Franchise Deep Dive: Cold Stone Creamery Franchise Costs, Fees, Profit and Data

The Cold Stone Creamery brand has become an international and household name — but is the franchise opportunity as delicious as its beloved product?

By Luca Piacentini1851 Franchise Managing Editor

12:12PM • 07/25/23

LAST UPDATED: July 12, 2023

FRANCHISE WEBSITE: https://coldstonecreameryfranchise.com/

NUMBER OF LOCATIONS: 1,258

REPORTED COST TO GET IN: $310,375 to $580,650

REPORTED ROI (Item 19): $593,868 AUV

Cold Stone Creamery® is a 35-year-old franchise in the rapidly growing ice cream segment, competing against La Diperie Ice Cream & Desserts, Dippin' Dots and Baskin-Robbins. Cold Stone is known for making fresh ice cream daily and on-site, with customers encouraged to add additional mix-ins to the ice cream and make their own unique creations.

How Many Cold Stone Creamery Are There?

In 1988, Donald and Susan Sutherland embarked on an exciting venture in Tempe, Arizona, giving birth to Cold Stone Creamery. Being avid ice cream enthusiasts, the Sutherlands sought to create an ice cream offering that struck a balance between being neither too hard nor too soft. Steve Herrell's unique method of permitting customers to select their ice cream flavors and mix-ins served as a source of inspiration for the Sutherlands, and they integrated this concept into Cold Stone.

The initial establishment was met with great success, prompting the Sutherlands to launch more Cold Stone Creameries throughout the Phoenix Metropolitan area. The concept of franchising the Cold Stone Creamery was introduced by the Sutherlands in 1995, leading to its expansion not only within the U.S., but also to various international locations.

As the company was on a progressive expansion spree, Doug Ducey, who would later become the Governor of Arizona, stepped in as the president of Cold Stone Creamery. His contribution played a significant role in accelerating the company's nationwide growth. In 2000, Ducey ascended to the role of CEO, a position he held until 2007. His final year also marked a new phase for Cold Stone Creamery as it was bought by Kahala Corp, leading to the establishment of Kahala-Cold Stone.

In an investigation by The Wall Street Journal in June 2008, it was revealed that approximately 16–20% of Cold Stone Creamery franchises had either shuttered or been listed for sale by their owners. Over the years, there have been allegations by some independent franchise owners suggesting that Cold Stone's business practices may have placed them at a competitive disadvantage due to close proximity, mandating costly renovations, and inflating potential revenue and income projections. However, other franchisees dispute these claims, stating that they've experienced growth despite the uncertainties in the financial landscape and the rising costs of fuel and energy.

As of today, the reach of Cold Stone Creamery extends to over 1,000 locations — primarily franchise-owned — across 20 countries around the globe.

What Is the Cold Stone Creamery Business Model?

The Cold Stone Creamery franchisees can operate three different business models: a traditional model, a nontraditional model or a kiosk.

You don’t need experience in the restaurant industry or the service industry to open a Cold Stone Creamery. You just need a passion for ice cream; enthusiasm for the brand’s product; and the desire to be a positive, meaningful force in your community. The business model and training and support make a Cold Stone Creamery franchise easy to run and easy to scale.

How Much Can Cold Stone Creamery Franchise Owners Make?

The average gross sales amounts contained in the table below pertain to the historic performance of all Cold Stone Creamery franchised stores in the United States. They are also existing outlets that did not open for the first time during the past fiscal year. The time period measured was December 1, 2020 through November 30, 2021.

All Franchised Outlets

Number of Stores: 864
Average Gross Sales: $593,868
Number of Stores That Met or Exceeded Average Gross Sales: 392
Percentage of Stores That Met or Exceeded Average Gross Sales: 45%
Median Gross Sales: $570,001
Number of Stores That Met or Exceeded Median Gross Sales: 432
Percentage of Stores That Met or Exceeded Median Gross Sales: 50%

Top 20% of Franchised Outlets

Number of Stores: 173
Average Gross Sales: $939,264
Number of Stores That Met or Exceeded Average Gross Sales: 55
Percentage of Stores That Met or Exceeded Average Gross Sales: 32%
Median Gross Sales: $884,736
Number of Stores That Met or Exceeded Median Gross Sales: 87
Percentage of Stores That Met or Exceeded Median Gross Sales: 50%

Bottom 20% of Franchised Outlets

Number of Stores: 173
Average Gross Sales: $321,509
Number of Stores That Met or Exceeded Average Gross Sales: 99
Percentage of Stores That Met or Exceeded Average Gross Sales: 57%
Median Gross Sales: $339,821
Number of Stores That Met or Exceeded Median Gross Sales: 87
Percentage of Stores That Met or Exceeded Median Gross Sales: 50%

How Much Does It Cost to Open a Cold Stone Creamery?

Cold Stone Creamery franchise costs, based on Item 7 of the company’s 2022 FDD:

Initial Franchise Fee: $12,000 to $27,000
Rent/Security Deposit for 3 Months: $9,750 to $19,500
Travel and Living Expenses (Two People) While Training, Not Including Salaries, if Any, for You and Your Employees: $3,000 to $7,500
Lease Review Fee: $0 to $2,500
Architectural Fees: $7,000 to $20,000
Leasehold Improvements: $97,500 to $250,000
Exterior Signage: $9,700 to $15,000
Equipment: $123,000 to $185,375
PCI Compliance Costs: $150 to $1,300
Opening Inventory: $8,000
Employee Uniforms: $500 to $800
Grand Opening Marketing Advertising: $10,000
Insurance Premiums: $500 to $2,500
Permits and Licenses: $2,000 to $3,000
Telephone and Utility Deposits and Hookups: $250 to $1,000
Computer Training and Food Safety Certification Course: $100 to $250
Miscellaneous: $3,925
Depository Account: $3,000
Additional Funds — Three-Month Initial Period: $20,000
Total Estimated Cold Stone Creamery Franchise Costs: $310,375 to $580,650

What Is the Franchise Fee for Cold Stone Creamery?

The initial franchise fee is $12,000 to $27,000.

Who’s On Cold Stone Creamery’s Leadership Team?

What Helpful Articles Can I Read to Learn More About Cold Stone Creamery?

Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction. All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.