I looked around at reviews, and found Pinkberry Franchise which was interesting because it talked about how Pinkberry has become so popular that copycat stores are now popping up everywhere. The review also brings up a good point that although it is popular right now, that may die down because the products are a bit pricy. Location would play a big role in the decision to franchise a Pinkberry, because if one is placed in an area where people can not afford the product, then it will most likely not do well in sales. According to Pinkberry Franchise FAQ's, it is also one of the top 20 social media restaurant brands in America right now. Pinkberry mainly gets good reviews, and has a large population of customers.
The start up cost for this franchise satated on the Franchise Mall is $45,000. Franchising a Pinkberry has a royalty fee of 6%, as well as a marketing fee of 2% of gross sales, and advertising fees of 2% of gross sales. I could not find if the franchisor would offer to help with any financing, but I did find that they would help with marketing, designing, and launching your store. They will also offer about a two week long training class that covers both classroom and in-store training, and set up a licensed agreement with you. According to Pinkberry, license agreements can be up to ten years long, with a chance of renewal if your store does well.Overall I think it would be a good idea to open a Pinkberry franchise right now, but as a long term investment, it may not work out.
I found this video on YouTube, and thought interesting how excited they were that a Pinkberry had opened up near them, and they even knew the Pinkberry theme song.
I agree that Pinkberry may not be a good investment in the long run. If the prices are on the higher side in this economy then they might not be making as good of business as they could. If they lowered their price then they may be able to have a franchises wanting to renew their agreement after the ten year minimum. When Pinkberry originally started franchising then it may have been a good idea to franchise with them because of their wide popularity. In 2005 the economy was at least stable and people were more opt to go and bring their kids for frozen yogurt but now that is not as likely because of how most people are spending very little now. However, the economy I starting to stabilize so the other view point could be that the franchising with Pinkberry may be a smart idea again and they may start making more money and grow as they once did.
ReplyDeletePinkberry couldn’t have had a better time to open. In 2005, the economy was in a bad place, and when people are upset, they look for deserts like chocolate, ice cream or frozen yogurt. When Pinkberry originally started franchising then it may have been a good idea to franchise with them because of their wide popularity. Because of the fact that copycat companies are popping up, Pinkberry would be a scary company to franchise. With the possibility of the Pinkberry franchise losing customers and locations due to copycats, franchising in one wouldn’t be a secure investment. One the other hand, the opening of Pinkberry franchises in foreign locations such as London could increase their revenue. If Pinkberry changes their prices, they could have a longer agreement than 10 years.
ReplyDeleteI love frozen yogurt even though I have only tried it a few times but I agree that in the long run it will probably not be a good investment because people will get sick of yogurt but never sick of ice cream. Also if the prices got lowered then a franchise would want to let them go another 10 years in an investment but right now the frozen yogurt is very expensive and the economy now a days are horrible and a lot of people cannot afford to buy expensive yogurt when you could get a yogurt from the grocery store and freeze it and it will be a lot cheaper. But some people may think it is a good idea to franchise with Pinkberry and then maybe they will make money like they did when they opened 7 years ago. If they open more Pinkberry nationwide they would probably do a lot better with the economy will increase everything.
ReplyDeleteIt is nice information about pinkberry which is one of the well known frozen yogurt franchise. Frozen yogurt is branded food cart in the world and mostly people like to eat frozen ice cream in summer season. So franchise of frozen yogurt is best deal to gain profit.
ReplyDeletefrozen yogurt franchise