Mister Softee Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$263,500 - $314,000
Franchise Fee
$7,500
Total US Locations
601
Business Summary
Mister Softee operates a mobile business that sells soft-serve ice cream and other frozen confections to the general public. Franchisees distribute these products from vehicles built to Mister Softee's specific designs within a defined territory.
Corporate History
Mister Softee Franchise, L.L.C. was formed on March 2, 2000, as a New Jersey Limited Liability Company, and began offering its current franchise opportunity in March 2000. It assumed the obligations of its affiliate, Mister Softee, Inc. (MSI), which had licensed the 'Mister Softee' name for soft-serve ice cream distribution from 1956 until 2000. Two other affiliates, Mister Softee Sales and Manufacturing, L.L.C. (MSSM), the designated truck and equipment supplier, and MSI Investments LLC, a truck depot operator, were also formed in March 2000.
Financial Overview
Investment Range
$263,500 - $314,000
Franchise Fee (Low)
$7,500
Franchise Fee (High)
$7,500
Equipment Costs (Low)
$230,000
Equipment Costs (High)
$265,000
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Mister Softee's financial statements show a significant amount of money owed from an affiliate, Mister Softee, Inc., totaling $2,761,229 as of December 31, 2024. This money represents cash advances for purchases and investments, but Mister Softee has no set schedule for when this affiliate will repay the amount. The company considers this a long-term asset, not expected to be repaid within the next year.
Financing Details
Mister Softee, through its affiliate MSSM, offers direct financing for the purchase of the required truck and equipment, which costs between $230,000 and $265,000. Franchisees must make a minimum lump-sum down payment of 20% to 25% of the purchase price. The remaining balance is financed at a 10% annual interest rate, with monthly installment payments due over a seven-year period (April through September). Late payments incur a 1.75% monthly finance charge on the unpaid balance, and MSSM retains a security interest in the financed truck and equipment. Additionally, Mister Softee or its affiliate may agree to guarantee third-party loans for truck purchase financing from Highway Commercial Services, Inc., for which Mister Softee receives a 1% fee on guaranteed loan amounts. However, Mister Softee is not obligated to guarantee these loans, and interest rates and other terms from Highway Commercial vary based on the franchisee's credit profile.
Performance Metrics
Total US Locations
601
Franchised Units
601
Corporate Units
0
Franchising Since
2000
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Mister Softee has no litigation to report, as no litigation is required to be disclosed in this FDD item.
Bankruptcy History
Mister Softee has no bankruptcy history to report, as no bankruptcy information is required to be disclosed in this FDD item.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Mister Softee franchisees must provide written notice of their intent to renew 3 to 6 months before the current term expires. Their truck and equipment must meet Mister Softee's current specifications. Franchisees must not be in default of any agreements with Mister Softee or its affiliates and must have paid all outstanding monetary obligations. They must have consistently complied with all federal, state, and local laws and maintained necessary permits. Additionally, franchisees are required to sign Mister Softee's then-current franchise agreement, which may have materially different terms and conditions, comply with current qualification and training requirements, sign a general release, and pay a $500 renewal fee.
Training & Support Program
Franchisor Assistance
Mister Softee provides pre-opening support by approving the vehicle's storage location, offering tuition-free initial training for one person, lending a confidential operations manual, and consulting on initial inventory. After opening, Mister Softee consults on ongoing inventory needs, offers ongoing advice and assistance as it deems appropriate, and provides continuing consultation on merchandising and operational matters, which may include telephone, fax, or in-person visits. The company also supports a mobile app for customers to track trucks, covering GPS device fees and mobile app fees, although it reserves the right to discontinue these payments. Mister Softee also reviews and approves franchisee-created advertising materials.
Initial Training Hours
33
Training Location
Runnemede, NJ
Ongoing Support
Mister Softee provides ongoing support to its franchisees by consulting on continuing inventory needs and offering advice and assistance as it deems appropriate, including on merchandising and operational matters. This support can be delivered via telephone, fax, or through visits by Mister Softee's personnel.
Franchise Requirements
Ideal Candidate Profile
Mister Softee seeks hands-on individuals who will personally supervise the daily operation of their mobile ice cream business. If the franchisee is a legal entity, one of its principals must oversee day-to-day operations. Franchisees are expected to be competent operators and ensure all staff maintain a clean, neat, and well-groomed appearance, prioritizing public safety and upholding Mister Softee's reputation.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Mobile
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
Mister Softee territories are defined based on population, with a typical territory containing a minimum of 20,000 people, as determined by the most recent U.S. census. If a franchisee only purchases one truck, the territory may be re-evaluated after two years, and its size reduced if additional trucks are not purchased for every additional 20,000 people.
Staffing Notes
Mister Softee requires that franchisees, who are presumed to operate the truck(s) themselves, also hire clean, neat, and competent employees if they operate additional trucks. All drivers must possess a valid driver's license as required by law. Mister Softee reserves the right to require the termination of any truck operator who fails to maintain a presentable appearance, poses a hazard to the public, or could harm the brand's reputation.