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Dessert 992 Units

Cold Stone Creamery Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$335,675 – $655,275

Franchise Fee

$27,000

Royalty Rate

6.0%

Initial Investment Range

Low: $335,675 High: $655,275

The total initial investment to open a Cold Stone Creamery franchise ranges from $335,675 to $655,275, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $27,000.

Midpoint estimate: $495,475

Franchise Fee

$27,000

One-time initial fee

The Cold Stone Creamery franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Cold Stone Creamery brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

6.0%

of gross revenue

Ad/Marketing Fund

3.0%

of gross revenue

Total Ongoing Fee Burden: 9.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Royalty Fee and Surcharge 6.0 PCT Gross Sales include all revenue from restaurant excluding sales tax and authorized refunds, credits and allowances. May be increased to 18% during breach/default periods. Surcharge of up to $10/week may apply in states with additional reporting requirements (currently only New York).
Advertising Fees 3.0 PCT Split as 2% to National Fund and 1% to Regional Fund/Cooperative. May be increased to up to 4% with 30 days notice. Withdrawn electronically from Depository Account.
Data Fees 75.0 FIXED Up to $75 per month for data polling from POS System. Subject to reasonable annual and/or service enhancement increases. Begins immediately after restaurant opens.
POS Help Desk Phone Support Maintenance Contract Fee 60.0 FIXED Up to $60 per month. Debited from Depository Account on last Thursday of each month.
Gift Card Redemption Fee 11.0 PCT 11% of gift card redemption amount. Charged on or about 25th day of each month. Fee collected by third party on franchisor's behalf. May increase with 30 days notice.
Renewal Franchise Fee - traditional and non-traditional 50.0 PCT 50% of then-current Initial Franchise Fee (not including discounts/reductions). Due at signing of new Franchise Agreement. Renewal term is 5 years.
Transfer Franchise Fee - traditional location 17500.0 FIXED Applies to full transfer (50% or more ownership or control). Due prior to consummation of transfer.
Transfer Franchise Fee - non-traditional restaurant 5000.0 FIXED Applies to full transfer (50% or more ownership or control) of non-traditional location. Due prior to consummation of transfer.
Audit N/A VARIABLE Cost of audit plus interest at Default Rate (1.5% per month or maximum legal rate). Only if audit caused by failure to furnish reports or reveals understatement of 5% or more.
Additional Persons Training Fee 1750.0 FIXED $1,750 per person ($1,000 for in-store training, $750 for new owner training). Training of two individuals included in Initial Franchise Fee. Due 2 weeks prior to training.
Additional Training Fee 300.0 FIXED For required or requested additional training after initial Training Program. Due prior to attendance.
Annual Meeting Registration Fee 1000.0 FIXED Up to $1,000 plus incidental costs. Due 60-90 days prior to meeting. Non-refundable and charged to all franchisees whether or not they attend.
Depository Account 3000.0 FIXED $3,000 minimum balance must be maintained at all times. Must be replenished to $3,000 after withdrawals. Due at signing of Franchise Agreement.
Charitable Contributions N/A VARIABLE Must participate in charitable programs designated by franchisor, including contributing designated percentage of opening day sales or other periods.
Relocation Fee 500.0 FIXED Due at signing of relocation amendment to Franchise Agreement if relocation is approved.
Non-participation Fee 100.0 FIXED $100 per day for failure or refusal to participate in required programs, initiatives, campaigns or product/service tests. Due upon failing or refusing to participate.
Document Administration Fee 500.0 FIXED Charged if amendment to franchise documents must be prepared, including for affiliate transfer. Due as incurred.
Default Interest 1.5 PCT $50 plus 1.5% per month interest (or maximum legal rate if less) on all overdue amounts. Interest begins from date of underpayment.
Document Late Charge 100.0 FIXED For late or missing required financial statements, reports or other documents. Charged per week or partial week until delivered.
Draft Draw Charge 100.0 FIXED For failure to provide necessary information or documentation for draft drawing practice. Due as incurred.
Late Charge 5.0 PCT 5% of unpaid amount or $100 (whichever is greater) on royalties, advertising payments and other amounts unpaid within 10 days. Due as incurred.
Sublease Late Charge 5.0 PCT 5% of late/unpaid amount plus any late charges and interest incurred under Master Lease. Only if subleasing from franchisor's affiliate.
Collection Costs N/A VARIABLE All collection costs including reasonable attorneys' fees. Only if franchisor must retain attorney or collection agency for delinquent payments or defend claims arising from franchisee actions.
Non-Sufficient Funds Fee 50.0 FIXED $50 for each electronic funds transfer returned for NSF; $25 for each check/draft returned for NSF. Due upon assessment.
Early Termination Damages N/A VARIABLE Formula: Average monthly Royalty and Advertising Fees (from any consecutive 12 months in preceding 48 months) × months remaining in term ÷ 2. Due 30 days prior to early closing. Requires 90 days prior written notice.
Attorneys' Fees and Costs N/A VARIABLE Will vary under the circumstances. Due as incurred.
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 N/A VARIABLE Will vary under the circumstances. Due as incurred.
Damages for Breach of Non-Compete Obligations under the Franchise Agreement N/A VARIABLE Will vary under the circumstances. Due as incurred.
Management Fee 6.0 PCT 6% of Gross Sales in addition to Royalty and Advertising Fees, plus direct out-of-pocket costs. Only if franchisor assumes management of Franchised Business. Due with Royalty and Advertising Fee.

What You Get

Category

Dessert

System Size

992 units

Franchise Score

85

out of 100

Cold Stone Creamery operates a dessert franchise specializing in premium ice cream made fresh on a frozen stone surface. The brand provides an interactive, entertainment-focused experience while offering customizable ice cream products.

Financial Performance (Item 19)

Median Revenue

$570,001

per year, per location

Profitability Estimate

Estimated Owner Profit

$62,700

per year

Profit Margin

11.0%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 7.9 years

Based on midpoint investment of $495,475 and estimated annual owner profit of $62,700.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.0%

Low risk — below industry average

Net Unit Growth

+103 units

From 2022 to 2024

Unit Activity History

Year Start Opened Closed Transfers End
2022 889 908
2023 908 952
2024 952 992

Is a Cold Stone Creamery Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Cold Stone Creamery franchise opportunity:

Overall Score

85/100

Strong opportunity

Est. Payback Period

7.9 yrs

Longer payback

Risk Level

Low

0.0% annual closure rate

Cold Stone Creamery scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $570,001 and a combined fee burden of 9.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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