Haagen-Dazs Shop Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$14,500 - $5,720,418
Min Cash Required
$10,250
Total US Locations
207
Business Summary
Häagen-Dazs Shoppe Company, Inc. franchisees operate ice cream parlors that serve dessert creations made with proprietary recipes using Häagen-Dazs brand ice cream and frozen dessert products.
Corporate History
The Häagen-Dazs Shoppe Company, Inc. (Shoppe Company) is a New Jersey business corporation that has been offering franchises for Häagen-Dazs ice cream Shops since July 11, 1983. The company was an indirect subsidiary of Nestlé S.A. until January 31, 2020, when Nestlé S.A. sold its U.S. ice cream business, including Shoppe Company and Dreyer's, to Froneri US, Inc. Shoppe Company is now ultimately owned by Froneri International Limited.
Financial Overview
Investment Range
$14,500 - $5,720,418
Franchise Fee (High)
$365,000
Minimum Cash Required
$10,250
Royalty %
4%
Marketing %
1%
Equipment Costs (Low)
$155,000
Equipment Costs (High)
$440,000
Working Capital
$36,875
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition, as reflected in its financial statements, calls into question Häagen-Dazs Shoppe Company's financial ability to provide services and support to its franchisees.
Financing Details
Häagen-Dazs Shoppe Company does not offer direct or indirect financing to franchisees. They also do not guarantee any franchisee notes, leases, or other financial obligations. Franchisees are responsible for arranging their own funding.
Performance Metrics
Total US Locations
207
Franchised Units
207
Corporate Units
0
Avg Square Footage
750
Franchising Since
1983
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Häagen-Dazs Shoppe Company has no litigation to report, as no litigation is required to be disclosed in Item 3 of this FDD.
Bankruptcy History
Häagen-Dazs Shoppe Company has no bankruptcy history to report, as no bankruptcy information is required to be disclosed in Item 4 of this FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Häagen-Dazs Shoppe Company franchisees must submit a written request 180 to 270 days before their agreement expires. They must be current in all financial obligations to the franchisor and its affiliates for the last two years of the term, have consistently operated the shop in accordance with operational requirements (including passing all audits/inspections), participated in all marketing promotions, and meet the franchisor's current financial requirements, which may include demonstrating the ability to remodel the shop. If required, the Designated Shop Manager must attend training. Franchisees must also sign the then-current form of renewal agreement, which may have substantially different terms and conditions from the original agreement. Remodeling to current design criteria may be required during the first year of the successive term.
Training & Support Program
Franchisor Assistance
Before opening a new shop, Häagen-Dazs Shoppe Company provides a site evaluation package, prototypical design information, and specifications for equipment, fixtures, furnishings, signage, inventory, and a list of approved suppliers. Franchisees receive six days of initial training, called "Häagen-Dazs University," at the franchisor's training facility in Eden Prairie, Minnesota, covering food preparation, shop operation, records, management, opening/closing procedures, product ordering, auditing, register training, cleaning/sanitation, ice cream cake preparation, customer service, marketing, product attributes, and financial statements. For new franchisees, opening assistance includes the physical presence of one or more representatives for at least four person-days. Ongoing assistance includes periodically developing new products, providing training for hiring and employee training, and offering information to help maintain and develop the business. Häagen-Dazs Shoppe Company also provides access to an electronic Shop Operations Manual and plans regular bulletins, meetings, and seminars for new concepts and procedures.
Initial Training Hours
51
Training Location
Eden Prairie, MN
Ongoing Support
After opening, Häagen-Dazs Shoppe Company provides ongoing advice and assistance, developing new products for franchisees, offering training to help with hiring and employee training, and providing information to help maintain and develop the business. Franchisees also have access to the electronic Shop Operations Manual, which is updated periodically. The franchisor plans a system of regular bulletins and periodic meetings and seminars for disseminating new concepts, procedures, systems, and other useful information, which franchisees are expected to attend.
Franchise Requirements
Ideal Candidate Profile
The Häagen-Dazs Shoppe Company is seeking franchisees or their designated shop managers who possess sufficient experience in managing a retail business. While specific experience levels are not always mandated, the franchise offers a discount program for experienced operators who have managed at least two franchised foodservice outlets for two or more years. Ideal candidates are expected to be hands-on operators, with a designated shop manager dedicating a minimum of 40 hours per week to on-premises supervision. Candidates must be personally and financially qualified, demonstrating good character and reputation.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
Protected
Territory Size Requirements
Häagen-Dazs Shoppe Company does not grant exclusive territories. For shops in non-densely populated urban areas or small strip centers that front a street, a protected area of 1/2 mile in either direction on that street is granted. This 1/2-mile protection does not include malls, enclosed commercial facilities, or entertainment complexes bordering the street. For shops in malls, enclosed commercial facilities, or entertainment complexes under 1.5 million square feet, the protected area is the physical limits of that facility. For facilities over 1.5 million square feet or airports, the protected area is limited to a specific discrete portion assigned by Häagen-Dazs Shoppe Company.
Staffing Notes
Häagen-Dazs Shoppe Company requires each shop to have a Designated Shop Manager who has successfully completed the training program and is acceptable to the franchisor. This manager, or a combination of the owner and other approved, trained individuals, must devote full-time (minimum 40 hours per week) and on-premises supervision to the shop's day-to-day operations. If an owner operates multiple shops, they may divide their time but must hire adequate management personnel. Shop employees must be qualified, competent, and trained by the Designated Shop Manager, wearing uniforms prescribed by Häagen-Dazs Shoppe Company. Franchisees are solely responsible for hiring, firing, and setting employee wages, and must comply with all applicable labor laws.