About The Yard Milkshake Bar Franchise
The Yard Milkshake Bar is an over the top dessert concept known for its extravagant, Instagram worthy milkshakes and ice cream creations.
Each drink is a towering work of art loaded with toppings like cotton candy, candy bars, cookies, and other indulgent treats.
The brand, backed by parent company The Yard Milkshake Bar Holdings, Inc., has been franchising since 2018 and has built a loyal following through social media buzz and a fun, family friendly atmosphere.
The Yard Milkshake Bar Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $45,000.00 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales up to $15,000 per Restaurant per year (Advertising Fund) and Up to 2% of Gross Sales (Advertising Cooperative Fees) | National brand fund |
| Total Investment Range | $281,975 – $627,250 | Includes build-out, inventory, working capital |
The investment range of $282K–$627K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (2% of Gross Sales up to $15,000 per Restaurant per year (Advertising Fund) and Up to 2% of Gross Sales (Advertising Cooperative Fees)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Note 1) | $30,000 | $45,000 |
| Area Development Fee (Note 2) | $10,000 | $10,000 |
| Lease (Note 3) | $9,375 | $33,750 |
| Blueprints, Plans, and Permits (Note 4) | $10,000 | $13,000 |
| Leasehold Improvements (Note 5) | $98,000 | $270,000 |
| Furniture and Fixtures, and Equipment (Note 6) | $35,000 | $65,000 |
| Signage | $5,000 | $12,000 |
| Point of Sale System | $2,200 | $3,000 |
| Initial Inventory and Operating Supplies (Note 7) | $66,000 | $95,000 |
| Security Deposits | $1,800 | $13,000 |
| Insurance (Note 8) | $3,600 | $6,500 |
| Initial Advertising and Promotion (Note 9) | $2,500 | $10,000 |
| Professional Fees, Business Licenses (Note 10) | $2,500 | $5,000 |
| Training (Note 11) | $3,500 | $6,000 |
| Additional Funds (Note 12) | $2,500 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $6,000.00 |
| Renewal Fee | $10,000.00 |
| Audit Fee | Cost of Audit (plus travel and lodging costs if audit discloses underreporting of 2% or more) |
| Local Advertising | 1% of Gross Sales |
| Promotional Costs | Up to $3,500 |
| Additional Training | $85/hour plus expenses |
| Lost Manual Fee | $500 |
| Late Opening Fee | $2,500 |
| Securities Offering Fee | Greater of $10,000 or reasonable, actual costs and expenses |
| Liquidated Damages (Termination) | Amount equal to average monthly Royalties for preceding twelve months multiplied by less of 24 or number of months remaining in term. |
| Liquid Damages (Default) | $500 for first default, $2,500 for second default, $5,000 for third and subsequent defaults |
| Interest on Late Payments | Lesser of: (a) Wall Street Journal Prime (currently 3.25%) plus 2% or (b) maximum rate allowed by law. |
| Insurance | $3,600-6,500 annually |
| Taxes | Amount assessed against Franchisor for any federal, state, or local sales, gross receipts, use, value added, excise or similar taxes assessed against us on the Royalty and Marketing Fees |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | at least two weeks |
| Classroom Training | 0 |
| On-the-Job Training | 100 |
| Training Location | current corporate location and/or your Restaurant |
| Additional Training | We may require you to pay a fee to attend any additional training. Tuition is currently payable for additional training performed at your request in your Franchised Restaurant, or for an Additional Training Fee plus expenses as described in Section 8(a). We reserve the right to charge for training material. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | one mile or more radius |
| Description | Each Restaurant is granted a territory with a radius of one mile or more, within which the franchisor and its affiliates will not operate or license other traditional The Yard Milkshake Bar Restaurants. However, this restriction does not apply to Nontraditional Concept Restaurants or other channels of distribution (online sales, grocery sales, mall/stadium vending, etc.). The size of the territory may vary based on population density (e.g., one mile in densely populated Manhattan, three miles in a Florida suburb). |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 year renewal |
| Renewal Fee | $10,000.00 |
| Renewal Conditions | To renew, you must give written notice 180 days to one year before the term ends, pay a $10,000 non-refundable renewal fee, not be in default, satisfy all monetary obligations, not be in the bottom quartile of Net Cash Sales for the preceding fiscal year, and have an average standards assessment score of at least 85%. You must also execute the then-current franchise agreement and personal guaranty, perform required remodeling/renovations, complete retraining, and execute a general release of claims. |
| Transfer Fee | $6,000.00 |
| Transfer Conditions | Transferees must satisfy all new franchisee requirements, comply with Section 24 (Business Entity Franchisee), cure all existing monetary defaults, execute a general release of claims, execute the then-current franchise agreement with the same royalty fee and remaining term, and pay a $6,000 transfer fee. Certain internal transfers or transfers to an entity owned by the individual do not require consent or a fee. |
| Termination for Cause | The franchisor may immediately terminate for non-curable defaults (e.g., abandonment, insolvency, bankruptcy, criminal conviction, material inaccuracy in application, false records, multiple breaches of the same provision, or incurable breach). For monetary defaults, termination can occur after 5 business days' notice; for other curable non-monetary defaults, after 30 days' notice. |
| Non-Compete Period | During the Term and for 2 years after termination or expiration |
| Non-Compete Details | During the term of the agreement, you may not engage, directly or indirectly, in any Competing Business other than a The Yard Milkshake Bar Restaurant licensed by us. For two years after termination or expiration, you may not engage in any Competing Business within your Assigned Area and within the Applicable Radius from any existing The Yard Milkshake Bar Restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | We recommend, but do not require, that you participate in the operation of your Restaurant. You may participate personally in the direct operation of your Restaurant as you deem appropriate. All management staff must complete a nationally recognized food safety management course within thirty days of hiring or promotion. Franchisees are responsible for training managers and staff in compliance with System Standards. Any manager hired must successfully complete the franchisor's training program. |
| Required Suppliers | Custom-fabricated cookie dough holder from The Yard Milkshake Operations, LLC; ice cream from Hershey Creamery Company; soda syrup concentrate from Coca-Cola Company; various baked goods, confections, hot chocolate mix, candies, and ice cream toppings from Sysco Corporation; Clover commercial Point-of-Sale system; Merchants Bancard Network for credit card processing. |
| Supply Restrictions | Franchisees must purchase a custom-fabricated cookie dough holder from an affiliate. They must purchase ice cream, soda syrup concentrate, and various baked goods/confections/toppings from designated suppliers (Hershey Creamery Company, Coca-Cola Company, Sysco Corporation). Franchisees must use the Clover commercial Point-of-Sale system and Merchants Bancard Network for credit card processing. Alternative suppliers require franchisor approval, which can be denied in sole discretion. |
| Franchisor Revenue from Suppliers | The Yard Milkshake Operations, LLC (an affiliate) receives rebates from Merchants Bancard Network of credit card processing fees (approximately 4% of credit card fees), totaling $14,289 in 2021. The affiliate does not profit from cookie dough holder sales. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer, either directly or indirectly, any financing to you. We are unable to estimate whether you will be able to obtain financing for any or all of your investment and, if so, the terms of such financing. We do not guarantee your notes, leases, or other obligations. |
The Yard Milkshake Bar Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
The Yard Milkshake Bar Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Yard Milkshake Bar System Growth
The Yard Milkshake Bar currently operates 14 franchised locations and 4 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 3 | 0 | 6 |
| 2020 | 4 | 0 | 10 |
| 2021 | 8 | 0 | 18 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Robertson, Andreoli & Covington, P.C. for year ending December 31.
The Yard Milkshake Bar Franchise — FAQ
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