About Cold Stone Creamery Franchise
Cold Stone Creamery is a premium ice cream franchise known for its fresh made, super premium ice cream mixed with custom toppings on a frozen granite stone.
The menu also includes cakes, pies, smoothies, shakes, specialty beverages, and other frozen desserts.
The brand is part of the MTY Food Group portfolio and has been franchising since 2010.
Cold Stone Creamery Franchise Cost & Fees
Minimum Investment
$310K
Average Investment
$457K
Maximum Investment
$603K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $27,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% of weekly Gross Sales | National brand fund |
| Total Investment Range | $310,375 – $602,775 | Includes build-out, inventory, working capital |
The investment range of $310K–$603K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (3% of weekly Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $12,000 | $27,000 |
| Rent/Security Deposit (for 3 months) | $9,750 | $19,500 |
| Travel and Living Expenses (2 persons) while training, not including salaries, if any, for you and your employees | $3,000 | $7,500 |
| Real Estate | $0 | $0 |
| Lease Review Fee | $0 | $2,500 |
| Architectural Fees | $7,000 | $20,000 |
| Leasehold Improvements | $97,500 | $262,500 |
| Exterior Signage | $9,700 | $15,000 |
| Equipment | $123,000 | $195,000 |
| PCI Compliance Costs | $150 | $1,300 |
| Opening Inventory | $8,000 | $8,000 |
| Employee Uniforms | $500 | $800 |
| Grand Opening Marketing Advertising | $10,000 | $10,000 |
| Insurance Premiums | $500 | $2,500 |
| Permits and Licenses | $2,000 | $3,000 |
| Telephone and Utility Deposits and Hookups | $250 | $1,000 |
| Computer Training and Food Safety Certification Course | $100 | $250 |
| Miscellaneous | $3,925 | $3,925 |
| Depository Account | $3,000 | $3,000 |
| Additional Funds -3 month initial period | $20,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $17,500 |
| Renewal Fee | 50% of the then-current Initial Franchise Fee not including any discounts or reductions |
| Technology Fee | Up to $75 per month |
| Audit Fee | Cost of Audit plus interest at Default Rate on underpayments or the maximum rate permissible by law |
| Surcharge | maximum $10 per week |
| Additional Persons Training Fee | $1,750 per person |
| Additional Training Fee | $300 per person per day |
| Annual Meeting Registration Fee | Up to $1,000 plus incidental costs to attend |
| Depository Account | $3,000 (must be replenished on a regular basis) |
| Charitable Contributions | To be determined by us |
| Data Fees | Up to $75 per month |
| POS Help Desk Phone Support Maintenance Contract Fee | Up to $60 per month |
| Gift Card Redemption Fee | 11% of the amount of the gift card redemption |
| Relocation Fee | $500 |
| Non-participation Fee | $100 per day |
| Document Administration Fee | $500 |
| Default Interest | $50 plus interest at 1-1/2% per month or maximum legal rate, if less |
| Document Late Charge | $100 per week or partial week |
| Draft Draw Charge | $100 per day |
| Late Charge | 5% of the unpaid amount or $100, whichever is greater |
| Sublease Late Charge | 5% of the late or unpaid amount plus any late charges and interest incurred under the Master Lease |
| Collection Costs | All collection costs including, but not limited to, reasonable attorneys' fees. |
| Non-Sufficient Funds Fee | $50 for each electronic funds transfer returned for non-sufficient funds; $25 for each check or draft returned for non-sufficient funds. |
| Early Termination Damages | The average monthly Royalty and Advertising Fees paid for any consecutive 12 month period within the preceding 48 month period multiplied by the number of months remaining in the term of the Franchise Agreement, and the product is divided by 2. |
| Attorneys’ Fees and Costs | Will vary under the circumstances. |
| Indemnification of us and/or our affiliates for damages suffered or incurred for your actions or omissions, including amounts paid on your behalf or to cure your breaches under the Franchise Agreement | Will vary under the circumstances. |
| Damages for Breach of Non-Compete Obligations under the Franchise Agreement | Will vary under the circumstances. |
| Management Fee | 6% of the Franchised Business’ Gross Sales (in addition to the Royalty Fee and Advertising Fee) plus our direct out-of-pocket costs and expenses. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 120 hours |
| Classroom Training | 40 hours |
| On-the-Job Training | 80 hours |
| Training Location | New Owner Training: Online, KTEC (Kahala Training & Education Center) in Scottsdale, AZ, or other designated location. In-Store Training: Training store in Arizona or other designated location. |
| Additional Training | $300 per person per day |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisees do not receive an exclusive territory and may face competition from other franchised units, company-owned restaurants, or other distribution channels controlled by the franchisor or its affiliates. The franchisor retains all rights to establish other Cold Stone Creamery restaurants, co-brand with other concepts, and sell products through "Other Channels" (e.g., Internet, grocery stores, vending machines) anywhere in the world, without compensation to the franchisee. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 5 years |
| Renewal Fee | 50% of the then-current Initial Franchise Fee not including any discounts or reductions |
| Renewal Conditions | To renew, the franchisee must not be in default, be in compliance with the Franchise Agreement and Confidential Manual, not have received more than 3 default notices during the term (or 2 in the last 5 years), have a suitable premises, sign a new Franchise Agreement (which may have materially different terms), pay the renewal franchise fee, remodel/refurbish if necessary, and be current on all financial obligations. A General Release must also be signed. |
| Transfer Fee | $17,500 |
| Transfer Conditions | The franchisor must approve all transfers, which will not be unreasonably withheld. Conditions for approval include the new franchisee qualifying, no existing defaults, payment of the transfer franchise fee, all obligations being satisfied, new franchisee completing training, remodeling/refurbishing if necessary, keeping the existing store telephone number, and signing new agreements and a release. |
| Termination for Cause | The franchisor can terminate for various defaults, with cure periods ranging from less than 24 hours (e.g., social media policy violations, health/safety standards) to 7 days (e.g., failure to pay fees, maintain insurance) or 14 days for other defaults. Non-curable defaults include failure to open on time, non-compliance with laws, involvement in injurious business practices, felony conviction, unauthorized closing/relocation, unauthorized transfer, bankruptcy, false representations, repeated defaults, abandonment, trademark misuse, and fraud. |
| Non-Compete Period | 2 years |
| Non-Compete Details | No competing business for 2 years, within 10 miles of another Cold Stone Creamery restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | While not explicitly required to personally participate, the franchisor intends to select franchisees who plan to actively participate in the direct operation and daily affairs of the restaurant. The franchise must be personally managed with on-premises supervision and directly operated by the franchisee, another partner/shareholder/member, or a manager who has successfully completed the Training Program. Spouses of individual franchisees and principals of entity franchisees must sign personal guarantees and non-disclosure/non-competition agreements. |
| Required Suppliers | Approved distributors and suppliers for all food products, ingredients, equipment, computer hardware and software, furniture, fixtures, millwork, décor, signs, supplies, and other products/services. Specifically, Neptune Equipment for certain equipment, interior/exterior signage, menu boards, POS System, and smallwares. Kahala Management for POS Help Desk Phone Support Maintenance. A designated and approved third-party design architect. An approved third-party payment card processor. Coca-Cola Company for carbonated fountain soft drinks. |
| Supply Restrictions | Franchisees must purchase all food products, ingredients, equipment, computer hardware and software, furniture, fixtures, millwork, décor, signs, supplies, and other products/services from approved distributors and suppliers that meet the franchisor's standards. They must use the designated and approved third-party design architect, purchase specific interior/exterior sign packages and menu panels, and exclusively use an approved cash register/point of sale computer system and software. Franchisees are required to accept approved debit/credit cards and Gift/Loyalty Cards, utilizing the franchisor's approved third-party payment card processor and mobile application/online food ordering service. Food safety manager training programs are mandatory, and Coca-Cola products are the only approved carbonated fountain soft drinks. |
| Franchisor Revenue from Suppliers | The franchisor or its subsidiaries may also receive rebates and/or allowances, typically between 1% and 5%, from certain suppliers based on franchisee purchases, which are included in general revenue. For the year ending November 30, 2022, MTY USA and its subsidiaries derived $31,789,676 (approximately 12% of total consolidated revenue) from sales of products, services, and vendor allowances. Of this, $20,618,596 came from vendors, $1,308,262 from Neptune Equipment (equipment, signage, etc.), and $3,082,617 from POS help desk support and equipment sales. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor does not offer direct or indirect financing or guarantee obligations, except potentially for the lease of the site or if a franchisee purchases a corporate-owned restaurant "as-is" from an affiliate, at the franchisor's sole discretion. If the franchisor or an affiliate guarantees a lease, a fee of 10% of the total guaranteed rental obligations (up to $10,000) is charged. If purchasing a corporate-owned restaurant, an affiliate (Kahala Holdings or Kahala Restaurants) may finance up to 100% of the purchase price, with interest rates between 0% and 12% annually, repayable in 12 to 60 equal monthly installments. A first-position lien on all equipment is required as security, and the franchisee (and spouse, if applicable) must personally guarantee the debt. |
Cold Stone Creamery Franchise Earnings — Item 19
Average Revenue
$608K
Median Revenue
$585K
Sample Size
875 units
Past financial performance does not guarantee future results. Individual results will vary.
Cold Stone Creamery Litigation & Risk Flags
6 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Cold Stone Creamery System Growth
Total Units
1674
Franchised
1670
Company-Owned
4
Cold Stone Creamery currently operates 1670 franchised locations and 4 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 12 | 27 | 882 |
| 2021 | 18 | 8 | 894 |
| 2022 | 27 | 12 | 912 |
Transfers: 83 | Closures: 12
State Registrations
Registered in 13 states: CA, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$263.7M
Cold Stone Creamery Franchise — FAQ
The total investment to open a Cold Stone Creamery franchise ranges from $310,375 to $602,775, per their Franchise Disclosure Document. This includes the initial franchise fee of $27,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Cold Stone Creamery charges a royalty fee of 6% of Gross Sales of gross sales, plus a 3% of weekly Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Cold Stone Creamery Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Cold Stone Creamery to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Cold Stone Creamery franchise owners report average revenue of $608K and median revenue of $585K. This is based on a sample of 875 units. Past performance does not guarantee future results.
Cold Stone Creamery has been franchising since 2010. The FDD shows an investment range of $310,375-$602,775, a 6% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There are 6 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $27,000 and the total investment ranges from $310,375 to $602,775 depending on location size and market. A minimum of $20,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Food & Beverage Franchises
Interested in Cold Stone Creamery?
Get free info on this franchise. We will send you a detailed FDD report by email.
Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Cold Stone Creamery and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Cold Stone Creamery or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com