Cold Stone Creamery
Cold Stone Creamery offers super-premium ice cream, shakes, smoothies, and desserts in a traditional or non-traditional restaurant setting. Known for its customizable sundaes, the franchise operates in the frozen dessert and specialty beverage industry.
About Cold Stone Creamery
Cold Stone Creamery, Inc. is an American international ice cream parlor chain. Headquartered in Scottsdale, Arizona, the company is owned and operated by Kahala Brands. The company's main product is premium ice cream made with approximately 12–14% butterfat, made on location and customized for patrons at time of order. Cold Stone has also expanded its menu with other ice cream-related products, including: ice cream cakes, pies, cookie sandwiches, smoothies, shakes, and iced or blended coffee drinks.
Read more on Wikipedia → · Facts from Wikipedia (CC BY-SA)
Cold Stone Creamery franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment for opening a Cold Stone Creamery restaurant ranges widely, from $27,500 to $59,500 for traditional locations and $18,500 to $47,500 for non-traditional locations. This includes the Initial Franchise Fee, lease review fee (if applicable), and a portion of the cost of equipment, furniture, menu boards, wall décor, and smallwares. [p.33]
What is the initial franchise fee?
The initial franchise fee for a first traditional Cold Stone Creamery restaurant is $27,000. For subsequent traditional restaurants, it reduces to $15,000 each. Non-traditional locations have an initial franchise fee ranging from $10,000 to $20,000 per location. [p.33, p.190]
What are the ongoing royalty and advertising fees?
The ongoing fees include a weekly RMCF Royalty Fee equal to nine percent (9%) of total RMCF Gross Sales. Additionally, there is an Advertising Fee, though its specific rate is not detailed in these excerpts. [p.40, p.434]
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not mention the duration of the initial franchise agreement or details about renewal terms beyond the requirement to pay a Renewal Franchise Fee of 50% of the then-current initial franchise fee upon renewal [p.194, p.329].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires giving the franchisor a right of first refusal at the same price offered by any bona fide buyer. The franchisor must also approve any new franchisee, transferee, stockholder, or assignee, and they cannot unreasonably withhold their consent if the potential transferee can meet the obligations under the franchise agreement [p.41, p.211, p.347]. Additionally, a transfer of ownership except for good cause may be refused by the franchisor [p.116].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.121]. Additionally, the franchisor can change its business model without your consent, which might require additional investments or harm your franchise business [p.3], though this does not explicitly state termination grounds but implies potential scenarios that could lead to issues. This isn't specified in the excerpts for explicit termination grounds beyond legal grounds.
What financial requirements — net worth and liquid capital — do I need to qualify?
You need to have at least $15,000 in working capital as of the Effective Date and throughout the Term [p.321, p.254, p.186]. This isn't specified in the excerpts regarding net worth or liquid capital beyond this amount for working capital.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory according to the FDD. The franchise agreement explicitly states that you may face competition from other Cold Stone Creamery stores and outlets, both franchised and company-owned [p.402, p.67]. This isn't specified in the excerpts.
What training and ongoing support does the franchisor provide?
The franchisor provides initial training that includes both In-Store Training (approximately 80 hours) and New Owner Training (approximately 40 hours). This training is conducted either online or at a designated location, such as their training center in Scottsdale, Arizona. Additionally, the franchisor may require franchisees to attend additional training if they are not operating the business according to system standards [p.321]. For Co-Branded Stores, specific trainers like Donna Coupe and Fred Sabatini provide on-the-job training at a store in the market area after signing an amendment [p.401].
How many franchised outlets are there, and how many have closed or been terminated?
As of November 30, 2024, there were 992 franchised stores open in the United States. Additionally, 11 franchise owners had an outlet terminated, canceled, not renewed, or otherwise ceased to do business under the Franchise Agreements during the year ending November 30, 2024 [p.86 and p.101].
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets, and it does not authorize its employees or representatives to make such representations either orally or in writing [p.86, p.406]. However, if you are purchasing an existing outlet, they may provide actual records of that outlet's performance [p.86, p.406]. Any other financial performance information received should be reported to the franchisor and relevant regulatory agencies [p.86, p.406].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling only certain items; however, you must purchase Factory Candy and ingredients for Store Candy from RMCF or a source designated by them [p.398]. Additionally, if you wish to acquire equipment, supplies, or inventory items not previously approved by the franchisor, you need to follow their approval process [p.271].