What is Menchie’s? Next Steps 81 What is Menchie’s? The Biggest and the Best Menchie’s is the...

3

Next Steps .......................................................................................... 81

What is Menchie’s?

The Biggest and the Best

Menchie’s is the largest self-serve frozen yogurt franchise in the world, an international company with hundreds of stores across the globe.

Our CEO, Amit Kleinberger, has been at the helm since we began franchising in 2008. “Menchie’s is not in the business of frozen yogurt,” Amit says. “We are in the business of making people smile. And that’s what prospective franchisees understand right off the bat.”

Are you someone with an

entrepreneurial spirit and a

passion for making guests

smile? If so, you may be

right for Menchie’s. The

question that remains: Is

Menchie’s right for you?

3

Next Steps .......................................................................................... 81












1

2

Table of Contents What is Menchie’s? ............................................................................. 3

How Menchie’s Created the Next Big Frozen Dessert Brand ......... 8

The Menchie’s Story .......................................................................... 12

What are the Startup Costs? ............................................................ 15

How Much Can I Make? .................................................................. 21

How Large is the Frozen Yogurt Industry? ......... Error! Bookmark not

defined.

Do I Need Restaurant Experience? ................................................ 31

Who Makes a Good Franchise Owner ........................................... 36

Menchie’s Franchise Reviews – Interviews with Actual Owners .. 40

What Territories are Available? ........................................................ 69

How to Finance Your Menchie’s Franchise .................................... 71

Meet the Management Team ........................................................ 71

Franchise News .................................................................................. 81

2







defined.







Franchise News .................................................................................. 81

2

ContentsWhat is Menchie’s? ..................................................................................3

How Menchie’s Created the Next Big Frozen Dessert Brand ...............5

The Menchie’s Story .................................................................................6

What’s the Buzz? .......................................................................................8

How Much Does It Cost to Open a Menchie’s? ....................................9

How Much Can I Make? .......................................................................10

How Large is the Frozen Yogurt Industry? ............................................12

Do I Need Restaurant Experience? .........................................................................14

Who Makes a Good Franchise Owner ................................................15

Menchie’s Franchise Reviews – Interviews with Actual Owners .......17

What Territories are Available? ...........................................................27

How to Finance Your Menchie’s Franchise ..........................................28

Meet the Team ........................................................................................28

Next Steps ...............................................................................................31

3

Next Steps .......................................................................................... 81












3

Next Steps .......................................................................................... 81












3

What is Menchie’s?The Biggest and the BestMenchie’s is the largest self-serve frozen yogurt franchise in the world, an international compa-ny with hundreds of stores across the globe.

Our CEO, Amit Kleinberger, has been at the helm since we began franchising in 2008. “Menchie’s is not in the business of frozen yo-gurt,” Amit says. “We are in the business of mak-ing people smile. And that’s what prospective franchisees understand right off the bat.”

Are you someone with an entrepreneurial spirit and a passion for making guests smile? If so, you may be right for Menchie’s. The question that remains: Is Menchie’s right for you?

Our philosophyMenchie’s is a place where, when you go there, you don’t want to leave. We’ve designed our stores to be inviting and fun, a great place for families and guests of all ages to hang out.

We want every guest to come away with a great frozen dessert and a great experience.

2







defined.







Franchise News .................................................................................. 81

2







defined.







Franchise News .................................................................................. 81

4

We want everyone to leave Menchie’s feeling better than they did when they first walked in. Every Menchie’s owner learns about the impor-tance of guest care and greeting everyone with a smile so they leave with a smile.

“When you take care of your guests and make them smile, they will take care of you and your business,” – and that is at the core of Menchie’s Unique Selling Proposition.

We serve our own private label yogurt, and we have varieties that appeal to every palate and diet, from tart and non-fat to

low-carb, gluten-free and non-dairy. Speaking of dairy, we get all our milk products from a spe-cially selected California dairy where cows are never treated with artificial growth hormones. We don’t believe in making or serving anything to our guests that we wouldn’t serve to our own families.

Menchie’s Stands OutWhat makes Menchie’s stand out from the crowd is our devotion to the guest experience.

What do we mean when we say “guest experi-ence?” For instance, Honda sells motorcycles but Harley Davidson sells a lifestyle. Menchie’s is like Harley Davidson. Dunkin Donuts sells coffee. Starbucks serves community and conversation. Menchie’s, like Starbucks, sells more than prod-ucts.

Our competition sells frozen yogurt. While we do serve up a high-quality, great tasting frozen des-sert, more importantly we serve up smiles. While guests’ taste preferences may change over time, their desire to take their family out to a family-friendly environment, smile and laugh will never go out of style.

Our dedication to delivering a flawlessly fun guest experience has paid huge dividends for our franchisees. Here are some of the latest in a long list of awards and accolades Menchie’s has earned:

• Entrepreneur Magazine included us in its Franchise 500 and Fastest Growing rankings in 2014 and 2013, and we were also included us on its Top New list in 2013 and 2012.

• Entrepreneur Magazine rated us as the Top Frozen Yogurt Franchise in 2013.

• Fast Casual ranked us among the Top 100 Movers and Shakers in 2013.

• QSR magazine rated us its top Rising Star among its Best Franchise Deals list in 2013.

• Forbes magazine named CEO Amit Klein-berger as one of America’s Most Promising CEOs under 35, and it named co-founder Danna Caldwell as one of 11 Women Who Started Amazing Companies.

• Technomic ranked us at 272 in the Top 500 U.S. Restaurant Chain Report in 2012.

• Orlando Magazine ranked Menchie’s No. 1 Best Frozen Yogurt in 2011.

• Los Angeles Business Journal named us Best

3

Next Steps .......................................................................................... 81












3

Next Steps .......................................................................................... 81












5

Franchise in 2011.

Menchie’s is an award-winning international brand that’s growing by leaps and bounds. Read on to see if we each fit what the other is looking for.

How Menchie’s Created the Next Big Frozen Dessert BrandWhat Makes Menchie’s the Best Frozen Yogurt Fran-chise? The answer is as simple as it is ingenious: Combine a consistently great guest experience with the best-tasting frozen yogurt.

It’s an approach that has paid off. With hun-dreds of locations across the globe and hun-dreds more in development, Menchie’s contin-ues to outpace its competition. “We get asked all the time how we were able to grow so quickly in such a crowded industry,” says Menchie’s CEO Amit Kleinberger. “In all crowded industries, there is always room for one brand to be operationally excellent, one who

understands its guests better than everyone else. Menchie’s is that brand in the frozen des-sert category.”

For Menchie’s, making people smile is more than the corporate mission statement; it is its sole reason for being. While Menchie’s is equally dedicated to helping franchisees receive an excellent return on investment, we believe a franchisee’s financial success is completely tied to how many guests leave happier than when they came in. In other words, profitability is not the goal; it’s a byproduct of the value we add to each guest who walks in our door.

About our Frozen DessertsFor its exclusive private label collection, Menchie’s uses the highest-quality milk from California cows, which are never

treated with artificial growth hormones. The re-sult is a product that’s so flavorful, so creamy, that we invite our guests to sample it. In fact, we encourage it. Trays of paper sample cups are always available so guests can try as many fla-vors as they’d like.

Our visitors love creating their own unique combinations from our roster of more than 100 rotating, can’t-get-them-anywhere-else frozen dessert flavors. Each creation can be as unique as our guests as they add on as many of our 70

2







defined.







Franchise News .................................................................................. 81

2







defined.







Franchise News .................................................................................. 81

6

rotating toppings as they wish.

Some families have members with food al-lergies or unique dietary needs. Not to worry — Menchie’s has that covered, too, with non-dairy, kosher, low-carb, no sugar added and gluten-free frozen desserts available.

The Fun InsideIf you keep making people smile, they’ll keep coming back. Menchie’s approach results in re-peat guest traffic. There are indoor and outdoor seating areas; colorful, airy surroundings that invite hanging out; lively music; chalkboards where guests can draw to their heart’s content. Menchie’s is a fun place for guests of all ages to visit and enjoy spending time together — to slow down and enjoy the company of others in a hectic world.

“Menchie’s guests not only visit our stores fre-quently, they enjoy the time they spend with us

so much that they won’t visit any other frozen dessert shop,” Kleinberger says.

Indeed, some families will drive miles out of their way for the Menchie’s experience, because their kids demand it. Happy guests mean profit-able franchises, and Menchie’s franchises are the fastest growing in the already-booming fro-zen dessert industry.

The Menchie’s StoryReviving a lost piece of AmericanaCo-Founder Danna Caldwell, below, often re-fers to Menchie’s as “a love story.” She and her husband, co-founder Adam Caldwell, went on their first date to a frozen yogurt place where you could add your own toppings. Excited by the different flavors, the rainbow sprinkles and the business possibilities, Danna and Adam hatched an idea that night in Orange County, Calif., to open a well-branded, family-friendly, self-serve frozen yogurt store in the Los Angeles

3

Next Steps .......................................................................................... 81












3

Next Steps .......................................................................................... 81












7

area. As their idea to start a frozen dessert store blossomed, so did their relationship. In 2007 the couple opened their first frozen yo-gurt shop, naming it Menchie’s after Adam’s pet name for his bride-to-be. After opening their first store, Menchie’s CEO Amit Kleinberger part-nered with them and laid out a vision to create a global brand.

The team set out to develop more than just a frozen yogurt chain.

“I’ve always been fond of soda fountains from the 1940s and ’50s,” Danna says. “Soda foun-tains were places you could go to and hang out with friends, bring a date, bring kids for a treat or meet family after a movie or for dessert. Soda fountains were, for many people, the center of life outside home and work and a place you went when you wanted to be with friends and family, smile and enjoy time together.”When shopping malls came along and dis-placed downtown shopping, the soda fountain disappeared. “We lost those precious places where we could enjoy each other’s company,” Danna says. In some ways, coffee shops have taken the place of soda fountains. Still, most people don’t think of them as a family hangout, and they also tend to be places where people go to get their caffeine and speed up. We wanted a space where everyone could slow down.

“I do have a sweet tooth, but for me the attrac-tion to starting Menchie’s wasn’t the desserts themselves, it was creating a place where peo-ple would enjoy the visit the way people used to at soda fountains and the way Adam and I enjoyed our first date,” Danna says.

Today, you can find our signature pink-and-green stores across the globe. Under Amit’s leadership, we have adopted “We Make You Smile” as our mission statement. Indeed, when you visit a Menchie’s, you’ll see kids playing with Menchie’s free stickers and toys or teens wearing Menchie’s T-shirts and hoodies. You’ll see couples on dates, parents with their kids, and entire families, often with several genera-tions visiting at a time. People are drawing on the chalkboard, comparing their frozen dessert creations and having a good time.

2







defined.







Franchise News .................................................................................. 81

2







defined.







Franchise News .................................................................................. 81

8

We are not trend followers, and we were not trying to target a specific demographic. We want to create an environment where anyone could enjoy both their time together and the dessert. We are universal, Timeless, and we be-long to everyone, every community around the world! We’ve got fruity flavors, tart flavors, sorbet flavors and no-sugar added flavors and a really wide

range of toppings. There’s something to bring out the kid in everyone, no matter how young or old – We will make you smile.

What’s the Buzz?Menchie’s yogurt franchise places

people and community before com-merce, and is currently spreading smiles

in communities worldwide. Guests consider Menchie’s to be the friendliest place on Earth, which is evident in the recognition the company has received.

Menchie’s in the SpotlightAs an emerging leader in the frozen dessert industry, Menchie’s continues to be noted for its many accomplishments through local and national media. Menchie’s buzz is spreading far and wide, and the frozen yogurt franchise has received numerous awards in the country’s top media publications.

Awards that Menchie’s yogurt franchise has won recently include:

• FastCasual.com: Top 100 Movers and Shakers (2013)

• FastCasual.com: Menchie’s CEO takes Frozen Yo-gurt Global (2013)

• QSR: No. 1 Rising Star, Best Franchise Deals (2013)• The Wall Street Journal: 2013 Menchie’s to get

“Smurfed” (2013) • Entrepreneur Magazine: Franchise 500, Fastest

Growing Franchise (2014)• Entrepreneur Magazine: Franchise 500, Fastest

Growing Franchise, and Top New Franchises (2013)• Entrepreneur Magazine: Franchise 500, Fastest

Growing, Top New and America’s Top Global cat-egories (2012)

• Restaurant Business Magazine: #1 fastest growing franchise (2010)

• Restaurant Business Magazine: #2 fastest growing franchise (2011)

• Technomic: #272 in the Top 500 U.S. Restaurant Chain Report (2012)

• WBIR-TV: Top Frozen Yogurt in Knoxville, TN (2012)• AllBusiness Magazine: Franchise AllStar (2011)• Los Angeles Business Journal: Best Franchise (2011)• Orlando Magazine: Ranked #1 Best Frozen Yogurt

(2011)• Nickelodeon’s Parents’ Picks: Best Frozen Dessert in

Los Angeles (2009)

Menchie’s frozen yogurt franchise has also been featured on MSNBC, ABC-TV, FOX-TV, NBC-TV, Fox Business, as well as in QSR Magazine, People Magazine, The Wall Street Journal, Franchise Update, The Los Angeles Times, Seattle Maga-zine, Orlando Home & Leisure Magazine, The New York Post, and The Denver Business Journal, among others.

Additionally, Hollywood’s A-listers frequent Menchie’s – celebrities like Jennifer Garner, Re-ese Witherspoon, Ryan Seacrest, Justin Bieber and Selena Gomez have been spotted making their own favorite mixes at Menchie’s.

3

Next Steps .......................................................................................... 81












3

Next Steps .......................................................................................... 81












9

How Much Does It Cost to Open a Menchie’s?The startup cost for a Menchie’s Frozen Yogurt shop ranges from $300,000 to $350,000.

Qualified franchisees will have good credit and approximately $100,000 in liquid assets and pos-sess a net worth of approximately $450,000 in order to qualify for a Small Business Administra-tion (SBA) commercial loan.

According to Item 7 of our 2014 FDD, here is a more detailed breakdown of our startup costs. The chart below includes ranges, but you can review our average costs to the left.

*Average

Type of Expenditure Amount Method of Payment

When Due To Whom Payment Is to be Made

Franchise Fee $40,000 Certified funds At time of sign-ing of Fran-chise Agree-ment

Us

Training Expenses $2,430 - $5,000 Check, cash, or credit card

As incurred Paid to various vendors

Development Services Fee

$1,920 As agreed to At time of sign-ing Franchise Agreement

Us

Rent Deposit $2,500 - $10,000 As agreed to As incurred Landlord

Leasehold improvements $90,000 - $135,000 As agreed to As incurred Paid to various providers

Furniture, Fixtures, and Equipment

$69,792 - $132,800 As agreed to As incurred Paid to various required suppliers

Computer (POS) System $5,990 As agreed As incurred Vendor

Signage $1,900 - $10,000 As agreed to As incurred Vendor

Opening Inventory $3,000 - $4,000 As agreed to As incurred Designated and approved suppliers

Uniforms, Merchandise, Equipment and Sales

$3,000 Certified funds As incurred Us

Initial Marketing $2,975 - $4,000 As agreed to As incurred Vendors

2







defined.







Franchise News .................................................................................. 81

2







defined.







Franchise News .................................................................................. 81

10

Financing OptionsMenchie’s is on the SBA Registry. Also, Menchie’s Franchise Development Managers have expe-rience helping franchise candidates explore other sources of financing, such as home equity lines of credit and self-guided IRAs, which can allow you to start a business using pre-tax dollars without penalties or paying income tax on the start-up dollars.

Each franchise candidate has a unique per-sonal financial statement and individual goals. Menchie’s Franchise Development Managers will study your situation and educate you on your best financing options.

Business success is often a function of good tim-ing, and the time for Menchie’s is now. We are looking for experienced and talented franchi-sees who want to capitalize on the opportunity by making an investment decision within the next 90 days and opening a store within the next 12 months.

If you fill out our contact form, one of Menchie’s Franchise Development Managers will reach out

to you to schedule a time to speak with you and begin the process of determining if we each fit what the other is looking for.

How Much Can I Make? Menchie’s franchisees can earn a great livingEach franchisee structures their business a bit differently according to their needs. After you fill out the contact form, one of our Franchise Development Managers will reach out to you and help you determine how Menchie’s can help you reach your financial and quality of life goals. Below you will find a table that shows our store volumes.

Average Gross Sales of Locations Selected Under Real Estate 2.0 PlatformItem 19 includes the average Gross Sales earned by the 63 franchised locations that were procured under our Real Estate 2.0 platform. In

Type of Expenditure Amount Method of Payment

When Due To Whom Payment Is to be Made

Utility Deposits, Security Deposits, Business Licens-es, etc.

$1,000 - $3,500 As agreed to As incurred Various govt. entities, utility companies

Inspection Fee $0 - $1,500 As agreed to As incurred Us

Additional Funds - 3 Months

$6,000 - $36,000 As agreed to As incurred Various vendors

Total $230,507 - $392,710

3

Next Steps .......................................................................................... 81












3

Next Steps .......................................................................................... 81












11

2012, we changed our real estate criteria and changed from working with 3rd party real estate site selection companies to providing this ser-vice in-house. The average Gross Sales for our 63 franchised locations during the Measurement Period was $505,952.

Average Gross Sales in Los Angeles County

How Menchie’s Created a Team of Successful FranchiseesTo grow a brand, two things have to hap-pen. First, the business needs to make money. Menchie’s could not be the fastest growing fro-zen dessert chain if franchisees were not

profitable. Menchie’s galvanized its franchisee community and inspired them into committed action by creating a purpose-driven business model. Menchie’s gives franchisees a compel-ling reason to wake up ahead of their alarm clock and take on the day.

Menchie’s franchisees are sophisti-cated, well capitalized and intelligent. They’ve had multiple career and busi-ness options. They chose Menchie’s

because of the value Menchie’s adds to the communities it serves.

Take the automobile repair business, for instance. While a completely nec-essary service, customers aren’t hap-py about taking their cars to a repair shop to be fixed. They would rather be somewhere else spending money on something else. And if working with unhappy customers isn’t bad enough, customers often don’t trust the feedback about what’s wrong with their car. The auto repair busi-ness can do a stellar job in identifying what’s wrong and cost-effectively repairing its customers’ vehicles, but the business can still get a black eye if the customer distrusts the feedback or has a negative experience.

Franchisees certainly need a busi-ness model that’s financially viable,

Historical Profit & Loss Information for an Owner Operator Model

2







defined.







Franchise News .................................................................................. 81

2







defined.







Franchise News .................................................................................. 81

12

and Menchie’s understands that. The second thing you need to grow a brand is happy fran-chise owners who enjoy what they do. “Making money is great, but making money by itself isn’t enough,” says CEO Amit Kleinberger. “Why you make money is just as important.” Menchie’s of-fers franchisees a strong return on their time and money. But franchisees also want a business they can believe in, something they and their guests can both be passionate about.

How Large is the Frozen Yogurt Industry?Healthy frozen desserts here to stayFrozen yogurt is enjoying a renaissance as a high-growth, high-margin segment of the stable frozen desserts industry.

The capacity for earnings is off the charts.

After the 1990s slowdown, when many frozen yogurt shops were overtaken by ice cream parlors and coffee shops, frozen yogurt has

climbed back up the popularity charts over the past decade and shows no signs of slowing down. Much like the prevalence of home deliv-ery changed the pizza industry in the 1970s and ’80s, the self-serve, mix-it-yourself frozen yogurt model has been seen as a game-changer for the frozen dessert industry.

But let’s pretend one day another frozen des-sert captures consumers’ interests. Menchie’s is not necessarily in the frozen yogurt business. We are in the business of creating smiles. Unlike most of our competitors, our vision and broader marketing platform allow us to keep current with guests’ tastes. Like any product, frozen yogurt will have a life cycle, but families will al-ways need a family-friendly place outside the home where they feel appreciated and wel-come. Menchie’s is branding that family-friendly experience.

3

Next Steps .......................................................................................... 81












3

Next Steps .......................................................................................... 81












13

How does Menchie’s compete? Menchie’s competes the following ways:

• Menchie’s, with its Sweet Friends characters, is a recognizable brand everyone can relate to.

• Frozen yogurt is a high-growth industry. A rising tide raises all ships, and category interest is very high.

• It serves only high quality products, such as its private label yogurt.

• The energetic store atmosphere, with its modern design and layout and its inviting color scheme, draws people in.

• The model attracts responsible young people to fill jobs, creating enthusiastic team members in each store.

• We have killer locations. The Menchie’s team carefully selects each site.

• We earn amazing community buzz. People get excited when they find out a Menchie’s is

coming to town.

• We have raving fans for guests. Menchie’s inspires tremendous loyalty because of its consistently positive guest experience.

How often do customers eat frozen yogurt?

Menchie’s stores are designed to be not just a stop-off, but a destination. Labor costs are lower because guests are essen-tially serving them-selves. They get to experiment end-lessly by combining the premium soft-serve flavors with a rotating array of toppings, which provides a unique guest experience every time. That’s the sort of experience that brings people back, time and again.

Despite the industry’s climb, there’s still opportu-nity for growth. Menchie’s is the largest, fastest-growing self-serve frozen yogurt franchise in the world. We’ve expanded from 12 stores in 2009 to more than 400 open today.

Even during tough economic times, when people tend to slow their buying of luxury items, Menchie’s and the frozen yogurt industry have bucked that trend and remained strong. Ana-lysts at IBISWorld felt that might be due to the fun guest experience that can be had for such a low price. Frozen yogurt is an affordable luxu-ry.

2







defined.







Franchise News .................................................................................. 81

2







defined.







Franchise News .................................................................................. 81

14

As the largest self-serve frozen yogurt brand in the world, Menchie’s continues to distance itself from the competition. Why does this mat-ter? Because in any business, the lion’s share of revenues and profits go to the category leader. In the end there can only be one leader, and if growth is an indicator, we are that leader.

Do I Need Restaurant Experience?Menchie’s Training, Support and Business Model Eliminate the Need for Restaurant ExperienceYou can summarize the Menchie’s business model in one word: simple. You don’t have to be a restaurant business guru to run a Menchie’s. We don’t cook, so there are no fryers or grease. We don’t have a “make-it-or-break-it” lunch or dinner rush. We aren’t running 30-45 people per shift like major fast food outlets. Guests make their own desserts and serve them-selves, eliminating two owner sore spots in the food business. Your most valuable professional

assets? Aside from the necessary capital, you will need some people skills, contagious guest care mentality and a community orientation.

Menchie’s is so simple, proven multi-unit restau-rant gurus have seen the light. Take franchisees Craig Early and Alan Gardner. The partners have owned and operated franchises for more than 38 years, most notably a string of top-per-forming burger restaurants in the Phoenix area.With the burger franchise, “operations are com-plex, and it can be difficult to prepare food for guests consistently,” says Gardner. “With Menchie’s, the business is really simple, and the guest prepares his or her own food, minimizing mistakes and increasing guest happiness.”

When Early and Gardner decided to branch out into dessert franchises, they did a lot of re-search, visiting every frozen yogurt brand they could find. Menchie’s won out by a large mar-gin.

“It is rare that you find a franchise that has a great product, great atmosphere, a solid orga-nization, a business model that makes sense and good profitability,” says Gardner. “Frozen yogurt is here to stay, and Menchie’s is the clear win-ner.”

What Makes Menchie’s Unique“We Make You Smile” is our mission statement and our reason for being. Stop into any of our stores, and you’ll see why.

We give away stickers to kids. Our Facebook Page has many thousands of fans. Teens love our T-shirts and hoodies. Couples on dates are as likely to hang out at Menchie’s as families and soccer teams. People draw on our chalk-

3

Next Steps .......................................................................................... 81












3

Next Steps .......................................................................................... 81












15

board, have contests to see whose yogurt mix is most creative and just generally kick back and relax. Like Disney World, you won’t see any frowning on the way out.

“We are not really in the frozen yogurt business,” says Amit. “From our beginnings, we have al-ways worked hard to create a special guest ex-perience that is both fun and allows people of all ages to feel like a kid.”It was all about creating a place where people of all ages could hang out and reconnect. We did not want to target a specific demographic group; we wanted people of all ages to love Menchie’s.

Our fans are loyal. They have a love affair with our brand.

Who Makes a Good Franchise Owner Franchise owners come from all walks of life

Are you a good fit for Menchie’s? Our franchi-sees come from all sorts of backgrounds, from cops, engineers, stay-at-home moms and expe-rienced franchise owners to neurologists, teach-ers, dentists and executives. There is no single background or education level which deter-mines success.

Menchie’s franchise owners have a tendency to fall into the following categories:

Corporate leaders, managers and executives. They may be looking to build an empire or start something now that will generate cash flow during retirement. They may keep their job and start the business on the side. Some leave their careers and select Menchie’s as their next growth vehicle. They often choose Menchie’s for its simplicity of operations, ability to manage the business by the management information system, scalability, interacting with store leaders and world-class branding.

Diversifying entrepreneurs. These are smart businesspeople who’ve had successful careers owning other businesses. They choose Menchie’s for its inspiring corporate mis-sion, strong cash flow, low inventory and ease of operations.

Family businesses. These owner-operators enjoy seeing the smiles they put on guests’ faces. Often these are husband-and-wife teams or parents and adult children who are looking to make their own mark on the world. Many times a stay-at-home parent is facing an empty nest and determines now it’s their turn to pursue a worthwhile career. Menchie’s is a clean, safe, profitable, family-friendly business.

2







defined.







Franchise News .................................................................................. 81

2







defined.







Franchise News .................................................................................. 81

16

Again, these are general groups of people we have attracted in the past. If you don’t fit one of these categories, we encourage you to still learn more.

The internal qualities of a Menchie’s franchisee:

Passionate about the brand. They live, eat, and drink the “We Make You Smile” business philosophy. They put guest ex-perience above everything else. At Menchie’s, we have a saying: “Every smile and every cup matters.”

Passionate about people. Menchie’s is a “people business.” We’ve de-signed all our stores to be a fun family hangout. Menchie’s is a “frozen yogurt business” second; it’s a “people business” first.

Business-minded. You do not have to have experience running your own business — many of our franchisees don’t. You should have a good head for num-bers and know how to motivate and manage a small team of people.

Community-oriented. Like any successful business, Menchie’s thrives when its owners are constantly giving back to the community where they’re located. We believe Menchie’s is “community property,” and anyone touching the brand should be left better off as a result. We believe the brand has 5 stakeholders: the franchisees, the suppli-ers, adults, children and team members of the brand. We are a business that supports its com-munity. Whether it’s donating to charities, work-ing with the Little League or getting involved with churches or Scouts, there are really unlim-ited ways to make your Menchie’s franchise an

integral part of the place you live.

A team player. You must want to be part of something big-ger than you. Franchising works because of synergy. For instance, if you decide to move forward as a franchisee, you will be starting with a base of hundreds of thousands of existing Menchie’s guests. Many people in the area you choose to do business will have already been to a Menchie’s or heard good things about the brand. Our existing franchisees have already primed the pump for your success. If you be-come a franchisee, you will have an opportunity to pay it forward and prime the pump for the franchisees who comes after you.

Menchie’s Franchise Reviews – Interviews with Actual Owners Talking to other owners is invaluable. We asked a few for their observations.Menchie’s franchise owners share a few com-mon traits: They’re outgoing, they love people and they love getting involved in their commu-nities. We asked some of them about their expe-riences with Menchie’s.

Bob Elmer, Austin, TexasFrom marketing to making people smile, Bob Elmer loves his new career as a Menchie’s frozen yogurt franchise owner

Changing careers is generally not a quick de-

3

Next Steps .......................................................................................... 81












3

Next Steps .......................................................................................... 81












17

cision, but discovering Menchie’s made the choice a whole lot easier for Bob Elmer and his family. Bob was working as an advertising exec-utive when he found himself at a career cross-roads. Shortly after making one large change for his career, moving from Manhattan to Austin, he was asked to pick up his family and move again. Together with his wife, Kathy, they de-cided moving again wasn’t right for their family. Instead, they started the search for a career move that would be more family-friendly.“It was the first time since I graduated col-lege that I had the chance to see what I really wanted to do,” says Bob, who graduated from Virginia Tech in 1995. “My dad (Gus Elmer) and I researched several business ideas, and it was my idea to do frozen yogurt.”

Once they had chosen their category, the Elm-ers were determined to find the very best brand. That’s where Bob’s 12-year career in marketing, branding and advertising came in handy.

“After meeting Menchie’s executive team and going out to the office, we felt they had a much clearer vision of who they wanted to be and who they were,” Bob says. “Their brand perspective and identity focus of who their main consumers were — kids and family — and their execution of that target audience was much stronger than any other franchises we talked to. The quality of their product is superior, as well.”

A Family Affair

Today, the Elmer family owns three Menchie’s frozen yogurt

franchises in the Austin, Texas, area, with their first store opening in February 2013 in Quinlan Crossing.

“The biggest change is my wife and I are do-ing this as a team,” says Bob. Kathy has always been a stay-at-home mom who now divides her time between the kids and the business. Bob is also enjoying the time spent with his father. “My dad is involved with negotiating (real estate) for the other two stores, and I rarely worked with my dad before, and I definitely never worked with my wife,” he says. “It’s a rewarding experience and has enhanced our relationship. I see it get-ting even better from here. My kids love the free yogurt.”

Corporate World vs. Business Owner

The difference between the world of power suits and mix-it-yourself frozen yogurt is one Bob em-braces. “Menchie’s mission is to make people

smile,” he says. “In the corporate world and in advertising, it can get to be a drag, whether you’re successful or unsuccessful. So far,

we’ve had some good and bad days at Menchie’s, but at the end of the day,

people love coming in, they enjoy the experience, and they smile. It’s really nice to be your own boss.”

Success in Austin

Opening his Menchie’s stores in Austin, which had never had a Menchie’s before, has been an adventure. “There were none in Austin, which is a blessing and a curse. It’s a blessing because we could really own certain areas and have the best product. We had

2







defined.







Franchise News .................................................................................. 81

2







defined.







Franchise News .................................................................................. 81

18

financial goals and believed we could accom-plish them, which requires purchasing two to three stores to get on that path versus the one.”

Part of Bob’s recipe for success calls for being close to middle and high schools and getting involved in the community, including such things as school fundraisers and silent raffles. In turn, the community rewards Menchie’s with loyalty.

“Ultimately there’s a big shakeout, and lots of mom-and-pop places will go away. I do believe Menchie’s has the branding power and leader-ship intelligence to survive that shakeout and to be the one few franchises standing in the end. They have the ability to be the McDonald’s of frozen yogurt. Self-serve yogurt isn’t a fad; it will be around for a long time. The product and the kids and family [clientele] set them apart.”

Bob loves the lack of office politics, being his own boss and feeling that sense of pride when people thank him for bringing Menchie’s into their community. He sees no reason why he shouldn’t continue to build three or four more franchises.

Richard RyanFather-and-son team keep Menchie’s frozen yo-gurt all in the family

Richard Ryan was no stranger to brand-building. Before partnering with his son, Kevin, to open their very first Menchie’s franchise in Allentown, Penn., Richard spent 22 years in corporate brand management for Fortune 500 companies. For the past dozen years, Richard and Kevin have been custom homebuilders, a business they plan to continue alongside their Menchie’s stores.

How did you find out about Menchie’s? My son Kevin was working for AT&T in corporate sales in the Los Angeles area, and he actually discovered Menchie’s. I went out to visit in April 2011, and he said I want to take you to a really cool frozen yogurt place, and I fell in love with it.

Why did you want to open a franchise? We had been thinking about it. We were look-ing for a business that could complement our homebuilding business, because it’s very cycli-cal in nature. We thought it would be a good move to get into another business not related to construction. We looked at a number of oppor-tunities, and when we looked at Menchie’s, we pulled the trigger.

How long have you been a franchisee? About a year and half. We opened our shop in July in Allentown, Penn., at the Shops at Cedar Point.

Do you own one unit or several? We are getting ready to open our second one; we’ve just about finished construction. Actu-ally, our construction company is building our Menchie’s and others in the area.

Why did you want to open more than one? We felt that Menchie’s was a great opportu-nity, and we felt we wanted to be in a situation where we had a little bit of critical mass.

Did you have food or retail experience before owning the franchise? No; I had been in a retail baking business years ago, but more as an investor than an operations partner.

What do you like about the job? I think it has come down to the fact that

3

Next Steps .......................................................................................... 81












3

Next Steps .......................................................................................... 81












19

Menchie’s is a very happy place. That’s really what our mission is — to try to make people smile. People have fun there; they enjoy going there. Like any other business, it has its chal-lenges. By and large, it’s the first job in my life I’m actually excited to wake up in the morning and anxious to get here.

What sets Menchie’s apart? I think what sets Menchie’s apart is the strong team in Los Angeles. The franchisor is very good at building a brand. That was something that was impor-tant to me. They know how to build a brand — remember, that was my back-ground. I like the people, and I really like the business model. The self-serve model was really appealing to us.

How large is the opportunity to grow with Menchie’s? I think it’s as big as your pocketbooks are deep. The opportunity to grow is tremendous. It really started on the west coast and moved east, and there’s still a lot of markets out there that are not Menchie’s markets yet, but they’re getting there... We have plans to do a third store.

Who are your main customers? Who are your best customers?

I think Menchie’s appeals to all people — all life segments, all age groups, but the primary cus-tomers are probably families with children.

What attracts customers to Menchie’s rather than its competitors? I think that Menchie’s, more than any other frozen yogurt store, cre-ates an experience for our guests in-store. In our store, every Thursday is game night; every Friday is karaoke; every Sunday is story hour for

younger chil-dren. I think that’s what really sets us apart. Really, the Menchie’s operation sets us apart. The stores are very inviting, and they have a unique design. There’s a lot of competitors who try to copy us, and that tells us we’re doing something right.

How many cus-tomers do you typically serve in a day? It does vary by season. In the summer, we’re at the peak of the business and we’re moving over 1,000 cups a day. In the winter time, we’re defi-nitely less than half that. It’s still a lot. This store’s busy even when it’s 45 degrees out.

What does your typical day look like? A lot of times, we open the store with just myself or Kevin and maybe one other team member. We have an office at our first store and a con-ference room. Lately, we’ve been spending a lot of time getting our second store ready for

2







defined.







Franchise News .................................................................................. 81

2







defined.







Franchise News .................................................................................. 81

20

operation. A lot of time we’re going to schools, hospitals, senior citizens’ organizations, the pe-diatric cancer ward, Da Vinci Science Center, where we can spread the word with Menchie’s. We’ll hand out samples and hand out coupons and give-aways and do fundraising.For example, we were at some middle and el-ementary schools recently. We’ll bring a couple of tables, set up merchandise, give out tattoos and stickers with Menchie on it. Sometimes we’ll hand out samples or sell yogurt at cost as a fun-draiser and give the proceeds to an organiza-tion we’re supporting. We prepack the yogurt in 8-ounce cups, freeze it overnight and bring them with us. Sometimes we add toppings, and sometimes we’ll bring a few of the more popular toppings with us.

What is a secret to your success? Obviously, in any retail situation, the location has to be a good one. We did our homework on locations. For our first store, we knew this was centralized with great access and visibility. We have 11 schools within a 3-mile radius; that’s 9,000 students. That’s really big for a Menchie’s. In our second store, it’s quite different. There are a lot of big box tenants, like DSW, Sam’s Club, Target... we’re anxious to see what happens. We hope it’s even stronger volume.

What kind of person do you think would enjoy owning a Menchie’s franchise? You’ve got to have some kind of entrepreneur-ial streak running through you. Also, somebody who really wants to be involved in the commu-nity. You have to be somewhat outgoing and you have to be good at selling — selling your-self, selling the company, selling the Menchie’s brand. I think also you need some good busi-ness skills. My marketing background has really helped us. I also have a strong financial back-

ground. It’s a little easier than if I was a doctor or landscaper or something totally different.

What does franchise ownership allow you to do that you couldn’t before? It allows us to make decisions ourselves. We don’t have a whole staff of executives that have to make the decision, it’s just myself and my son Kevin. We can make the decisions and move faster. There’s a lot of flexibility in how you run that business. I really think that would be one of the big points. I’m probably spending more hours at Menchie’s, but that’s my choice. You certainly could spend less hours and be as suc-cessful, but we love it. We work about 60 hours a week. It’s definitely a labor of love.

Would you recommend a Menchie’s franchise to someone else? Why?

3

Next Steps .......................................................................................... 81












3

Next Steps .......................................................................................... 81












21

Absolutely, if they had the right acumen and the right mindset and an entrepreneurial spirit. It’s an extremely strong brand, and it’s extremely important that they’re the largest self-serve fro-zen yogurt concept in the world. They’re really on the move and really poised for success. It’s a relatively simple business model, but it’s a busi-ness you can operate even if you’ve never had any restaurant or food experience.

Vijay VaswaniFrom family business to his own frozen yogurt franchise

Vijay Vaswani, 35, grew up in his family’s busi-ness, working in retail jewelry sales as early as age 13. When the economy started to tank in 2007 and the jewelry industry took a hit, the Gemological Institute of America-certified gemologist knew it was time to look toward something else. “I couldn’t sit still. I need some-thing a little faster-paced, something with more turnover,” Vijay says. He and his wife, Jaya, fell in love with the self-serve concept and spent a lot of time researching which franchise would be their best investment. Today, they own two Menchie’s franchises in El Paso, Texas, and earned Menchie’s Franchisee of the Year Award in 2012. Vijay took some time out of his busy schedule to share more about his Menchie’s ex-perience.

How did you find out about Menchie’s? We spent two years researching which franchise we wanted to go with, and when we met the folks at Menchie’s, we thought it was a perfect fit so we pulled the trigger on it. My wife’s family has been in El Paso for 35 years, and we wanted to start that concept here in this city. I used to live in South Florida for 18 years prior to that,

and I felt the market was going to be saturated there. So we made a strategic move from South Florida to Texas.

What sets Menchie’s apart? They have the best quality product, and they want to deliver an experience. Other franchises want you in and out; they want to sell you yo-gurt and kick you out of their stores, basically. Not Menchie’s. That’s where we lined up, per-sonality-wise, and we thought it was a good fit for us.

How long have you been a franchisee? Two years

Do you own one unit or several? We just opened our second unit three weeks ago on the opposite side of town. I think we’re ultimately going to develop four or five within the city.

How large is the opportunity to grow with Menchie’s? Basically you can grow as large as the city you’re in. El Paso has a population of around 800,000, so we think we can build four or five.

What do you like about the job? I think it’s the work culture that really attracted me to Menchie’s. We’ve put together teams between the two stores, and now you get to lead your teams, set a good example and be a good mentor. I just turned 35, and now we have another generation of kids we’re leading from ages 16 to 24. We want to prepare them and see how they can be come successful in the future as well. So we’re big on our team. Also, anybody that comes into Menchie’s is already in a good mood when they come in. We want

2







defined.







Franchise News .................................................................................. 81

2







defined.







Franchise News .................................................................................. 81

22

to set up the best experience possible.

Who are your main customers? Another reason we like Menchie’s is their target audience is literally all life-cycles. While some other franchises specifically target high school or middle school or college-age students, we want everyone to come. We give out a free gift with every cup of yogurt — a tattoo, a sticker, a fun puzzle — so kids love that. We blow as many balloons as we can to make sure every kid has a balloon. We see parents and grandparents and sometimes great-grandpar-ents enjoying their kids here. I’ve literally seen up to four genera-tions of a family at one time in our stores. I’ll stand there and count how many generations are there. That’s a flattering feeling, knowing that everybody wants to have a good experience here. Also, it proves to me that we ca-ter to all life-cycles.

How much time do you spend at your stores? We’re there seven days a week. You could say we’re hard-core; we put in 60-70 hours. It’s good to keep busy, and when you’re growing, you always want to make sure you set that example. We’re very involved, and we want to build the business as strong as possible.

What does your typical day look like? I supervise everything from the operations stand-point at both stores. I make sure the equipment is running well and all systems are running well. We do our inventory and ordering; we do hir-ing. We also work shifts at our stores. My favorite thing is engaging with our guests when they come in and entertaining them a little.

What do you do in your off time? Go out to dinner and spend time with our fam-ily. We also like to travel and spend time with extended family.

What is a secret to your success? Having a good team. And ensuring every guest has a good experience.

How do you make sure the guest has a good experience?

I like to find a way to make them smile. I make sure the store is nice and clean, the atmosphere is vibrant and the quality of the product is always at its highest level. I have conversations with them.

Aside from the quality of the product and the guest experi-ence, what attracts customers to Menchie’s rather than its com-petitors? I hear a lot of feedback on the colors. Some people say that re-ally attracted them to come into

the store.

How many customers do you typically serve in a day? Between 300-500.

Would you recommend a Menchie’s franchise to someone else? Why? In my personal belief, I don’t think any business or store can just open their doors and expect the business to come poring in. I don’t see that happening anymore. Elevating your sales takes a lot of involvement. If you’re looking to get in-volved with something, Menchie’s is really good.

3

Next Steps .......................................................................................... 81












3

Next Steps .......................................................................................... 81












23

If you are just looking to put a store leader or manager in there, I’m not so sure how that would work out.

What kind of person do you think would enjoy owning a Menchie’s franchise? Someone who takes a lot of pride in anything they operate; one who truly cares about their business. Definitely one who knows how to make someone smile.

Jimmy Robaina

‘Mr. Menchie’ finds new after-school activity makes him very popular with students

Jimmy Robaina had always wanted to own a business, but he just wasn’t sure what kind until he and his wife visited Menchie’s. The P.E. teacher was blown away by South Florida’s first Menchie’s, with its superior frozen yogurt, add-it-yourself toppings and unbelievable attention to customer care. Could Jimmy and his wife be a good fit for the best frozen yogurt franchise in the country? These days Jimmy, 51, his wife and her family are having a great time running their own premium self-serve frozen yogurt shop in Miami Lakes, Fla. And it definitely hasn’t hurt his popularity with his students. How long have you been a franchisee? It’s going on a year and a half now. What were you doing before Menchie’s? I’m still doing it — I’m a physical education teacher in middle school. How did you find out about Menchie’s? We frequented the Menchie’s here in Pembroke Pines, a town above us a little north. They were the first Menchie’s in South Florida. We frequent-

ed the store. We’ve always been interested in doing some kind of business, and we saw the atmosphere and the way the business was run, a very successful business with just tons of people all the time. We just thought, “My God, this is a great opportunity.” That’s how we got involved. We kind of staked out the place for a little bit; we went at different times of day — afternoons, weekends, nights — to get the feel for what kind of business they were doing. It seemed like they were doing well, especially nights and weekends. Do you own one unit or several? Why? One. It’s my first experience owning a business. Did you have food or retail experience before owning the franchise? No.

How has it been? Fantastic. Now, behind that word “fantastic,” there’s a lot of hard work. It does take a lot of time. Things are always on your mind because it is a business; you can’t just let it sit there. We are very hands-on. My wife, two sisters-in-law and one of their husbands — literally five of us take care of the whole thing. For the first six months, we were there a lot. I was starting to stress out a bit. I would get up in the morning, go to school, come home, take a shower, eat something — sometimes not even eat — and get to the store. You want to learn what’s going on, what works and what doesn’t work and best practices from other franchisees. It does take a little while to really get a grasp of what you’re doing. Once everything was under control, we divvied it up. One of us always opens or always closes. Al-ways. We have some really, really good young kids who work for us who have become almost like family, so it’s nothing to do with trusting or not trusting them. But we feel that’s something that is best done by us. There’s five of us; there’s no reason we shouldn’t.

2







defined.







Franchise News .................................................................................. 81

2







defined.







Franchise News .................................................................................. 81

24

What do you like about the job? My main forte is engaging with the guests. Be-ing a teacher, I just have the gift of gab. I’m not afraid to talk to people. I approach them; I try to make them feel welcome. I tell my staff, pretend they’re coming to your house. You pre-pare, you clean up — that’s the feeling guests should have visiting the store, that they’re visit-ing your house. What sets Menchie’s apart? The product, first of all. We do serve high-end yogurt, the best frozen yogurt in the industry. Number two, our ability to brand Menchie’s, not only throughout the United States but all over the world. It’s moving very quickly. I can only see it getting stronger.

How large is the opportunity to grow? It’s big. We have franchisees who have mul-tiple stores. We have a gentleman in Cleveland who’s up to 20 stores, and we have a gentle-man in Washington who has seven stores be-tween Oregon and Washington and two under construction. He plans to stop at 10. If people are building 10 stores, there must be a reason — not because they’re failing. We’re looking at the next thing for ourselves, maybe going outside of our town or maybe an airport. If we were able to land something like an airport, that would be huge, a huge opportunity. Who are your main customers? Who are your best customers? Locals, kids from area schools. My school is a mile and a half from the store, and there are three other schools within a mile. We do a big afterschool business. What attracts customers to Menchie’s rather than its competitors? The Menchie’s experience. It’s like I tell people, I

don’t have to sell you on the product — people love pulling their own flavors and mixing in the toppings and creating their own thing. The part you have to work on is customer service, the at-tention to the customers. It’s a friendly place, very family-oriented. How many customers do you typically serve in a day? It depends on the season and the day. Mon-day through Thursday is a lot slower than Friday through Sunday. On a regular school night, I would say maybe 150 to 200 customers. On weekends it really gets hectic, so probably dou-ble that, sometimes 500, maybe. It also depends on whether we’re running some kind of promo-tion. Sometimes on Friday nights we have a DJ. People love to come out and watch that. What does your typical day look like? For example, tonight, I don’t have to go to the store. My wife and I will close tomorrow night. But I do go most of the time; I can’t stay away from the store. We’re very hands-on. My sister-in-law does the ordering of the products. She keeps the inventory of how much we have of different flavors, and she orders on Tuesday or Wednesday. Since I’m not there during the day, she takes care of that end of the business. What is a secret to your success? I think it’s not even a secret. I talked to a lot of franchisees this summer at a convention we had, and my main thing is you need to be there as much as possible. An 18-year-old or a couple of 19-year-olds running the store without you being there for three days, four days — that’s not going to work. A lot of kids nowadays don’t have the work ethic that I grew up with. Kids don’t understand how important it is. They don’t see the big picture. I always try to instill that in them — think of this place as your own. We’re one big family. You have to take care of your

3

Next Steps .......................................................................................... 81












3

Next Steps .......................................................................................... 81












25

house; you have to take care of your guests. Do you plan to quit teaching? I’m within seven years of retirement age. The school aspect is not difficult for me at all, and it would be silly for me to give it up right now. I have lots of benefits, and I make a decent wage. If we went to a second or a third store, I would have to consider it, though. What kind of person do you think would enjoy owning a Menchie’s franchise? I’d say a people person. If you’re a people per-son who gets along with everyone and wants

to make them smile and you’re easy-going, that’s the main thing. I’ve dealt with kids all my life, and l know how to talk to kids. Kids come in looking for me: “Where’s Mr. Menchie?” — they call me Mr. Menchie — and I embrace that. Last night, we did the Harlem Shake ... kids just love that. They know I’m always gonna mess with them and play around, and that makes them feel good — and that makes the parents feel good. It’s important to know you’re going to a place where your kids are loved and respected.

Would you recommend a Menchie’s franchise to someone else? Why?

2







defined.







Franchise News .................................................................................. 81

2







defined.







Franchise News .................................................................................. 81

26

I’m very, very confident with the leadership of this company. They’re not afraid to say if they’re wrong, and they’ve grown tremendously in five years. There is a great system in place, a map to where we are and where we want to get to, and we’re following that map. It’s going forward in a positive manner. What does franchise ownership allow you to do in your personal life that you couldn’t before? Any money I get from there is a supplement to our income. As a school teacher — and my wife is a secretary for a doctor — we don’t make a ton of money. We live very humbly. With the ex-tra money we’re making, things are easier as far as finances are concerned. You’re not strapped all the time. If we go to the market and spend $100, before, it was really, “Oh, my God, we have $20 left in checking.” Now if we spend $100 at the market, we’re OK.

Cameron Garner This Hands-On Menchie’s Owner is All-In with 9 Stores, and More to Come

Cameron Garner of Puyallup, Wash., is one of Menchie’s most successful franchisees. After starting out with one store in February 2009, by August 2013, he had nine stores under his belt. He often shares his experience with potential franchisees. Here’s how one such question-and-answer session went:

What do you like about Menchie’s? The one thing that got me interested was the guest care aspect. Every guest matters, and ev-ery guest needs to leave with a smile. … That’s what set Menchie’s apart for me and made me fall in love with it.

What are your secrets to hiring? How do you combat turnover? The turnover rate is actually very low. My entry into business was in retail that carried a very high turnover, and I was actually expecting that. But they like the environment and they stick around for a long time. In terms of advertising, you can use Craigslist and things like that. If you’re near a university, you can get recent college graduates.

How did you build such a successful operation? I’m very hands-on. If there’s something I don’t know, I’m going to go into that store and figure it out and understand it. That’s what I think sets me apart. When it comes to profitability and be-ing a good operator, you have to watch your payroll really close.

What do you think of the competition? They don’t worry me. When I opened up my third location, there were yogurt shops one mile to the east and one mile to the west. I was hesi-tant. But once we opened up and started hear-ing from the guests about what set us apart and made us better, I got the courage to go over and check it out. … Overall, we’re going to win out over the competition and come out on top.

How do you operate a remote location? I have cameras in all my stores, so I watch a lot of the time on camera. I have a great store leader in there who knows what I expect… I spend time really being engaged via phone, via cameras to team members to make sure they know what we want to see and what’s critical, and once I’ve got that down I can remotely manage the stores.

How often do you visit your stores? I visit my stores biweekly. I need to know when I’m not there… the quality is there, the cleanli-

3

Next Steps .......................................................................................... 81












3

Next Steps .......................................................................................... 81












27

ness is there and the guests are being taken care of. They (the team members) know I’ve got their back, and in turn they take care of me as a result.

Within what period did you break even on your first store? Realistically three years, four years. At my first location, I was able to do it a lot quicker than that. From the first month forward I had positive cash flow. Around three to five months is where you start to hit that positive cash flow.

How do you find locations for your stores? I take a very proactive approach. I go out and drive around and find that best location and from there I work with Menchie’s to get that built. The second way is to work with a broker … nowadays, at the stores I’m opening people are coming up to me saying, ‘I want you to open a store in that location.’

Why did you join Menchie’s? To make money, but ultimately because I want-ed to do something different and something that included my family… I’m a family guy. I wanted to have a family business. My daughter is my biggest taste-tester; my son tells me what stickers I should get in and hand out; my wife is the loudest on cleanliness. Altogether, we’ve having fun. We wanted to be a gathering place for the community to get together and have fun.

Did you go over budget on your first store? I went way over budget. We had a lot of chal-lenges, and there was a lot of education we had to do for the city. Instead of eight weeks, it took 14 to 16 weeks. Moving forward, on stores two through seven I’ve been under budget ev-ery time, and I’ve been able to cut costs and

make it even better.

What Territories are Available? Let Menchie’s Do the WorkMost people in real estate abide by the ad-age that the three most important things in real estate are “location, location, location.” At Menchie’s, we abide by the adage “traf-fic, traffic, traffic.” We carefully select our store sites to make sure our franchisees are in the best possible situation to attract a lot of guests. One of the reasons our stores perform so well is be-cause we’re really careful about site selection.

New franchisees have a lot of things to think about in launching their new business; loca-tion shouldn’t be one of them. Good locations come and go quickly, so Menchie’s works with a team of professional commercial real estate agents around the country who understand our business and can help us get into quality shop-ping centers at affordable rents.

The ideal location for a successful Menchie’s store is a vibrant retail shopping center with high visibility and good parking that’s easy to get in and out of. It will have a good tenant mix — think national grocery chain, big box discount store — and it will be situated in a strong resi-dential community.

Landlords who own these shopping centers want brand names they can trust. Menchie’s has established contacts with many of these landlords and professional tenant representa-tives. Once a franchise candidate signs a fran-

2







defined.







Franchise News .................................................................................. 81

2







defined.







Franchise News .................................................................................. 81

28

chise agreement, they will work with real estate professionals to find the perfect location to as-sure their success.

Each new Menchie’s franchisee receives as-sistance with the entire site selection process, including:

• Menchie’s store design

• Permitting

• Contractor hiring and management

• Build-out process supervision

• Staff education

• Grand opening marketing support

How to Finance Your Menchie’s FranchiseMany Options are Available for Franchise FinancingWhen you’re getting ready to open your very own Menchie’s Frozen Yogurt franchise, you will want to understand all of the financing options available so you can choose the one that’s best for you. Here are three factors to consider:

1. What is the least expensive expansion cap-ital available to me? Money costs money, and the cost of money is interest. If you’re getting a loan to fund your business, understand all fees and interest rates.

2. What is the easiest financing to attain? Menchie’s is part of the SBA registry, which means the SBA has reviewed all our financial disclosure documents, so the loan process will go more smoothly. In addition, Menchie’s can help franchise candidates determine their best sources of financing, including home equity lines of credit and self-guided IRAs.

3. What financing strategy will tie up the least of my liquid assets? It’s important to have as much cash on hand as possible when you’re starting a new busi-ness. The reason for that is two-fold: First, you need a cushion for living expenses, etc., while you get the business up and running; second, you want to have cash available for quick expansion should the business take off quickly. Try to borrow as much as you can so that you can leave your assets as liquid as possible.

Meet the TeamAmit KleinbergerChief Executive Officer

Amit Y. Kleinberger has served as Chief Execu-tive Officer and Board Director since 2008. Prior to Menchie’s, Kleinberger was an entrepreneur, owning businesses including an assisted living facility, a glass distribution company, and a chain of cellular communications retail stores. Kleinberger is also a veteran, and served prior to his business career as a sergeant in the armed forces, in an infantry combat unit, and gradu-ated commanders and sergeants school.

3

Next Steps .......................................................................................... 81












3

Next Steps .......................................................................................... 81












29

Elie BalasChairman of the Board

Elie Balas has been the Chairman of the Board and Director of Business Development for Menchie’s since 2008. In addition to his duties with Menchie’s, Elie serves as the Executive Di-rector of Ami Adini & Associates, Inc., an envi-ronmental consulting company.

Danna CaldwellCo-Founder and President

Danna Caldwell has been President and board director for Menchie’s since 2008. Prior to that, she co-founded the original Menchie’s loca-tion in Valley Village, California. Before founding Menchie’s, she worked in marketing for Amp’d Mobile.

Adam CaldwellCo-Founder and Chief Operations Officer

Adam Caldwell has been the Chief Operations Officer and board director for Menchie’s since 2008. In 2006, Adam co-founded the original Menchie’s location in Valley Village, California. Prior to Menchie’s, he was involved in guest sup-port, product development and project man-agement for Ami Adini & Associates Inc., an environmental consulting company. Adam also served as an Accounting and Operations Con-sultant for OML Consultants, Inc.

Tom RegevVice President of Operations

Tom Regev has served as Menchie’s Vice President of Operations since 2009. Prior to Menchie’s, Regev served as the Controller for the Israeli Economic Mission to the United States. Prior to that Tom served as an Economist and Deputy Manager of the Loans and Deposit De-partment for the General Accountant Depart-ment of the Israeli Ministry of Finance.

Gary HunterSenior Director of Food Operations

Gary Hunter joined Menchie’s in 2012 as the Di-rector of Food Operations. He spent many years in full service restaurants with companies such as Bennigan’s and The Elephant Bar. He was then an operations and training leader for quick service restaurants such as Jack in the Box, Jam-ba Juice and Robeks. Gary has over 30 years of experience in the restaurant industry.

Ana HernandezVice President of Marketing

Ana Hernandez joined Menchie’s in 2014 as the Vice President of Marketing. She joined Menchie’s from DineEquity, Inc. where she served as Executive Director, International Mar-keting. Ana was responsible for all marketing strategies for Applebee’s and IHOP Restaurants. She previously worked for 12 years in Brand Marketing as well as the International Division of Wendy’s International, Inc. where she led marketing and brand expansion in 23 countries; including the Americas, Middle East and South

2







defined.







Franchise News .................................................................................. 81

2







defined.







Franchise News .................................................................................. 81

30

East Asia. Her contributions to the brand were recognized with both the Wendy’s Founder Award and the Wendy’s International Excel-lence Award. Prior to Wendy’s International, she worked at Goya Foods, where she managed multiple categories. She began her marketing career at The Coca-Cola Company, where she managed multi-channel brand programs for six years. Ana brings more than 20 years of market-ing experience in the restaurant industry and consumer space.

Joe MathewsSenior Vice President of Franchise Development

Joe Mathews has served as Senior Vice Presi-dent of Franchise Development for Menchie’s since 2010. In 2002, Joe founded the Franchise Performance Group and maintains an active involvement with the company. Joe, a fran-chise veteran and a known figure in franchising, started his career 25 years ago with the Subway sandwich brand. Joe’s expertise is working with emerging brands and assisting them in becom-ing a nationally recognized franchise.

Brian MelaneyVice President of Franchise Development

Brian Melaney has served as Vice President of Franchise Development for Menchie’s since 2008. He was elected Mayor of West Haven City, Utah, in 2005, and was re-elected in 2009. Brian served as President for Melaney Marketing, a promotional goods company. He is a fran-chise veteran and has been in franchising for 30 years.

Michael Mudd

Franchise Development Manager

Michael Mudd has served as a Franchise De-velopment Manager for Menchie’s since 2010. Prior to joining Menchie’s, Michael served as a Senior Consultant for the Franchise Perfor-mance Group and as the Director of Franchise Development for HART Health Franchise. Prior to that, Michael served as the Director of Fran-chise Development for Relax The Back and also served as the Director of Franchise Develop-ment for Nu Image MedSpa. Michael has 10 years of franchise experience and has assisted the launch of several brands with his experi-ence in franchising.

Angela ShawFranchise Development Manager

Angela Shaw has served as a Franchise Devel-opment Manager for Menchie’s since Janu-ary 2011. Angela was a franchise owner of Shaw Consulting LLC, d/b/a The Entrepreneur’s Source. She has over nine years of franchising experience, and is now helping Menchie’s grow its franchise family.

Paul MartellFranchise Development Manager

Paul Martell has served as a Franchise Develop-ment Manager for Menchie’s since 2010. Prior to joining Menchie’s, Paul served as a Franchise Development Manager for DoodyCalls Franchis-ing LLC, CertaPro Painters, and KaBloom Fran-chising LLC. Prior to that, Paul worked in the life insurance industry.

3

Next Steps .......................................................................................... 81












3

Next Steps .......................................................................................... 81












31

Chris Brown Franchise Development Manager

Chris Brown has served as a Franchise Develop-ment Manager for Menchie’s since 2013. Before joining Menchie’s, Chris worked at Sodexo as the District Manager. He also worked for com-panies such as Robeks, The Parable Group and Doodycalls. Chris has over 10 years of franchise and sales experience.

Next StepsI want to learn more. What are my next steps?By now, you know why Menchie’s Frozen Yogurt franchise is a major player and thought leader in the frozen dessert category. Hopefully, you’ve also learned that, although we do serve the

best-tasting frozen yogurt, we are No. 1 be-cause we value the guest experience above all else.By now you have a high-level understanding of who we are and the difference we are try-ing to make in the world. The next step is to tell us about who you are and the difference you want to make in the world.

Since you’ve already downloaded our Fran-chise Report and filled out an application, you should be prepared for your first phone con-versation with your Menchie’s Franchise Devel-opment Manager (FDM), who will act as your primary point of contact. We’ll call you to chat for five minutes about such things as capital re-quirements and market availability to make sure there is a potential for a match.

During that call, we’ll set up a more detailed meeting that will take 45 minutes to an hour. We call this our “getting to know you” conversation. This will be your first opportunity to tell us more

2







defined.







Franchise News .................................................................................. 81

2







defined.







Franchise News .................................................................................. 81

32

about who you are, what makes you tick and what you are looking to accomplish next. We will spend the rest of the conversation talking about how that might occur if you were a Menchie’s franchisee. If we both see the potential fit, we will continue along in the investigation process.

As you can see, there is zero risk in learning more and telling us more about you.

We look forward to the opportunity to learn more about each other.

What is Menchie’s? Next Steps 81 What is Menchie’s? The Biggest and the Best Menchie’s is the...

Documents

Transcript of What is Menchie’s? Next Steps 81 What is Menchie’s? The Biggest and the Best Menchie’s is the...