RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS
Rita’s Franchise Company, LLC offers franchises for Rita’s shops that sell proprietary Italian ice, frozen custard, frozen desserts, drinks, toppings, and other approved menu items under the “RITA’S ICE-CUSTARD-HAPPINESS” brand, including standard shops, express shops, satellites, and mobile units. The business model involves initial franchise fees, development agreements for multi-unit growth, ongoing royalties, and comprehensive support through proprietary systems, training, manuals, and marketing. They target the general public in a competitive frozen confections market influenced by weather, location, and consumer tastes.
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
6.5% royalty + 3% ad fund + $150/mo technology fee
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: 520 Shops that reported Gross Sales during the 2024 Season (the “2024 Sample”), including 517 franchised units and 3 company-owned units.
* Average gross revenue for 2024 was calculated as a weighted average across all tiers: (173 units × $544,799 + 174 units × $338,628 + 173 units × $212,106) / 520 total units = $365,126.61. Median gross revenue is taken from the middle tier's median gross sales as per instructions. Revenue for top and bottom quartiles are represented by the average gross sales of the respective Top and Bottom Tiers. The document explicitly states that the figures do not reflect the cost of goods, operating expenses, or other costs, so no net income, net profit, EBITDA, or profit range could be determined.
Extracted Item 19 Section
How RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS Compares to Other Desserts & Ice Cream Franchises
Key Insights
- #1 largest franchise system in Desserts & Ice Cream
- Lower than average SBA loan default rate in Desserts & Ice Cream
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS Current | $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 |
| BRUSTER'S | $409K - $1.1M | $40K | 5.0% | 205 |
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
+18 more states
SBA Loan History
Historical SBA 7(a) loan data for RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS franchisees (2014 - 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)
One arbitration over development fee return by former franchisee/developer (Baugh Corp.); one multi-franchisee lawsuit and related arbitrations alleging franchise disclosure violations, misrepresentations, and contract breaches (Scarpulla et al.).
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 RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS franchise?
The total initial investment to open a RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS franchise ranges from $315,233 to $770,542. This includes a franchise fee of $35,000. Ongoing royalty fees are 6.5% of gross sales.
How much revenue does a RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS franchise make?
According to the 2025 FDD, the average gross revenue for a RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS franchise is $365,126.61. The median revenue is $327,786.
How many RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS franchise locations are there?
As of the 2025 FDD, RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS has 564 franchise locations. The company has been franchising since 1989.
Can you get an SBA loan for a RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS franchise?
Yes, SBA loans are available for RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS franchises. Historical data shows 167 SBA 7(a) loans have been approved for RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS franchisees, with an average loan amount of $281,828. The historical default rate is 4.8%.
Is RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS a good franchise to buy?
RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS shows several positive indicators: established brand with 564+ locations, 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.
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