Jeremiahs Italian Ice
Jeremiah's Italian Ice offers a variety of Italian Ice, gelati, and soft ice cream in traditional and non-traditional shops, known for its distinctive menu items and military discounts, operating in the frozen dessert franchise industry.
Jeremiahs Italian Ice franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment for opening one traditional Jeremiah's Italian Ice Shop ranges from $294,817 to $743,725. For a Non-Traditional Shop, the range is from $123,150 to $253,783. This includes fees that must be paid to the franchisor or one of its affiliates, ranging from $48,750 to $67,800 for a traditional shop and $16,750 to $23,900 for a Non-Traditional Shop. [p.1]
What is the initial franchise fee?
The initial franchise fee is $30,000 unless you are operating a Non-Traditional Shop, in which case it is $15,000 [p.9, p.79]. This fee is non-refundable and must be paid in full upon signing the Franchise Agreement [p.9, p.223].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is based on 6% of weekly gross revenues for each store. Starting June 1, 2024, an additional 1% marketing fee was introduced for all existing and new franchisees, except those in the Orlando, Florida area [p.223]. There are no specified ongoing advertising fees in the provided excerpts; however, advertising costs are expensed as incurred, with totals of $1,028,053 and $673,944 for the years ended December 31, 2024 and 2023, respectively [p.224].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement typically covers a term of ten years [p.223]. You have the right to renew your rights to operate the franchise for two additional successor terms of ten years each, provided you meet all specified conditions [p.77].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot transfer your Franchised Business to a third party who will operate a similar business at the Accepted Location but not under the System and Proprietary Marks without a franchise agreement with the franchisor [p.119]. Additionally, if you wish to sell or transfer your franchise, you must pay a transfer fee, which is typically $15,000 or 50% of the initial franchise fee for new franchisees (whichever is less), and any applicable broker commission [p.117].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the Trademark License Agreement immediately for cause upon a change of control of the franchisee, or if the franchisee goes into insolvency or bankruptcy. [p.46] Additionally, the franchisor may be able to make changes to its business model without your consent, which could potentially harm your franchise business and might require additional investments from you. [p.3]
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a franchisee, you need to have a combined net worth of at least $7,348,000 with your affiliates, parents, and their respective owners [p.181]. Additionally, while not specified in terms of liquid capital, the FDD indicates that you must also have adequate financial resources and capital to operate the franchised business [p.117].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You will have a 'Protected Territory' which typically covers a one-mile radius around your shop, but this may vary based on location characteristics. However, you may still face competition from other franchisees, outlets owned by the company, or competitive brands controlled by them [p.45].
What training and ongoing support does the franchisor provide?
The franchisor provides extensive training and ongoing support to franchisees. Initial training includes a 23-day program at certified locations followed by on-site training during Squad Day, VIP Day, and the store opening week [p.37]. Ongoing management training, operations assessments, and cultural alignment are also provided through the 'Cool School' training program and an online learning platform (L.E.A.P- Leadership, Education, Accountability, and People) [p.37]. This support ensures franchisees meet high standards in quality, cleanliness, appearance, and service [p.57].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not provide specific information on the number of franchised outlets that have closed or been terminated. The excerpts only detail the number of shops that were open for the entire year in different years, excluding some that were not open for the full period. [p.63], [p.62], and [p.57] discuss the number of open Shops but do not mention closures or terminations.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations other than providing actual records of an existing outlet if you are purchasing one. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management and relevant regulatory agencies as specified [p.64].
What am I restricted to selling, and where must I buy supplies?
You are required to sell items that bear your franchisor's Proprietary Marks only from their approved suppliers as specified in [p.27]. You must buy all Products, equipment, ingredients, supplies, materials, and other products used or offered for sale at the Franchised Business only from suppliers approved by the franchisor, who will consider factors such as quality controls and capacity to supply needs promptly and reliably ([p.27]).