Blue Sky Creamery Franchise Cost & Fees

Incorporated: 2005

Franchising Since: 2005

Headquarters: BeeaeAmes, Iowa

Description: Blue Sky Creamery grants franchises for the establishment, development, and operation of ice cream cafes under the name "Blue Sky Creamery®" that sells high-quality ice cream and ice cream specialties made using patented Nitro Freeze™ technology, which the owners invented and which they and their affiliates have an exclusive license to use. Blue Sky Creamery offers two different kinds of Blue Sky Creamery franchises:

Franchise Offer: 
•    Satellite Stores, which are retail storefront cafe selling BLUE SKY CREAMERY®-brand ice cream and related products.

•    Factory Stores, which may include retail storefront cafes the same as Satellite Stores, but which also manufacture BLUE SKY CREAMERY®-brand ice cream on the premises and then distribute the ice cream to third-party distributors, grocery stores, Satellite Stores and other retail outlets for retail sale.

Financial Assistance: Blue Sky Creamery does not offer direct or indirect financing and does not guarantee leases or other obligations.

Training and Assistance: Blue Sky Creamery conducts an initial training program for the designated manager (which is the franchisee if it is not a corporation or other business entity) and one assistant. The designated manager must attend and complete the initial training program to the franchisor’s satisfaction before opening the franchised store. The initial training program consists of approximately 3 weeks for a Factory Store and approximately one week for a Satellite Store and includes training in the operation and management of a Factory Store or Satellite Store.  Although the Franchisor does not charge tuition or training fees for initial training, a replacement or substitute Designated Manager must attend the initial training program either before or within a reasonable time after taking over the management of the Franchised Store. Blue Sky Creamery may charge a fee for training a substitute or replacement Designated Manager.

Territory: If a Franchisee signs a franchise agreement for a Factory Store, they will also be granted a "Protected Geographic Market". A protected geographic will usually have a population of at least 700,000 people. If a Franchisee signs a Franchise Agreement for a Satellite Store, they will not have a protected or exclusive area.

Term of Agreement and Renewal: The term of the franchise agreement is 6 years and there are no renewal options, but a franchisee has the right to acquire a successor franchise with a term that coincides with the remaining term of the lease for his store. 

Obligations and Restrictions: The Franchised Store must be under the direct supervision of the franchisee at all times. In addition, a designated manager must devote his or her full-time (at least 35 hours per week) efforts to the management and day-to-day operation of the Franchised Store and the Franchised Business. The Designated Manager must attend and successfully complete, to the franchisees satisfaction, the initial training program.
The Franchisee must offer the menu items and products specified by Blue Sky creamery from time to time. If a Franchisee operates a Satellite Store, he may not sell to bulk or wholesale accounts. If a Franchisee operates a Factory Store, he may sell to bulk and wholesale accounts, but he may not sell to or service any bulk or wholesale account located outside his Protected Geographic Market without the Franchisor’s consent to each specific account.

Total Number of Units (end 2006):     7

Investment Tables:

Initial Investment (Full Store):

Ongoing fees:

The above information has been taken from the UFOC/FDD of Blue Sky Creamery
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