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THE ORIGINAL RAINBOW CONE

THE ORIGINAL RAINBOW CONE

Five Flavors Franchising LLC offers franchises for The Original Rainbow Cone businesses, which specialize in high-quality ice cream products including the signature Rainbow Cone, sundaes, shakes, cakes, packaged ice cream, and mini-donuts. Franchisees can operate in free-standing restaurants, in-line locations, express units within other businesses, or food trucks, following a proprietary system for operations, design, and marketing. The business targets ice cream consumers in competitive markets, including seasonal and high-traffic areas.

Food & BeverageBurr Ridge, ILwww.rainbowcone.com
Item 19 AvailableSBA Loan Data

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

Investment
$804,000 - $1,362,653
Franchise Fee
$40,000
Locations
6

Financial Requirements

Franchise Fee$40,000
Initial Investment Range$804,000 - $1,362,653
Royalty Rate6.00%
Brand Fund2.00%
Fixed Monthly Fees$325 - $325

6% royalty + 2% ad fund + $325/mo technology fee

Franchise Stats

Franchise Locations6
Corporate Locations19
States Operating7
Franchising SinceN/A
FDD Year2025

Financial Performance

Item 19 Financial Performance

Average Gross Revenue
$459,277.07
EBITDA Margin
28.28%
Average Gross Profit
$1,046,777
Average EBITDA
$371,909.33

Data Based On: Data for 15 affiliate-owned units (3 Free Standing, 11 Express, 1 Food Truck) for the fiscal year January 1, 2024 through December 29, 2024 (with some variations in reporting periods for specific units). No financial performance data was available for franchised units.

* Average Gross Revenue: Calculated a simple average of Gross Sales across all 15 affiliate-owned units (3 Free Standing, 11 Express, 1 Food Truck). Sum of all 15 Gross Sales / 15. Average Gross Profit: Calculated a simple average of 'Gross Profit (5)' for the 3 Free Standing affiliate-owned units. Average EBITDA: 'Income (18)' is defined as earnings before deductions for Rent, Real Estate Taxes, Personal Property Taxes, Interest Costs, Depreciation and Amortization or Income Tax. This aligns with the definition of EBITDA. Calculated a simple average of 'Income (18)' for the 3 Free Standing affiliate-owned units. EBITDA Margin Pct: Calculated as the average EBITDA for the 3 Free Standing units divided by the average Gross Sales for those same 3 units. Best Guess Profit Low/High: Uses the minimum and maximum values of 'Income (18)' (treated as EBITDA) from the 3 Free Standing affiliate-owned units as an estimated profit range. Median Gross Revenue, Revenue Top Quartile, Revenue Bottom Quartile, Average Net Income, Average Net Profit: Set to null as the data was not presented in segmented format, nor were these specific metrics explicitly defined or separable from EBITDA based on the provided definitions.

Extracted Item 19 Section

How THE ORIGINAL RAINBOW CONE Compares to Other Desserts & Ice Cream Franchises

Key Insights

  • Higher investment than 100% of Desserts & Ice Cream franchises
FranchiseInvestment RangeFranchise FeeRoyaltyLocations
THE ORIGINAL RAINBOW CONE
Current
$804K - $1.4M$40K6.0%6
RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS$315K - $771K$35K6.5%564
MENCHIE'S$165K - $425K$40K6.0%296
DIPPIN' DOTS$139K - $399K$35K6.0%260
MARBLE SLAB CREAMERY$355K - $477K$25K6.0%249
HAAGEN DAZS SHOP$215K - $568K$30K4.0%207
Desserts & Ice Cream Average
28 franchises
$327K - $659K$36K7.0%-

* 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 by Outlet Count
1FL
2
2IL
1
3IN
1
4MI
1
5TX
1
6CA
0

SBA Loan History

Historical SBA 7(a) loan data for THE ORIGINAL RAINBOW CONE franchisees (2024 - 2024)

Total Loans
2
Average Loan Amount
$1,525,000
Total Loan Volume
$3,050,000
Default Rate
0.0%

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)

Franchisee Litigation Cases0

No litigation involving franchisees reported in the FDD.

Bankruptcy (Item 4)

Bankruptcy HistoryNo

No bankruptcy history reported in the FDD.

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
0
Non-Renewals
0
Reacquired by Franchisor
0
Ceased Operations (Other)
0
System Transfers
0
Sold to Franchisees
0
Projected New Franchises
6

Frequently Asked Questions

How much does it cost to open a THE ORIGINAL RAINBOW CONE franchise?

The total initial investment to open a THE ORIGINAL RAINBOW CONE franchise ranges from $804,000 to $1,362,653. This includes a franchise fee of $40,000. Ongoing royalty fees are 6.0% of gross sales.

How much revenue does a THE ORIGINAL RAINBOW CONE franchise make?

According to the 2025 FDD, the average gross revenue for a THE ORIGINAL RAINBOW CONE franchise is $459,277.07.

How much profit can you make with a THE ORIGINAL RAINBOW CONE franchise?

Based on the financial performance data in the FDD, estimated profit for a THE ORIGINAL RAINBOW CONE franchise ranges from $287,303 to $494,451 per year. Actual results vary based on location, management, and market conditions.

How many THE ORIGINAL RAINBOW CONE franchise locations are there?

As of the 2025 FDD, THE ORIGINAL RAINBOW CONE has 6 franchise locations.

Can you get an SBA loan for a THE ORIGINAL RAINBOW CONE franchise?

Yes, SBA loans are available for THE ORIGINAL RAINBOW CONE franchises. Historical data shows 2 SBA 7(a) loans have been approved for THE ORIGINAL RAINBOW CONE franchisees, with an average loan amount of $1,525,000. The historical default rate is 0.0%.

Is THE ORIGINAL RAINBOW CONE a good franchise to buy?

THE ORIGINAL RAINBOW CONE 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 THE ORIGINAL RAINBOW CONE?

Talk to a franchise advisor to get personalized guidance and learn if THE ORIGINAL RAINBOW CONE is the right fit for you.

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