Dumont Creamery and Café Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$271,200 - $572,500
Franchise Fee
$30,000
Total US Locations
1
Business Summary
Dumont Creamery and Café operates cafes that offer ice cream, bubble tea, and coffee beverages using a unique system. This system includes distinctive signage, interior and exterior design, special recipes, uniform operating standards, inventory and financial control procedures, and training and advertising programs. Dumont Creamery and Café franchisees operate these cafes, which are typically located in retail spaces like shopping centers.
Corporate History
Dumont Creamery and Café, LLC was formed on August 27, 2024, in Texas. The company began offering Dumont Creamery and Café franchises in October 2024. As of the FDD issuance date, Dumont Creamery and Café has one operating company-owned café. Its affiliate, Dessert Delight Foods, LLC, formed in August 2023, sells food and other items to the franchisees.
Financial Overview
Investment Range
$271,200 - $572,500
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$30,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$170,000
Equipment Costs (High)
$400,000
Working Capital
$40,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Dumont Creamery and Café is a very new company, formed in August 2024, with a limited operating history. As of November 25, 2024, its financial statements show minimal assets of $1,000 and no income or expenses from operations between October and November 2024. The independent auditor's report outlines the management's responsibility to evaluate if conditions raise substantial doubt about the company's ability to continue as a going concern, and the auditor's responsibility to conclude on this, but does not explicitly state a going concern qualification in its opinion. However, the short operating history and minimal financial activity suggest a higher investment risk compared to a more established system, as noted in the 'Special Risks to Consider About This Franchise' section.
Financing Details
Dumont Creamery and Café does not offer any direct or indirect financing options to its franchisees. It also does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
1
Franchised Units
1
Corporate Units
0
Avg Square Footage
1,750
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Dumont Creamery and Café 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
Dumont Creamery and Café has no bankruptcy history to report. Item 4 of the Franchise Disclosure Document explicitly states that no bankruptcies are required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Dumont Creamery and Café franchise, franchisees must provide timely written notice to the franchisor between 9 and 12 months before their initial agreement ends. They must be in good standing, meaning they are not in default of any agreements with Dumont Creamery and Café or their landlord, and all financial obligations must be satisfied. Franchisees are required to sign Dumont Creamery and Café's then-current franchise agreement, which may have different terms, and pay a renewal fee of $5,000 (subject to inflation adjustment). They must also sign a general release of claims against Dumont Creamery and Café and agree to renovate, refurbish, and modernize their café to meet current standards. Additionally, franchisees must complete any new training programs required for renewal and provide proof of their right to remain in their premises or secure an acceptable alternative site for the new term.
Training & Support Program
Franchisor Assistance
Before opening, Dumont Creamery and Café provides franchisees with a Confidential Operations Manual, reviews and approves the proposed café location, and offers sample construction plans. They also provide pre-opening on-site support, mandatory specifications for equipment and initial inventory, and initial training for the franchisee and manager in Coppell, Texas. Dumont Creamery and Café will also establish an internet presence for the business and advise on grand opening advertising. After opening, Dumont Creamery and Café offers general advisory assistance and field support, makes goods and services available through approved suppliers, and periodically updates the Operations Manual. They strive to maintain high quality standards and may conduct periodic inspections and evaluations. Franchisees may also access advertising materials (which they must purchase) and may be required to attend regional or national conferences for which they pay a fee. Additional mandatory and optional training may be offered, potentially incurring a daily fee per person plus trainer expenses. Dumont Creamery and Café will also provide three days of on-site opening assistance at the franchisee's café.
Initial Training Hours
141
Training Location
Coppell, Texas
Ongoing Support
After opening, Dumont Creamery and Café provides franchisees with general advisory assistance and field support as deemed helpful. They make goods and services available directly or through approved suppliers and periodically revise the Confidential Operations Manual, providing updates to franchisees. Dumont Creamery and Café works to maintain high standards of quality, cleanliness, safety, and customer service. They may hold statewide, regional, or national conferences, which franchisees are required to attend and pay a fee for, covering their own travel and lodging. Periodic inspections of the café and evaluations of products and services are conducted. Franchisees also gain access to advertising and promotional materials developed by Dumont Creamery and Café, which they must purchase if used. Additional mandatory and optional training is available; Dumont Creamery and Café anticipates offering no more than two additional two-day training programs annually, and franchisees must cover their own and their employees' expenses, with a potential fee of up to $500 per day per person plus trainer per diem. Dumont Creamery and Café provides three days of pre-opening on-site assistance at the café.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
Dumont Creamery and Café defines its franchise territories as at least three miles, measured from the front door of the café. However, there is no minimum area for a territory, and if a café is at a non-traditional site, no territory is given. Dumont Creamery and Café generally uses United States Census estimates to determine the population within a territory.
Staffing Notes
Dumont Creamery and Café franchisees are required to hire and maintain a sufficient number of qualified and competent personnel to offer prompt, courteous, and efficient service, and operate the café in compliance with the system. All employees must adhere to Dumont Creamery and Café's dress code and appearance standards, including wearing uniforms. The café must be supervised by the franchisee or a designated, fully trained General Manager who dedicates full-time effort to operations. Franchisees must inform Dumont Creamery and Café of their General Manager's identity, and all management or supervisory employees must sign a Confidentiality and Non-Competition Agreement. Franchisees are solely responsible for all aspects of employee management, including recruitment, hiring, training, wages, taxes, benefits, safety, scheduling, work conditions, assignments, discipline, and termination. Dumont Creamery and Café and its franchisees are not joint employers.