Risk Score
Pending analysis
Investment Range
$409,033 - $2,644,060
Franchise Fee
$20,000
Total US Locations
206
Business Summary
Bruster's Real Ice Cream franchises operate retail ice cream stores that offer premium ice cream, sherbet, Italian ices, and related products. Bruster's products are made fresh on-site every day. These stores can be either freestanding buildings or end-cap locations within strip malls, typically ranging from 1,400 to 1,600 square feet and decorated according to Bruster's specifications.
Corporate History
Bruster's Limited Partnership was organized as a Pennsylvania limited partnership on March 17, 1993, and began offering Bruster's Real Ice Cream franchises around the same time. Bruster's Ice Cream, Inc. (BICI), a Pennsylvania corporation organized on March 1, 1993, serves as the sole general partner for Bruster's Limited Partnership and owns the 'Bruster's' trademarks. Bruce Reed, who is President of BICI, founded Bruster's and has served as its Director of Franchise Operations since 1993. The Bruce Reed Business Trust, organized in October 1993, oversees the management of franchised stores and employs all Bruster's staff except Bruce Reed.
Financial Overview
Investment Range
$409,033 - $2,644,060
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$40,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$32,000
Equipment Costs (High)
$256,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Bruster's reports positive net income, with $2,574,003 in 2024 and $1,883,858 in 2023. The company has over $9 million in partners' capital. A notable aspect of Bruster's financial position is a significant portion of its current assets, specifically notes and advances totaling over $12 million in 2024, that are receivable from related parties, including founder Bruce Reed and an affiliated business trust. While the company's financial statements receive an unqualified opinion from its independent auditors, the auditors highlight management's responsibility to evaluate conditions that might raise substantial doubt about Bruster's ability to continue as a going concern, though no such qualification is part of the audit opinion itself. The company maintains a healthy current asset to liability ratio, suggesting overall financial stability, assuming the related party receivables are liquid.
Financing Details
Bruster's does not offer any direct or indirect financing to its franchisees. Additionally, Bruster's does not guarantee any notes, leases, or other financial obligations that a franchisee might incur.
Performance Metrics
Total US Locations
206
Franchised Units
205
Corporate Units
1
Avg Square Footage
1,500
Franchising Since
1993
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Bruster's has no litigation history to report. Item 3 of the Franchise Disclosure Document explicitly states that no litigation is required to be disclosed.
Bankruptcy History
Bruster's has no bankruptcy history to report. Item 4 of the Franchise Disclosure Document explicitly states that no bankruptcy is required to be disclosed for the franchisor or its management.
Agreement Terms
Initial Term
11 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Bruster's franchisees must provide timely written notice of their intent to renew between three and six months before the current agreement ends. They must also refurbish their Bruster's location to meet the then-current brand standards for new stores and ensure they have complied with all terms of their franchise agreement, including all financial obligations, throughout the entire term. Franchisees must sign Bruster's then-current franchise agreement, which may contain different terms, as well as a mutual general release. Additionally, they must meet current personnel and training requirements and demonstrate their legal right to remain at their approved location.
Training & Support Program
Franchisor Assistance
Bruster's provides a range of assistance to its franchisees both before and after opening. Pre-opening support includes site selection guidelines and counseling, one on-site evaluation of a proposed location, and review of lease and design plans. Bruster's also provides standard layout specifications, a confidential Brand Manual, initial training, and assistance in developing a grand opening marketing program. A Bruster's representative will also be present at the store's opening. Ongoing assistance includes periodic support in marketing, management, and operations, regular visits and advice from field consultants, and periodic ongoing training as deemed appropriate by Bruster's.
Initial Training Hours
82
Training Location
Bridgewater, PA
Ongoing Support
Bruster's provides continuous support to its franchisees after their store opens. This includes periodic assistance in marketing, management, and daily operations, with the timing and manner determined by Bruster's. Franchisees also receive regular visits from Bruster's field consultants who offer advice. Additionally, Bruster's provides ongoing training programs as deemed appropriate, which may take place at various locations or times.
Franchise Requirements
Ideal Candidate Profile
Bruster's seeks franchisees with strong financial resources and a suitable educational and work background. Ideal candidates should also demonstrate a good personality fit and the ability to work effectively with the Bruster's team. Bruster's considers these factors carefully when awarding franchises.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
protected
Staff Count
33
Territory Size Requirements
Bruster's assigns a protected territory based on the approved store location, which typically includes 75,000 people and extends up to a six-mile radius. However, Bruster's notes that the territory size may vary, potentially being smaller or larger, depending on factors such as population density in the specific area.
Staffing Notes
Bruster's requires franchisees to maintain a sufficient and competent staff to service customers and adhere to staffing and service criteria. This includes employing at least one general manager and one assistant manager if the Operating Owner is not a full-time manager. Bruster's also expects all staff to cooperate with representatives, comply with brand dress codes and personal appearance standards, and foster a positive work environment. For opening, Bruster's trains an opening team of 30-35 Ice Cream Scoopers. Any new Ice Cream Scoopers must complete Bruster's online training prior to their first shift.