Abbott’s Frozen Custard Franchise FDD, Profits & Costs (2025)
Abbott’s Frozen Custard is a heritage dessert franchise known for its creamy, old-fashioned frozen custard made from a secret family recipe. The brand was founded in 1902 by Arthur W. Abbott, who began by selling his frozen treats at carnivals.
In 1926, he opened a permanent location in Rochester, New York, which still serves as the company’s headquarters. Abbott’s began franchising in 1977, steadily expanding its footprint across the United States.
The franchise specializes in frozen custard, which is denser and creamier than traditional ice cream due to the addition of egg yolks and a slow churning process. All products are made fresh daily in each store using high-quality dairy ingredients and proprietary machines. This focus on freshness and craftsmanship is a key factor that sets Abbott’s apart from its competitors.
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Initial Investment
How much does it cost to start a Abbott’s Frozen Custard franchise? It costs on average between $494,000 – $1,796,000 to start a Abbott’s Frozen Custard franchised restaurant.
This includes costs for build-out, equipment, inventory, and initial operating expenses. The total amount varies based on several factors, including the size and format of the Abbott’s Frozen Custard shop, its location, and whether the franchisee opts to lease or own the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $37,000 |
| Operational Equipment | $256,100 – $273,200 |
| Exterior Signs | $6,500 – $25,000 |
| Stand Design Costs | $25,000 – $55,000 |
| Real Estate & Improvements | $114,400 – $1,300,000 |
| Opening Inventory | $18,000 – $28,000 |
| Initial Advertising | $5,000 – $10,000 |
| Travel and Lodging Costs Related to Training | $1,200 – $3,000 |
| Utilities | $3,000 – $7,500 |
| Office Supplies | $500 |
| Insurance Premiums | $2,500 – $7,000 |
| Additional Funds – 3 months | $25,000 – $50,000 |
| TOTAL | $494,200 – $1,796,200 |
Average Revenue (AUV)
How much revenue can you make with a Abbott’s Frozen Custard franchise? A Abbott’s Frozen Custard franchised restaurant makes on average $326,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $515,000 yearly revenue for similar ice cream franchises. Below are a few Abbott’s Frozen Custard competitors as a comparison:
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Abbott’s Frozen Custard Franchise Disclosure Document
Frequently Asked Questions
How many Abbott’s Frozen Custard locations are there?
As of the latest data, Abbott’s Frozen Custard operates 30 locations across the United States.
What is the total investment required to open a Abbott’s Frozen Custard franchise?
The total investment required to open a Abbott’s Frozen Custard franchise ranges from $494,000 to $1,796,000.
What are the ongoing fees for a Abbott’s Frozen Custard franchise?
Abbott’s Frozen Custard franchisees are required to pay an ongoing royalty fee of 5.5% of gross sales. In addition, there is a marketing fee calculated at $0.19 for every gallon of custard sold. These fees support the brand’s continued development, national marketing initiatives, and ongoing operational support for franchisees.
What are the financial requirements to become a Abbott’s Frozen Custard franchisee?
To qualify as an Abbott’s Frozen Custard franchisee, you must have a minimum net worth between $350,000 and $500,000, along with at least $150,000 in liquid capital. These financial requirements ensure that franchisees have the resources necessary to cover startup costs and sustain operations during the initial stages of the business.
How much can a Abbott’s Frozen Custard franchise owner expect to earn?
The average gross sales for a Abbott’s Frozen Custard franchise are approximately $0.33 million per location. Assuming a 15% operating profit margin, $0.33 million yearly revenue can result in $50,000 EBITDA annually.
Who owns Abbott’s Frozen Custard?
Abbott’s Frozen Custard remains a family-owned business, currently led by President Gail Drew, daughter of Leonard and Thelma Schreiber, who acquired the company in 1957. Gail’s son, Brenden Drew, serves as Vice President of Business Development, continuing the family’s active involvement in the company’s operations and expansion.
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