Mister Softee
Mister Softee franchises ice cream trucks operating in designated territories, known for their distinctive blue vehicles. Part of the frozen dessert industry, it offers a recognizable brand with a specific investment range.
About Mister Softee
Mister Softee Inc. is an American ice cream truck franchisor, best known in the northeastern United States. The company is based in Runnemede, New Jersey.
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Mister Softee franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Mister Softee franchised business ranges from $263,500 to $314,000, according to [p.1].
What is the initial franchise fee?
The initial franchise fee is $7,500, which is considered fully earned and non-refundable upon payment [p.8, p.74].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is $3,855 per vehicle annually, with 10% of this amount deferred for future vehicle repainting costs. There are no specified mandatory advertising fees; however, franchisees may be required to pay for a GPS device monthly fee and Mister Softee mobile app fees, though these are currently covered by the franchisor.
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement's duration isn't specified in these excerpts. However, you have the right to renew the franchise for one additional five-year term under certain conditions [p.73], and there may be changes to terms upon renewal, including potentially higher royalty fees [p.74].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you must pay a $1,000 transfer fee if you sell or transfer your Franchised Business. [p.9] This fee is required regardless of who is taking over the franchise.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.115]. However, under Virginia Retail Franchising Act Section 13.1-564, it is unlawful for a franchisor to cancel a franchise without reasonable cause [p.117], and provisions allowing termination without reasonable cause may not be enforceable if they do not meet the legal definition of 'reasonable cause.'
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You will have territorial protection solely for operating the Franchised Business, but Mister Softee retains the right to distribute products through other channels within your territory and may establish retail shops using the Proprietary Marks. [p.19]
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that lasts 3 to 5 days, conducted either at their headquarters in New Jersey or another designated location. This training includes automotive maintenance and equipment aspects, product preparation, sales/route development, among other topics [p.17]. Additionally, the franchisor may offer periodic tuition-free refresher courses and additional training programs from time to time [p.77, p.17]. You are responsible for all related expenses during these trainings, including travel, lodging, meals, and salaries of participants [p.77, p.16].
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 actual records of an existing outlet if you are purchasing one, but they do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. If you receive other financial performance information or projections, you should report it to the franchisor’s management as specified [p.25].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only the products prescribed by Mister Softee, including minimum inventory levels of Proprietary Products as specified [p.76]. You must purchase the truck and equipment from MSSM and soft-serve ice cream mix and other consumable inventory from approved suppliers [p.11]. This isn't specified in the excerpts for other types of supplies beyond these items.