The Original Rainbow Cone Franchise FDD, Profits & Costs (2025)

The Original Rainbow Cone is a historic ice cream brand that first opened its doors in 1926 in Chicago, Illinois. Created by Joe and Katherine Sapp, it has grown into a cherished name recognized for its signature multi-layered ice cream cone.

Today, the company is based in Berwyn, Illinois, and continues to be a favorite throughout the Chicago region. In 2021, the brand expanded into franchising, giving business owners the opportunity to introduce its unique concept to communities beyond its hometown roots.

What sets the franchise apart is its five-flavor cone, stacked with Chocolate, Strawberry, Palmer House (vanilla blended with cherries and walnuts), Pistachio, and Orange Sherbet. Unlike traditional scoops, the flavors are sliced into layers, creating a distinctive look and taste that captures attention in the crowded ice cream market.

Beyond the signature cone, customers can also enjoy a wide range of treats, including classic scoop cones, shakes, sundaes, ice cream cakes, and even mini donuts.

Initial Investment

How much does it cost to start a The Original Rainbow Cone franchise? It costs on average between $138,000 – $3,214,000 to start a The Original Rainbow Cone franchised restaurant.

This covers expenses such as construction, equipment, inventory, and the funds needed to get the business up and running. The total investment varies based on several factors, including the type of ice cream shop format selected, the market location, and whether the franchisee decides to lease or buy the property. The Original Rainbow Cone offers 5 types of franchises:

Franchise Type	Initial Investment Range
Free Standing (Constructed from Ground Up)	$2,037,420 – $3,213,753
Free Standing (Leased)	$804,320 – $1,362,653
In-Line	$401,758 – $811,818
Express	$205,167 – $339,843
Food Truck Option (Add-On)	$137,860 – $214,066

We are summarizing below the main costs associated with opening a The Original Rainbow Cone Free Standing (Constructed from Ground Up). For more information on costs required to start a The Original Rainbow Cone franchise, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure	Amount
Initial Franchise Fee	$40,000
Land Acquisition	$300,000 – $800,000
Site Work	$250,000 – $500,000
Construction of Building	$1,089,900 – $1,332,100
Travel and Living Costs While Training	$19,067 – $26,196
Initial Inventory and Supplies	$10,000 – $20,000
Furniture, Fixtures and Equipment	$196,001 – $247,580
Sign Package	$52,000 – $71,500
POS System	$5,400 – $8,000
Miscellaneous Expenses	$9,000 – $37,500
Grand Opening Advertising and Marketing	$10,000 – $25,000
On-Site Training Fee	$21,053 – $30,877
Additional Funds – 3 Months	$35,000 – $75,000
Estimated Total	$2,037,420 – $3,213,753

Average Revenue (AUV)

How much revenue can you make with a The Original Rainbow Cone franchise? A The Original Rainbow Cone franchised business makes on average $219,000 in revenue (AUV) per year.

Here is the extract from the Franchise Disclosure Document:

Frequently Asked Questions

How many The Original Rainbow Cone locations are there?

As of the most recent data, The Original Rainbow Cone operates 25 locations, which include 19company-owned and 6 franchised units.

What is the total investment required to open a The Original Rainbow Cone franchise?

The total investment required to open a The Original Rainbow Cone franchise ranges from $138,000 to $3,214,000.

What are the ongoing fees for a The Original Rainbow Cone franchise?

Franchisees of The Original Rainbow Cone are required to pay a royalty fee of 6% of gross sales, along with a marketing or advertising fee that ranges between 2% and 3% of gross sales. In some cases, there may also be a fixed weekly marketing fee of $75, though the percentage-based fee is the primary structure.

What are the financial requirements to become a The Original Rainbow Cone franchisee?

Franchisees looking to open an In-Line shop of The Original Rainbow Cone must have at least $250,000 in liquid capital and a minimum net worth of $750,000. For a Free-Standing location, the financial requirements are higher, with at least $500,000 in liquid capital and a net worth of $1,000,000.

How much can a The Original Rainbow Cone franchise owner expect to earn?

The average gross sales for a The Original Rainbow Cone franchise are approximately $0.22 million per location. Assuming a 15% operating profit margin, $0.22 million yearly revenue can result in $33,000 EBITDA annually.

Who owns The Original Rainbow Cone?

The Original Rainbow Cone franchise is owned by Buona, a Chicago-based restaurant group best known for its Italian beef sandwich chain.

Disclaimer

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