Fosters Freeze International Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$178,000 - $1,009,000
Franchise Fee
$45,000
Total US Locations
61
Business Summary
Fosters Freeze businesses operate restaurants that primarily offer soft serve confections and a variety of other food items like hamburgers and hot sandwiches. These locations are available in traditional restaurant settings, such as stand-alone buildings with dine-in and drive-thru options, and in non-traditional places like co-located spots within convenience stores or gas stations. Fosters Freeze also offers specialized Confections Restaurants that focus solely on soft serve treats.
Corporate History
The Fosters Freeze brand originated in 1946 with its earlier predecessors operating soft serve confection locations. The Fosters Freeze system began offering licenses or franchises in the late 1940s, with a predecessor entity, Fosters Freeze, LLC, continuing franchise offerings from February 2002. Fosters Freeze International, LLC, the current franchisor, was formed in March 2015 and acquired the Fosters Freeze trademarks and system assets in June 2015, continuing the franchise offerings from that point.
Financial Overview
Investment Range
$178,000 - $1,009,000
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$150,000
Royalty %
4%
Marketing %
3%
Equipment Costs (Low)
$60,000
Equipment Costs (High)
$750,000
Working Capital
$22,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The financial statements for Fosters Freeze International, LLC indicate that the company has experienced recurring losses from its operations and currently has a working capital deficiency. These financial factors raise significant doubt about the company's ability to continue its operations in the long term.
Financing Details
Fosters Freeze International, LLC does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any notes, leases, or other financial obligations incurred by its franchisees.
Performance Metrics
Total US Locations
61
Franchised Units
61
Corporate Units
0
Avg Square Footage
1,475
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Fosters Freeze International, LLC has no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document. This means Fosters Freeze International, LLC, its predecessors, or key management personnel have not been involved in any material litigation in the past three years that would require disclosure.
Bankruptcy History
Fosters Freeze International, LLC has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document. This means neither the franchisor nor its executives have filed for bankruptcy that would require disclosure.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Fosters Freeze International, LLC franchisees and their owners must notify the franchisor in writing between 60 and 180 days before their current term ends. They must be in good standing, not be in default of any agreements, and sign the franchisor's then-current franchise agreement and other required documents, which may have different terms, including higher royalties and advertising fees. A non-refundable renewal fee of 50% of the then-current initial franchise fee (or $22,500 if franchises are not being sold) is also required. Additionally, franchisees must upgrade and remodel their Fosters Freeze restaurant to meet current brand standards and ensure they have lease rights for the entire successor term.
Training & Support Program
Franchisor Assistance
Fosters Freeze International, LLC provides pre-opening assistance to its franchisees, including an initial training program for up to two people (with additional attendees incurring a fee), access to a Brand Standards Manual, advice for site selection, review of lease agreements, and basic specifications for restaurant design and layout. The franchisor also offers materials and consultation for grand opening marketing and on-site support (Opening Assistance) for the first two Fosters Freeze Restaurants opened under a Multi-3 or Multi-5 franchise. Ongoing assistance includes informing franchisees of mandatory standards and procedures, providing advice on operations based on reports or inspections, and offering guidance on advertising and marketing. Fosters Freeze International, LLC may also provide additional training for newly hired personnel, refresher courses, or special requested assistance (which may incur additional fees). The franchisor maintains a website for Fosters Freeze restaurants and may negotiate supplier agreements for the benefit of franchisees.
Initial Training Hours
160
Training Location
Initial training programs are held at a franchised Fosters Freeze Restaurant in California or Georgia, the training center in Salinas, California, or the corporate offices in Chino Hills, California.
Ongoing Support
After opening, Fosters Freeze International, LLC provides ongoing support by informing franchisees of mandatory operational standards, specifications, and procedures. The franchisor offers advice and guidance on business operations, advertising, and marketing, often based on performance reports or inspections. Additional training courses for new personnel, refresher training, and advanced training may be provided upon request or as required, potentially incurring additional fees. Franchisees also have continued access to the confidential Brand Standards Manual and the Fosters Freeze brand marks. The franchisor may also hold periodic national or regional conferences for franchisees.
Franchise Requirements
Ideal Candidate Profile
Fosters Freeze International, LLC seeks franchisees who are prepared for active, continuing, and substantial personal involvement in their Fosters Freeze business. The Operating Principal (owner or designated manager) must be actively involved in operations on a full-time basis, providing on-site management and supervision. If the franchisee is an entity, the Operating Principal must hold at least a 10% equity interest. The franchisor emphasizes that the success of the business largely depends on the franchisee's own business abilities, efforts, and judgments, as well as those of their employees.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
For Stand-Alone Restaurants, Fosters Freeze International, LLC grants a protected area that is typically a half-mile radius around the restaurant. This area is determined based on geographic and population properties, along with other relevant demographic characteristics.
Staffing Notes
Fosters Freeze International, LLC requires franchisees to determine appropriate staffing levels for their Fosters Freeze Business to comply with the System standards and the Franchise Agreement. Franchisees are solely responsible for hiring, training, and supervising their employees and independent contractors for day-to-day operations. Employees are considered solely the franchisee's responsibility, not the franchisor's. The franchisor does not control daily employee activities, hiring, or firing decisions. Franchisees must use their legal business entity name (not the Fosters Freeze brand name) on all employment-related documents and clearly inform employees of their independent employer status. If a Designated Manager is used, they must be approved by the franchisor and successfully complete initial training.