Risk Score
Pending analysis
Investment Range
$350,650 - $594,900
Franchise Fee
$30,000
Total US Locations
8
Business Summary
Crispy Cones operates dessert and sweet treat stores offering gourmet European-style ice cream and fruit cones, along with other food and drink items. Crispy Cones features fresh dough cones, grilled rotisserie-style, covered with cinnamon and sugar or specialty coverings, and filled with spread, gourmet soft-serve ice cream, fruit, and various toppings. Franchisees run these branded stores, which have a distinctive design and follow specific recipes and operational procedures.
Corporate History
The Crispy Cones brand began in Rexburg, Idaho, in May 2018 with the goal of reinventing the soft serve cone. Crispy Cones Corporate, an affiliate, operates these initial locations. Crispy Cones Franchising, LLC, the franchisor entity, was formed in December 2021 and began selling franchises in July 2022.
Financial Overview
Investment Range
$350,650 - $594,900
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$35,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$265,000
Equipment Costs (High)
$435,000
Working Capital
$8,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Crispy Cones' financial condition raises questions about its ability to provide services and support to franchisees, as noted in the FDD's Special Risks section. Additionally, the franchisor's stockholders' equity as of December 31, 2024, was negative $108,566, indicating financial instability.
Financing Details
Crispy Cones does not offer any direct or indirect financing to franchisees. This means franchisees must secure their own funding, and Crispy Cones will not guarantee any leases, notes, or other obligations.
Performance Metrics
Total US Locations
8
Franchised Units
5
Corporate Units
3
Avg Square Footage
1,150
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Crispy Cones has no litigation to report. Item 3 of the FDD states that no litigation is required to be disclosed.
Bankruptcy History
Crispy Cones has no bankruptcy history. Item 4 of the FDD states that no bankruptcy is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Crispy Cones franchise, franchisees must provide 180 days' prior written notice. They need to ensure their lease for the premises covers the renewal term and must not be in default of their Franchise Agreement or any other agreements with Crispy Cones, its affiliates, suppliers, or creditors. Franchisees are required to remodel, modernize, and redecorate their store at their own expense to match the then-current appearance and standards of new Crispy Cones locations. They must also sign Crispy Cones' current franchise agreement, which may have different terms, pay a non-refundable renewal fee of $3,500, and sign a general release of all claims against Crispy Cones and its associated entities.
Training & Support Program
Franchisor Assistance
Crispy Cones provides pre-opening assistance, including approving the site location and providing general specifications for store layout, signs, equipment, and interior décor. Crispy Cones also provides a list of approved suppliers for inventory, equipment, and other items, and conducts a final inspection of the premises before opening. Initial training is provided for up to two individuals, and Crispy Cones offers up to two weeks of in-store opening assistance. Ongoing support includes electronic access to the Brand Standards Manual, general guidance on operations, periodic inspections, and the availability of additional training (for a fee). Crispy Cones also administers a system-wide advertising fund, maintains a website with a specific webpage for each store, and manages a system-wide gift card and loyalty program. Crispy Cones may also conduct national or regional conferences for franchisees.
Initial Training Hours
73
Training Location
Rexburg, Idaho area
Ongoing Support
Crispy Cones provides several types of ongoing support after a franchisee's store opens. Franchisees receive electronic access to the Brand Standards Manual, which covers operational procedures, and get general guidance and consultation upon request. Crispy Cones conducts reasonable inspections of the stores and offers additional training or refresher programs for personnel, with fees charged for such training. Crispy Cones also administers a system-wide advertising fund and provides marketing materials, maintains a system-wide website with a dedicated webpage for each store, and manages a gift card and loyalty program. Additionally, Crispy Cones may offer guidance on pricing and conduct national or regional conferences for franchisees.
Franchise Requirements
Ideal Candidate Profile
Crispy Cones seeks franchisees (or their approved general managers) who are committed to operating and directly supervising the store on a full-time basis. They must not engage in any other business activities that would conflict with these significant management and time commitments. If a general manager leaves, the Principal Owner or another trained individual must step in to manage operations until a new trained manager is in place. The franchisee or general manager must successfully complete Crispy Cones' 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
Full-Time
Territory Type
Limited
Staff Count
15
Territory Size Requirements
Crispy Cones defines territory sizes on a case-by-case basis. They consider factors like population density, the existing business base, whether the area is metropolitan or rural, and other comparable conditions. Territories can be defined using zip codes, county lines, designated market areas, a radius from a specific address, or other clear boundaries.
Staffing Notes
Crispy Cones expects a manager to be on duty at all times to oversee business operations. Franchisees must hire and maintain a sufficient number of adequately trained and competent employees to ensure efficient customer service. For startup, Crispy Cones estimates a need for 15 employees working approximately 15 hours per week during the first three months of operation. The Principal Owner or a designated general manager must successfully complete the initial training program to manage the day-to-day operations.