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Kilwins Chocolates & Ice Cream Store Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
What is the Initial Investment for a Kilwins Chocolates & Ice Cream Store Franchise?
To open a Kilwins Chocolates & Ice Cream Store franchise, you should be prepared for an initial investment ranging from $20,000 to $92,755. This includes a franchise fee of $20,000 and additional costs associated with setting up the store. It's essential to have at least $100,000 in cash readily available and a net worth between $500,000 and $1,000,000 to meet the financial requirements for this franchise opportunity.
What are the Ongoing Fees for a Kilwins Franchise?
As a Kilwins franchisee, you will be subject to ongoing fees that include a royalty fee of 5% of your gross sales and a marketing fee of 4%. These fees contribute to the overall support and marketing efforts that help drive customer traffic to your store, ensuring that you remain competitive in the market. Understanding these fees is crucial for budgeting and financial planning as you operate your franchise.
What is the Average Revenue Potential for a Kilwins Franchise?
Kilwins franchises have a strong revenue potential, with average annual revenues per unit around $890,000. The median annual revenue is slightly higher at $897,826, indicating a healthy performance across the franchise network. Notably, some units can generate as much as $1,713,646 annually, showcasing the opportunity for significant profitability if managed effectively.
What is the Breakeven Time for a Kilwins Franchise?
Franchisees can expect to reach breakeven within approximately 12 months of opening their Kilwins Chocolates & Ice Cream Store. This relatively quick return on investment is attractive for aspiring entrepreneurs, as it suggests that with the right operational strategies and a strong customer base, you can start seeing profits in your first year of business.
Kilwins Chocolates & Ice Cream Store 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:
Kilwins Chocolates & Ice Cream Store Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 141 | 150 | 149 |
| Net Change YoY | 9 | -1 | |
| Franchised Units | 138 | 146 | 145 |
| Net Change YoY | 8 | -1 | |
| Corporate Units | 3 | 4 | 4 |
| Net Change YoY | 1 | 0 |
Company Background
Kilwins Chocolates & Ice Cream is a premium dessert franchise that has been delighting customers since 1947. Known for its handcrafted chocolates, fudge, and ice cream, Kilwins has established a loyal customer base across the United States. With over 145 franchised locations, the brand combines quality ingredients with a nostalgic shopping experience, making it a favorite destination for sweet treats and gifts.
Franchise Opportunity
Investing in a Kilwins franchise offers aspiring entrepreneurs a chance to join a well-respected brand in the dessert industry. With a relatively low initial investment ranging from $20,000 to $92,755, franchisees can tap into a market that continues to grow. The franchise model is designed to support new owners with training, marketing, and operational guidance, ensuring a smoother path to success.
Financial Performance
Kilwins franchises generate impressive average annual revenues, with figures reaching up to $890,000. The franchise boasts a median annual revenue of $897,826, highlighting its potential profitability. With a breakeven time of just 12 months and an investment payback period of the same duration, franchisees can expect a relatively quick return on their investment.
Royalties and Fees
Kilwins operates with a royalty fee of 5% on gross sales, along with a marketing fee of 4%. These fees contribute to the ongoing support and resources provided to franchisees, including national marketing campaigns and operational assistance. Understanding these costs is crucial for franchisees to plan their financial strategy effectively.
Corporate Structure
Kilwins Chocolates & Ice Cream operates as a franchise system with a blend of franchised and corporate-owned units. As of 2022, there are 145 franchised locations and 4 corporate units. This structure allows for a consistent brand experience while fostering local entrepreneurship, making it an attractive option for those looking to invest in a well-established company.
Brand Story
Founded in 1947 by Don and Katy Kilwin in Petoskey, Michigan, Kilwins has grown from a small candy shop to a beloved national brand. The founders' commitment to quality and craftsmanship laid the foundation for Kilwins' success. Today, Kilwins continues to uphold this tradition, offering a wide range of artisanal chocolates, ice cream, and confections that evoke nostalgia and delight customers of all ages.
Frequently Asked Questions
The initial investment for a Kilwins franchise ranges from $20,000 to $92,755. This includes the franchise fee of $20,000 and other startup costs such as equipment and inventory.