How to Finance a Hey Yogurt Franchise: Yogurt Drink Shop Costs
By Marc Cornella
A Hey Yogurt franchise loan funds a small-format dessert shop built around drinkable yogurt rather than traditional frozen yogurt. Hey Yogurt blends yogurt drinks in fruit and dessert-style flavors and pairs them with Japanese-style cheesecakes, cream puffs and other baked treats, aiming for desserts that taste fresh and are not overly sweet.
Hey Yogurt is a young franchise system in the United States, and its franchise fee, royalty and investment range are not published on any franchisor page we could verify. Those figures belong in the Franchise Disclosure Document (FDD). This article explains how a yogurt drink shop is financed, what the brand’s SBA Franchise Directory listing and lease note mean, and what lenders look for when they review a newer dessert franchise.
US Professional Funding is not affiliated with, sponsored by or endorsed by Hey Yogurt; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice. Review the current FDD and franchise agreement with a qualified franchise attorney and accountant before you sign or borrow.
Hey Yogurt Franchise Loan at a Glance
- Concept: drinkable yogurt shop with Japanese-style cheesecakes, cream puffs and baked goods
- Format: compact counter-service shops, with ordering at self-service kiosks in at least some locations
- Footprint: shops in New Jersey, New York, Pennsylvania and Georgia
- Stage: a newer franchise system in the United States
- Fees, investment and owner requirements: disclosed in Items 5, 6 and 7 of the FDD
- SBA Franchise Directory: listed as Hey Yogurt under code S9015, with a note about the Lease Rider
What Is Hey Yogurt?
Hey Yogurt sells yogurt drinks that sit somewhere between a bubble tea and a smoothie. Menus mix familiar fruit flavors such as mango, strawberry and banana with dessert-style and Asian-inspired flavors. Baked items such as double-layer cheesecakes in matcha and hojicha, cream puffs and mini croffles round out the menu.
How the brand grew. Its first U.S. shop opened in Fort Lee, New Jersey, followed by locations in Hoboken, Queens, Long Island and other markets. As the brand moved into franchising, it joined the SBA Franchise Directory, which opens the door to SBA-backed financing for qualified owners.
The shop format. Shops tend to be small, with a short menu, a prep counter, display cases for baked goods and limited or no seating. A compact footprint can mean a smaller build-out than a full-service restaurant, though plumbing, electrical and refrigeration still drive costs.
Why lenders look closely. Lenders view small dessert concepts as cash-flow businesses with modest collateral. Because Hey Yogurt is newer to franchising, lenders will lean more heavily on the owner’s experience, the site and the working capital cushion. Our article on financing an emerging franchise explains how lenders approach younger systems.
Hey Yogurt Franchise Costs
Every number in a Hey Yogurt franchise loan request should come from the current FDD and from your own landlord, contractor and equipment quotes.
Initial franchise fee. Item 5 discloses the fee, when it is due and whether any part is refundable. Ask whether additional shops carry a different fee.
Lease and build-out. Most shops lease small storefronts in busy retail strips, transit areas or mixed-use buildings. Budget for deposits, rent during construction and leasehold improvements: plumbing for sinks, electrical for blenders and refrigeration, counters, flooring, lighting and a branded storefront. Converting a former tea or dessert shop may reduce work. Our article on restaurant build-out financing covers this stage.
Equipment. Expect commercial blenders, reach-in and walk-in refrigeration, refrigerated display cases, ice machines, prep tables, sinks, dishwashing equipment, ordering kiosks and a point-of-sale system.
Opening inventory and supplies. Yogurt base, fruit, toppings, cups, lids, straws and baked goods or ingredients need to be stocked before opening. Item 8 tells you whether you must buy from approved suppliers.
Working capital. Rent, payroll, product purchases and marketing come due before sales settle into a pattern. Item 7 usually includes additional funds for an initial period; treat that as a floor.
Total investment. When you receive the FDD, confirm these Item 7 categories:
- Initial franchise fee
- Lease deposits and rent during build-out
- Leasehold improvements and storefront
- Blenders, refrigeration and display cases
- Ordering kiosks, point-of-sale and technology
- Furniture, fixtures and signage
- Opening inventory and packaging
- Training travel and expenses
- Licenses, permits and insurance
- Grand-opening marketing
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Royalty and marketing fees. Item 6 lists the royalty, any brand or marketing fund contribution and local advertising requirements. Sales-based fees come out before debt payments.
Product purchasing. If the franchisor or approved suppliers provide the yogurt base or bakery items, those costs shape your margins. Review Item 8 for any required purchases and any rebates the franchisor receives.
Technology and other fees. Look for kiosk, software, delivery platform or point-of-sale fees, and for transfer, renewal and training fees.
Seasonality. Cold drinks tend to sell best in warm weather. In northern markets, winter sales may dip, so lenders like to see reserves or a line of credit that covers slower months.
How lenders factor these costs in. Lenders subtract food and packaging costs, labor, rent and sales-based fees from projected revenue and size the loan to the remaining cash flow. Projections that reflect the seasonal pattern of your market are more convincing than a flat monthly average.
Franchisor Requirements for New Owners
Hey Yogurt does not publish net worth or liquid capital minimums on any page we could verify. Ask the franchise team and confirm the details in the FDD. Owners of small dessert shops generally benefit from:
- Food service, retail or hospitality management experience
- Willingness to be on site, especially in the first months
- Familiarity with the neighborhood and its foot traffic
- Enough capital for the equity injection plus reserves
The approval process. Expect an application, a review of the FDD, discussions about your market and site, and franchisor approval of your lease before construction begins.
Ways to Own a Hey Yogurt
A new shop. Most owners open a new location. Financing typically covers the franchise fee, build-out, equipment, opening inventory and working capital. See our page on franchise start-up financing.
Buying an existing shop. Existing Hey Yogurt shops occasionally come up for sale. A resale includes the lease, equipment, staff and sales history, subject to franchisor approval. Read about franchise restaurant acquisition financing.
Converting a tea or dessert shop. If you own a bubble tea or dessert shop, ask whether the franchisor allows conversions and how it treats existing equipment.
Financing Options for a Hey Yogurt Franchise
SBA 7(a) loans. An SBA 7(a) loan can fund the franchise fee, build-out, equipment, opening inventory and working capital in one loan. Because Hey Yogurt is on the SBA Franchise Directory, it is available to qualified borrowers.
SBA 504 loans. An SBA 504 loan fits if you buy the building that houses your shop or finance long-lived equipment. Most yogurt shops lease, so this applies to fewer owners.
Conventional term loans. Borrowers with strong credit and liquidity may qualify for a conventional business loan.
Equipment financing. Blenders, refrigeration, display cases and ordering kiosks can be financed separately, preserving cash for working capital. Explore restaurant equipment financing and leasing.
Working capital and lines of credit. A line of credit can cover inventory, payroll and slow winter months. See our restaurant working capital options.
Seller financing on resales. A selling owner may carry a note for part of the price. Seller notes are typically subordinate to the senior loan, and SBA rules may limit them.
Franchisor financing. Item 10 of the FDD discloses whether the franchisor offers financing.
SBA Loans for Hey Yogurt Franchisees
The SBA reviews franchise agreements and lists eligible brands on the SBA Franchise Directory. SBA lenders generally need a listing before they can make an SBA-backed loan to a franchisee. A listing does not approve any borrower.
Hey Yogurt is listed. The directory lists Hey Yogurt under code S9015.
What the note means. The note says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lease Rider may not be executed. In plain English, the franchisor’s Lease Rider is designed for a leased shop and gives the franchisor certain rights in your lease. If you own the building and pledge it as collateral for your loan, that rider should not be signed. For the typical leased shop, the rider remains part of the package.
Program limits. The SBA 7(a) program maximum is currently $5 million, although program rules can change.
SBA application tips. Gather the FDD, a business plan tied to Item 7, a personal financial statement, tax returns, a resume showing food service or management experience, your lease or letter of intent and proof of equity. Use our SBA loan calculator to estimate payments.
How Lenders Evaluate a Hey Yogurt Deal
Personal credit and financial history. Expect a review of your credit, tax returns and personal financial statement, plus a personal guaranty.
Net worth and liquidity. Lenders want your equity injection and the reserves you will have after opening.
Food service experience. Experience managing a cafe, tea shop or quick-service restaurant strengthens your request, particularly with a newer brand.
Business plan and projections. Show foot traffic, ticket mix between drinks and baked goods, staffing, food costs and seasonal patterns.
The FDD and franchise agreement. Lenders review the term, renewal and transfer rules, territory and whether Item 19 includes financial performance representations.
Site and lease. Lenders want a lease term that covers the loan or includes renewal options, and they check the Lease Rider against the directory note.
Historical financials for resales. Expect to provide profit and loss statements, tax returns and sales reports for any shop you buy.
Equipment and Food Safety
A yogurt drink shop depends on cold-chain equipment. Refrigeration failures can spoil inventory, so budget for service contracts and backup plans. Blenders and kiosks see heavy daily use and may need replacement sooner than refrigeration.
Lenders treat equipment as collateral but value it conservatively. Financing equipment on terms that match its useful life keeps payments in line with what the equipment earns.
Multi-Unit Growth
Owners with a successful first shop may want a second in a nearby market. Ask about development rights and fees for additional shops. Once your first location has a track record, lenders can underwrite its cash flow when you expand.
Real-World Scenarios
A tea shop owner converts. An owner of an independent bubble tea shop joins the brand and uses an SBA 7(a) loan for remodeling, new equipment and working capital.
A first-time owner opens near a transit hub. A former restaurant manager opens a compact shop near a busy station, financing equipment separately to keep cash for the first winter.
A buyer acquires an existing shop. A buyer purchases a shop with sales history and uses its financial records to support the loan, with a seller note for part of the price.
Common Mistakes to Avoid
- Underestimating plumbing, electrical and refrigeration costs in a small space
- Ignoring winter slowdowns in colder markets
- Signing the Lease Rider when the building itself secures the loan
- Skipping a careful FDD review because the system is new
- Opening without enough working capital
For more pitfalls, read about restaurant loan mistakes to avoid.
Next Steps to Finance Your Hey Yogurt Franchise
Step 1: Contact the franchisor. Ask about available markets and request the FDD.
Step 2: Review the FDD. Study Items 5, 6, 7, 8, 10, 17 and 19 with a franchise attorney and accountant.
Step 3: Talk with a financing specialist. Learn how much you may borrow and how much equity you need.
Step 4: Find a site. Get lease terms and build-out quotes for an approved location.
Step 5: Price your equipment. Gather quotes for blenders, refrigeration, display cases and kiosks.
Step 6: Write your business plan. Tie projections to foot traffic, seasonality and food costs.
Step 7: Apply and close. Submit your loan package and coordinate training and opening with the franchisor.
Hey Yogurt Franchise Loan FAQs
How much does a Hey Yogurt franchise cost?
Item 7 of the FDD lists the estimated initial investment. Ask the franchisor for the current FDD.
What are the franchise fee and royalty?
They are disclosed in Items 5 and 6 of the FDD.
Is Hey Yogurt a frozen yogurt shop?
No. The brand focuses on drinkable yogurt along with cheesecakes, cream puffs and baked goods.
Can I get an SBA loan for a Hey Yogurt franchise?
Yes, if you qualify. Hey Yogurt is on the SBA Franchise Directory under code S9015.
What does the Lease Rider note mean?
If the real estate where your shop is located secures the SBA loan, the franchisor’s Lease Rider should not be signed.
Can I finance equipment separately?
Yes. Blenders, refrigeration, display cases and kiosks can be financed through equipment loans or leases.
Can I buy an existing Hey Yogurt?
Yes, with franchisor approval. Lenders will review the shop’s sales history and financial statements.
Can a first-time owner get a Hey Yogurt franchise loan?
Yes. Lenders weigh management experience, liquidity and the strength of the site and business plan.
Does Hey Yogurt offer financing?
Item 10 of the FDD discloses whether the franchisor offers financing.
What documents do I need?
Expect the FDD, a business plan, personal financial statement, tax returns, a resume, your lease or letter of intent and proof of equity.
Final Thoughts
A Hey Yogurt shop is a compact dessert business where location, equipment and working capital matter most. Read the FDD carefully, plan for seasonal swings, understand the Lease Rider note and keep a cash cushion when you apply for a Hey Yogurt franchise loan.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and our restaurant financing solutions.
