For nearly as long as there has been an appreciation for the frozen yogurt, premium ice cream, or even the humble ice cream sandwich, there has been a slew of ice cream and smoothie franchise opportunities to help investors scoop up the benefits of this cool sector.
The success is evident: since the launch of the Baskin Robbins franchise, the brand has grown to more than 7,300 retail shops across nearly 50 countries. The Dairy Queen franchise, meanwhile, has had a rich history of serving a variety of flavors for over 80 years; and the numbers to show it, with more than 6,800 Dairy Queen units throughout the United States, Canada, and 27 other countries.
Smoothie franchises may not have quite the historical legacy when compared to the iconic ice cream parlor, but there are still numerous brands serving up original flavors, fresh juice, and frozen treats to thirsty customers around the world.
The Tropical Smoothie Cafe franchise, for example, opened an impressive 99 locations throughout 2020, now boasting an impressive footprint of over 914 juice bar operations. And as well as offering its franchise owners a reliable business model, the brand boasts net revenues of $1,079,747.
But how do you open your own franchise under this accomplished banner, and what kind of operation is best for you? Make sure to continue reading this comprehensive guide to find out.
The American ice cream shop is almost as recognizable as a burger restaurant or pizza joint. Names like Jeremiah’s Italian Ice, Chill-N Nitrogen Ice Cream, and Bruster’s Ice Cream have been popular brands of choice for U.S. franchise owners for decades, thanks to their strong name recognition, popular ice cream flavors, and franchisee support.
Should you open an ice cream or smoothie franchise?
That’s not to say that ice cream parlors can only be found in the U.S., of course. Last year, Ben & Jerry’s announced its commitment to the Australasian market with the opening of its first permanent Scoop Store in Wellington, New Zealand. This new store marked the 39th location in Australia and New Zealand for Ben & Jerry’s, and was the brand’s seventh permanent location in the market.
As with any popular sector that has been around for decades, ice cream franchise businesses have begun evolving and offering not only a variety of flavors, but also a number of unique ice cream creations. Cauldron Ice Cream, for example, offers ice cream cakes that combine liquid nitrogen, creamy ice cream, and a proprietary Puffle Cone into a single frozen treat. The ice cream business may rely on our love of comfort food, but that doesn’t mean that there isn’t room for innovation.
Innovation also comes in the form of brands that provide alternative frozen treats, such as a frozen yogurt bar, frozen custard outlets, or more custom ice cream inventions.
One such brand that has really taken off in recent years is the Smoothie King franchise. Just this year, Smoothie King signed a multi-year deal as the official sponsor of the Dallas Cowboys, and as part of this partnership, Smoothie King will work closely with the Dallas Cowboys’ on-staff nutritionists to develop a custom-blended smoothie that helps maximize performance for Cowboys fans and Smoothie King guests to enjoy.
Last year, Smoothie King also signed an exclusive deal with delivery and logistics platform DoorDash, to begin delivering frozen treats to guests’ front doors. As with every food and beverage offering, a killer location isn’t as essential anymore; food franchises that really succeed are the ones combining units in a busy location with more virtual options.
How to open your own ice cream or smoothie franchise
Opening your own business – whether it’s a chain serving many flavors of ice treats, or a beloved smoothie franchise – requires a lot of planning, research, and self-reflection. The initial franchise fee, liquid cash requirement, or net-worth requirement are certainly important, but your own personal business goals and passion should play a large part in this decision.
Let’s take a look at a popular brand: Smoothie King. The Smoothie King application begins by downloading the brand’s franchise kit, but there are already a handful of financial figures available from the offset. The Smoothie King franchise fee ranges from $25,000 to $30,000, for example, while signage can vary from $7,000 to $14,000. In total, opening a Smoothie King location could set you back between $268,900 and $555,965 – an amount influenced by the number of units you plan on opening, the location of your sites, and a whole plethora of other factors.
While the above might seem like a lot of money, other brands could require much higher amounts depending on your goals and business plan. The Dairy Queen franchise cost, for example, can be just shy of $2m, with a franchise fee of $45,000. The net-worth requirement for the brand sits at around $750,000 for just one unit, with a liquid cash requirement of $400,000. Opening your own frozen yoghurt shop or ice cream parlor can be pricey, but the rewards can certainly be worth the initial risks.
Once you’ve settled on a brand, you’re almost ready to begin serving delicious treats to your fervent customer base of loyal customers. It’s a good idea at this stage to speak to a current owner of the brand you’re interested in, as they’ll be able to offer advice and guidance for your launch. Running a business certainly isn’t a piece of cake, so there’s no need to make it harder on yourself by going it alone.
