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.
Franchise Costs
6.5% royalty + 3% ad fund + $150/mo technology fee
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
Key Insights
- #1 largest franchise system in Desserts & Ice Cream
- Lower than average SBA loan default rate in Desserts & Ice Cream
| Franchise | Investment | 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 – $657K | $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
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
611 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
611 Contacts Available
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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)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
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.
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