Summary
The U.S. ice cream market sits around $18–21B in 2025 (industry/IDFA estimates) and grows slowly, 1.5-4% a year, but traffic is highly seasonal: March–July is where the money is. Average retail rent is about $24.9/sf/yr (CBRE 2025), staff run $14–15/hr (BLS), and commercial power ranges from 9–30¢/kWh by state — important because freezers run 24/7.
Ice cream is one of the most “forgiving” impulse products in U.S. foodservice: it’s family-friendly, kid-friendly, tourist-friendly, and it fits into every leisure zone — waterfronts, malls, resort towns, college areas, walkable districts. A franchise makes it even easier: the brand brings recipes, base mixes or approved suppliers, equipment specs, décor, and usually a basic seasonality plan. For a first-time buyer this is good news: you don’t need a big kitchen or heavy-skilled back-of-house — you need a reliable cold chain, consistent serving portions, and staff who can sell toppings. For multi-unit operators, ice cream is attractive because you can roll out several small boxes across one city, following foot traffic and seasonality.
Most important thing to tell the reader: ice cream is not just “rent + staff.” It’s rent + staff + 24/7 refrigeration + seasonality + dairy/sugar price drift.
Cost environment to surface
- Rent. CBRE’s 2025 retail figures keep the U.S. average asking rent at about $24.92 per sq ft per year. But the best places for ice cream — boardwalks, tourist streets, lifestyle districts, waterfronts, high-footfall malls — are 2–3× that (and NYC prime even higher). So you always model at least two rents: “regular suburban inline” and “tourist/walkable/premium.”
- Power. EIA’s 2025 data has commercial electricity in the U.S. generally in the low teens, but the spread is big: ~9–12¢/kWh in low-cost states, 20–30+¢/kWh in California, New England, Hawaii. Ice cream runs freezers, display cases, reach-ins, and often A/C in summer — all day, every day. In high-tariff states this is a real line item.
- Labor. BLS shows food and beverage serving workers in the $14–15/hr band in 2024–2025. Coastal cities, high-minimum states and resort towns go higher, especially in summer when everyone competes for seasonal staff. Good franchises solve that with cross-training and shorter learning curves.
- Product/ingredients. U.S. ice cream is still tied to dairy, sugar, and flavorings. Premium, clean-label, and non-dairy lines have grown (per National Ice Cream Month reports and big industry surveys), but they often cost more to produce. That’s why brands push toppings, waffles/cones, shakes, and sundaes — that’s where the margin lives.
- Seasonality. Industry data (IDFA and market trackers) is brutal on this point: March–July is the busy season, with real peaks in June/July. If your rent is high and climate is short (Northeast, Midwest), you simply have to add coffee/pastry/hot desserts/off-season items to smooth the winter.
- Delivery. Ice cream is technically deliverable now (insulated packaging, quick radius), but delivery platforms still cost 15–30% on delivery and about 6% on pickup. So we describe delivery as “extra reach,” not the main channel.
Investment and Fees
| Format / Model | Initial investment (range) | Franchise fee (range) | Ongoing fees (royalty / ad fund) |
|---|---|---|---|
| Inline ice cream / gelato (500–900 sq ft) | $180,000 – $400,000 | $20,000 – $35,000 | 4–6% / 1–3% |
| Kiosk / cart (mall, boardwalk, resort) | $80,000 – $200,000 | $10,000 – $25,000 | 4–6% / 0–2% |
| Premium dessert bar / café | $250,000 – $600,000 | $25,000 – $45,000 | 4–6% / 2–4% |
| Ice cream + drinks / shakes / waffles | $220,000 – $550,000 | $20,000 – $40,000 | 4–6% / 2–4% |
These ranges assume normal tenant fit-out, cold equipment (freezer/display), small prep/wash area, POS with loyalty, signage, opening inventory (mixes/bases/cones/toppings), training, and working capital. Waterfront or high-tourist sites can push it higher just on rent/deposit.
Cost overlay (why the same brand costs different money)
| Cost driver | Suburban / second-gen inline | Tourist / waterfront / premium mall |
|---|---|---|
| Rent | $20–28/sf/yr | $40–90+/sf/yr |
| Commercial power | 9–12¢/kWh | 20–30+¢/kWh |
| Staff | $14–15/hr | $17–19/hr (seasonal) |
| Sales tax on prepared desserts | 5–7% | 7–10% |
| Delivery/app fees | 15–30% | 15–30% |
Takeaway: the same $25–35k/month ice cream shop can be fine in column 1 and very thin in column 2 — not because sales are bad, but because rent, power and seasonal labor are higher.
Startup costs and ongoing fees
Startup usually covers: leasehold improvements, extra electrical for refrigeration, dipping cabinets and display freezers, back-of-house freezer, POS, signage, smallwares, opening inventory, staff training, and working capital for at least one shoulder season.
Ongoing spend:
- royalties and brand marketing;
- labor (with higher staffing in summer and weekends);
- ingredients (ice cream bases, dairy/non-dairy, cones, cups, toppings, sauces);
- packaging (to-go, delivery, seasonal gift packs);
- occupancy (rent, CAM, insurance, business license);
- utilities (freezers 24/7 + A/C in summer);
- delivery/app commissions.
Because tickets are relatively low, two levers protect margin: make it a treat (waffle cones, premium toppings, shakes, sundaes) and make it all-year (coffee, hot chocolate, crepes, mini-bakery SKUs).
Popular ice cream franchise formats
- Inline shop. Good for everyday neighborhoods, mid-priced rent, stable local traffic.
- Kiosk / cart. Ideal for malls, transit, boardwalks, tourist clusters. Low capex, high seasonality, depends on landlord rules.
- Dessert bar / café. Ice cream plus waffles, crepes, shakes, coffee/tea. Better average ticket, better winter survival.
- Mobile / event / truck. Low fixed cost, good for resorts, campuses and events; lives on seasonality and partnerships.
Each format should be matched to the length of the local warm season. A 4–5 month summer needs add-on products; a 9–10 month warm climate can run ice cream-forward most of the year.
Requirements & ideal franchisee profile
Franchisors usually want enough liquid capital to cover the build-out, a clean credit history for the lease, and basic ability to manage young/seasonal staff. Strong candidates are good at scheduling around weekends and holidays, keep portion control tight (scoops, toppings, cones), and track waste/melt. Multi-unit candidates should plan for shared purchasing on cones, cups, toppings and POS/loyalty, and for a small “opening crew” to launch kiosks fast in peak season.
Compliance and local rules
- Most states use their version of the FDA Food Code — expect checks on holding temperatures, cleaning schedules, allergen labeling (very important for nut-based and dairy-free SKUs), and handwashing.
- I-9 hiring is federal; some states require E-Verify.
- Some cities/counties have packaging/foam/compostable rules — note it once for resort and boardwalk locations.
How to choose an ice cream franchise
- Seasonality match: how long is your selling season in this state/city?
- Format: inline vs kiosk vs dessert bar.
- Ticket strategy: do they only sell scoops, or do they have shakes, sundaes, waffles, drinks?
- Supply: does the brand have approved bases/syrups/toppings or do you buy on your own?
- Real estate logic: will the rent make sense if sales go down 40% in winter?
- Growth path: can you open 2–4 points in the same metro (mall + street + seasonal kiosk)?
Franchise FAQ
What is the initial franchise fee?
The initial franchise fee depends on the brand and market, usually from $10,000 to $45,000.
Do you help with international expansion?
Yes, TopFranchise works with brands that are ready to expand to new countries and regions.
How can I contact the franchisor?
You can fill in the request form on the franchise page, and the brand representative will contact you.
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