Milkshake Factory
Milkshake Factory franchises enable owners to operate quick-serve shops offering hand-spun milkshakes, gourmet chocolates, craft sundaes, and related products using a proprietary system including recipes, design, operations standards, training, and advertising. The business model involves franchisees independently owning and operating shops from leased premises typically 1,300-1,800 sq ft, with franchisor support in development, purchasing, and promotions, including multi-unit area development options. They target consumers seeking premium frozen desserts and sweets in a competitive market with ice cream shops, confectioneries, and other dessert businesses.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
6% royalty + 2% ad fund + $1,056/mo fixed fees (technology $325, POS software $714, MS Office/antivirus $17)
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: Data is described as being disclosed for 3 Franchised locations open for the first full three months of operations in 2024, and for 9 Affiliate-Owned Shops open for the entirety of 2024.
* The document indicates that financial performance data is disclosed in Item 19, referring to 'Part I' for 9 affiliate-owned shops and 'Part II' for 3 franchised locations. However, the specific financial figures (e.g., gross revenue, net income, profit) for these parts were not visible or provided in the attached OCR or image files, preventing extraction of numerical values.
Extracted Item 19 Section
How Milkshake Factory Compares to Other Desserts & Ice Cream Franchises
Key Insights
- Higher investment than 89% of Desserts & Ice Cream franchises
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
Milkshake Factory Current | $510K - $773K | $60K | 6.0% | 4 |
| RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS | $315K - $771K | $35K | 6.5% | 564 |
| MENCHIE'S | $165K - $425K | $40K | 6.0% | 296 |
| DIPPIN' DOTS | $139K - $399K | $35K | 6.0% | 260 |
| MARBLE SLAB CREAMERY | $355K - $477K | $25K | 6.0% | 249 |
| HAAGEN DAZS SHOP | $215K - $568K | $30K | 4.0% | 207 |
Desserts & Ice Cream Average 28 franchises | $327K - $659K | $36K | 7.0% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 28 Desserts & Ice Cream franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
SBA Loan History
Historical SBA 7(a) loan data for Milkshake Factory franchisees (2025 - 2025)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a Milkshake Factory franchise?
The total initial investment to open a Milkshake Factory franchise ranges from $510,492 to $772,548. This includes a franchise fee of $60,000. Ongoing royalty fees are 6.0% of gross sales.
How many Milkshake Factory franchise locations are there?
As of the 2025 FDD, Milkshake Factory has 4 franchise locations. The company has been franchising since 2023.
Can you get an SBA loan for a Milkshake Factory franchise?
Yes, SBA loans are available for Milkshake Factory franchises. Historical data shows 3 SBA 7(a) loans have been approved for Milkshake Factory franchisees, with an average loan amount of $680,500. The historical default rate is 0.0%.
Is Milkshake Factory a good franchise to buy?
Milkshake Factory shows several positive indicators: transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in Milkshake Factory?
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