Gelato Franchise 101: What Every Investor Needs to Know

The US industry-leading gelato manufacturer's blog

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How Does Gelato Differentiate from Ice Cream and Other Frozen Treats?

Authentic Italian gelato has slowly reached the edge of the pack regarding cool, sweet treats.

However, people are often confused about all the differences between their components and ingredients.

Gelato is usually compared to ice cream even though the two are not the same; they just overlap within the general category of frozen desserts.

If you are interested in getting to know your options around owning your very own business within the gelato franchise system – you need to know the product you are selling to the public community.

  • Gelato has seen success in a dense texture through a slow churning process that inserts less air. Ice cream franchises will commit to a whipping process that makes it lighter and fluffier.
  • Gelato has more milk and less cream than what is used in your traditional ice cream mixtures, giving it only between a 5 to 8% fat content. Ice cream uses more cream than milk and has over 10% fat content.
  • Authentic gelatos can be stored at a much higher temperature than ice cream, making it easier for your taste buds to enjoy the flavors coming through fully.
  • Egg yolks are sometimes used in ice cream, but with a gelato shop, they are deferred for other frozen treat options.
Traditional Ice Cream Parlor Vs. Modern Gelato Cafes
Traditional Ice Cream Parlor Vs. Modern Gelato Cafes

Traditional Ice Cream Parlor Vs. Modern Gelato Cafes

Many dividends define the usual ice cream parlor from a gelato franchise.

If you are looking to purchase your own business, franchising is a fabulous opportunity for entrepreneurs because all the details and standards are usually established, but choosing your favorite sweet treat is pivotal in the process.

  • Gelato will involve less costs than ice cream franchising. The ingredients and materials keep that sector of your overhead down, allowing franchisors to save money.
  • Italian gelato company options also require less space than an ice cream franchise business. This is a point of freedom for franchising as you won’t need to spend as much on rent for the shop, nor will you need to hire as many employees.
  • While there are many benefits to becoming a franchisee within the gelato industry, the process requires you to remain involved in marketing and pay close attention to how geo-marketing can impact your sales.
I Scream Gelato franchise
I Scream Gelato franchises are popping up everywhere. Will you jump aboard?

Key Considerations When Opting for Gelato Franchise Ownership

The basics of a successful franchise system are always something to consider when evaluating your business opportunity.

Entering a franchising deal with a preexisting brand and established brand is an earnest business deal, but it just may be the kind of success you have been searching for.

Before you enter the deal and open up your own business and gelato franchise, take everything into consideration.

  • Complete research on the franchise, current franchisees, and how franchising works through the company.
  • Review available training and support to boost sales and become a successful franchisor.
  • Consider your lifestyle, wants, and needs concerning the goods and services you will offer customers.
  • Look into franchise fees, initial investment, and cost details.
  • Review the terms of the agreement and term length with the business.
  • Reach out to your gelato franchisors to answer questions and any inquiries you have about the company.

franchisesDiscovery Day: Exploring Franchise Systems

When you are teaming up with an existing franchise system, prospective franchisees can inspect the business model and brand.

With I Scream Gelato, the team refers to this opportunity as Discovery Day – where a franchise development representative will create an appointment for you to visit corporate headquarters!

This is where all the business details are exposed – although that is not ever meant to be a negative thing and instead shows off all of the advantages that come with joining the franchise team and network.

Discovery Day is great for franchises as it allows the franchisor to review everything about usual business operations, the story behind the brand, support that will be provided to the franchisee, training, marketing options, and a firm example of investment information.

Uncovering a New Business Opportunity

Prospective franchisees should always parse through all the logistics and even minor details of this business opportunity because you are not entering a small deal.

Opening a business is a significant life change, altering more than just your pocketbook or personal bank account.

This day is a chance to develop a relationship with your franchisors, get to know their current franchise system locations, and further unpack how this fits into a future you see for yourself, your family, and your peers.

It is best to work with existing franchisees that you are compatible with and share the same goals, wants, needs, and values as you.

When you pair up with a company you cannot get behind, the likelihood of you succeeding as a business owner begins to slim down, and it may even produce more stress than is healthy for a balanced lifestyle.

gelato franchise ownership
Gelato franchise ownership requires work and patience but we’ll be available to assist

Understanding Gelato Franchises & The Initial Investment

As potential and prospective franchisees review what they will need to be a successful gelato franchise owner, many are still evaluating the finer details around costs.

Investing in your own authentic gelato shop through an established brand like I Scream Gelato will kick you off to a great start and a successful business!

At this point in the procedures, your franchisor will have outlined the parameters of your required investment and earning potential.

Your initial investment in the entire franchise network will depend on the company, but in gelato, things begin at around $150,000 and can extend up to $300,000 on average.

Some franchisees even can sell franchise systems, some of which cover set regions of the country or specific states.

Multi-unit purchasing power is not usually something a first-time or entry-level entrepreneur will commit to.

Still, it remains a valid option for potential services in the near future!

fee costDon’t Forget the Initial Franchise Fee

Along with your general overhead and investment requirements, the franchise fee system is something that you will find with any franchisor, gelato or otherwise.

This fee is a simple flat rate fee that will grant you entry into the franchise system.

The fees are anything over $20,000, but the total cost varies depending on the company you choose to work with to start things off.

The fee is set according to the franchisor’s need to begin initial training, make back-and-forth visits to corporate or private headquarters, start site development, etc.

This is not the only fee you are going to end up paying, though; there are a few other things you will need to account for as you walk through your journey of becoming a business owner:

  • Royalty Fees: These are fees associated with the franchisees ability to use the brand to market the service, and they feed back to the franchisors. This is usually not a one-time fee and will be taken weekly, monthly, or annually throughout ownership. It will be a percentage of sales for your gelato franchise location.
  • Advertising Funding: Various franchisors will create one set of funds for advertising for the brand. This is a point of contention for some who have previously been involved in franchising, but generally, it is meant to advertise the brand to the public eye. This is usually between 1 and 4% of the sales for the franchisee.
  • Marketing Fees: This is not always outlined as a fee in franchising. However, when working with a transparent company, the franchisor should include this information with your initial introduction to the business model. You will be required to put a certain amount into marketing your gelato franchise, which is meant to boost the foot traffic for the grand opening of your business location!
Network relationships with current franchisees to garner some peer-level insight as to how the system works!

Speaking with Existing Franchisees & Business Leaders

Gelato has been recently coined as the ‘new ice cream’ in America, and while the population was once confused about which was which, it doesn’t seem to be an issue anymore.

With the rise of gelato’s popularity, more and more gelato franchise opportunities have popped up across the nation.

While there are many existing franchisees and different franchising opportunities within the field, I Scream Gelato has been dedicated to an authentic experience that offers quality products, a wide selection of plating and toppings, modern seating and environment, additional drinks and coffee goods, etc.

Digging into a franchise and scooping out a piece for yourself is the idea, but before you start eating, take a closer look at current franchisees, how locations are operating, their sales, marketing plans, and all of the factors that go into a legitimate gelateria!

There is so much that you can learn from those who are currently involved in the franchise; you can gain reliable training knowledge and begin your experience as a gelato franchisee yourself!

Opening a Small Business is Easy with Franchise Opportunity

I Scream Gelato was born out of a passion for the dessert, loads of creativity, and dedication to bringing a slice of Italy into the United States!

The company franchise first began in 2018, and while everything started with gelato at the base of the business services – this quickly branched out to new flavors, funky toppings, fun pairings, and local coffee brewers, too.

The business offers vegan options, a chance to enjoy a scoop on a stack of pancakes, indulge in affogatos, smoothies, and more!

The first location was opened in Breckenridge, Colorado, off historic Main Street, and in the success, they saw everything quickly expanded to the neighbors in Frisco, towards the Denver area – and now there are stores in other regions of the country from Florida, Ohio, and Alabama.

While the franchise gained its footing six years ago, young professionals and prospective franchisees are screaming for their own scoop of the services to evolve the business further and take things to the next level for gelato lovers.

franchise agreement
Like with all business agreements, take the time to examine the terms and conditions. Seek legal advice as well.

Examining the Franchise Agreement

Once you have turned the corner and gained the right purchasing power to begin your adventure with gelato franchises, you will have to put in some elbow grease.

A franchise agreement is required per the Federal Trade Commission, and it is not a document you will want to glance over.

Whenever you are signing a contract, reading the fine print and reviewing the details is essential between both parties and, in this case, the franchise system and franchisee.

Your Franchise Disclosure agreement is something that you can request on Discovery Day, as the business should be able to provide it at any time.

The UFOC or a uniform franchise offering circular will also be attained at that time, as previously, some franchise systems were taking advantage of naive or inexperienced buyers.

This is where all disclosures will be listed with details about the franchise’s history, all fees involved, and set responsibilities for the franchisee.

Every last page of the agreement is critical when entering the details with your gelato franchise or franchises, and it should be read meticulously and scanned for questions, concerns, etc.

Upon receiving the agreement, you may even consider using the services of a professional experienced in the field, especially if you are a first-time franchise buyer.

Hiring a Franchise Attorney for the Logistics

Franchising is not always straightforward, but luckily, with I Scream Gelato, the possibilities are laid out right in front of you through the franchise agreement.

Enlisting the help of legal representation is an excellent idea because you do not necessarily need to agree to all the terms within the contract, as there is room for negotiation.

Not all franchises are corporate; there are private franchising opportunities and plenty of room within the fine print to review the details around these subjects.

Being a responsible business person means taking the extra step to protect yourself, your assets, and your potential.

You are left to your own devices, judgments, and assessments without legal representation with your franchising agreement.

For first-time franchise owners, this can be very confusing and intimidating.

Remember, you are an individual making an investment in this company, and opportunities are made up of more than just individuals who have developed their reputable team of legal advisors, so bringing your own to the table makes sense.

thriving franchise
Thriving franchises are built not by those with the longest line of credit but by those with the most determination to succeed.

Compatibility, Goals, and Long-Term Success

Many franchisors establish new ideas, find different elements to increase sales, and find their means of success using the original foundation granted from franchisees that have come before them and the established.

I Scream Gelato started from relatable and humble beginnings within the gelato franchise opportunities.

When you recognize yourself in a franchise, relate to its mission, and have already established a love for the goods or services, you will know when it is a good fit.

Having room to breathe and grow is crucial in franchising, and even though there are regulated standards, guidelines, and a moral code of ethics to adhere to for quality control reasons – it doesn’t mean you can’t accentuate your strengths and find your capabilities within the business structure.

The Investment is a No-Brainer

Gelato franchising is on the rise and has proven to be successful.

Investing in a gelateria franchise allows you to be your own boss, control your future, provide reliable employment to community members, and serve your neighbors the finest gelato flavors!

Dessert remains a well-loved American pastime, and investing in products people love guarantees a solid outcome.

There are a whole lot of moving parts to the process, plenty of work that has yet to be done, and tons of new things you will need to learn to master what it is to be a gelato artisan fully, but giving yourself a chance to succeed with I Scream Gelato opens a door in your life that otherwise may have remained closed and not so sweet!

thriving franchise
What are you waiting for? We’d love for you to join our growing franchise family!

Grab a Cone and Start Creating a Successful Franchise System with I Scream Gelato

Franchising doesn’t need to feel so complex when proven to work.

With I Scream Gelato, those who have come before you have been setting out to install a positive and secure foundation, which has been building ever since.

Are you ready for your own business opportunity in Miami throughout Florida, the South, and the rest of the nation?

Seize Your Gelato Franchise Opportunities Today

Don’t let those fears and anxieties floating around your brain create a mental block.

Break the barriers and push through that threshold because on the other side of fear is a land full of possibilities, especially when you have an entire team behind you.

Contact us to discuss becoming a franchisee and joining the I Scream Gelato team!

thriving franchise
You may have many questions about setting up your own business. Let us know!

Frequently Asked Questions About Ice Cream Franchises

Is an ice cream gelato franchise a profitable business model?

A gelato franchise system has gained traction and blown up in popularity within the business community.

Franchises have remained a low-risk, high-reward business model if you are willing to invest financially, mentally, and physically.

The demand and market for Italian gelato have grown, and banana splits have fallen into the background, creating room for a stealthy revenue stream.

You can push the menu past just gelato and use the foundation of the preexisting brand recognition for security with your initial investment and gain.

Gelato franchise opportunities present a successful business option, and most locations can earn anywhere from $300,000 to $500,000 annually, with the original investment being half of these figures.

What are the initial franchise fees and investment required to start an ice cream gelato franchise?

A franchise fee is generally your payment for entry into the franchise opportunity.

The franchise fee can vary depending on various factors, such as the purchasing process, training, royalty rates, etc.

When you are interested in owning your own gelato franchise location, you will need to speak with the company about all details, cost points, and any logistics that may develop down the line.

Typically, a franchisor will initially charge anywhere from $20,000 to $50,000.

Can I gain financing for my initial investment?

There is a lot of focus on the food service industry, and when you are looking to become a successful owner of a gelato franchise, there is more than one course of action for the future.

Money doesn’t have to be the end all be all getting in the way of your possibilities!

You will need something to come to the table with, but generally, you can find multiple avenues for your initial franchise fee and investment.

You don’t have to walk into the agreement with your franchisors alone. You can receive a line of credit and loans from banks, online lenders, and SBA lenders, and even use friends, family, or colleagues to partner up with!

What is the average annual profit for a gelato franchise?

Owning a gelato shop and offering services to your community means paying attention to your business process and all sales points alongside market trends and overhead costs.

Incoming and outgoing money are significant parts of being a business owner, whether you are in fast food, ice cream, or gelato.

While there are many factors that go into how your location or locations are profiting, the usual annual average is approximately $900,000.

Taste Drive Our Gelato

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