16 Handles Franchise FDD, Profits & Costs (2025)
16 Handles is a modern frozen yogurt and dessert chain that blends the fast-casual dining experience with a self-serve concept. Launched in 2008 in New York City’s East Village by entrepreneur Solomon Choi, the brand’s name highlights its core idea—offering sixteen rotating flavors that guests can mix and match to create their own custom desserts.
The company is headquartered at 450 Park Avenue South in Manhattan and started offering franchise opportunities in 2010.
In August 2022, longtime franchisee Neil Hershman purchased the brand and assumed the position of CEO. He teamed up with YouTube personality Danny Duncan, who became Chief Creative Officer, to drive a new era of innovation and growth for the brand.
16 Handles features a diverse menu that includes frozen yogurt, all-natural ice cream, vegan oat-milk soft serve, fruit sorbets, milkshakes, smoothies, Fro-Yo cakes, waffle bowls, and grab-and-go pints. With more than 50 topping choices, a mobile rewards app, and branded delivery packaging, the concept emphasizes customization, convenience, and digital engagement.
Initial Investment
How much does it cost to start a 16 Handles franchise? It costs on average between $243,000 – $645,000 to start a 16 Handles franchised shop.
This includes expenses related to construction, store equipment, initial inventory, and early operational costs. The total investment varies based on several factors, such as the size and format of the 16 Handles location, local market conditions, and whether the franchisee decides to lease or buy the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $30,000 |
| Rent and Security Deposit | $5,000 to $30,000 |
| Utility and Other Deposits | $500 to $3,000 |
| Architect and Design Fees | $7,500 to $20,000 |
| Leasehold Improvements | $60,000 to $180,000 |
| Exterior Signage | $3,000 to $12,000 |
| Furniture, Fixtures and Equipment (Including Soft Serve Machines) | $110,000 to $310,000 |
| Smallwares | $2,500 to $5,000 |
| POS System and Back-Office Computer; License Fee | $500 to $2,000 |
| Office Equipment and Supplies | $500 to $2,000 |
| Business Licenses & Permits | $500 to $2,000 |
| Professional Fees | $500 to $5,000 |
| Initial Inventory of Food and Paper Supplies | $5,000 to $10,000 |
| Insurance (Initial 3 Months) | $1,000 to $3,000 |
| Training Expenses (Travel and Accommodation) | $500 to $3,000 |
| Grand Opening Marketing | $8,000 |
| Additional Funds (for initial period of operations) | $7,500 to $20,000 |
| Total Estimated Initial Investment | $242,500 to $645,000 |
Average Revenue (AUV)
How much revenue can you make with a 16 Handles franchise? A 16 Handles franchised business makes on average $631,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
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Frequently Asked Questions
How many 16 Handles locations are there?
According to publicly-available data, the 16 Handles franchise system operates 29 franchised locations across multiple U.S. states
What is the total investment required to open a 16 Handles franchise?
The total investment required to open a 16 Handles franchise ranges from $243,000 to $645,000.
What are the ongoing fees for a 16 Handles franchise?
16 Handles franchise owners pay an ongoing royalty fee of 6% of gross sales. In addition, franchisees contribute 2% of gross sales toward national and local marketing and advertising programs that support brand awareness and promotional initiatives.
Who owns 16 Handles?
16 Handles franchise is owned by Neil Hershman, the company’s largest franchisee who acquired the brand in August 2022.
Disclaimer
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