Cold Stone Creamery Franchise FDD, Profits & Costs (2025)
Cold Stone Creamery, founded in 1988 by Donald and Susan Sutherland in Tempe, Arizona, aimed to create fresher, superior ice cream compared to pre-packaged options. Their unique approach involved making ice cream fresh daily in each store, setting them apart from competitors.
The franchise expanded in 1994 and experienced significant growth after being acquired by Kahala Brands in 2007. Headquartered in Scottsdale, Arizona, Cold Stone Creamery continues to thrive, known for its high-quality, artisanal ice cream and excellent customer service.
A key differentiator is their in-store experience, where customers can customize their ice cream with various mix-ins, a concept they pioneered before it became mainstream.
Initial Investment
How much does it cost to start a Cold Stone Creamery franchise? It costs on average between $121,000 – $655,000 to start a Cold Stone Creamery franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property. Cold Stone Creamery offers 2 types of franchises:
| Type of Expenditure | Amount |
|---|---|
| Traditional Cold Stone Creamery Restaurant | $335,675 to $655,275 |
| Non-Traditional Cold Stone Creamery Restaurant | $120,700 to $507,275 |
We are summarizing below the main costs associated with opening a Traditional Cold Stone Creamery franchised restaurant. For more information on costs required to start a Cold Stone Creamery franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $12,000 – $27,000 |
| Rent/Security Deposit (3 months) | $9,750 – $19,500 |
| Travel and Living Expenses (2 persons) | $3,000 – $7,500 |
| Lease Review Fee | $0 – $2,500 |
| Architectural Fees | $10,000 – $21,000 |
| Leasehold Improvements | $107,000 – $292,000 |
| Exterior Signage | $10,500 – $17,000 |
| Equipment | $135,000 – $215,000 |
| PCI Compliance Costs | $150 – $1,300 |
| Opening Inventory | $8,000 |
| Employee Uniforms | $500 – $800 |
| Grand Opening Marketing Advertising | $10,000 |
| Insurance Premiums | $500 – $2,500 |
| Permits and Licenses | $2,000 – $3,000 |
| Telephone and Utility Deposits | $250 – $1,000 |
| Computer, Training, Food Safety Course | $100 – $250 |
| Miscellaneous | $3,925 |
| Depository Account | $3,000 |
| Additional Funds (3-month period) | $20,000 |
| Total | $335,675 – $655,275 |
Average Revenue (AUV)
How much revenue can you make with a Cold Stone Creamery franchise? A Cold Stone Creamery franchised restaurant makes on average $587,000 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 Cold Stone Creamery competitors as a comparison:
Download the Franchise Disclosure Document
Frequently Asked Questions
How many Cold Stone Creamery locations are there?
As of the latest data, Cold Stone Creamery operates 953 locations in the United States and is present in nearly 30 international markets. The majority of these stores are franchise-owned, as the brand primarily follows a franchising model.
What is the total investment required to open a Cold Stone Creamery franchise?
The total investment required to open a Cold Stone Creamery franchise ranges from $121,000 to $655,000.
What are the ongoing fees for a Cold Stone Creamery franchise?
For a Cold Stone Creamery franchise, the ongoing fees include a royalty fee of 6% of gross sales, which supports the brand’s operational and support services. Additionally, franchisees are required to pay a marketing fee of 3% of gross sales.
These ongoing fees ensure that franchisees receive continuous support and benefit from the brand’s marketing efforts.
What are the financial requirements to become a Cold Stone Creamery franchisee?
To become a Cold Stone Creamery franchisee, you need to meet certain financial requirements. These include a minimum net worth of $250,000 and liquid assets of at least $100,000.
The total initial investment to open a Cold Stone Creamery franchise ranges from $53,200 to $580,650, depending on the location and other factors.
How much can a Cold Stone Creamery franchise owner expect to earn?
The average gross sales for a Cold Stone Creamery franchise are approximately $0.59 million per location. Assuming a 15% operating profit margin, $0.59 million yearly revenue can result in $89,500 EBITDA annually.
Who owns Cold Stone Creamery?
Cold Stone Creamery is owned by Kahala Brands, a global franchising company. Kahala Brands acquired Cold Stone Creamery in 2007 and is part of MTY Food Group, a Canadian company that owns and operates numerous franchise brands in the food and beverage industry.
Kahala Brands manages a wide portfolio of international brands, and Cold Stone Creamery is one of its most prominent and successful brands.
Disclaimer
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