Zoyo is a major player in the rapidly expanding, hot category of self-serve frozen yogurt.  In their case the most significant reasons to consider them are not directly product related, but more the surrounding support, knowledge, efficiency, backing, services provided, etc.  The product is very good, but it might not necessarily win a blind taste test.  It is good enough however, that Dannon recently bought the company that supplies the frozen yogurt base to the franchisees.

Some of the other highlights that make them worthy of serious consideration:

• The franchisor is part of the group that also handles Dunkin Donuts and Baskin Robbins.  They know what they are doing and what needs to be done for franchisees to be successful.
• They have also studied leading retail concepts, Subway and Starbucks in particular, to learn what has made them so successful in an effort to determine what needs to be done to make Zoyo equally successful.
• From Subway they learned that product is always somewhat important to franchisee success, but they also learned that keeping costs down for franchisees in terms of their initial investment, is even more important to ROI and long-term success.  The typical Zoyo store costs about 75% as much as competitors in the category.
• From Starbucks and others in the frozen yogurt category they learned that this is a category where ambiance is important since most people will stay and eat their yogurt on premises.  It needs to be inviting, family friendly, and even meeting friendly for business people.
• They also learned that all the health claims that can be made for this “dessert” are important and help people to rationalize eating this as a treat or a meal.  They have live, active cultures, full of protein, potassium, calcium, B12.  There are many other documented claims they can share.
• FYI, while this is a two or even three day-part product, most business is after 4 PM.
• They also learned that there is no substitute for expertise and while they would like to have franchisees with relevant store or restaurant experience, frozen yogurt in particular, they also know that there are many people who could be very successful in this business without previous experience.  As a result, they are more hands-on and provide high levels of training as well as involvement in everything from store location, to lease negotiation, build-out, equipment & inventory guidance, hiring and retention assistance, quality assurance procedures, financial and insurance assistance and unlimited support on all aspects of the business including how and why to get involved in the community.
• Their franchisee frugality is in evidence in many areas where it will not impact customer satisfaction.  Stores are between 800 and 1400 square feet.  They are designed to minimize the number of employees needed. They have 6 yogurt making machines in each store versus the usual 8 (they are $15,000 each) and customers are fine with the resulting number of choices.  Total store cost is between $170k and $370k depending on store size and market area/specific location costs.  Many other frozen yogurt franchises start at about $370k and go up from there.
• They are always looking for additional revenue streams for franchisees, especially incremental ones or ones that will expand the appeal of ZOYO in additional day parts or in climates where frozen desserts can be more seasonal.  They are developing their own hot chocolate for example, and stores have retro, reach in Coke machines in most stores.

They have many proprietary flavors that are always changing.  For example, two of the most popular currently are sea salt caramel and red velvet.

Some other key cost and revenue figures:

• While they prefer to focus on area developers or multiple store franchisees, single units are available.  Single franchise fee is $35,000; $100,000 in cash required; $350,000 net worth, 6% royalties & 2% ad fees.
• Owning an entire territory results in a 50/50 franchise fee split with the franchisor. Area developers also receive 2.5% royalties from franchisees in their territory and pay reduced royalties for their stores. An area developer's investment level will vary depending on the size of the area.
• ZOYO seems to strongly prefer area developers and have a few singles but they will give mild discounts for three packs…$90k for three units committed to upfront.

There are 47 open Zoyo stores and 120 in the works.  Most are currently in Arizona where they started, and they were voted Best Frozen Yogurt in Arizona in a Phoenix Magazine poll in both 2011 and 2012.  Most states and countries are available.

Since they have great flavors, a great ambiance coupled with lower start-up and operating costs, unmatched support of all kinds, and the backing of the best, they are worth talking to!