Sub Zero Nitrogen Ice Cream
Sub Zero Nitrogen Ice Cream offers franchises specializing in unique 'instant freezing' ice cream and related products using proprietary methods. Known for its quick-freezing technology, this franchise operates in the food service industry.
Sub Zero Nitrogen Ice Cream franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation varies depending on the type of franchise: - For a storefront franchised business, the total investment is between $216,800 and $356,000 [p.1]. - For a mobile unit franchised business, the total investment ranges from $72,800 to $225,500 [p.1]. - For a catering franchise, the total investment is between $42,955 and $141,400 [p.1].
What is the initial franchise fee?
The initial franchise fee varies based on the type of franchise: - For a Storefront franchise, it is $35,000 for the first franchise and $20,000 for each additional franchise if purchased concurrently. - For Mobile Unit or Catering franchises purchasing a Storefront franchise, the Initial Franchise Fee is $15,000. - This fee may be financed up to $10,000 by the franchisor at its sole option. - The fee could potentially increase in the future after certain growth levels are attained. [p.29, p.10, p.11]
What are the ongoing royalty and advertising fees?
The ongoing weekly royalty is 6% of Gross Sales [p.128]. For Mobile Units and Catering Franchises, there's a minimum monthly royalty of $500 for the first year, increasing to $600 in the second year and $700 annually thereafter [p.15]. Additionally, there is a Brand Development Fee of 2% of weekly Gross Sales [p.33], with Mobile Units and Catering Franchises having an additional minimum monthly fee of $150 for the first year, increasing to $200 in the second year [p.15].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in these excerpts. However, if you are not in default and meet certain conditions, you may renew the franchise for additional terms of five years each (Renewal Terms) [p.122].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it involves several requirements. If you obtain a franchise by purchasing an existing business, you must pay a transfer fee to the franchisor [p.15]. This transfer fee relieves you of the obligation to pay the initial franchise fee but does not relieve you from paying the initial training fee and other associated costs such as remodeling and equipment [p.145]. Additionally, if you wish to sell your franchise later, a separate transfer fee may apply under similar conditions [p.15]. The franchisor has the right to refuse transfers for good cause but cannot unreasonably withhold consent if required by contract terms [p.200].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement for good cause, such as the failure of the franchisee to comply with lawful provisions of the Franchise Agreement and not curing it within a reasonable time [p.206]. Additionally, termination is generally not allowed without reasonable cause, except as permitted by applicable laws like the Virginia Retail Franchising Act [p.210].
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?
For a Franchised Store, you receive a protected territory where Sub Zero will not place another store within a certain distance [p.120]. However, for Mobile Units and Catering Franchises, you are granted a protected territory based on zip codes or other boundaries [p.38], but this isn't an exclusive territory as you can face competition from other franchisees, owned outlets, or competitive brands [p.39].
What training and ongoing support does the franchisor provide?
The franchisor requires the managing owner or Manager to attend an initial training program at their headquarters in Provo, Utah, or another designated location. This training lasts approximately 3-5 days initially and includes on-site training at your Franchised Store or mobile-unit/catering territory for about 4-5 days, which is mandatory. Ongoing support includes providing information for website and social media marketing, though this involves an ongoing obligation to update the franchisor with changes in franchisee information. [p.36, p.42]
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?
Yes, the franchisor shares financial performance information, but it is limited to actual records of existing outlets you are considering buying [p.48]. The franchisor also provides 2024 gross sales data from 18 U.S.-based franchised stores that were open and actively operating during the specified period [p.50], excluding certain specific cases as noted [p.48].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling only those services and products that Sub Zero authorizes [p.43]. Additionally, you cannot sell any unauthorized services or products [p.43]. Regarding supply purchases, while you have the option to buy from designated suppliers, there is no explicit restriction on where you must buy supplies; however, using approved systems and software is mandatory for operating your franchise [p.25] and some items may be more expensive when bought through these channels due to supplier restrictions [p.3].