About Mister Softee Brooklyn Franchise
Mister Softee Brooklyn, operated through Mr.
Softee of Brooklyn, Inc., is a mobile ice cream franchise offering soft serve ice cream and frozen confections from custom built Mister Softee vehicles within defined Brooklyn territories.
The franchise carries the full Mister Softee brand identity, from the iconic truck design to the beloved jingle that signals frozen treats in neighborhoods across the borough.
Mister Softee Brooklyn Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $7,500 | One-time payment upon signing |
| Royalty Fee | $3,855 each year of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | None | National brand fund |
| Total Investment Range | $241,000 – $287,000 | Includes build-out, inventory, working capital |
The investment range of $241K–$287K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty ($3,855 each year) and marketing fee (None) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $7,500 | $7,500 |
| Truck and Equipment | $208,000 | $238,000 |
| Inventory | $6,000 | $8,000 |
| Licenses and Professional Services | $1,500 | $3,000 |
| Prepaid Insurance Premium | $2,000 | $3,000 |
| Training Expenses | $1,500 | $2,500 |
| Additional Funds (3 Months) | $15,000 | $25,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $1,000 |
| Renewal Fee | $500 |
| Technology Fee | None |
| Audit Fee | As invoiced |
| Interest; Audits; Reimbursement of Audit Costs; Accounting Fee of $500 per Month of Deficiency | As invoiced |
| Indemnification | Amount of judgment plus attorneys’ fees, costs |
| Truck and Equipment Sale Payments | Monthly Note payments; up to $25 per month contribution to maintenance fund |
| Supplier Approval Fee/Expense | Reasonable testing costs. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3 to 5 days |
| Classroom Training | 3 hours |
| On-the-Job Training | 30 hours |
| Training Location | MBI’s headquarters in Brooklyn, New York or any other place as MBI may designate |
| Additional Training | MBI and/or Mister Softee may offer periodic, additional tuition-free training programs and/or refresher courses, which franchisees and their employees must attend if required. Franchisees are responsible for all related expenses (transportation, lodging, meals, salaries). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Limited Protection |
| Exclusive Territory | No |
| Territory Size | minimum population of 20,000 persons |
| Description | Franchisees solicit business only within a defined territory, typically with a minimum population of 20,000 persons. The franchisor (MBI) and Mister Softee will not establish or license another mobile retail business using the System within the territory. However, the franchisor and Mister Softee reserve the right to distribute products and services through other channels (e.g., Internet, supermarkets, convenience stores, restaurants, rest areas) and establish retail shops within the territory. Territorial protection is subject to re-evaluation after two years based on population and truck count. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | One 5-year renewal term |
| Renewal Fee | $500 |
| Renewal Conditions | Written notice of intent to renew (3-6 months prior to expiration); vehicle and equipment conform to current specifications; no default of agreements; all monetary obligations satisfied; compliance with all laws; execution of then-current franchise agreement (terms may vary materially, including higher service charges); compliance with current qualification and training requirements; signing a general release (consistent with state statutes); payment of renewal fees. |
| Transfer Fee | $1,000 |
| Transfer Conditions | Full compliance with all agreements; execution of a general release (consistent with state law); franchisor's receipt of executed purchase agreement; transferee's financial responsibility and satisfactory completion of initial training; transferee's execution of then-current franchise agreement; payment of transfer fee; compliance with post-term covenants. Franchisor has a right of first refusal. |
| Termination for Cause | Automatic termination without notice for: assignment for benefit of creditors, bankruptcy/insolvency petition, unauthorized transfer. Termination with notice (no cure period) for: failure to complete training, misrepresentations in application, felony conviction/criminal misconduct/fraud, material breach of other agreements, misuse of Proprietary Marks/Copyrights/Confidential Information, health code violations, in-term non-compete violation, bankruptcy proceedings not dismissed within 60 days, levy/writ of attachment not released/bonded within 30 days, insolvency, abandonment, attempted transfer in violation of agreement, 2 or more written default notices in 12 months. Termination with 5-day cure period for other breaches. |
| Non-Compete Period | During the term of the Franchise Agreement and for a 2-year period after expiration or termination. |
| Non-Compete Details | During the term, franchisee and immediate family/partners/shareholders/members may not have interest in any business primarily selling ice cream or frozen confections, except other Mister Softee franchises. For 2 years post-termination, the same restriction applies within the former Territory or any other System franchisee’s territory. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee (if an individual) or at least one of its principals (if a legal entity) must personally supervise the day-to-day operation of the Franchised Business. For legal entities, all partners, shareholders, and members must personally guarantee and agree to be bound by the Franchise Agreement obligations. Drivers must possess a valid driver's license. |
| Required Suppliers | You must purchase the truck and equipment from MSSM. Soft-serve ice cream mix and other consumable inventory must be purchased from MBI, Mister Softee, or other approved suppliers. Minimum inventory levels of Proprietary Products must be purchased from MBI, Mister Softee, an affiliate, or approved/designated suppliers. |
| Supply Restrictions | Mister Softee may develop proprietary inventory items (Proprietary Products) that must be purchased from MBI, Mister Softee, an affiliate, or approved/designated suppliers. Other inventory items and supplies may be required from approved suppliers or according to certain standards and specifications. Unapproved suppliers require MBI/Mister Softee approval and testing, with reimbursement for testing costs. |
| Franchisor Revenue from Suppliers | During its most recent fiscal year ended December 31, 2023, Mister Softee did not derive any revenue from franchisees’ required purchases. MSSM generated $3,558,468.33 from franchisees’ required purchases, including truck and equipment, repairs, and parts. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | MSSM offers financing for the truck and equipment. If financed, a minimum lump-sum payment of 20-25% of the purchase price is due upon signing the Sales Agreement, with monthly installment payments over a seven-year period at a 10% interest rate. Payments are due on the 20th of each month from April through September. Late payments (over 10 days) incur a 1.75% monthly finance charge. Default can lead to acceleration of all payments, and MSSM retains a security interest in the truck and equipment. Mister Softee also has an informal, oral arrangement with a third-party financing institution and may guarantee loans, receiving 1% of the loan amount. |
Mister Softee Brooklyn Franchise Earnings — Item 19
Mister Softee Brooklyn does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Mister Softee Brooklyn Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Mister Softee Brooklyn System Growth
Mister Softee Brooklyn currently operates 585 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 21 | 46 | 585 |
| 2022 | 0 | 0 | 585 |
| 2023 | 0 | 0 | 585 |
Transfers: 18 | Closures: 46
State Registrations
Registered in 19 states: CA, FL, HI, IL, IN, KY, MD, MI, MN, NE, NY, ND, RI, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Haefele Flanagan for year ending December 31.
Mister Softee Brooklyn Franchise — FAQ
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