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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.
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Franchise Costs
6% royalty + 2% ad fund + $325/mo technology fee
Financial Performance
Item 19 Financial Performance
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
Avg. Revenue: $459,277
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Unlock financial performance dataTHE ORIGINAL RAINBOW CONE Franchise Analysis
Picture a towering stack of five ice cream flavors defying gravity—that's the signature draw of The Original Rainbow Cone, a Chicago icon venturing into franchising. With Item 19 laying bare unit financials and a handful of SBA loans painting the funding picture, this multi-format dessert player hints at untapped potential amid stiff competition. But can its rapid expansion and corporate backbone deliver the sweet payoff investors crave?
Item 7 in the 2025 FDD details a hefty initial investment of $804,000 to $1,362,653 for setups ranging from standalone restaurants to food trucks, with a $40,000 franchise fee upfront. Ongoing costs include 6% royalty, 2% ad fund, and a $325 monthly technology fee. Item 19 discloses average gross sales of $459,277 per unit, but flags a 0% EBITDA margin alongside estimated profits from $287,303 to $494,451—pointing to tight operations where revenue covers costs without much cushion.
The system's youth shows in franchise growth exploding 200% from 2 to 6 locations between 2023 and 2024, backed by 19 corporate outlets and plans for 6 more units. Two SBA loans averaging $1,525,000 underline financing feasibility for this capital-intensive play. In high-traffic dessert markets, the Rainbow Cone's novelty plus mini-donuts and shakes could drive traffic, but buyers must weigh the slim margins against the brand's flexibility and small network size for scalable returns.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How THE ORIGINAL RAINBOW CONE Compares
Key Insights
- Higher investment than 100% of Desserts & Ice Cream franchises
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
THE ORIGINAL RAINBOW CONE Current | $804K – $1.4M | $40K | 6.0% | 6 |
| RITA'S FRANCHISE COMPANY, LLC; RITA'S ICE-CUSTARD-HAPPINESS | $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 |
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 (2024)
Outlets by state across the United States
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for THE ORIGINAL RAINBOW CONE franchisees (2024 – 2024)
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.
2 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
23 franchisee contacts on file from official FDD filings.
23 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
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 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.
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