Famous Brands International, the parent company of TCBY Yogurt and Mrs. Fields Cookies, has revealed plans to develop newly-designed, dual-brand Mrs. Fields/TCBY locations in the Phoenix market as the company looks to capitalize on the Phoenix area’s resurging economy. Famous Brands is looking to partner with franchisees to open at least 50 new stores in the market over the next five years. There are currently two TCBY locations and one Mrs. Fields in the Phoenix area.
“Phoenix is a relatively untapped market for TCBY and Mrs. Fields, America’s beloved dessert brands,” said David Bloom, COO of Famous Brands. “The warm climate and improving economy make Phoenix an ideal location for the development of new Mrs. Fields/TCBY stores and we’ve found that winter homeowners in Arizona are extremely familiar with and loyal to our products. We are excited about Mrs. Fields’ and TCBY’s rapid expansion, both domestically and internationally, and believe these iconic brands are poised for continued growth and success.”
The new dual-brand stores will feature equal branding elements of both TCBY and Mrs. Fields and offer new treats that unite both brands, such as cookie-and-yogurt sandwiches and Mrs. Fields brownies mixed in frozen yogurt.
In addition to cookies and frozen yogurt, for the first time, franchisees will have the opportunity to sell Mrs. Fields gift merchandise right in the store, which generated $50 million in sales in 2013. This additional revenue stream is unique in the industry and only available in the new dual-brand locations. The dual-brand stores will devote retail space for gift products and online ordering kiosks, known as Mrs. Fields Gifting Stations, which let customers browse and send gifts to friends, family and business associates through MrsFields.com.
Total initial investment for a dual-branded store ranges from $150,000-$450,000 depending on unit size. The new locations will fully represent both brands from menu items to branding and the franchise fee is $35,000, the same as traditional TCBY franchises, which means the Mrs. Fields $25,000 franchise fee is essentially waived.
Famous Brands is a portfolio company of Z Capital Partners, L.L.C., a leading private equity firm founded in 2006 with approximately $1.7 billion of regulatory assets and committed capital under management.
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