Abbott's Frozen Custard Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$439,600 - $1,778,000
Franchise Fee
$30,000
Min Cash Required
$25,000
Total US Locations
25
Business Summary
Abbott's Frozen Custard operates retail stands that sell frozen custard, soft drinks, and other approved desserts and food products to the public. These stand-alone businesses use a unique system developed by Abbott's Frozen Custard for preparing, marketing, distributing, and serving their frozen custard products. The franchise includes the right to use the Abbott's name, its product line (including the special Abbott's Frozen Custard Mix), and its operational methods.
Corporate History
Abbott's Frozen Custard, Inc. was incorporated in New York on March 3, 1964, building on a family-operated business that has existed for over 75 years and has been operating its type of business in Rochester, New York for over 65 years. Abbott's Frozen Custard began offering franchises for its stand-alone locations in 1977. In 2016, the company also introduced a 'stand-within-a-store' licensing concept for existing restaurants to offer Abbott's products, but this co-branded concept is no longer offered.
Financial Overview
Investment Range
$439,600 - $1,778,000
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$37,000
Minimum Cash Required
$25,000
Royalty %
5.5%
Marketing %
2%
Equipment Costs (Low)
$340,900
Equipment Costs (High)
$1,627,000
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Abbott's Frozen Custard's financial statements for the fiscal years ended October 31, 2023, 2022, and 2021 have been audited. The independent auditor issued an unqualified opinion, which means the financial statements present fairly, in all material respects, the company's financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. No specific notes regarding financial health, such as going concern qualifications or working capital concerns, are explicitly detailed in Item 21 or the auditor's report beyond this opinion.
Financing Details
Abbott's Frozen Custard does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any notes, leases, or other financial obligations for franchisees, but may recommend financial institutions to prospective franchisees.
Performance Metrics
Total US Locations
25
Franchised Units
19
Corporate Units
6
Franchising Since
1977
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Abbott's Frozen Custard has no litigation required to be disclosed in this item, meaning there are no pending administrative, criminal, or civil actions against the franchisor, its predecessor, key personnel, or affiliates related to franchise, antitrust, or securities laws, fraud, or other significant business litigation.
Bankruptcy History
Abbott's Frozen Custard has no bankruptcy information required to be disclosed in this item for the franchisor or its management.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Abbott's Frozen Custard franchisees must provide written notice between six and twelve months before their initial agreement ends. They must sign Abbott's then-current standard franchise agreement, which may include different terms, such as a higher royalty fee, and also sign a general release of claims against Abbott's Frozen Custard. Franchisees must not be in default of any part of their agreement and must have paid all money owed to Abbott's Frozen Custard. Additionally, they are required to renovate and modernize their location to meet Abbott's current standards and specifications, and pay a renewal fee equal to one-quarter of the then-current initial franchise fee.
Training & Support Program
Franchisor Assistance
Before opening, Abbott's Frozen Custard provides initial training for the franchisee and up to two staff members, loans a copy of the operations manual, works to maintain high brand standards, establishes uniform supplier criteria, and approves the location's architecture, layout, and appearance. They also provide a list of approved equipment and inventory, and may conduct inspection visits during construction. For development agreement franchisees, Abbott's Frozen Custard offers site selection guidance and assistance in finding approved locations. After opening, Abbott's Frozen Custard provides continuing advisory assistance in person, online, or through bulletins. They continue to maintain high standards across all locations and inspect franchised businesses and their operations as needed. Abbott's Frozen Custard also administers an advertising fund, reviews and approves all franchisee marketing materials, and requires participation in promotional programs. Franchisees are required to purchase and install specific computer hardware and software for electronic communications and sales recording, and Abbott's Frozen Custard may require maintenance or upgrades to this equipment. Mandatory additional training programs may be offered for a fee, with franchisees covering their travel, lodging, and meal expenses.
Initial Training Hours
63
Training Location
Rochester, NY and at the franchisee's location
Ongoing Support
After opening, Abbott's Frozen Custard provides ongoing advisory assistance, which can be delivered in person, over the Internet, or through electronic or written bulletins. They also conduct inspections of franchised businesses and their operations as they deem appropriate to ensure brand standards are maintained. Franchisees are required to pay for computer software and hardware maintenance and updates. Abbott's Frozen Custard may also offer additional mandatory training programs, for which franchisees will be charged a fee and will be responsible for their own travel, lodging, and meal expenses.
Franchise Requirements
Ideal Candidate Profile
Abbott's Frozen Custard requires franchisees to actively participate in the day-to-day operation of their business. The franchise will only be granted if it is under the direct, on-premises supervision of either a member of the franchisee's immediate family, or, if the franchisee is a corporation, a person who owns at least one-third of the corporate equity or a designated business manager approved and trained by Abbott's Frozen Custard. The on-site supervisor must successfully complete Abbott's initial training program.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
For a single Abbott's Frozen Custard franchise, the territory is limited to the specific approved location, and no exclusive or protected territorial rights are granted. For franchisees who enter into a Development Agreement to open multiple stands, Abbott's Frozen Custard grants an exclusive development area. This Development Area is defined geographically (e.g., by highways, state, county, or town lines) and must have a minimum population of approximately 10,000 persons.
Staffing Notes
Abbott's Frozen Custard requires the franchisee to actively participate in the business operation, ensuring direct, on-premises supervision by the owner, a family member, or an approved manager. This supervisor must complete initial training to Abbott's Frozen Custard's satisfaction. While Abbott's Frozen Custard does not assist with or control other employee-related decisions (hiring, firing, wages, benefits), they may require supervisory employees to sign confidentiality and non-competition agreements to protect the System's information.