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Cold Stone Creamery Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
What Are the Initial Investment Requirements for a Cold Stone Creamery Franchise?
To open a Cold Stone Creamery franchise, you should be prepared for an initial investment ranging from $322,675 to $627,775. This includes a franchise fee of $27,000. Additionally, you will need to have at least $15,000 in cash available and a net worth between $150,000 and $500,000. These figures are essential for securing your franchise location and ensuring you have the necessary funds to cover startup costs.
What Are the Financial Performance Expectations for Cold Stone Creamery?
Cold Stone Creamery franchises typically generate significant revenue, with an average annual revenue of approximately $619,669 per unit. The median annual revenue stands at $592,426, indicating a strong performance across the franchise network. However, revenue can vary, with the lowest annual revenue reported at $341,584 and the highest reaching $978,978. This financial potential makes it an attractive option for aspiring franchisees.
What Are the Ongoing Fees for Cold Stone Creamery Franchisees?
As a Cold Stone Creamery franchisee, you will be subject to ongoing fees, including a royalty fee of 6% of your gross sales and a marketing fee of 3%. These fees contribute to the overall brand support and marketing efforts that help drive customer traffic to your location. Understanding these costs is crucial for budgeting and financial planning as you operate your franchise.
How Long Will It Take to Break Even with a Cold Stone Creamery Franchise?
Franchisees can expect to reach breakeven within approximately 18 months of opening their Cold Stone Creamery location. With an investment payback period of around 12 months, this timeline suggests that the franchise has a solid potential for profitability. Proper management and adherence to operational guidelines can further enhance your chances of achieving financial success in a relatively short time.
Cold Stone Creamery Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Cold Stone Creamery Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 97 | 98 | 101 |
| Net Change YoY | 1 | 3 | |
| Franchised Units | 97 | 98 | 101 |
| Net Change YoY | 1 | 3 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Cold Stone Creamery franchise requires an initial investment ranging from $322,675 to $627,775. This includes a franchise fee of $27,000. Prospective franchisees should also be prepared to have a cash reserve of at least $15,000 and a net worth between $150,000 and $500,000 to qualify for ownership.
Revenue Potential
Cold Stone Creamery units report an average annual revenue of $619,669, with median revenues at $592,426. The revenue range varies widely, from a low of $341,584 to a high of $978,978, indicating strong sales potential depending on location and management.
Financial Performance
The average gross profit margin for Cold Stone Creamery is an impressive 90.72%. With operating expenses averaging $194,664, this leaves franchisees with an EBITDA of approximately $19,573, which represents 7.43% of revenue. Understanding these metrics is crucial for managing profitability effectively.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 18 months of operation. Moreover, the investment payback period is estimated at just 12 months, making it a potentially lucrative opportunity for those who manage their operations efficiently.
Franchise Growth
As of 2023, Cold Stone Creamery has seen steady growth in its franchised units, increasing from 97 in 2021 to 101 in 2023. This growth trajectory reflects the brand's expanding presence and the increasing popularity of its ice cream offerings.
Corporate Structure
Cold Stone Creamery operates under the corporate entity of Kahala Brands, which oversees a diverse portfolio of franchise concepts. With no corporate-owned units as of 2023, the franchise model relies entirely on its network of franchisees to drive brand success and customer satisfaction.
Frequently Asked Questions
The initial investment for a Cold Stone Creamery franchise ranges from $322,675 to $627,775. This includes the franchise fee, equipment, and other startup costs.