Risk Score
Pending analysis
Investment Range
$59,548 - $211,417
Franchise Fee
$33,750
Min Cash Required
$10,000
Total US Locations
109
Business Summary
Frios Franchising Company, LLC offers franchises for Frios gourmet pops, a mobile business that sells specialty gourmet ice pops and other menu items. Franchisees operate this business from a Frios Sweet Ride Van, a Happiness Hauler Trailer, or multiple Nelson Carts. Franchisees also have the option to sell Frios gourmet pops on a wholesale basis to other businesses for retail to customers.
Corporate History
Frios Franchising Company, LLC was established as a Delaware limited liability company on December 19, 2018. It initially operated under the name FGP Franchising, LLC before changing to Frios Franchising Company, LLC. On December 21, 2018, the company acquired the assets related to the Frios gourmet pops system from its predecessor, FRIOS Gourmet Pops LLC, and simultaneously began offering Frios franchises.
Financial Overview
Investment Range
$59,548 - $211,417
Franchise Fee (Low)
$33,750
Franchise Fee (High)
$37,500
Minimum Cash Required
$10,000
Equipment Costs (Low)
$3,048
Equipment Costs (High)
$27,417
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Frios Franchising Company, LLC has a negative net worth of $(254,003) as of December 31, 2024. This financial condition, as reflected in its financial statements, calls into question the franchisor's financial ability to provide services and support to franchisees, as noted in the FDD's special risks section.
Financing Details
Frios Franchising Company, LLC does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any franchisee's notes, leases, or other financial obligations. Franchisees are responsible for securing their own funding.
Performance Metrics
Total US Locations
109
Franchised Units
108
Corporate Units
1
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Frios Franchising Company, LLC has no litigation to report, as stated in Item 3 of its Franchise Disclosure Document. No litigation is required to be disclosed in this item.
Bankruptcy History
Frios Franchising Company, LLC has no bankruptcy history to report, as stated in Item 4 of its Franchise Disclosure Document. No bankruptcy information is required to be disclosed in this item.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Frios franchisees must be in compliance with the terms of their Franchise Agreement, provide Frios Franchising Company, LLC with 180 days prior written notice of their request, and sign Frios Franchising Company, LLC's then-current Franchise Agreement and related agreements for the renewal term. They must also sign a general release in Frios Franchising Company, LLC's favor, remodel and upgrade their Sweet Ride Van, Happiness Hauler Trailer, and/or Nelson Carts to meet current brand standards. Additionally, franchisees must secure and possess the legal right to continue operating their mobile units and meet all other renewal requirements in the Franchise Agreement. All owners and their spouses must also comply with their agreements with Frios Franchising Company, LLC and personally guarantee the terms of the renewal Franchise Agreement, which may have materially different terms.
Training & Support Program
Franchisor Assistance
Frios Franchising Company, LLC provides pre-opening assistance by granting the right to operate and approving the franchisee's territory. It offers access to confidential operations manuals and lists of approved suppliers, distributors, signage, equipment, and fixtures, also reviewing and approving proposed items. Frios Franchising Company, LLC ensures the franchisee's business is listed on its website and provides initial training for the managing owner and one designated manager at its facilities (or virtually), with the franchisee responsible for travel and lodging costs. For ongoing support, Frios Franchising Company, LLC may require and provide supplemental training for which franchisees pay a fee plus expenses, and offers initial training for replacement managers for a fee plus expenses. It communicates updated operating standards, including new products, supplies, and marketing guidelines, and reviews and approves all marketing materials. Frios Franchising Company, LLC provides lists of approved vendors and may coordinate an annual conference, for which franchisees pay attendance and travel costs. While Frios Franchising Company, LLC has the right to administer marketing funds and advertising cooperatives, these are currently not assessed. Franchisees are solely responsible for their own employee hiring and training. Regarding computer systems, Frios Franchising Company, LLC designates the point-of-sale and business management systems, currently Square, and requires an iPad. Franchisees must purchase, license, and maintain these systems, granting Frios Franchising Company, LLC direct access to all business data.
Initial Training Hours
14
Training Location
Pittsburgh, Pennsylvania or Fort Worth, Texas or virtually
Ongoing Support
Frios Franchising Company, LLC offers ongoing support through supplemental training programs, which franchisees may be required to attend for a fee plus expenses. This also includes initial training for replacement managers, who also incur a fee and expenses. Frios Franchising Company, LLC communicates updated operating standards, including new products, supplies, and marketing guidelines, and provides lists of approved vendors. Franchisees may attend an annual system conference, for which they pay an attendance fee and cover travel costs. Frios Franchising Company, LLC has the right to administer marketing funds and advertising cooperatives, though these are not currently assessed.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Mobile
Owner Participation
full-time
Territory Type
Non-Exclusive
Territory Size Requirements
Frios Franchising Company, LLC defines each territory as a geographic area that includes a population of up to 150,000 people. This population is calculated based on raw data and does not consider demographics or age. Additional territories are similarly defined with a population of approximately 150,000 people each.
Staffing Notes
Frios Franchising Company, LLC does not assist franchisees with hiring or training employees, stating that franchisees are directly responsible for the daily management and supervision of their own staff. Franchisees must ensure all employees wear approved branded uniforms and prepare, maintain, and serve all Approved Services and Products in accordance with Frios Franchising Company, LLC's System standards and manuals.