Ice Cream Franchises

Summary

Global ice cream is a roughly $18–21B market in 2025 (industry/IDFA), but it’s very seasonal and very rent-sensitive. U.S. neighborhood retail averages ≈$24.9/sf/year (CBRE), while tourist streets and prime malls in Canada, Europe or the Gulf can cost 2–3× that. Front-of-house staff in the U.S. earn ≈$14–15/hr (BLS), commercial power runs ≈9–30¢/kWh (EIA), and freezers work 24/7 — so utilities must be priced per country.

Ice cream is one of the simplest food concepts to franchise internationally. You don’t need a hot kitchen, cooking skills are minimal, and the product is universally understood — kids, families, tourists, mall traffic. The franchise gives you the mix or approved suppliers, the display/freezer specs, brand visuals and usually a seasonality plan. What actually changes from market to market is everything around the cabinet: rent, power, wages, length of warm season, and delivery rules.

Regional cost picture

United States. Recent retail reports put average neighborhood rent around $24–25/sf/year. Boardwalks, resort towns and lifestyle centers run 2–3× that. Entry-level counter staff sit near $14–15/hr; coastal/summer markets pay more. Power is ≈9–12¢/kWh in cheap states and 20–30+¢/kWh where tariffs are high (CA, Northeast) — important, because you run display and back freezers 24/7 and A/C in summer.

Canada. Downtown and resort locations in Toronto, Vancouver, Montreal often price above the U.S. average in USD terms. Utilities are steady, but imported Italian cabinets, freight and mall fit-outs make startup a bit higher.

Europe / UK. Prime pedestrian streets in London, Paris, Milan, Amsterdam can be several times more expensive than neighborhood sites. Labor is more regulated, social charges add weight, and delivery platforms use the same 15–30% bands — so European ice cream shops usually add waffles, crepes, coffee and shakes to push the ticket.

Gulf / Middle East. Malls and waterfronts are premium and often have service charges + strict fit-out on top of rent. Staff pay can look lower, but visas/housing/transport bring the monthly total back up. Climate helps — in many cities you can sell cold desserts almost all year.

Investment and fees

• Kiosk / cart (mall, transit, boardwalk): $80,000–$200,000; franchise fee $10,000–$25,000; royalty/ad 4–6% / 0–2%.
• Inline ice cream / gelato (500–900 sq ft): $180,000–$400,000; fee $20,000–$35,000; 4–6% / 1–3%.
• Dessert / waffle / crepe bar (all-day): $250,000–$600,000; fee $25,000–$45,000; 4–6% / 2–4%.
• Seasonal / seaside outlet: $90,000–$250,000; fee $10,000–$25,000; 4–6% / 0–2%.

These numbers assume a normal fit-out, cold equipment, POS, signage, opening inventory and working capital. Prime European streets, high-end Gulf malls and “designer” fit-out push the project toward the upper band.

Startup and operating costs

Startup includes: leasehold works; extra electrical for refrigeration; display/dipping cabinets; back freezer; sinks and handwash; POS/loyalty; signage; first delivery of bases/cones/cups/toppings; and training.

Ongoing includes:

• royalties and brand marketing;
• labor (often higher in summer);
• ingredients (dairy or plant bases, sugar, cones, waffles, toppings, packaging);
• rent/CAM/insurance/service charge;
• utilities (24/7 cold + summer A/C, so use local kWh);
• delivery/app commissions (keep as extra, not core).

Because the average check is low, units protect margin by premiumising the serving (waffle cone, double scoop, toppings), adding drinks and coffee for cold months, and selling take-home packs.

Formats and site logic

1. Kiosk / cart — lowest capex, perfect for captive traffic, limited storage.
2. Inline shop — better branding, space for toppings and a couple of seats, good where footfall is stable.
3. Dessert bar — solves winter: crepes, waffles, coffee, hot chocolate.
4. Mobile / seasonal — good for short summers, usually paired with a year-round unit.

Operator profile

Franchisors want owners who can: finish the build-out at local prices; hire and schedule seasonal staff; keep temperature and hygiene logs; and adjust the menu to climate (summer vs shoulder months). For cross-border projects the four must-checks are: real rent (or service charge), current power tariff, warm-season length, delivery/app terms.