U-Swirl Frozen YogurtFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A U-Swirl Frozen Yogurt franchise requires a total initial investment of $419K – $630K, including a $25K franchise fee and an ongoing 6.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $419K – $630K
- 28th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 57
- 37th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-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
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
The system contracted 7% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $419K – $630K including a $25K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 92/100.
- System contracting at -19.7% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- U Swirl Franchising LLC
- Parent company
- Bob Partners X, LLC and U Swirl LLC
- Predecessor
- offered franchises under the Yogli Mogli and Cherry Berry trademarks from January
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 14071 Peyton Drive, Suite 2697, Chino Hills, California 91709
- Auditor
- NAPER CPA GROUP
- Audited financials
- Franchisor revenue
- $1.1M
- Most recent fiscal year
Affiliated brands
- Fosters Freeze International
- U Swirl Gift Card
Other brands the franchisor or its parent operates (Item 1).
Overview
About
U-Swirl franchisees operate self-serve frozen yogurt shops where customers select base flavors, toppings, and mix-ins before paying by weight. Daily operations include inventory management, equipment maintenance, food safety compliance, customer service, and staffing. Success depends on foot traffic, location quality, and managing food costs in a declining category.
- CEO
- Nealesh Dahya
- Headquarters
- CA
- Founded
- 2023
- FDD year
- 2024
- States available
- 21
FDD Item 7 · 2024 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $25K | $25K | |
| Furniture, Equipment, and Fixtures | $194K | $278K | |
| Computer System | $5K | $12K | |
| Pre-Opening Rent, Deposits, Architectural Fees and Leasehold Improvements | $131K | $186K | |
| Signage | $10K | $25K | |
| Opening Inventory | $5K | $10K | |
| Training | $4K | $8K | |
| Grand Opening Program | $5K | $5K | |
| Licenses and Permits | $500 | $2K | |
| Insurance | $2K | $4K | |
| Professional Fees | $3K | $5K | |
| Additional Funds - 3 Months | $35K | $71K | |
| Co-Branding Fee (Co-Branded Franchise) | $6K | $6K | |
| Signage (Co-Branded Franchise) | $20K | $50K | |
| Opening Inventory and Supplies (Co-Branded Franchise) | $15K | $35K | |
| Total initial investment | $460K | $721K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $419K – $630K
- Better than avg vs category
- Liquid capital req'd
- $35K – $71K
- Better than avg vs category
- Franchise fee
- $25K – $25K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $5K – $10K |
| Total fee load | 7.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How U-Swirl Frozen Yogurt Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 57
- Opened
- 3
- Last reporting year
- Closed
- 7
- Turnover rate
- 12.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -6.6%
- Net unit change last year
- 3-yr CAGR
- -19.7%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 13
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 50.0%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 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 loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $200K
- Median loan
- $200K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into U-Swirl Frozen Yogurt's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
U-Swirl presents HIGH RISK due to a contracting unit base (-6.6% YoY), missing financial disclosures preventing ROI validation, false Going Concern status, prior litigation for franchise violations, and the structural headwinds facing the frozen yogurt category.
Litigation (Item 3)
1 case reference(s): 0 pending, 2 settled.
Largest disclosed settlement: $1,000,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · NAPER CPA GROUP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 92 / 100 rating
- 01MEDSystem is contracting sharply: -6.6% unit decline YoY with only 57 locations remaining, indicating weak demand and franchisee struggles
- 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents accurate ROI assessment and suggests franchisor may be hiding poor unit economics
- 03HIGHGoing Concern status is FALSE, indicating potential financial distress at corporate level and risk of franchisor support degradation
- 04HIGH2018 litigation settlement ($55,000) for franchise disclosure violations and fraudulent misrepresentation shows pattern of compliance issues and broken franchisee relationships
- 05MINORHigh initial investment ($418.5K-$630K) combined with declining unit count creates significant downside risk if location underperforms
- 06MEDFrozen yogurt category has faced secular decline post-2014; mature/saturated market with limited growth prospects
- 07MED6% royalty on undisclosed revenue means franchisees cannot benchmark their performance against system averages
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 | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 1 |
View Item 3 litigation summary
1 case reference(s): 0 pending, 2 settled.
Items 10, 11
Training & Operations
- Classroom training
- 9 hrs
- On-the-job training
- 16 hrs
- Training location
- Franchisor location and on-site at franchisee's restaurant
- Site selection
- franchisor
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
15 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
U-Swirl Frozen Yogurt · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a U-Swirl Frozen Yogurt franchise?
The total investment to open a U-Swirl Frozen Yogurt franchise ranges from $419K – $630K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do U-Swirl Frozen Yogurt franchise owners earn?
U-Swirl Frozen Yogurt does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is U-Swirl Frozen Yogurt's franchise failure rate?
SBA 7(a) loan charge-off data is not available for U-Swirl Frozen Yogurt (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many U-Swirl Frozen Yogurt franchise locations are there?
As of their most recent FDD filing, U-Swirl Frozen Yogurt has 57 total units in the United States, including 61 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is U-Swirl Frozen Yogurt a good franchise to buy?
FranchiseVerdict rates U-Swirl Frozen Yogurt as a F-grade franchise with a risk score of 92 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.