Kilwins Franchise FDD, Profits & Costs (2025)
Kilwins is a renowned confectionery franchise established in 1947 by Don and Katy Kilwin in Petoskey, Michigan, where it remains headquartered.
The company started franchising operations in 1983, allowing it to expand its unique blend of chocolates, ice cream, and confections.
This franchise stands out due to its commitment to high-quality, hand-crafted products made from premium ingredients. Kilwins is also known for excellent customer service and a warm, American-inspired atmosphere, which is central to its business philosophy and replicated across its franchise network.
The company offers two franchising formats: a full-line store with a comprehensive sweets selection and a smaller shop focusing on ice cream and chocolate.
This lets franchisees pick a store type that fits their local market needs, helping Kilwins stay ahead in the competitive confectionery market.
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Initial Investment
How much does it cost to start a Kilwins franchise? It costs on average between $216,000 – $828,000 to start a Kilwins 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. Kilwins offers 2 types of franchises:
| Franchise Type | Initial Investment Range |
|---|---|
| Kilwins Franchised Store | $378,955 to $827,563 |
| Kilwins Franchised Shop | $215,803 to $378,637 |
We are summarizing below the main costs associated with opening a Kilwins Franchised Store. For more information on costs required to start a Kilwins franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $30,000 to $40,000 |
| Lease/Rent | $2,083 to $13,412 |
| Plans and Construction (includes architectural and building permits) | $197,994 to $400,975 |
| Store Construction Oversight & Review Fee | $5,000 |
| Equipment | $83,593 to $167,865 |
| POS | $12,135 to $15,701 |
| Inventory | $23,787 to $40,026 |
| Signs and Awnings | $6,588 to $22,491 |
| Advertising | $5,000 |
| Insurance | $1,829 to $20,265 |
| Training Expenses | $1,875 to $7,559 |
| Business Licenses | $111 to $993 |
| Professional Fees | $750 to $7,290 |
| Additional Funds (3 Months) | $8,000 to $77,915 |
| Security Deposits | $210 to $4,517 |
| Total Estimated Initial Investment for a ‘Store’ | $379,000 to $828,000 |
Average Revenue (AUV)
How much revenue can you make with a Kilwins franchise? A Kilwins franchised restaurant makes on average $764,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $506,000 yearly revenue for similar ice cream franchises. Below are 10 Kilwins competitors as a comparison:
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Kilwins Franchise Disclosure Document
Frequently Asked Questions
How many Kilwins locations are there?
As of the latest available data, Kilwins operates over 150 locations across 25 states in the United States. The majority of these are franchise-owned, with a select number of company-owned stores. Specific figures distinguishing between company-owned and franchise-owned locations are not publicly disclosed.
What is the total investment required to open a Kilwins franchise?
The total investment required to open a Kilwins franchise ranges from $216,000 to $828,000.
What are the ongoing fees for a Kilwins franchise?
A Kilwins franchise requires a 5% royalty fee and a 3% marketing fee, both based on gross sales, to support brand development and marketing efforts. These fees are collected monthly.
What are the financial requirements to become a Kilwins franchisee?
To qualify as a Kilwins franchisee, candidates must have a minimum net worth of $500,000 and possess at least $125,000 in liquid capital. These financial benchmarks ensure that potential franchisees have the necessary resources to support the initial investment and ongoing operational costs associated with running a Kilwins franchise.
How much can a Kilwins franchise owner expect to earn?
The average gross sales for a Kilwins franchise are approximately $0.76 million per location. Assuming a 15% operating profit margin, $0.76 million yearly revenue can result in $114,000 EBITDA annually.
Who owns Kilwins?
Kilwins was acquired by Levine Leichtman Capital Partners (LLCP), a Los Angeles-based private equity firm, in February 2023.
Disclaimer
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