5 Reasons To Invest in Fosters Freeze in 2021

Since 1946, Fosters Freeze has been bringing delightful fast food and soft-serve treats to its dedicated base of customers. Now, as Americans look for new career opportunities during the pandemic, Fosters Freeze presents a particularly strong franchise opportunity thanks to a revamped leadership team, renewed focus on growth and availability in top-tier markets.

Here are the five reasons to invest in Fosters Freeze in 2021.

1.) New Leadership Team

Brothers Neal and Nimesh Dahya have owned, consulted for or invested in more than 180 restaurant franchise locations for legacy brands including Applebee’s, IHOP, Burger King, Pizza Hut and TGI Fridays. Since 2015, the Dahyas have been applying their expertise and passion for franchising to the franchisor side, focusing on reigniting growth for the beloved Fosters Freeze franchise.

“You say the name ‘Fosters Freeze,’ and you see people’s faces light up — it’s like magic,” said Neal, president and CEO of Fosters Freeze. “It’s not often that you find a brand that people feel such a personal attachment to, and there’s no doubt that the demand for Fosters Freeze far exceeds its current footprint.”

Since taking over, Nimesh says he and his brother have been listening to feedback from the brand’s current franchisees, tightening up the franchise’s operational model and rolling out new design touches.

2.) Renewed Focus on Growth and Expansion

Although Neal and Nimesh purchased the franchise just five years ago, their efforts are already showing impressive returns across the 65 restaurants currently open for business. For the past five years, sales across the system have increased — including a 20% year-over-year jump from ‘19 to ‘20. This year, one of Foster Freeze’s most tenured franchisees, a five-unit owner whose family has been with the brand for more than 50 years, decided to take advantage of the heightened support by opening a new store in Salinas, California.

By reinvesting in Fosters Freeze as a franchise, and not just a chain of independent businesses, the Dahyas have already brought new life into the system, and franchisees couldn’t be happier.

“Since the Dahyasl bought Fosters Freeze and took over corporate management, sales have been up 10–15% each year for each of my stores. That’s almost an 80% increase in sales across my stores,” said Hafed Alwajih, a Fosters Freeze franchise owner since 2012.

3.) Loyal Fan Base Eager to Grow with the Brand

For generations, the frozen-dessert brand has been delighting customers with its delicious frozen treats and classic fast-food items like burgers, fries and chicken strips. Most notably, Fosters Freeze is famous throughout California for its soft-serve cone and line of soft-serve-based desserts.

From the franchisee to the corporate level, the brand exudes “California Positivity” and authenticity that embodies Fosters Freeze’s number-one priority: to make the world a better place, even if just for a moment. Fans of the brand return again and again for the unwaveringly cheerful, wholesome atmosphere and, of course, its delicious soft-serve delights. For franchisees, this creates steady revenue and an inspiring, community-oriented atmosphere.

4.) Room for Growth Across the Country with Top-Tier Markets

Fosters Freeze currently has plans to grow in top-tier markets across the country. For now, the brand is specifically targeting Arizona and Nevada because of their close proximity to the brand’s home state of California. The many residents of these states who grew up with Fosters Freeze and are seeking a bite of its nostalgic ice cream flavors and tasty hamburgers make the Southwest an ideal market. Plus, with the brand’s headquarters nearby, new franchisees can look to corporate to be on call for an added layer of support, as well as added ease of logistics and distribution capabilities.

Territories with the fan-favorite brand will be available across multiple Arizona cities, including Phoenix with the potential for up to 11 locations; Tucson with the potential for up to five locations; Mesa with the potential for up to four locations; Chandler with the potential for up to two locations; Glendale with the potential for up to two locations; and Scottsdale with the potential for up to two as well.

When it comes to the specific areas of Nevada that Fosters Freeze is looking to grow in, the Dahya brothers aren’t looking to limit themselves to only big cities like Las Vegas. The fan-favorite brand is also targeting Henderson and Reno for growth, with the ability to open four to eight locations in Las Vegas, one to two locations in Reno and two locations in Henderson.

5.) Strength and Adaptability Despite COVID-19

In addition to benefiting from the Dahyas’ leadership, Fosters Freeze has continued to grow despite the challenges of 2020 thanks to a flexible, small-footprint store model with walk-up windows perfect for low-contact takeout. During the height of the COVID-19 pandemic, Fosters Freeze stores were able to continue serving customers while other restaurants were closed to adhere to social-distancing recommendations.

In fact, according to Nimesh, 2020 has been the strongest year for Fosters Freeze sales since the brothers took over ownership. “This year, we’ve seen the biggest increase in year-over-year sales compared to any other year that we’ve been involved with the brand,” he said. “For example, in Q3, we saw a 20% increase compared to Q3 of 2019. Knowing that franchisees are doing a lot better than before is the biggest milestone. Since we’ve taken over, they’ve let us know they’re much happier, and their sales are up 80% — some are even looking to open more locations. Now, we are excited to continue expanding our footprint and bringing this franchise opportunity to more people.”

Looking ahead to 2021, the Dahyas are confident that continued positive brand awareness and franchisee happiness will soon take Fosters Freeze to locations throughout the entire United States.

The initial investment to begin operation of a single, stand-alone Fosters Freeze restaurant ranges from $611,500 and $1,009,000. The total investment necessary to begin operation of a single confections restaurant is $178,000 to $331,500. The initial investment needed to open a single co-located restaurant is $329,500 to $658,500. For more information on franchising with Fosters Freeze, please visit https://www.fostersfreeze.com/franchise/.