If you are considering launching a Cold Stone Creamery franchise, it will be helpful for you to get a sense of what the firm stands for before you find out how much it would cost to set up a shop in your area.
The cold stone creamery chain of restaurants is a franchise that specializes in super-premium fresh-made ice cream, yogurt, cakes, pies, smoothies, shakes, specialty beverages, soft drinks, and other frozen dessert products (prepared using proprietary recipes) as well as a variety of complementary toppings and mix-ins on a take-out or eat-in basis, and other branded licensed products.
Currently, Cold Stone Creamery® is among the best ice cream companies. Due to the fact that they have a well-known brand and have been supplying ultra-premium ice cream for more than 25 years, people from all over the world are more likely to buy from them.
How to Apply for Cold Stone Creamery Franchise
If you want to start Cold Stone Creamery Franchise, the following are the steps;
Table of Content
- 1. Have Enough Start-up Capital
- 2. You Must Have an Experience
- 3. Assess Market Availability
- 4. Put in Your Application
- 5. Know The Cold Stone Creamery Franchise Cost
- 1. Initial Franchise Fee
- 2. Grand Opening Marketing
- 3. Lease Guarantee Fee (optional)
- 4. Lease Review Fee (optional)
- i. Business Experience
- ii. Business plan
- iii. Good Credit History
- iv. Minimum Cash Requirement
1. Have Enough Start-up Capital
Having sufficient funds is the first step in beginning a Cold Stone Creamery, or any franchise business. Purchasing a Cold Stone Creamery franchise, especially for new business owners or investors is not usually cheap. As a matter of fact, the minimum amount you would need to start the business is approximately $250,000.
2. You Must Have an Experience
Due to the high demand for Cold Stone Creamery franchises, you must have an experience in the field before you would be approved to run the business.
3. Assess Market Availability
You must confirm that there are openings in your city or the place you wish to open the franchise before submitting an application.
Cold Stone Creamery franchise is a global brand available in the market all over the country, but the firm only sells franchises depending on the opportunities that are present in the city. Franchises for Cold Stone Creamery are available in numerous markets across the world. This is why taking this step before submitting your application is vital.
4. Put in Your Application
If you have met all of their requirements, then you should proceed to their website and complete the franchise application form. The staff in charge of processing your application will get in touch with you after receiving it, and provide you with some advice on how to open a Cold Stone Creamery franchise.
5. Know The Cold Stone Creamery Franchise Cost
A Cold Stone Creamery franchise costs between $53,200 and $580,650 to run. It offers a tried-and-true business strategy that has helped hundreds of company owners reach their potential while providing the joy of artisanal, super-premium ice cream to their neighborhoods.
- Total investment: $53,200 – $580,650
- Franchise fee: $12,000 – $27,000
- Minimum liquid capital: $120,000
- Net worth needed: $250,000
Here is a summary of how much it will cost to operate a Cold Stone Creamery franchise, as well as the expenses you may incur;
Estimated Cost to Open Cold Stone Creamery Franchise
1. Initial Franchise Fee
For a regular store, the range is from $15,000 to $27,000; for a non-traditional store, it is within the range of $10,000 to $20,000. The first franchise fee for your Cold Stone Creamery’s traditional operation will cost about $27,000. “Initial Franchise Fee”.
The initial franchise cost for your second and each eating facility is reduced to $15,000 per restaurant. The initial franchise price for each Cold Stone Creamery, your dining enterprise location, ranges from $10,000 to $20,000 per restaurant.
Note that if you are a member of the U.S. Armed Forces who are actively on duty or in the active reserve, have been discharged from the U.S. Armed Forces, or are a 501(c)(3) organization, you will receive a 20 percent discount on the initial franchise fee.
2. Grand Opening Marketing
A regular store would cost $10,000, whereas a non-traditional store costs about $5,000. Please be aware that this charge is due before a lease is signed or before the building of the premises is completed.
3. Lease Guarantee Fee (optional)
10 percent of the total guaranteed sum, with a $10,000 maximum payment (if related). Be aware that this cost is due on the date that the lease guarantee agreement is signed (if related).
4. Lease Review Fee (optional)
The cost of this is $0 to $2,500 and the due date for this fee is when you ask for the real estate division of Kahala management to review something.
- Equipment, Exterior, and Interior Signage, Millwork, Menu Boards, and/or Smallware: The cost of this is between $5,500 and $10,000 and the due date for this fee is when you are invoiced.
- Surcharge and Royalty Fee: The cost of this is 6 percent of the gross sales, in addition to a maximum surcharge of $10 per week. Please note that the due date for this fee is weekly electronic withdrawals from your depository account.
Please be aware that “Gross Sales” refers to all money generated by your restaurant minus permitted refunds, rebates, and allowances but not sales tax.
- Advertising Fees: The fee is 3 percent of your gross sales weekly and the due date for this fee is the same as the royalty fee.
Please be aware that the following is how the advertising fees are deposited: For your cooperative or business, donate 2 percent to the national fund and 1 percent to the regional fund.
- Training Fee for Additional Persons: $1,750 per individual ($1,000 per individual ($500/40 hour week) for the in-store training program and $750 per individual for the new owner training program)
Have in mind that this cost must be paid before the due date, which is two weeks before instruction begins. Two people’s training is covered by the initial franchise fee. Any additional individuals who enroll in the training program are subject to the extra training fee.
- Additional Training Fee: The fee for this is $300 per person per day and the due date to pay this fee is prior to attending the training.
Be aware that this cost is payable if Cold Stone Creamery requests extra training after you have completed the training program or if you request it yourself.
- Registration Fee for Annual Meeting: This fee can be up to $1,000, and it includes incidental costs to attend.
Have in mind that this cost must be paid within 60 to 90 days of the meeting. It is non-refundable and will be deducted from your depository account by Cold Stone Creamery. Regardless of whether they attend the meeting, all franchisees are required to pay this cost.
- Depository Account: The fee for this is $3,000 and regular replenishment is required. Note that the due date for this fee is when you are signing the franchise agreement.
- Contributions for Charity and Community Support: The amount you are expected to pay will be determined by Cold Stone Creamery. The due date for this fee is will be determined by Cold Stone Creamery.
- Fees for Data: The fee for this is up to $75 per month, and it is subject to annual and/or service enrichment increases. The due date is the same as the royalty fee, and it begins immediately after you open a franchise (restaurant).
- Phone Support Maintenance Contract Fee for the POS Help Desk: The fee for this is up to $60 per month. This fee is due on the last Thursday of every month, and Cold Stone Creamery will deduct this amount from your depository account on that date.
- Fee for Redeeming Gift Cards: The fee for this is 11 percent of the amount of the gift card redemption. Be aware that Cold Stone Creamery assesses the fee, which a third party collects on behalf of the company. The due date is on or around the 25th day of each month.
- Renewal Franchise Fee – Traditional and Non-Traditional Location: The fee for this is 50 percent of the then-current initial franchise fee. The payment deadline for this charge is the time you sign a new franchise agreement or renew an existing one. Note that the period of renewal is five years.
- Transfer Franchise Fee – Traditional Location: The fee for this is $17,500 and the due date is prior to the consummation of the transfer.
Have in mind that you must pay this cost if you are buying a franchised business as a consequence of a full transfer. A full transfer is any transfer of 50 percent.
- Transfer Franchise Fee – Non-Traditional Restaurant: The fee for this is $5,000 and the due date is prior to the consummation of the transfer.
You must pay this if you are buying your franchised business as a consequence of a full transfer, so be aware of that. A transfer of 50 percent or more of ownership or control is considered a full transfer, among other things.
- Fee for Relocation: The fee for this is $500 and the due date is usually at the signing of the relocation amendment to the franchise agreement.
Please note that this fee is payable if Cold Stone Creamery approves the relocation of your store.
- Fee for Non-Participation: If you fail to engage in any mandatory local, regional, national, promotional, seasonal, or other related programs like campaigns, and initiatives, as well as any new or updated product and service test, there will be a daily cost of $100.
This cost is payable to Cold Stone Creamery and it is due upon failure or refusal to participate.
- Administration Fee for Documents: The fee for this is $500 and the due date is as incurred.
Have in mind that this fee is applied if an alteration is required, including an affiliated transfer.
- Default Interest: The price for this is $50 and it includes interest at a rate of 1 percent to 5 percent per month or the highest permitted legal rate, whichever is lower (Default Rate). Be aware that the fee is payable on all past-due payments and that the due date is payable upon assessment.
- Late Charge Fee for Document: The fee for this is $100 per week or partial week and the due date is payable upon assessment. This fee is payable if any financial report, statement, or other paperwork is past due.
- Charge for Draft Draw: The fee for this is $100 per day and the due date is as incurred. Please note that it is payable to Cold Stone Creamery.
- Late Charge: On royalties, advertising payments, and other amounts not paid within 10 days, there is a fee of 5 percent of the unpaid amount or $100, whichever is greater. This fee is payable to Cold Stone Creamery with an as-incurred due date.
- Late Charge for Sublease: The price for this is 5 percent of the late or unpaid amount (where applicable). If an affiliate of Cold Stone Creamery is subleasing your business space, note that the due date for this cost is as incurred and it is payable to Cold Stone Creamery’s affiliate.
- Costs for Collection: All expenses related to collection, including but not restricted to legal fees. Note that the payment deadline for this fee is upon assessment and it must be paid in the event that Cold Stone Creamery needs to hire an attorney or collection agency to pursue your unpaid debts.
As compensation for the costs incurred in defending against any claims brought against it because of your conduct as a Cold Stone Creamery franchisee, Cold Stone Creamery will pay your legal fees.
- Fee for Insufficient Funds: For each electronic funds transfer returned for insufficient money, the price is $50; for each check or draft returned for insufficient funds, the fee is $25.
This fee is due if you receive a check or an electronic transfer of funds from your depository account sent to Cold Stone Creamery is returned, maybe for lack of funds. The due date for this fee is payable upon assessment.
- Audit: the expense of the audit plus interest on underpayments at the default rate or the maximum rate permitted by law. The payment deadline for this fee is upon assessment and it must be paid only in the event that an audit is triggered by your failure to provide reports, or discloses an understatement of fees or assessment of, at least 5 percent.
- Damages for Early Termination: The product is divided by two, and the monthly royalties and advertising costs for any successive 12 months within the previous 48-month period are multiplied by the number of months left in the franchise agreement’s duration.
The payment deadline for this charge is 30 days before the restaurant’s early closure, and you must give Cold Stone Creamery 90 days’ written notice before terminating your franchise agreement.
- Attorneys’ Costs and Fees: The fee for this will vary under the circumstances, and the due date is as incurred but payable to Cold Stone Creamery.
- Indemnification of Cold Stone Creamery and/or Its Affiliates for Damages Sustained or Accrued as a Result of Your Acts or Amounts paid on Your Behalf and Other Omissions or to Remedy Your Breach as Stated in the Franchise Contract: It is payable to Cold Stone Creamery, and the cost will vary depending on the conditions and the due date.
- Damages for Breach of Non-Compete Provisions in Franchise Agreement: The fee for this will vary under the circumstances and the due date is as incurred but it is payable to Cold Stone Creamery.
- Management Fee: The rate for this is 6 percent of the gross sales of the franchised business, plus the royalty fee, the advertising fee, and direct out-of-pocket costs and expenses of Cold Stone Creamery.
This amount must be paid by the due date if Cold Stone Creamery manages your franchised business for any length of time, along with royalties and advertising fees.
Cold Stone Creamery Franchise Requirements
The following are some prerequisites you must fulfill before starting a Cold Stone Creamery franchise:
i. Business Experience
To run a Cold Stone Creamery franchise, you must possess the necessary business exposure and experience. You should note that the franchisee has three choices if qualified:
- Building a new Cold Stone Creamery restaurant
- Acquiring a franchise by buying an already-existing business from another franchisee or the franchisor
- Switching all of the franchisee’s current retail operations from one brand to the Cold Stone Creamery brand are all options.
ii. Business plan
Before you can be approved to operate a Cold Stone Creamery franchise in your city, you must create a good and functional business plan.
iii. Good Credit History
Before you would be approved to operate a Cold Stone Creamery franchise, you must have a strong credit history and rating.
iv. Minimum Cash Requirement
When submitting an application for a Cold Stone Creamery franchise, you must have a minimum of $250,000 in liquid funds.