America's #1 Franchise Directory, Trusted for Over 15 Years

Cold Stone Creamery Franchise Cost & Fees

Date of Incorporation: 1992
Franchising Since: 1994
Headquarters: Scottsdale, Arizona

Business Description: The franchisor of Cold Stone Creamery is Kahala Franchising, L.L.C. Cold Stone Creamery restaurants specialize in super-premium fresh made ice cream, frozen yogurt, cakes, pies, smoothies, shakes, specialty beverages, soft drinks and other frozen dessert products (prepared using proprietary recipes) and an assortment of complementary toppings and mix-ins on a take-out or eat-in basis, soup and branded, licensed products. Franchisees also have the option of having a yogurt bar and selling Cold Stone Yogurt Bar products in their restaurant.

Franchise Offer: If qualified, the franchisee may (i) construct a new Cold Stone Creamery restaurant; (ii) purchase one of the franchisor’s Cold Stone Creamery franchises by acquiring an existing business from another franchisee or from the franchisor; or (iii) convert all of the franchisee’s existing retail operations from another brand to the Cold Stone Creamery brand.

Financial Assistance: The franchisor does not offer any direct or indirect financing or financing arrangement, nor will it guaranty the franchisee’s obligations under any note or other obligation, except potentially for the lease for the site or if the franchisee purchases a restaurant corporate-owned “as-is” by one of the franchisor’s affiliates, and only in its sole and absolute discretion. If, in order to obtain the lease agreement for the site of a Cold Stone Creamery restaurant, the landlord requires the franchisee to obtain a third party lease guarantee, and the franchisor or one of its affiliates agrees to serve as such guarantor (with such determination to be made in the franchisor’s sole and absolute discretion), the franchisee will pay a lease guarantee fee. Cold Stone Creamery is listed on the SBA's Franchise Registry. The SBA's Franchise Registry is an online listing of franchise systems whose franchisees receive the benefit of having their SBA loan application reviewed using a streamlined process.

Training and Assistance: A training program is available to the franchisee and his or her designated representative. The program consists of 40 hours of classroom training and 80 hours of on-the-job training. The classroom portion of the Training Program will be held at KTEC, which is located at the franchisor’s corporate offices in Scottsdale, Arizona, and the in-store portion of the training program will be held at one of the franchisor’s affiliated restaurants in the metropolitan Phoenix, Arizona area, or at such other location(s) as the franchisor may designate in its sole discretion. The franchisor will provide one of its representatives to come to the restaurant during opening week for up to five days at its expense to work with the franchisee and manager on their grand opening, and on operating and marketing the restaurant. The franchisor may, in the future, hold refresher or additional training programs, conferences and seminars. The franchisee’s attendance at these programs is mandatory.

Territory: The franchisee will not receive an exclusive territory. The franchisor (and/or affiliates) may establish other franchised or company-owned Cold Stone Creamery restaurants that may compete with the franchisee’s location, including across the street from the location or in the same building or shopping center as the franchisee’s location.

Term of Agreement and Renewal: The term of the initial franchise agreement is the earlier of the following: (i) the 10-year anniversary of the date the restaurant opens to the public or, if the franchisee is acquiring an already operating restaurant, the effective date of the Franchise Agreement; or (ii) the expiration of the term of the real estate lease for the premises of the restaurant, including any extension or other renewal options. If the franchisee is not in default and satisfies certain conditions, he or she may renew for the shorter of the following: (i) five years; or (ii) the term of the new lease for the premises of the restaurant, including any extensions or renewal options.

Obligations and Restrictions: The franchisor does not specifically require the franchisee or principals to personally participate in the direct operation of the franchise. However, it is the franchisor’s intention to select as Cold Stone Creamery franchisees only those who plan to actively participate in the direct operation and daily affairs of the Cold Stone Creamery restaurant. The franchise must be personally managed with on-premises supervision and directly operated by the franchisee or another partner, shareholder or member of the franchisee’s business organization, or a manager who must have successfully completed the Training Program. The franchisor strongly recommends that the franchisee devote a substantial amount of time to the Cold Stone Creamery restaurant. Additionally, the franchisee must employ on a full time basis at least one on-premises supervisor for the restaurant. The franchisor requires that the business is solely that of a Cold Stone Creamery restaurant, and the franchisee may not conduct any other business or activity at the site of the restaurant without prior written approval.

Estimated Number of Units: 1,235

Investment Tables:
Initial Investment for a Traditional Restaurant
Name of Fee Low High
Initial Franchise Fee $12,000 $27,000
Rent/Security Deposit (for 3 months) $2,500 $26,000
Travel and Living Expenses (2 people) while training, not including salaries, if any $2,500 $7,500
Real Estate Varies Varies
Lease Review Fee $0 $1,250
Architectural Fees $4,000 $7,000
Leasehold Improvements $88,000 $150,000
Exterior Signage $9,700 $12,000
Equipment $99,000 $120,000
PCI Compliance Costs $150 $1,300
Opening Inventory $8,000 $8,000
Employee Uniforms $500 $800
Grand Opening Advertising $5,000 $10,000
Insurance Premiums $500 $2,500
Permits and Licenses $2,000 $3,000
Telephone and Utility Deposits and Hookups $250 $1,000
Computer Training and Food Safety Certification Course $100 $250
Miscellaneous $3,925 $3,925
Depository Account $3,000 $3,000
Additional Funds - 3 month initial period $20,000 $20,000
Estimated Total (Does not include real estate costs and/or rent for the business location except for the initial security deposit) $261,125 $404,525
Initial Investment for a Non-Traditional Restaurant
Name of Fee Low High
Initial Franchise Fee $8,000 $20,000
Rent/Security Deposit (for 3 months) $0 $26,000
Travel and Living Expenses (2 people) while training, not including salaries, if any $2,500 $7,500
Real Estate Varies Varies
Lease Review Fee $0 $1,250
Architectural Fees $1,000 $10,000
Leasehold Improvements $0 $150,000
Exterior Signage $1,500 $12,000
Equipment $8,000 $110,000
PCI Compliance Costs $150 $1,300
Opening Inventory $1,000 $8,000
Employee Uniforms $200 $800
Grand Opening Advertising $2,000 $6,000
Insurance Premiums $500 $2,500
Permits and Licenses $500 $3,000
Telephone and Utility Deposits and Hookups $250 $1,000
Computer Training and Food Safety Certification Course $100 $250
Miscellaneous $1,000 $3,925
Depository Account $3,000 $3,000
Additional Funds - 3 month initial period $20,000 $20,000
Estimated Total (Does not include real estate costs and/or rent for the business location except for the initial security deposit) $49,700 $386,525
Initial Investment for a Cold Stone Express (Kiosk serving Soft Serve Product)
Name of Fee Low High
Initial Franchise Fee $2,000 $10,000
Rent/Security Deposit (for 3 months) $6,000 $10,000
Travel and Living Expenses (2 people) while training, not including salaries, if any $2,500 $7,500
Real Estate Varies Varies
Lease Review Fee $1,250 $1,250
Architectural Fees $1,500 $10,000
Leasehold Improvements $4,000 $40,000
Interior and Exterior Signage $3,500 $10,000
Equipment $54,150 $79,000
PCI Compliance Costs $150 $1,300
Opening Inventory $5,000 $5,000
Employee Uniforms $500 $600
Grand Opening Advertising $100 $5,000
Insurance Premiums $500 $2,500
Permits and Licenses $2,000 $3,000
Telephone and Utility Deposits and Hookups $250 $1,000
Computer Training and Food Safety Certification Course $100 $250
Miscellaneous $3,500 $3,500
Depository Account $3,000 $3,000
Additional Funds - 3 month initial period $20,000 $20,000
Estimated Total (Does not include real estate costs and/or rent for the business location except for the initial security deposit) $18,250 $212,900
Initial Investment for a Yogurt Bar (Non-Traditional)
Name of Fee Low High
Initial Franchise Fee $0 $20,000
Rent/Security Deposit (for 3 months) $0 $12,000
Travel and Living Expenses (2 people) while training, not including salaries, if any $2,500 $7,500
Real Estate Varies Varies
Lease Review Fee $0 $1,250
Architectural Fees $300 $10,000
Leasehold Improvements $12,000 $150,000
Interior and Exterior Signage $500 $15,200
Equipment $43,000 $89,800
PCI Compliance Costs $0 $1,300
Opening Inventory $500 $4,000
Employee Uniforms $200 $800
Grand Opening Advertising $2,000 $6,000
Insurance Premiums $500 $2,500
Permits and Licenses $0 $3,000
Telephone and Utility Deposits and Hookups $0 $1,000
Computer Training and Food Safety Certification Course $0 $250
Miscellaneous $500 $3,925
Depository Account $3,000 $3,000
Additional Funds - 3 month initial period $20,000 $20,000
Estimated Total (Does not include real estate costs and/or rent for the business location except for the initial security deposit) $85,500 $349,025
Other Fees
Type of Fee Amount
Royalty Fee and Surcharge 6% of Gross Sales plus a maximum Surcharge of $10 per week.
Advertising Fees (Excluding Cold Stone Express Kiosk) 3% of weekly Gross Sales.
Advertising Fees (for Cold Stone Express Kiosk ONLY) 1% of weekly Gross Sales.
Additional People Training Fee $1,500 per person ($750 per person for the In-Store portion of the Training Program, and $750 per person for the New Owner Training portion of the Training Program).
Annual Meeting Registration Fee $1,000 plus incidental costs to attend.
Depository Account $3,000 (Must be replenished on a regular basis)
Charitable Contributions To be determined by the franchisor.
Data Fees Up to $75 per month (subject to reasonable annual and/or service enhancement increases)
POS Help Desk Phone Support Maintenance Contract Fee $45 per month.
Gift Card Redemption Fee 9% of the amount of the gift card redemption.
Renewal Fee – Traditional Restaurant $10,000
Renewal Fee for Cold Stone Express Kiosk ONLY $2,000 for each year of the term of the lease (maximum lease term of 5 years)
Renewal Fee - Non-Traditional Restaurant (excluding Cold Stone Express Kiosk) $5,000
Transfer Fee - Traditional Restaurant $10,000 to $25,000
Transfer Fee - Non-Traditional Restaurant (excluding Cold Stone Express Kiosk) $5,000
Transfer Fee for Cold Stone Express Kiosk ONLY $1,000
Relocation Fee $500
Additional Training Fee $1,500 per additional training program per person.
Non-participation Fee $100 per day if the franchisee fails or refuses to participate in any required national, local, regional, seasonal, promotional or other program, initiative and campaign or in any new or modified product or service test or offering.
Document Administration Fee (if redraft is requested by franchisee) $500
Default Interest $50 plus interest at 1 ½% per month or maximum legal rate, if less
Document Late Charge $100 per week or partial week.
Draft Draw Charge $100 per day.
Late Charge 5% of the unpaid amount or $100, whichever is greater, on royalties, advertising payments, and other amounts unpaid within 10 days.
Sublease Late Charge 5% of the late or unpaid amount plus any late charges and interest incurred under the Master Lease as a result of the late payment (where applicable)
Collection Costs All collection costs including reasonable attorneys' fees.
Non-Sufficient Funds $50 for each electronic funds transfer returned for non-sufficient funds; $25 for each check or draft returned for non-sufficient funds.
Audit Cost of Audit plus interest at Default Rate on underpayments or the maximum rate permissible by law.
Early Termination Fee The average monthly Royalty and Advertising Fees during the preceding 12-month period multiplied by the number of months remaining in the term of the Franchise Agreement, and the product is divided by 2.
Attorneys' Fees and Costs Will vary under the circumstances.
Indemnification of the franchisor and/or affiliates for damages suffered or incurred for the franchisee’s actions or omissions, including amounts paid on the franchisee’s behalf or to cure the breaches under the Franchise Agreement Will vary under the circumstances.
Liquidated Damages for Breach of Non-Compete Obligations under the Franchise Agreement Will vary under the circumstances.
Management Fee Six percent (6%) of the Franchised Business' Gross Sales (in addition to the Royalty Fee and Advertising Fee) plus our direct out-of-pocket costs and expenses.
Reinstatement Fee $5,000

The above information has been taken from the FDD of Cold Stone Creamery. Year of FDD: 2015

Franchise Direct's Disclaimer


Sign up to our newsletter and be notified about other franchise opportunities

Your E-mail Address

Confirm E-mail Address

 

You may be interested in the following franchises...

Fro Yo Vending Business Take control of your financial future and cash in on the frozen yogurt craze with a Fro Yo Vending Business! Request Info Min. Cash Required:
$9,500.

Mora Iced Creamery An opportunity to savor! High-quality product, efficient business model & full support system. Request Info Min. Cash Required:
$100,000.

Your Request List

You can add items by clicking the "Add to Request List" button or checkbox when you find something you're interested in.

You may add up to 15 items to your Request List

Your request list will follow you around the site.

When you are ready to complete your request for free information, click "Submit" in your Request List.

Why not get started by browsing our New Franchise Opportunities or Low Cost Franchise Directory?

You may only enter 15 items in your Request List.

To request information from your selected companies, just fill in the form and click "Submit".

OK, got it

Request Info From:

  •  

Your List is Empty

You can add items by checking the "Request FREE Info" boxes.

* indicates required field

Optional Information

Join our mailing list!

We share your information only with your selected franchises.