Dippin Dots
Dippin' Dots offers unique frozen dessert franchises in various models, from store-only to distribution options, known for their small-bite, freeze-dipped treats in a variety of flavors. Operating in the quick-serve food industry.
About Dippin Dots
Dippin' Dots is a beaded ice cream invented by Curt Jones in 1988. The confection is created by flash freezing ice cream mix in liquid nitrogen. The snack is made by Dippin' Dots, Inc., headquartered in Paducah, Kentucky. Dippin' Dots are sold in 14 countries, including Honduras and Luxembourg.
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Dippin Dots franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operations ranges from $79,349 to $398,650 depending on the type of franchise (Distribution, Store Only, or Territory). This includes a mandatory payment ranging from $47,999 to $135,150 that must be paid to Dippin' Dots Franchising, L.L.C. or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on the model of Dippin' Dots® Franchised Business granted. It must be paid in full upon opening the business and is not refundable [p.10]. Additional fixed locations, stores, or kiosks require an additional $5,000 per each [p.10]. Discounts may apply for U.S. military members or veterans [p.11], and a combined purchase with Doc Popcorn® can also result in discounts [p.67].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is calculated based on the amount of ice cream actually purchased by the franchisee, not exceeding six percent (6%) of the average retail price of the product. The advertising fund contribution does not exceed two percent (2%) of gross sales. These fees can be increased at any time with written notice to all franchisees [p.68].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement is for an initial term of five years [p.65]. After that, you have the option to renew it for an additional five-year term if you are in full compliance with your obligations under the agreement [p.65].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.173]. Good cause includes but is not limited to unspecified factors. This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts. The provided FDD excerpts detail termination rights for the franchisee but do not specify the grounds for termination by the franchisor.
What financial requirements — net worth and liquid capital — do I need to qualify?
According to [p.81], you need to have adequate financial resources and capital to operate the Franchised Business, but specific net worth or liquid capital figures are not provided in these excerpts.
Do I get an exclusive or protected territory?
No, the 'Store Only' and 'Territory' franchises do not provide an exclusive territory. You may face competition from other franchisees, company-owned outlets, or competitive brands controlled by the company [p.34]. However, purchasing a 'Territory' franchise prevents another Distribution franchise from being placed in your territory [p.35].
What training and ongoing support does the franchisor provide?
The franchisor provides Basic Management Training for up to two trainees over a four-day period, typically offered approximately four to five times per year [p.32]. This training covers marketing, promotion, advertising, sales techniques, and computer applications [p.32]. Additionally, the franchisor may offer refresher or advanced management training programs at their discretion, not more than twice a year, for which franchisees are responsible for all associated costs including travel, meals, and lodging [p.33]. The franchisor also supports franchisees through periodic visits by representatives and consultations on operations, advertising, promotion, and business methods upon mutual agreement [p.66].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information about existing outlets you are considering buying. However, they do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets [p.44]. Any other financial performance information received should be reported to the franchisor’s management and relevant regulatory agencies [p.44].
What am I restricted to selling, and where must I buy supplies?
You are required to offer and sell all goods and services that the franchisor requires for all franchisees [p.40]. The franchisor has the right to add or remove authorized products or services offered by franchisees without any limits [p.40]. Regarding supply, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.3].