FDD Analysis Report
Cold Stone Creamery
Kahala Franchising, LLC
Key Metrics At-a-Glance
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of gross sales
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of gross sales
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N/A
Not disclosed
About This Franchise
# Cold Stone Creamery Franchise Research Report 2025
## Brand Overview
Cold Stone Creamery is a premium ice cream franchise known for its signature made-to-order ice cream mixed on a frozen granite stone. Founded in 1988 in Tempe, Arizona, the brand is now owned by Kahala Brands (MTY Food Group). With approximately 953 locations across 20+ countries, Cold Stone has established itself as a leader in the premium ice cream segment.
## Investment Requirements
### Initial Investment - **Total Investment Range**: $335,200 - $655,000 - **Franchise Fee**: $27,000 - **Royalty Fee**: 6% of gross sales - **Marketing Fee**: 3% of gross sales - **Net Worth Requirement**: $250,000 - **Liquid Capital Required**: $100,000
## Financial Performance
### Unit Economics - **Average Unit Volume**: Varies by location - **Payback Period**: 6.7 - 8.7 years (estimated) - **Ranked**: #156 on Entrepreneur Franchise 500 (2024)
## Territory and Rights
**Important Consideration**: Cold Stone Creamery does NOT provide exclusive territory protection. This means the franchisor can open additional locations or allow other franchisees to operate nearby, potentially impacting your customer base.
## Pros and Cons
### Advantages - Strong brand recognition and customer loyalty - Unique product differentiation with granite stone mixing - Comprehensive training program - Co-branding opportunities with Rocky Mountain Chocolate Factory - Multiple revenue streams (cakes, catering, merchandise)
### Challenges - Seasonal business fluctuations - No exclusive territory protection - High labor costs for made-to-order concept - Competition from other premium ice cream brands - Relatively long payback period
## Franchisee Reviews
Franchisee satisfaction is mixed. Common themes include: - **Positive**: Strong brand, good product quality, supportive corporate team - **Concerns**: Profitability challenges, seasonal revenue swings, territory overlap issues
## Ideal Candidate Profile
- Previous retail or food service experience preferred - Strong customer service orientation - Ability to manage seasonal business fluctuations - Community-focused marketing mindset - Hands-on operational involvement
## Conclusion
Cold Stone Creamery offers a well-known brand in the premium ice cream space with a unique product concept. However, prospective franchisees should carefully consider the lack of territory protection and seasonal nature of the business. The investment range is moderate for a food franchise, but the extended payback period requires patience and strong financial planning.
Ongoing Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Royalty | See FDD of Gross Revenue | - |
| Brand Fund | See FDD of Gross Revenue | - |
Item 19: Financial Performance Representations
No Financial Performance Representations
This franchisor does not provide Item 19 financial performance representations. Approximately 35% of franchisors choose to disclose this information.
Recommendation: Request financial information directly from existing franchisees listed in Exhibit I during your due diligence. Contact 10-15 franchisees to gather revenue and profitability data before making an investment decision.
Learn more about Item 19 disclosures →Risk Assessment
Items to Review
No notable items identified
Positive Indicators
Review FDD for positive factors
Due Diligence Recommendations
Contact 10-15 existing franchisees to gather operational and financial insights
Franchisee interviews are the most valuable source of information about day-to-day operations and realistic financial expectations.
Have a franchise attorney review the Franchise Agreement
Professional legal review can identify unfavorable terms and potential negotiation points.
Research local market conditions and competition
Understanding your specific market is essential for success, regardless of system-wide performance.
Download Complete FDD
Access the full Franchise Disclosure Document including all 23 items, exhibits, and financial statements.
Learn More About FDDs
New to franchise investing? Our educational guides will help you understand what to look for in the Cold Stone Creamery FDD.
The Ultimate Guide to FDDs
Learn how to read and analyze Franchise Disclosure Documents
Understanding Item 7: Initial Investment
How to evaluate franchise investment costs
FDD Item 5: Initial Fees Explained
What you pay upfront to become a franchisee
Item 20: Franchisee Information
Analyze system growth and contact franchisees
About Cold Stone Creamery Franchise
Cold Stone Creamery is a franchise that offers entrepreneurs the opportunity to own and operate their own business within an established system. As of the 2026 Franchise Disclosure Document, the franchise continues to expand its footprint nationwide. This analysis provides prospective franchisees with key insights from the FDD to support informed investment decisions.
Cold Stone Creamery Franchise Cost
The total initial investment required to open a Cold Stone Creamery franchise ranges from See FDD for details. This investment includes the initial franchise fee of See FDD for details, along with expenses for real estate, equipment, inventory, training, and working capital to sustain operations during the initial period. Ongoing fees include a royalty fee of See FDD of gross sales. Prospective franchisees should review Item 7 of the FDD for a complete breakdown of estimated initial investment costs.
Cold Stone Creamery Item 19 Financial Performance
Cold Stone Creamery does not provide financial performance representations in Item 19 of their FDD. Approximately 35% of franchisors choose to disclose this information. Without franchisor-provided financial data, prospective franchisees should contact existing franchisees directly to gather information about revenue, expenses, and profitability. The franchisee contact list in Exhibit I provides names and contact information for current and former franchise owners.
Cold Stone Creamery Franchise Growth and System Health
The Cold Stone Creamery franchise system has shown stable performance based on unit count data from Item 20 of the FDD. Prospective franchisees should examine the historical data on unit openings, closings, and transfers to understand the system's trajectory and identify any concerning trends.
Cold Stone Creamery Franchise Investment Considerations
The Cold Stone Creamery FDD contains important disclosures that prospective franchisees should carefully review before making an investment decision. Key factors to evaluate include the franchise fee structure, ongoing royalty requirements, territory rights, termination history, and franchisor support systems. Every franchise investment carries risk, and this analysis should be combined with professional legal and financial advice. Review the complete FDD and speak with current franchisees to gain a comprehensive understanding of the opportunity.
Due Diligence Recommendations for Cold Stone Creamery
Before investing in a Cold Stone Creamery franchise, prospective franchisees should:
- Contact multiple existing franchisees to gather operational and financial insights
- Have a franchise attorney review the Franchise Agreement and all exhibits
- Research local market conditions and competitive landscape
- Develop a detailed business plan with realistic financial projections
- Verify all information provided by the franchisor independently
Download the Cold Stone Creamery FDD
Access the complete Cold Stone Creamery Franchise Disclosure Document, including all 23 Items, exhibits, franchise agreement, and audited financial statements. FreeFDDs™ provides free access to FDDs to promote franchise transparency and help prospective franchisees make informed decisions. The FDD contains critical information that should be reviewed in its entirety before making any investment decision.
Disclaimer
This analysis report is provided for informational purposes only. The data presented has been extracted from the Franchise Disclosure Document and may contain errors or omissions.
Prospective franchisees should conduct their own due diligence, review the complete FDD document, and consult with qualified legal and financial advisors before making any investment decisions.