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- 2022 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$178K - $1M
- Units as of 2021
65 7% over 3 years
Here’s what you need to know if you’re interested in opening a Fosters Freeze franchise.
Fosters Freeze was founded in 1946 by George Foster under the name Foster’s Old Fashioned Freeze. What originally started as a soft-serve ice cream and dessert joint soon became Fosters Freeze. Later, the brand added milkshakes, burgers, fries, parfaits, sandwiches, and mixed-flavor cones called twisters, making it a truly homely, family-type outfit.
So popular is the Fosters Freeze franchise that it inspired a Beach Boys song and cameoed in several movies, most notably the 1994 cult classic Pulp Fiction.
Since 2015, Neal and Nimesh Dahya have run Fosters Freeze, looking to spread the familiar, fun, and awe-inspiring delight that has become synonymous with the brand over the years. No longer willing to confine themselves to just California, the Dahya brothers are now looking to develop even more franchises all over the United States.
Why You May Want To Start a Fosters Freeze Franchise
With Fosters Freeze, you may get an established supply chain which translates to quality control and price stability. As a franchisee, you may be protected from price fluctuations, which could give you the security you need to plan for the future and grow. Foster Freeze’s flagship model could allow franchisees to exploit a wide range of real estate opportunities, from stand-alone units, to co-located or confections restaurants offering drive-thru and walk-up service.
Fosters Freeze is looking for franchisees with strong leadership and organizational skills who are passionate about giving their community a classic, nostalgic experience with outstanding service. Franchisees should also be hardworking, motivated, and willing to follow a proven franchise system.
What Might Make a Fosters Freeze Franchise a Good Choice?
Opening a Fosters Freeze franchise could offer a more predictable outcome than investing in a completely new brand that may struggle to thrive in an already crowded and competitive industry.
To be part of the Fosters Freeze team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company’s set net worth and liquid capital requirements.
How To Open a Fosters Freeze Franchise
Before making any financial commitment or signing an agreement with Fosters Freeze, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Fosters Freeze franchising team questions.
Franchisees may expect support and advice from industry veterans from the very minute pen meets paper. Franchisees will benefit from over 70 years of Fosters Freeze’s streamlined operating experience, from site selection and design to equipment acquisition and field assistance.
New franchisees may enjoy multiple weeks of comprehensive training with senior management. This could help kickstart your Fosters Freeze franchise with all necessary knowledge, from technology to hiring personnel.
It may be a good idea to speak with an attorney or financial advisor to ensure that you have the necessary financial resources to own and operate a Fosters Freeze franchise.
About Fosters Freeze
- Franchising Since
- 1946 (76 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees worldwide.
This company is seeking new franchisees in the following US states: Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Iowa, Idaho, Kansas, Kentucky, Louisiana, Massachusetts, Maine, Missouri, Mississippi, Montana, North Carolina, New Hampshire, New Jersey, New Mexico, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Vermont, West Virginia, Wyoming
- # of Units
- 65 (as of 2021)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Fosters Freeze franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $178,000 - $1,009,000
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
- $600,000 - $2,500,000
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
- $150,000 - $2,000,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 10% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
- to 3%
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 91 hours
- Classroom Training
- 69 hours
- Ongoing Support
Purchasing Co-opsMeetings & ConventionsGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in franchise ownership like Fosters Freeze? Request a free consultation with a Franchise Advisor now.
Are you eager to see what else is out there? Browse more franchises that are similar to Fosters Freeze.
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