Complete investment analysis based on official FDD data
Total Investment
$138,949 – $398,650
Franchise Fee
$35,000
Royalty Rate
N/A
The total initial investment to open a Dippin' Dots franchise ranges from $138,949 to $398,650, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $35,000.
Midpoint estimate: $268,800
$35,000
One-time initial fee
The Dippin' Dots 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 Dippin' Dots brand and is included in the total initial investment range above.
Royalty Fee
N/A
Ad/Marketing Fund
N/A
| Fee Type | Rate | Type | Notes |
|---|---|---|---|
| Royalty Fee | 2.16 | FIXED | Also $0.09 per unit for pre-pack units, and up to 6% on ancillary items. May elect to charge continuing royalty fee not to exceed 6% of Gross Sales. Due each Friday by 5:00 PM CST for week Sunday-Saturday. Collected by DDF. |
| Advertising Fund Contributions | 0.24 | FIXED | Also $0.01 per unit for pre-pack units, and up to 2% on ancillary items. May elect to require contributions not to exceed 2% of Gross Sales. Collected by DDL, remitted to DDF. Due each Friday by 5:00 PM CST. |
| Regional Advertising Fund Contributions | 50.0 | PCT | Regional Advertising Funds have not been established at this time. Up to 50% of Advertising Fund contributions may be allocated to Regional Advertising Fund if established. |
| Additional Training Fees | 500.0 | FIXED | Currently $500 per day per person, plus travel and living expenses for franchisor personnel. Payable if franchisee requires more training than usual program. Due promptly upon receipt of invoice. |
| Relocation Fee for Relocation of Franchised Business | 1000.0 | FIXED | Payable to franchisor prior to relocation of fixed location retail store or kiosk. Subject to prior approval. Inapplicable to Distribution Only. Due promptly upon receipt of invoice. |
| Ongoing purchase of products to be sold or offered for sale at the Franchised Business | N/A | VARIABLE | Must purchase all ice cream, yogurt, sherbet and flavored ice products from DDL, the only approved supplier. Must also purchase all cups featuring Marks from DDL. Due at time of purchase. |
| Evaluation and Testing of New Approved Supplier | N/A | VARIABLE | Required if franchisee wants to purchase from non-approved suppliers. Franchisor inspects facilities and evaluates products. Charge not to exceed actual costs. Due promptly upon receipt of invoice. |
| Reimbursement of Amounts Paid to Correct any Deficiencies | N/A | VARIABLE | If franchisee fails to correct operational deficiencies within reasonable time, franchisor may perform obligations and franchisee must reimburse. Due promptly upon receipt of invoice. |
| Replacement Fee for lost Manuals | 200.0 | FIXED | At least $200 to replace any Manual that is lost, stolen or damaged to render it unusable. Due promptly upon receipt of invoice. |
| Late Fee for Sales Reports or Profit and Loss Statement | 75.0 | FIXED | Sales reports due by 20th of each month. P&L statements due by March 31st annually. Due promptly upon receipt of invoice. |
| Interest on Understated Amounts Payable | 18.0 | PCT | 18% per annum or maximum rate permitted by law, whichever is less. If audit reveals understated amounts, interest charged from due date until paid. Due promptly upon receipt of invoice. |
| Reimbursement of Audit Costs | N/A | VARIABLE | If inspection discloses understatement of 2% or more of Gross Sales, franchisee reimburses all expenses including travel, lodging, wage expenses, accounting and legal costs. Due promptly upon receipt of invoice. |
| Insurance Coverage | N/A | VARIABLE | If franchisee fails to maintain required insurance, franchisor may obtain insurance and charge franchisee the cost. Due promptly upon receipt of invoice. |
| Late Fee for Certificates of Insurance | 75.0 | FIXED | Certificates of insurance required prior to operations and at least 20 days before policy expiration. Due promptly upon receipt of invoice. |
| Transfer Fee | 15000.0 | VARIABLE | Standard transfer: lesser of $15,000 or 10% of sales consideration plus attorney fees. Transfer to add minority shareholder: $1,000 plus attorney fees. Between existing franchisees: lesser of $1,000 or 10% plus attorney fees. No fee for transfer to corporation/LLC formed for convenience. Payable to DDF at time of transfer. |
| Renewal Fee | 7000.0 | VARIABLE | $7,000 for Territory Franchised Business, $3,000 for Store Only Franchised Business, $5,000 for Distribution Franchised Business. Covers training, supervision, administrative costs, counsel fees, accounting and other expenses. Due with execution of renewal agreement. |
| Damages, Costs and Expenses upon Default | N/A | VARIABLE | Payable to DDF and/or DDL as result of default. Due promptly upon receipt of invoice. |
| Indemnification | N/A | VARIABLE | Franchisee indemnifies franchisor, affiliated companies, officers, directors and employees against claims, legal proceedings, investigations, damages, costs and expenses arising from franchisee's operation. Due promptly upon receipt of invoice. |
| Fee for Infringement of Rights of Other Franchisee or customers of DDL | 1000.0 | VARIABLE | $1,000 for unauthorized freezer placements (FDMC Channel, Food, Drug, Mass Convenience/Club, fairs, festivals, events). $2,500 for first and subsequent breaches if infringing on rights of other franchisee/customer. Fee remitted to affected franchisee/customer. Due immediately upon receipt of Notice of Default. |
| Franchisee Council Membership Dues | 100.0 | FIXED | All franchisees and franchisor are required members of Franchise Council. All members entitled to one vote on authorized matters. No maximum or minimum cap on dues. Collected on behalf of DDF Franchisee Council, Inc. Due at time of meeting (varies). |
Category
Dessert
Franchise Score
out of 100
Dippin' Dots franchise serves unique flash-frozen ice cream beads available in various flavors and novelty forms. The brand offers an innovative frozen treat experience with colorful, bite-sized frozen dessert products.
Avg. Annual Closure Rate
N/A
Net Unit Growth
+29 units
From 2022 to 2024
| Year | Start | Opened | Closed | Transfers | End |
|---|---|---|---|---|---|
| 2022 | 231 | — | — | — | 239 |
| 2023 | 239 | — | — | — | 246 |
| 2024 | 246 | — | — | — | 260 |
Based on the FDD data, here is a data-driven snapshot of the Dippin' Dots franchise opportunity:
Overall Score
57/100
Moderate opportunity
Est. Payback Period
N/A
Insufficient data
Risk Level
N/A
Insufficient data
Dippin' Dots shows a moderate score across our evaluation criteria. Careful due diligence is recommended. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.
Get the full Dippin' Dots franchise intelligence report with risk analysis, deal-breaker alerts, and detailed financial projections.
View Full Dippin' Dots Report →Investment: $322,666 – $691,783
Royalty: 8.0%
Median Revenue: $1,354,688
Units: 1,058
View cost breakdown →
Investment: $53,200 – $602,775
Royalty: 6.0%
Median Revenue: $621,052
Units: 992
View cost breakdown →
Investment: $178,856 – $226,841
Royalty: 3000.0%
View cost breakdown →
Investment: $354,500 – $476,650
Royalty: 6.0%
Median Revenue: $480,828
View cost breakdown →
Investment: $409,033 – $2,644,060
Royalty: 5.0%
View cost breakdown →
Investment: $213,500 – $587,000
Royalty: 5.0%
Median Revenue: $538,054
View cost breakdown →