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.
Investment and Franchisee Fees
The total investment necessary to begin operation of a Cold Stone Creamery franchise ranges from $277,375 to $464,325 for a traditional restaurant and from $49,700 to $423,525 for a non-traditional restaurant, from S120,000 to $220,400 for a Cold Stone Express kiosk and from $85,500 to $349,025 for a Cold Stone Yogurt Bar, and $76,800 to $179,500 to add a Yogurt Bar to your ColdBtone Creamery restaurant. This includes $13,250 to $147,050 for a traditional restaurant, $9,250 to $140,050 for a non-traditional restaurant, $3,250 to $121,250 for a Cold Stone Express kiosk and $0 to $111,050 to add a Yogurt Bar to your Cold Stone Creamery restaurant that must be paid to the franchisor or its affiliate.
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. Frozen Desserts Industry
$607,932 / unit
Franchise Type: Standard
Average Revenue During 2022
$607,932
$331,554 Industry Low
$1,277,867 Industry High
Franchisee Attrition
10 /10
This franchise's rate of attrition in 2023
of 0.00%
was
Higher
than the % in the Frozen Desserts 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
Employee Contact Database
#
Name
Position
Phone Number
Email Address
Franchise Disclosure Documents
FDD
Effective Date
Distribution of Cold Stone Creamery Franchisees
Cold Stone Creamery Franchise System Development in 2021
FAQ
How much investment do I need to start my own Cold Stone Creamery business?
Franchisees typically require at least
$261,625 to
$467,525 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
$10,000 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
7 /10
The Franchisor's investment costs ranges from
$214,518 to $542,768
which is
Much Lower
than the $264,571 to $570,575 average in the Frozen Desserts 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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