Stella's Ice Cream Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$273,500 - $587,100
Franchise Fee
$30,000
Total US Locations
5
Business Summary
Stella's Ice Cream operates gourmet ice cream shops offering homemade ice cream in various forms like cups, sundaes, milkshakes, and fresh waffle cones. The shops also sell ice cream cakes, push pops, fresh baked cookies, brownies, and other complementary products to the public. Stella's Ice Cream locations utilize a distinctive operating system, including specific interior and exterior designs, proprietary recipes, and customer service standards.
Corporate History
Stella's Ice Cream-Franchising, LLC was officially formed as a limited liability company on February 25, 2022, and began offering franchises on April 5, 2022. The franchisor's affiliate, Stella's Ice Cream, LLC, was established earlier on October 17, 2017. This affiliate is the owner of the Stella's Ice Cream trademarks and licenses their use to Stella's Ice Cream-Franchising, LLC. The affiliate also owns and operates company-owned Stella's Ice Cream outlets.
Financial Overview
Investment Range
$273,500 - $587,100
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$49,500
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$155,500
Equipment Costs (High)
$356,500
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Stella's Ice Cream-Franchising, LLC's financial statements for 2023 show a net loss of $12,691 and a small members' deficit of $1,536 as of December 31, 2023. The company also experienced negative cash flow from operating activities in 2023. However, Stella's Ice Cream-Franchising, LLC has $150,500 in deferred franchise fees on its balance sheet, which represents payments received from franchisees that will be recognized as revenue as pre-opening activities are completed.
Financing Details
Stella's Ice Cream-Franchising, LLC does not offer any direct or indirect financing to its franchisees. This means that Stella's Ice Cream-Franchising, LLC will not provide loans for the initial investment, equipment, or working capital. Additionally, Stella's Ice Cream-Franchising, LLC does not guarantee any notes, leases, or other financial obligations on behalf of its franchisees.
Performance Metrics
Total US Locations
5
Franchised Units
2
Corporate Units
3
Avg Square Footage
1,250
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Stella's Ice Cream-Franchising, LLC has no litigation history to report as of the FDD issuance date. Item 3 of the disclosure document states that no litigation is required to be disclosed for the franchisor or its management.
Bankruptcy History
Stella's Ice Cream-Franchising, LLC has no bankruptcy history to report. Item 4 of the disclosure document confirms that no bankruptcy information is required to be disclosed for the franchisor or its management.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Stella's Ice Cream franchise agreement, franchisees must be in full compliance with their current agreement, not have committed more than three defaults during the current term, and provide written notice at least six months before the term ends. They must also sign a new franchise agreement, pay a successor agreement fee equal to 10% of the then-current initial franchise fee, maintain the right to occupy their location or secure an approved new site, remodel their business to current standards, execute a general release of claims, and meet the latest training requirements.
Training & Support Program
Franchisor Assistance
Before a Stella's Ice Cream franchisee opens, the franchisor provides site selection guidelines and approves the chosen location, along with prototypical plans and specifications for the store's design and signage. Franchisees receive access to the Brand Standards and Operations Manual and a list of required equipment and supplies. Stella's Ice Cream also provides initial training at an affiliate- or franchised-owned outlet in Nampa, Idaho, and offers recommended pricing for products and services. After opening, Stella's Ice Cream offers optional and mandatory additional training programs, remedial on-site training (for a fee), and individualized support by phone, video conference, or email. The franchisor also provides advertising and promotional materials, conducts inspections of the business, provides updated lists of approved suppliers, and assists with advertising approvals. On-site opening assistance is provided for up to five days for the first Stella's Ice Cream outlet.
Initial Training Hours
101
Training Location
Nampa, ID
Ongoing Support
After opening, Stella's Ice Cream franchisees can receive ongoing support through various channels. This includes access to optional or mandatory additional training programs, which may be up to 10 days per year, and annual business meetings or conferences up to three days per year. If requested by the franchisee or deemed appropriate by Stella's Ice Cream, remedial on-site training and assistance can be provided at the franchisee's location for a fee. Franchisees also have access to individualized assistance via telephone, video conference, or email. Stella's Ice Cream provides samples or digital artwork for advertising and promotional materials, conducts inspections of the franchised business to ensure standards are met, and provides updated lists of approved equipment and suppliers. The franchisor also recommends minimum and maximum prices for products and services and approves all advertising and promotional campaigns proposed by franchisees.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Territory Size Requirements
Stella's Ice Cream territories are defined as a portion of a town, city, or county, identified by a group of continuous zip codes. The size of the territory is determined individually, considering factors like minimum household numbers, average home prices, and household incomes. The smallest territory granted is either an area with a population of 50,000 people or a three-mile radius around the business location.
Staffing Notes
Stella's Ice Cream franchisees are required to designate and retain a general manager who will be responsible for the daily operations of the business. This general manager must devote their full time to the job, not have any interest in competing businesses, and successfully complete Stella's Ice Cream's Initial Management Training Program. While the franchisee is not required to personally supervise day-to-day operations, they are expected to be actively engaged in supervising their Stella's Ice Cream outlet. Stella's Ice Cream also provides franchisees with standards for the qualifications and training of their employees, but does not directly assist with hiring or training employees beyond the general manager.