Fosters Freeze Franchise FDD, Profits & Costs (2025)
Fosters Freeze is a long-standing fast-food franchise best recognized for its signature soft-serve ice cream, thick milkshakes, burgers, and a variety of quick-service classics. The concept dates back to 1946, when founder George Foster opened the first shop in Inglewood, California—a location that still operates today.
From its early days, the brand paired frozen treats with a simple, nostalgic menu reminiscent of the traditional American drive-in. This combination quickly resonated with customers, laying the foundation for a concept built around comfort food and approachable pricing.
The company is based in Pomona, California, and has always maintained strong roots in the state. Franchising also began in 1946 as demand grew and new operators joined the system.
Over time, Fosters Freeze became widely known as a true “California original,” expanding primarily throughout the state and carving out a niche in the soft-serve and burger segment.
Initial Investment
How much does it cost to start a Fosters Freeze franchise? It costs on average between $178,000 – $1,009,000 to start a Fosters Freeze franchised restaurant.
This investment covers expenses related to construction, equipment, initial inventory, and the early operating costs required to open a Fosters Freeze location. The total amount varies based on several factors, including the restaurant format, the market where the store will operate, and whether the franchisee decides to lease the site or purchase the property. Fosters Freeze offers 2 types of franchises:
| Type of Expenditure | Amount |
|---|---|
| Fosters Freeze franchised business serving only soft serve confections | $178,000 – $331,500 |
| Fosters Freeze franchised business in a stand-alone restaurant | $611,500 – $1,009,000 |
We are summarizing below the main costs associated with opening a Fosters Freeze franchised business in a stand-alone restaurant. For more information on costs required to start a Fosters Freeze franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $45,000 – $45,000 |
| Restaurant Opening Assistance Fee | $12,500 – $12,500 |
| Architecture Fee | $0 – $2,000 |
| Design Fee | $15,000 – $30,000 |
| Lease | $4,500 – $20,000 |
| Furniture, Fixtures, Equipment and Leasehold Improvements | $475,000 – $750,000 |
| Computer and Point-of-Sale Equipment | $7,500 – $25,000 |
| Opening Inventory | $6,000 – $20,000 |
| Security Deposits, Utility Deposits, Business Licenses and Pre-Paid Expenses | $10,000 – $50,000 |
| Start-up Supplies | $1,000 – $2,500 |
| Training | $4,000 – $6,000 |
| Grand Opening Program | $1,000 – $2,000 |
| Insurance | $2,000 – $4,000 |
| Miscellaneous Opening Costs | $8,000 – $10,000 |
| Additional Funds – 3 Months | $20,000 – $30,000 |
| Total Estimated Initial Investment | $611,500 – $1,009,000 |
Average Revenue (AUV)
How much revenue can you make with a Fosters Freeze franchise? A Fosters Freeze franchised location makes on average $1,265,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
Franchise Disclosure Document
Frequently Asked Questions
How many Fosters Freeze locations are there?
As of the most recent data, Fosters Freeze has about 59 locations across the US,
What is the total investment required to open a Fosters Freeze franchise?
The total investment required to open a Fosters Freeze franchise ranges from $178,000 to $1,009,000.
What are the ongoing fees for a Fosters Freeze franchise?
A Fosters Freeze franchise pays an ongoing royalty fee of 4% of gross sales. Franchisees also contribute a marketing and advertising fee of 3% of gross sales.
Who owns Fosters Freeze?
Fosters Freeze is owned by a private investment group headed by the Neal Dahya and Nimesh Dahya and several of their family members.
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. SharpSheets is an independent educational resource and is not affiliated with, endorsed by, or representing any franchisor mentioned on this website. Where noted, figures are taken from the franchisor’s Franchise Disclosure Document (FDD). In some cases, we may provide independent calculations or estimates based on publicly available information. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
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