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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.
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Franchise Costs
6.5% royalty + 3% ad fund + $150/mo technology fee
Financial Performance
Item 19 Financial Performance
Data Based On: 530 Shops that reported Gross Sales during the 2025 Season (the '2025 Sample')
* Calculated weighted average gross revenue from Table 1 tiers for the 530-shop '2025 Sample': (177 shops × $558,103 + 176 shops × $345,566 + 177 shops × $220,095) / (177 + 176 + 177) = $374,642.76. Median gross revenue is taken from the 'Average' column of Table 4, which is $342,175. Average gross profit is calculated using the 'Average' column data from Table 4 (which reflects 503 shops open for at least 26 weeks): Avg. Sales ($375,779) - Avg. Food, Paper, & Fuel Surcharge Costs ($64,957) = $310,822. Net profit figures (net income, net profit, EBITDA) and their estimated ranges are not calculable as the document explicitly states that operating expenses and other costs (e.g., rent) are not included in the provided figures.
Extracted Item 19 Section
Avg. Revenue: $374,643
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Unlock financial performance dataRITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS Franchise Analysis
Rita's Ice-Custard-Happiness has been franchising frozen treats since 1989, building a network now at 569 locations, but its modest growth trajectory raises questions about momentum in a seasonal, weather-dependent market. Item 19 finally discloses revenue figures that reveal performance disparities, while a history of franchisee litigation and high system transfers suggests underlying pressures. Is this a stable scoop or a melting investment opportunity?
The system's track record shows steady but slow expansion: from 564 locations in 2024 to 569 in 2025 (+1%), with 33 projected new units signaling cautious optimism under parent Maple Park Capital. However, red flags abound—10 terminations, 4 non-renewals, and 46 transfers indicate franchisee churn, compounded by a resolved 2023-2024 class action alleging disclosure violations and unfair practices under California law. Item 7 pegs initial investment at $315,233-$712,542 (franchise fee $35,000), with ongoing fees of 6.5% royalty, 3% ad fund, and $150/month technology surcharge—positioning Rita's as mid-range for desserts but vulnerable to competition and seasonality.
Financials from Item 19 offer clarity: average gross revenue $374,643, median $342,175 across units, implying solid top-line potential but thinner profits after fees (no direct net disclosed). SBA data reinforces viability with 167 loans averaging $281,828 and a low 4.8% default rate, better than many food concepts. For multi-unit developers, this could scale via express/satellite/mobile formats, but single-unit buyers face risks from low growth and past disputes—evaluate locations carefully as consumer tastes shift toward healthier options.
Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
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 – $713K | $35K | 6.5% | 569 |
| MENCHIE'S | $180K – $515K | $54K | 6.0% | 295 |
| DIPPIN' DOTS | $139K – $399K | $35K | 6.0% | 260 |
| MARBLE SLAB CREAMERY | $355K – $477K | $25K | 6.0% | 249 |
| BRUSTER'S | $415K – $1.1M | $40K | 5.0% | 219 |
| HAAGEN DAZS SHOP | $213K – $592K | $30K | 4.0% | 215 |
Desserts & Ice Cream Average 28 franchises | $326K – $656K | $37K | 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 (2025)
Outlets by state across the United States
+16 more states
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Unlock location growth dataSBA 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.
167 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
637 franchisee contacts on file from official FDD filings.
637 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Franchisee class action and related arbitrations alleging violations of California Franchise Investment Law, material modifications to agreements, inadequate disclosures, and unfair practices; resolved via settlements in 2023-2024.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently 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 $712,542. This includes a franchise fee of $35,000. Ongoing royalty fees are 6.5% of gross sales.
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