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Sundae Ice Cream Franchise Costs, Profit & Requirements For 2024

by Alice

Sundae Ice Cream has quickly become a beloved name in the ice cream industry, known for its rich, creamy textures and innovative flavors. Founded in 2005, Sundae Ice Cream started as a small parlor in the heart of Chicago. The founder, Emily Thompson, was passionate about creating unique ice cream flavors that would delight customers of all ages. Her dedication to quality and creativity paid off, and within a few years, Sundae Ice Cream became a local favorite.

The brand’s success can be attributed to its commitment to using only the finest ingredients. Sundae Ice Cream sources its dairy from local farms, ensuring freshness and quality in every scoop. Additionally, the brand is dedicated to sustainability, using eco-friendly packaging and supporting local communities.

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Sundae Ice Cream offers a wide range of flavors, from classic vanilla and chocolate to more adventurous options like lavender honey and spicy mango. Each flavor is meticulously crafted, with a focus on balance and taste. The brand also offers vegan and dairy-free options, catering to a diverse customer base.

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Sundae Ice Cream Franchise Fee

Investing in a Sundae Ice Cream franchise is a significant decision, and understanding the financial requirements is crucial. The franchise fee is a one-time payment that grants you the rights to operate under the Sundae Ice Cream brand. As of 2024, the franchise fee for a Sundae Ice Cream store is $35,000. This fee covers the initial training, access to proprietary recipes, and ongoing support from the corporate team.

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In addition to the franchise fee, there are other costs to consider when opening a Sundae Ice Cream franchise. These include:

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Initial Investment: The total initial investment required to open a Sundae Ice Cream franchise ranges from $150,000 to $350,000. This includes expenses such as leasehold improvements, equipment, inventory, and signage.

Royalty Fee: Sundae Ice Cream charges a royalty fee of 6% of gross sales. This fee contributes to ongoing support and development of the brand.

Marketing Fee: Franchisees are required to contribute 2% of their gross sales to a national marketing fund. This ensures that Sundae Ice Cream continues to grow its brand presence and attract customers.
While these costs may seem substantial, they are in line with industry standards, and the potential return on investment can be significant. Sundae Ice Cream’s established brand reputation and loyal customer base provide a strong foundation for success.

Sundae Ice Cream Franchise Conditions

Before diving into the franchise process, it’s important to understand the conditions and requirements set by Sundae Ice Cream. These conditions ensure that each franchisee is well-prepared and capable of maintaining the brand’s high standards.

Financial Qualifications: Prospective franchisees must demonstrate a strong financial background. This includes having a minimum net worth of $500,000 and liquid assets of at least $150,000. These financial qualifications ensure that franchisees have the necessary resources to successfully open and operate their stores.

Business Experience: While prior experience in the food and beverage industry is not mandatory, it is highly preferred. Sundae Ice Cream looks for individuals with strong business acumen and a passion for customer service. Franchisees should be prepared to manage day-to-day operations, including staff management, inventory control, and marketing efforts.

Commitment to Quality: Sundae Ice Cream prides itself on delivering a premium product and exceptional customer experience. Franchisees must be committed to maintaining these high standards. This includes adhering to Sundae Ice Cream’s recipes and operational guidelines, as well as providing excellent customer service.

Location Requirements: Finding the right location is crucial for the success of a Sundae Ice Cream franchise. Ideal locations are high-traffic areas with good visibility, such as shopping centers, malls, and busy streets. Sundae Ice Cream’s real estate team provides support in selecting and securing the best possible location.

Training and Support: Franchisees must complete an extensive training program before opening their store. This program covers all aspects of running a Sundae Ice Cream franchise, from operations and management to marketing and customer service. Ongoing support is also provided to ensure that franchisees continue to succeed.

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Sundae Ice Cream Franchise Process

The process of becoming a Sundae Ice Cream franchisee is designed to be thorough and supportive, ensuring that both the franchisee and the brand are set up for success. Here is a step-by-step overview of the franchise process:

Initial Inquiry: The process begins with an initial inquiry, where prospective franchisees express their interest in opening a Sundae Ice Cream franchise. This can be done through the brand’s website or by contacting the franchise development team directly.

Application and Disclosure: After the initial inquiry, prospective franchisees are required to complete a detailed application form. This form includes information about their financial background, business experience, and personal qualifications. Once the application is reviewed and approved, the franchisee receives the Franchise Disclosure Document (FDD). This document provides comprehensive information about the franchise opportunity, including fees, obligations, and the franchisor’s background.

Discovery Day: Discovery Day is an opportunity for prospective franchisees to visit Sundae Ice Cream’s headquarters, meet the corporate team, and learn more about the brand. This visit allows franchisees to ask questions, see the operations firsthand, and gain a deeper understanding of the franchise opportunity.

Franchise Agreement: If both parties agree to move forward after Discovery Day, the next step is signing the Franchise Agreement. This legal document outlines the terms and conditions of the franchise relationship. It is important for franchisees to review the agreement carefully and seek legal advice if necessary.

Site Selection and Lease Negotiation: Once the Franchise Agreement is signed, the franchisee begins the process of site selection. Sundae Ice Cream’s real estate team assists in finding and securing a suitable location. This includes conducting market research, evaluating potential sites, and negotiating lease terms.

Training Program: Franchisees are required to complete a comprehensive training program before opening their store. The training program covers all aspects of running a Sundae Ice Cream franchise, including operations, marketing, customer service, and financial management. Training is conducted both at the corporate headquarters and on-site at the franchisee’s location.

Store Build-Out and Opening: After completing the training program, the franchisee begins the store build-out process. This includes renovating the space, purchasing equipment, and ordering inventory. Sundae Ice Cream provides guidance and support throughout the build-out process to ensure that the store meets the brand’s standards. Once the store is ready, the franchisee hosts a grand opening event to introduce Sundae Ice Cream to the community.

Ongoing Support: Even after the store is open, Sundae Ice Cream continues to provide ongoing support to franchisees. This includes regular check-ins, marketing assistance, and access to the brand’s resources and tools. Franchisees also have the opportunity to participate in regional and national meetings to stay connected with the Sundae Ice Cream network.

Sundae Ice Cream Franchise Advantages

Investing in a Sundae Ice Cream franchise offers numerous advantages, making it an attractive opportunity for aspiring entrepreneurs. Here are some key benefits of joining the Sundae Ice Cream family:

Established Brand: Sundae Ice Cream has built a strong reputation for quality and innovation. Franchisees benefit from the brand’s established name and loyal customer base. This recognition helps attract customers and drive sales from day one.

Unique and Diverse Menu: Sundae Ice Cream’s menu stands out in the crowded ice cream market. With a wide range of flavors and options, including vegan and dairy-free choices, the brand appeals to a broad audience. Franchisees can attract diverse customers and keep them coming back for more.

Comprehensive Training and Support: Sundae Ice Cream provides extensive training and ongoing support to ensure franchisees are well-prepared for success. From the initial training program to continuous assistance, franchisees have access to the resources and guidance they need to thrive.

Proven Business Model: The Sundae Ice Cream franchise model has been tested and refined over the years. Franchisees can rely on a proven system that covers all aspects of the business, from operations and marketing to customer service and financial management.

Marketing and Advertising: Sundae Ice Cream invests in national marketing campaigns to increase brand awareness and drive traffic to its stores. Franchisees also receive support in creating local marketing strategies to attract customers in their specific area.

Innovation and Creativity: Sundae Ice Cream is known for its innovative approach to ice cream. The brand continually introduces new flavors and products, keeping the menu fresh and exciting. Franchisees can benefit from this creativity and offer unique experiences to their customers.

Community Engagement: Sundae Ice Cream is committed to giving back to the communities it serves. Franchisees have the opportunity to participate in local events, support charitable causes, and build strong relationships with their customers. This community-focused approach enhances the brand’s reputation and fosters customer loyalty.

Growth Potential: The ice cream industry continues to grow, and Sundae Ice Cream is well-positioned to capitalize on this trend. Franchisees can benefit from the increasing demand for high-quality, artisanal ice cream and tap into a lucrative market.

Flexibility and Independence: While Sundae Ice Cream provides a comprehensive support system, franchisees also have the flexibility to operate their stores independently. This balance allows franchisees to bring their own creativity and entrepreneurial spirit to the business while benefiting from the brand’s established framework.

Conclusion

Becoming a Sundae Ice Cream franchisee is a rewarding and exciting opportunity for those passionate about the food industry and customer service. With a strong brand reputation, unique menu offerings, and comprehensive support, Sundae Ice Cream provides the tools and resources needed for success. By joining the Sundae Ice Cream family, franchisees can build a thriving business and bring joy to their communities with delicious, high-quality ice cream.

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