7/10

Franchimp Summary Rating

7 /10
Lower than 36% of peers
6 /10
Lower than 43% of peers

Franchise Summary

Description
As a franchisee, you will operate a restaurant called Cold Stone Creamery specializing in super-premium fresh made ice cream, frozen yogurt, cakes, pies, smoothies, shakes, specialty beverages, soft drinks and other frozen dessert products (prepared using proprietary recipes) and an assortment of complementary toppings and mix-ins on a take-out or eat-in basis, soup and branded licensed products.
Company Background
Cold Stone Creamery is an ice cream and frozen yogurt store that offers franchise opportunities. We take pride in providing our customers with the best quality, made-fresh-daily products for a great price. Our food is healthy, delicious and affordable. The company has over 1,400 locations worldwide and counting!
Franchise Opportunity
Ice cream is delicious, but it's also fattening and can make you sick if it isn't made well. We all know that ice cream is a treat, not something to eat every day. But we want the taste of real ice cream without the extra calories or worry about getting sick from bad ingredients. Cold Stone Creamery offers premium ice cream at affordable prices with no artificial flavors or preservatives added. Our creamy frozen desserts are made fresh daily in our stores using milk and cream from cows not treated with synthetic growth hormones (rBST). All of our menu items are gluten free except for those containing cookie dough pieces, brownies or cake batter pieces which contain wheat flour as part of their recipes. Cold Stone Creamery has been voted Best Ice Cream by USA Today's 10Best Readers Choice Awards for nine consecutive years! With more than 1,400 locations worldwide there is sure to be one near you!
Corporate Structure
Kahala Franchising is an Arizona limited liability company which was formed on December 29, 2008 for the purpose of owning all of the intellectual property assets and franchising business of Kahala Franchising’s affiliate and predecessor, Kahala Franchise Corp. Kahala Franchising and Kahala Franchise Corp. are wholly-owned subsidiaries of Kahala Corp., a Delaware corporation. Kahala Corp. was a Florida corporation and was redomiciled in Delaware on Decembers,2012. Kahala Franchising, L.L.C.’s principal business address is 9311 E. Via De Ventura, Scottsdale, Arizona 85258.
Royalties and Marketing Fees

Royalties : 6.0% of revenue

Earnings Transparency

7 /10
This Franchise discloses slightly more information about the financial performance of their franchisees compared to other franchises in the same industry

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Financial Performance of "Standard" Units

Average Revenue Per Unit

Compared vs. Quick Service Restaurants (QSR) Industry

$607,932 / unit

Franchise Type: Standard

Average Revenue During 2022

$607,932
$331,554
Industry Low
$1,821,041
Industry High

Franchisee Attrition

7 /10
This franchise's rate of attrition in 2017 of 2.73% was Slightly Lower than the 4% in the Quick Service Restaurants (QSR) industry. Generally speaking, a higher rate of attrition represents a less stable franchise system and a lower rate of attrition indicates a more successful system
What's Included in franchise attrition?
We define the franchisee attrition rate as the sum of terminations, re-acquisitions by franchisor, non-renewals, and ceased operations, divided by the number of outlest at the start of the year. It is a strong indicator of the strength of the underlying operating model

Franchise Types Available

# Type Investment Fees

Distribution of Cold Stone Creamery Franchisees

Cold Stone Creamery Franchise System Development in 2022

Historical Cold Stone Creamery System Growth

FAQ

How much investment do I need to start my own Cold Stone Creamery business?
Franchisees typically require at least $310 to $602 investment to get their Cold Stone Creamery business started
What are the initial franchise fees for Cold Stone Creamery?
Franchisees typically need to pay at least $27 in fees directly to Cold Stone Creamery in order to earn the right to launch their business
How much money can I make with a Cold Stone Creamery franchise? What are the average revenues for a typical Cold Stone Creamery business?
We estimate that the average revenue of an individual Cold Stone Creamery unit is approximately $607,932. We based this on Item 19 in franchise disclosure document
How long do I need to commit to running a Cold Stone Creamery unit? What is my contractual commitment?
Cold Stone Creamery franchisees are typically required to sign up to a 10 year contract initially. The renewal length is 5 years. You can of course exit early but don’t expect to get any refund!

Accessibility

6 /10
The Franchisor's investment costs ranges from $310,375 to $602,775 which is Much Lower than the $0 to $0 average in the Quick Service Restaurants (QSR) industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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