Milkshake Factory Franchise FDD, Profits & Costs (2025)
The MilkShake Factory is a specialty dessert franchise known for its handcrafted milkshakes and premium chocolates. Its story dates back to 1914, when Greek immigrants Charlie and Orania opened a small soda fountain and chocolate shop in Pittsburgh, Pennsylvania.
Nearly a century later, in 2003, the fourth generation of the family transformed the business into what is now called the MilkShake Factory. The brand expanded further in 2023 when it officially launched its franchise program.
Today, the company is headquartered in Ann Arbor, Michigan, and continues to delight customers with a menu that includes signature shakes made with house-churned ice cream, indulgent sundaes, dairy-free selections, and artisan chocolates.
What makes the MilkShake Factory stand out is its use of recipes passed down through generations, a commitment to high-quality ingredients, and a franchise model designed for streamlined operations.
Initial Investment
How much does it cost to start a Milkshake Factory franchise? It costs on average between $510,000 – $773,000 to start a Milkshake Factory franchised shop.
This investment covers expenses such as build-out, equipment, starting inventory, and early operating costs. The total required amount will vary depending on factors like the type of MilkShake Factory shop being developed, its location, and whether the franchisee decides to lease or buy the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $60,000 |
| Initial Training Fee | $8,500 |
| Training – Costs and Expenses | $6,345 to $9,220 |
| Lease – Security Deposit | $3,500 to $8,500 |
| Architectural and Design Services | $21,500 to $24,000 |
| Real Estate and Construction Management Services | $20,000 |
| Leasehold Improvements | $155,620 to $324,364 |
| Furniture, Fixtures and Equipment (FFE) | $163,328 to $182,997 |
| Signage (exterior) | $4,917 to $10,944 |
| Initial Inventory (pre-opening) | $14,976 to $22,604 |
| Computer System and IT Equipment (and any initial Required Software fees) | $14,000 to $20,530 |
| Interior Signage | $8,500 to $15,500 |
| Opening Marketing Spend | $11,913 to $16,500 |
| Professional Fees | $1,258 to $2,890 |
| Business Permits and Licensing | $635 to $4,499 |
| Insurance – Deposit and 3 Months of Premiums | $500 to $1,500 |
| Additional Funds – 3 Months | $15,000 to $40,000 |
| TOTAL | $510,492 to $772,548 |
Average Revenue (AUV)
How much revenue can you make with a Milkshake Factory franchise? A Milkshake Factory franchised location makes on average $655,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
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Frequently Asked Questions
How many Milkshake Factory locations are there?
As of the latest data, the MilkShake Factory operates about 14 franchise-owned locations across the United States.
What is the total investment required to open a Milkshake Factory franchise?
The total investment required to open a Milkshake Factory franchise ranges from $510,000 to $773,000.
What are the ongoing fees for a Milkshake Factory franchise?
The MilkShake Factory charges an ongoing royalty fee of 6% of Adjusted Gross Sales. In addition, franchisees contribute 2% to the Brand Development Fund, and they are required to spend 2% of Adjusted Gross Sales on local advertising for the first $500,000 in annual sales, and 1% on any sales above that amount.
What are the financial requirements to become a Milkshake Factory franchisee?
To qualify for a MilkShake Factory franchise, you must have a minimum net worth of $700,000 to $750,000, with at least $200,000 in liquid assets.
How much can a Milkshake Factory franchise owner expect to earn?
The average gross sales for a Milkshake Factory franchise are approximately $0.66 million per location. Assuming a 15% operating profit margin, $0.66 million yearly revenue can result in $99,000 EBITDA annually.
Who owns Milkshake Factory?
The MilkShake Factory franchise is owned by Edward Marc Brands, a fourth-generation, family-owned company with deep roots in Pittsburgh, Pennsylvania.
Disclaimer
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