6/10

Franchimp Summary Rating

4 /10
Higher than 64% of peers

Franchise Summary

Description
The franchise offered is a restaurant concept featuring soft serve confections, soft drinks, hamburgers, hot sandwiches and other food items.
Company Background
Fosters Freeze is a franchise restaurant concept that offers soft-serve confections, ice cream, hamburgers, hot sandwiches and other food items. With more than 300 locations in the United States alone, Fosters Freeze has been delighting guests for over 50 years with its famous frozen treats.
Franchise Opportunity
It's hard to find a good place to get a burger and fries. Not only is it hard to find a good place to get a burger and fries, but it can also be expensive. Fosters Freeze is the perfect solution. We offer delicious burgers, fries, and other food items at an affordable price.

Earnings Transparency

7 /10
This Franchise discloses slightly more information about the financial performance of their franchisees compared to other franchises in the same industry

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Financial Performance of "Stand Alone" Units

Average Revenue Per Unit

Compared vs. Frozen Desserts Industry

$1,109,715 / unit

Franchise Type: Stand Alone

Average Revenue During 2020

$1,109,715
$145,869
Industry Low
$1,232,792
Industry High

Financial Performance of "Co-Located" Units

Average Revenue Per Unit

Compared vs. Frozen Desserts Industry

$765,356 / unit

Franchise Type: Co-Located

Average Revenue During 2020

$765,356
$145,869
Industry Low
$1,232,792
Industry High

Fosters Freeze Franchise System Development in 2020

FAQ

How much investment do I need to start my own Fosters Freeze business?
Franchisees typically require at least $1 to $937 investment to get their Fosters Freeze business started
What are the initial franchise fees for Fosters Freeze?
Franchisees typically need to pay at least $105 in fees directly to Fosters Freeze in order to earn the right to launch their business
How much money can I make with a Fosters Freeze franchise? What are the average revenues for a typical Fosters Freeze business?
We estimate that the average revenue of an individual Fosters Freeze unit is approximately $1,109,715. We based this on Item 19 in franchise disclosure document
How long do I need to commit to running a Fosters Freeze unit? What is my contractual commitment?
The standard length for an initial franchise contract is 10 years. Renewals are also generally 10 years

Accessibility

4 /10
The Franchisor's investment costs ranges from $324,567 to $659,500 which is Much Higher than the $0 to $0 average in the Frozen Desserts industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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