If you are going to ask your kids which franchise should you invest into then ice cream franchise will top the list.
There are various types of an ice cream franchise and gelato franchise which provides public with great ice-cream products.
The ice cream franchise is not a complex operation and there are 2 types of this business available.
The conventional method of selling ice creams is through the outlets.
The other way to provide this popular product is by driving directly into suburbs. This is referred as a mobile ice cream or mobile gelato franchise. The mobile ice cream franchise uses specifically modified vehicles to store and sell the merchandise to customers. This is a more affordable business but has a limited exposure to the public.
The most successful type of the ice cream franchise is in the form of an outlet in the busy shopping center.
However, the price for the business in those busy locations is also substantial.
Generally, the ice creams and gelatos are popular among kids and teenagers.
However, during summer days the product is in a high demand for all ages.
Unfortunately, in winter there is a serious decline in sales. Thus, in the countries, where there are distinct climatic seasons, the product is not uniformly popular throughout the year. For this reason, you should carefully consider the business model of each ice cream franchise. If you decide to invest $180K into the gelato franchise then the franchisor must come up with a model which ensures annual (rather than summer) operations. For a mobile ice cream franchise (which costs $70K-$100K) summer sales are sufficient to meet the day's end. However, more substantial investments by the franchisee must be justified by the franchisor.
As with the coffee franchises, the ice cream franchise must diversify. Cakes, coffee, donuts, milkshakes and even hot-dogs must form a solid product line for the winter operations. For summer, the ice cream, gelato and other frozen deserts should attract customers. However, the seasonal sales should not discredit any product. Thus, the ice cream and gelato franchise should sell all products, but ensure uninterrupted supply for the more popular items. The most successful ice cream franchise which cleverly diversifies its product-line is Wendy Supa's Sundaes. The most successful gelato franchise which offers a similar doctrine is Fritz Gelato.
Ok, this is a tough one.
For starters, Wendy Supa's Sundaes does not disclose publicly the estimated cost of purchasing and running their outlets.
The famous gelato franchise - Fritz Gelato - sells for about $115K.
But more prominent locations for Fritz Gelato may reach $180K.
It is expected that Wendy Supa's Sundaes will sell for $250K+.
The well known ice cream franchise - Baskin Robbins - costs $250K. You can also try to purchase separate businesses online. There are smaller chains and franchises which cost as little as $90K. Mobile ice cream businesses are the cheapest but also hard to operate.
Ice cream business can be tricky. The seasonal changes provide some uncertainty about the annual operations. The diversified ice cream businesses are successful but the price for them is also substantial. However, less known franchises and independent businesses can cost half the initial costs of the more famous brands. The real question is: should I invest $250K into a proven business or $100K into unknown?