The Original Rainbow Cone Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$205,167 - $3,213,753
Franchise Fee
$20,000
Min Cash Required
$15,000
Total US Locations
25
Business Summary
Five Flavors Franchising LLC offers the opportunity to own and operate a franchise called The Original Rainbow Cone Business. These businesses specialize in offering and selling high-quality ice cream and related menu items, including ice cream cones, cakes, sundaes, shakes, packaged ice cream, and mini-donuts. The Original Rainbow Cone Businesses can be established in three main formats: Free Standing restaurants, In-Line restaurant locations, or smaller Express units, which can be either within another business or as a stand-alone location in captive sites. For existing Free Standing or In-Line franchisees, an optional Food Truck add-on is also available to complement their operations.
Corporate History
Five Flavors Franchising LLC was organized in Illinois on July 23, 2018. The franchisor conducts business under the name 'The Original Rainbow Cone'. In August 2018, its affiliate, Rainbow Cone, LLC, acquired The Original Rainbow Cone System and its trademarks from Original Rainbow Cone, Inc., which had established the original restaurant business in 1926. Five Flavors Franchising LLC began offering The Original Rainbow Cone restaurant franchises in 2019 and started offering Area Development franchises in 2023. The franchisor is also affiliated with Chicago's Original Italian Beef Franchising LLC, which offers Buona Beef restaurant franchises.
Financial Overview
Investment Range
$205,167 - $3,213,753
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$40,000
Minimum Cash Required
$15,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$64,225
Equipment Costs (High)
$327,080
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Five Flavors Franchising LLC reported a net loss of $220,884 for the year ended December 29, 2024, in contrast to a net income of $102,495 in 2023. The company has a deficit in members' equity, which stood at $(237,792) as of December 29, 2024, and $(16,906) as of December 31, 2023, indicating accumulated losses. Additionally, there are significant amounts due to affiliates, including a $600,000 note payable to Rainbow Cone LLC. The auditors' report indicates that management is required to evaluate conditions that might raise substantial doubt about the company's ability to continue as a going concern, but the audit itself did not conclude with a going concern qualification.
Financing Details
The Original Rainbow Cone does not offer any direct or indirect financing to franchisees. Furthermore, Five Flavors Franchising LLC does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
25
Franchised Units
6
Corporate Units
19
Avg Square Footage
2,300
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
The Original Rainbow Cone has no legal history to report, as no litigation is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
The Original Rainbow Cone has no bankruptcy history to report as no bankruptcy action is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, The Original Rainbow Cone franchisees must provide written notice between 6 and 12 months before their current term expires. They must be in good standing, having fully performed all obligations and paid all fees to Five Flavors Franchising LLC and its affiliates. Franchisees are required to sign Five Flavors Franchising LLC's then-current standard franchise agreement, which may have different terms, and execute a general release of all claims. They must also pay a renewal fee of $7,500 and remodel or modernize their business to meet current brand standards within six months of signing the new agreement. Additionally, franchisees and their managers must comply with all current training requirements and maintain possession of an approved location.
Training & Support Program
Franchisor Assistance
Five Flavors Franchising LLC provides extensive assistance to its franchisees. Before opening, The Original Rainbow Cone offers support with site selection, including real estate and demographic analysis, and assists with lease approval. It provides typical floor plans and build-out specifications for construction. Franchisees and their managers receive initial training, and Five Flavors Franchising LLC provides on-site opening assistance at the business location. Franchisees also get online access to the Operations Manual. Ongoing assistance includes periodic advisory support, updates to the Operations Manual, opportunities for additional training, seminars, and regional meetings, and periodic inspections of the business. Five Flavors Franchising LLC may also provide a page or link on its website for promotion and offers an optional National Accounts program for specific services like catering.
Initial Training Hours
175
Training Location
Chicago, Illinois area
Ongoing Support
Five Flavors Franchising LLC provides periodic advisory assistance regarding the operation of The Original Rainbow Cone Businesses. Franchisees receive updates to the Operations Manual, which they must follow. The franchisor may also offer and require attendance at supplemental training, seminars, regional meetings, or webinars for franchisees and managers, up to 5 days each year, potentially with a tuition fee. Additionally, Five Flavors Franchising LLC may conduct periodic inspections of the businesses and their operations and may provide a page or link on its website for business promotion.
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
Full-Time
Territory Type
Protected
Territory Size Requirements
For The Original Rainbow Cone Free Standing or In-Line franchises, the protected area is defined based on location. In non-urban areas, it will have a minimum population of 40,000. In urban areas, it will be a 0.5-mile radius from the approved site. The Original Rainbow Cone Express franchises do not receive a protected territory.
Staffing Notes
The Original Rainbow Cone requires its franchisees to staff their business with enough managers, assistant managers, and other employees to operate in compliance with the franchise agreement and the Operations Manual, ensuring proper customer service during all operating hours. Each business must be under the direct on-site supervision of a designated manager who has successfully completed Five Flavors Franchising LLC's training program. Franchisees are solely responsible for all employment decisions, including hiring, firing, and implementing employee training programs in line with the franchisor's requirements.