court, Case No. BC572565). Filed February 17, 2015. Claims: breach of contract, unjust enrichment, declaratory relief. Cross-complaint filed by Kahala alleging breach, fraud, negligent misrepresentation, conversion, negligence. Bench trial June 15-16, 2016. Court granted judgment in favor of Kahala. Kahala awarded $205,000 in attorney's fees (July 18, 2016). Koho filed notice of appeal but failed to post appeal bond. Settlement reached June 19, 2017: Kahala repurchased territory for $75,000 and forgave $130,000 in remaining damages.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 24 hrs
- Training location
- Online, KTEC (Kahala Training & Education Center) in Scottsdale, AZ, or at such other location designated by us; Training store in Arizona or such other location designated by us
- Field support
- 24 hrs/yr
- On-site visits per year
- Time to open
- 9 mo
- From signing to launch
- POS system
- NCR POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NCR POS System
Item 20 · call current owners
Franchisee Contacts
109 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
sweetFrog · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a sweetFrog franchise?
The total investment to open a sweetFrog franchise ranges from $111K – $659K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do sweetFrog franchise owners earn?
According to Item 19 of the sweetFrog FDD, the average gross sales per unit is $519K. The median is $491K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is sweetFrog's franchise failure rate?
Based on SBA 7(a) loan data, sweetFrog has a charge-off rate of 27.3% across 18 loans, meaning 27.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many sweetFrog franchise locations are there?
As of their most recent FDD filing, sweetFrog has 206 total units in the United States, including 238 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is sweetFrog a good franchise to buy?
FranchiseVerdict rates sweetFrog as a F-grade franchise with a risk score of 100 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.