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Milkshake Factory

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.

4locations
$510K–$773K
Since 2023
Food & BeverageAnn Arbor, MIEdwards MSF Holdings, LLC and FW-MSF Holdings, LLCwww.milkshakefactory.comDisclaimer

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Franchise Costs

Franchise Fee
$60,000
Initial Investment
$510,492 – $772,548
Royalty Rate
6.00%
Brand Fund
2.00%
Fixed Monthly Fees
$1,056 – $1,056

6% royalty + 2% ad fund + $1,056/mo fixed fees (technology $325, POS software $714, MS Office/antivirus $17)

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

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Milkshake Factory Franchise Analysis

A fresh entrant in the premium dessert space, Milkshake Factory launched franchising in 2023 with big ambitions for hand-spun shakes and gourmet sweets. Item 19 finally spills the beans on early revenue performance from its handful of units, while a trio of SBA loans hints at real-world financing paths. But with only four franchise locations against ten corporates, does this setup promise smooth scaling or signal early hurdles?

Item 7 lays out the full investment spectrum at $510,492 to $772,548, covering buildout for 1,300-1,800 sq ft leased spots, equipment, and initial inventory—steep for a newbie brand but aligned with quick-serve dessert peers. Upfront hits $60,000 franchise fee, then ongoing 6% royalties plus 2% ad fund, tacked with fixed $1,056 monthly for tech ($325), POS ($714), and software ($17). Item 19 data shows promising sales traction in existing shops, bolstering the case for operators eyeing high-margin frozen treats amid ice cream competition; those three SBA loans averaging $680,500 reflect lender confidence despite the youth.

System maturity lags with just 14 total units, no contraction noted yet, but 54 projected openings signal aggressive expansion via multi-unit deals. Franchisor backing includes ops training, proprietary recipes, and promo support from Ann Arbor HQ, targeting sweets-craving crowds. For risk-tolerant buyers, the numbers sketch a high-upside play if Item 19 averages hold as units multiply—though sparse locations mean validate local demand before diving in.

Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.

How Milkshake Factory Compares

Key Insights

  • Higher investment than 89% of Desserts & Ice Cream franchises
FranchiseInvestmentFeeRoyaltyLocations
Milkshake Factory
Current
$510K – $773K$60K6.0%4
RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS$315K – $713K$35K6.5%569
MENCHIE'S$180K – $515K$54K6.0%295
DIPPIN' DOTS$139K – $399K$35K6.0%260
MARBLE SLAB CREAMERY$355K – $477K$25K6.0%249
BRUSTER'S$415K – $1.1M$40K5.0%219
Desserts & Ice Cream Average
28 franchises
$326K – $656K$37K7.0%

* 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

Top States
1MI
1
2NC
1
3TX
1
4UT
1

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SBA Loan History


Historical SBA 7(a) loan data for Milkshake Factory franchisees (20252025)

Total Loans
3
Average Loan
$680,500
Total Volume
$2.0M
Default Rate
0.0%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

3 SBA loans on record

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Franchisee Contacts

52 franchisee contacts on file from official FDD filings.

52 Contacts Available

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Due Diligence


Litigation (Item 3)

Franchisee Cases0
No litigation involving franchisees reported

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
0
Non-Renewals
0
Reacquired
0
Ceased Ops
0
Transfers
0
Sold to Franchisees
0
Projected New
54

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Frequently Asked Questions

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.