What should I check before buying a frozen yogurt shop?

A frozen yogurt shop looks simple: a few machines, a toppings bar and a till. The checks go beyond the till, because the equipment and the small amounts given away or thrown out both affect the numbers. Go in with a list of questions and ask for records that back up each answer.

The machines

Soft-serve machines are the heart of the shop. Ask how old each one is, who services it, and how often it has broken down. Ask to see service records and cleaning logs. Have the machines run while you watch, and ask whether any are leased or financed, since a lease or loan may not simply pass to you. A technician can give you an opinion before you commit.

Self-serve and toppings waste

In a self-serve shop, customers fill their own cups and pay by weight. Ask how the owner tracks product used against product sold, how the scales are checked, and how much of the toppings bar is thrown away. A shop that does not track waste may not know where its margin goes, and you will not either unless you set it up.

Sales, brand and supply

Ask how sales are priced and recorded, and compare till reports with bank deposits. If the shop is franchised, read what the brand requires you to buy, from whom, and how the franchisor approves a transfer. Have your lawyer review the franchise agreement before you rely on any of it.

The seasons

Frozen desserts sell differently in warm and cold months. Ask for monthly sales over several years, and see how the owner handled the slow months. Our guide on ice cream shop seasonality explains how to read those patterns.