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Below is an in-depth analysis and side-by-side comparison of Shake's Frozen Custard vs All American Specialty Restaurants including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $162,000 - $287,000 | $195,000 - $265,000 |
Franchise Fee | $30,000 | $25,000 |
Royalty Fee | 5% | 3% |
Advertising Fee | 3% | 1% |
Year Founded | 1991 | 1986 |
Year Franchised | 1998 | 1987 |
Term Of Agreement | 10 years | 10 years |
Term Of Agreement | 10 years | 10 years |
Renewal Fee | 50% of initial franchise fee | $6K |
Business Experience Requirements |
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Experience | ||
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/Yes |
Start-up Costs | No/Yes | No/Yes |
Equipment | No/Yes | No/Yes |
Inventory | No/No | No/Yes |
Receivables | No/No | No/Yes |
Payroll | No/No | No/Yes |
Training & Support |
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Training | As necessary | - |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | Newsletter, Meetings, Toll-free phone line, Grand opening, Security/safety procedures, Field operations/evaluations |
Marketing | Co-op advertising, Ad slicks | Ad slicks, Regional advertising |
Operations |
25% of all franchisees own more than one unit Number of employees needed to run franchised unit: 20 Absentee ownership of franchise is allowed. (75% of current franchisees are owner/operators) |
20% of all franchisees own more than one unit Number of employees needed to run franchised unit: 6 - 7
Absentee ownership of franchise is allowed. (50% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | No |
International Expansion | No | No |
In the mid-1980s, frozen yogurt was growing in popularity, but there were no shops in the major malls of Idaho, Oregon and Washington serving the treat. Seeing the demand for such shops in the Pacific Northwest, CR Duffie Jr. started the All American Frozen Yogurt Co. in Portland in 1986. The company began franchising one year later.
To reach a larger customer base, ice cream was added to the menu in 1989, and the stores became known as
All American Ice Cream and Frozen Yogurt Shops. There are now locations in shopping centers throughout the Pacific Northwest and West.