Pulse Reviews and Analysis
Best ice cream and frozen dessert franchises to buy in 2027
Curated by Kory White · Fractional CRO, CRO Syndicate
Direct Answer
The best ice cream and frozen dessert franchises to buy in 2027 split by format and capital. Scoop-shop classics like Baskin-Robbins and Carvel carry strong brand recognition and moderate build-outs. Premium and experiential concepts like Cold Stone Creamery and Andy's Frozen Custard charge higher tickets and, in Andy's case, often run drive-thru and walk-up windows.
Soft-serve and novelty concepts like Dairy Queen (Grill & Chill or treat-only) and Bahama Buck's add variety. Most frozen-dessert franchises carry an Item 7 total initial investment between roughly $150,000 and $900,000, with treat-only kiosks at the low end and drive-thru custard stands at the high end, franchise fees commonly $15,000 to $45,000, and royalties around 5% to 6% of gross sales.
Below are real Franchise Disclosure Document ranges and how to verify them.
How frozen-dessert franchise economics actually work
Frozen desserts are a seasonal, high-margin business. Ingredient cost per serving is low, but demand swings hard with weather and season, so your cash-flow planning has to account for slow winter months in most markets. Drive-thru and walk-up formats lower labor and build-out costs versus full sit-down parlors.
Year-round warm-climate markets smooth the seasonality but raise rent.
The biggest Item 7 drivers are build-out (a freestanding drive-thru custard stand costs far more than an inline scoop shop) and equipment (soft-serve machines, blast freezers, and refrigeration are expensive). A second-generation food space with usable infrastructure cuts costs.
Scoop-shop classics
- Baskin-Robbins — the "31 flavors" brand, often co-branded with Dunkin. Item 7 commonly $94,000 to $400,000 (FDD, 2024) for an inline shop, franchise fee around $25,000, royalty around 5.9%. Strong recognition and a relatively low entry point.
- Carvel — soft-serve and ice-cream-cake specialist. Item 7 commonly $250,000 to $450,000 for a full shop (FDD, 2024); the cake-focused "Carvel Express" and shop-in-shop formats run lower. Royalty around 5%.
Premium and experiential concepts
- Cold Stone Creamery — the mix-on-a-frozen-stone experience. Item 7 frequently $60,000 to $550,000 (FDD, 2024) depending on format, including co-branded and express versions, royalty around 6%. Higher labor because each order is hand-mixed.
- Bahama Buck's — shaved ice and frozen treats with a tropical theme. Item 7 commonly $300,000 to $900,000 (FDD, 2024) for a freestanding store, royalty around 6%. Strong appeal in warm-climate markets.
Soft-serve and drive-thru concepts
- Andy's Frozen Custard — freestanding custard stands with walk-up and drive-thru windows. Item 7 frequently runs $1,000,000 to $2,300,000+ (FDD, 2024) because units are purpose-built. High AUV potential but a serious capital and real-estate commitment.
- Dairy Queen — DQ offers treat-only and full Grill & Chill formats. Treat-only Item 7 is far lower than Grill & Chill, which includes a full kitchen; confirm the specific format's current FDD. Royalty and brand fund contributions apply.
Costs beyond Item 7 you must plan for
The Item 7 table estimates total initial investment, but plan for these:
- Seasonality reserve — most markets slow sharply in winter. Build a cash cushion to cover off-season fixed costs.
- Equipment — soft-serve and custard machines, blast freezers, and refrigeration are costly to buy and maintain.
- Working capital — Item 7 includes an additional-funds line for the first three to six months.
- Marketing fund — most charge a brand or advertising contribution on top of royalty.
Who each model fits
- First-time owner with limited capital: an inline scoop shop or kiosk such as Baskin-Robbins, ideally in a year-round warm market.
- Hands-on owner who likes experience-driven service: a premium concept like Cold Stone or Bahama Buck's.
- Well-capitalized operator: a freestanding drive-thru custard concept with high AUV potential and a larger build.
How to verify the numbers before you sign
Request the current FDD and read Item 7 (investment), Item 6 (recurring fees), Item 19 (any earnings claims), and Item 20 (unit counts and franchisee list). Call current owners and ask how steep their seasonal swing is, what equipment maintenance costs run, and how long it took to reach break-even.
The ranges above are directional. The franchisee call is where you learn the truth.
Red flags to watch before you commit
A strong category does not guarantee a strong franchisor. Treat these warning signs as reasons to slow down and dig deeper before you sign anything:
- Thin or missing Item 19. If the franchisor makes no financial performance representation at all, you are buying on faith. Ask current franchisees directly for revenue and cost figures, and weigh the silence carefully.
- High closure or transfer counts in Item 20. A pattern of terminations, non-renewals, and ownership transfers in the system history often signals struggling units. Compare openings to closures over the last three years.
- Rising royalty or remodel mandates. Some brands quietly raise royalties or require expensive remodels mid-term. Read Item 6 and the agreement for escalation clauses and refresh obligations.
- Pressure to sign fast. A reputable franchisor encourages you to take the full statutory review period, talk to franchisees, and have an attorney review the agreement. Urgency is a warning sign, not an opportunity.
- Weak or vague territory protection. If Item 12 does not clearly define your territory and the franchisor reserves broad rights to compete nearby or online, your local market can be diluted.
Validate every one of these against the current FDD and against at least five franchisee phone calls. The published ranges and brand reputation are the starting point; the disclosure document and the owner conversations are where the real risk shows up.
FAQ
How much money do I need to open an ice cream franchise in 2027? Most frozen-dessert franchises require roughly $150,000 to $900,000 in total initial investment, with inline scoop shops and kiosks at the low end and freestanding drive-thru custard stands above $1,000,000 (FDD figures, 2024). Confirm each brand's current Item 7.
Are ice cream franchises seasonal? In most U.S. Markets, yes. Demand drops sharply in winter, so owners need a cash reserve for the off-season unless they operate in a year-round warm climate.
What royalty do frozen-dessert franchises charge? Most charge roughly 5% to 6% of gross sales plus a separate brand or advertising fund.
Which ice cream franchise is cheapest to open? Co-branded and express formats of brands like Cold Stone and Baskin-Robbins, and treat-only Dairy Queen, carry the lowest entry costs. Confirm the specific format's current FDD.
Can I finance an ice cream franchise with an SBA loan? Yes. Established dessert brands are common SBA borrowers, though lenders weigh your liquidity, credit, and build-out cost. Confirm the brand appears on the SBA franchise eligibility records.
Sources
- U.S. Federal Trade Commission, Franchise Rule and FDD requirements (Items 6, 7, 19, 20)
- Baskin-Robbins Franchise Disclosure Document, 2024
- Cold Stone Creamery Franchise Disclosure Document, 2024
- Andy's Frozen Custard Franchise Disclosure Document, 2024
- Bahama Buck's Franchise Disclosure Document, 2024
- U.S. Small Business Administration, franchise loan eligibility guidance
- International Franchise Association, franchising industry overview
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