Jeremiah’s Italian Ice Franchise in 2024: Costs, Fee & FDD
Discover whether Jeremiah’s Italian Ice is the right investment for you. This post dives deep into the brand’s strengths, challenges, and potential profitability, offering essential insights for prospective franchisees. Learn more here!
Table of Contents:
Jeremiah’s Italian Ice began as a small venture in 1996, founded by Jeremy Litwack, a man with a passion for frozen treats. After years of experimenting with recipes and perfecting his craft, he opened the first Jeremiah’s in Winter Park, Florida. Jeremy’s vision was simple yet powerful: to create a fun, vibrant atmosphere where people could indulge in high-quality, refreshing Italian ice. Over the years, the brand has grown significantly, gaining a loyal following and establishing itself as a beloved name in the frozen dessert industry.
The franchise specializes in Italian ice, a smooth, flavorful, and refreshing dessert made from high-quality ingredients. Jeremiah’s also offers soft-serve ice cream, which can be swirled with their signature Italian ice to create the perfect Gelati – a layered treat that combines the best of both worlds. The brand’s core customers range from families looking for a sweet outing to individuals seeking a cool treat on a hot day. Its primary markets are communities that value family-friendly environments and crave high-quality, delicious desserts.
Jeremiah’s Italian Ice has expanded impressively over the years. As of now, it operates over 70 locations across the United States, with a strong presence in the Southeast. The franchise is continuing to grow, with new locations opening regularly, and plans to expand further into new markets. On a daily basis, Jeremiah’s serves thousands of customers who are drawn to its vibrant atmosphere and irresistible treats, making it a favorite spot in many communities.
The franchise support system at Jeremiah’s Italian Ice is robust, offering comprehensive training programs that ensure franchisees are well-prepared to run their businesses successfully. From initial onboarding to ongoing support, the franchise provides assistance with site selection, marketing, and operations. Additionally, Jeremiah’s emphasizes a community-focused approach, encouraging franchisees to engage with their local communities and build strong customer relationships. This, coupled with their innovative product offerings, makes Jeremiah’s Italian Ice a standout choice for potential franchisees.
Jeremiah’s Italian Ice Franchise Insights
- Jeremiah’s Italian Ice boasts an impressive 91% year-over-year unit growth rate, far exceeding the industry median of 1%, demonstrating its explosive expansion and increasing popularity.
- With a 3-year failure rate of just 2%, Jeremiah’s Italian Ice outperforms the industry median of 11%, reflecting the franchise’s strong stability and successful business model.
- Franchisees benefit from a low-cost entry compared to other franchises, with an initial investment range of approximately $326,000 to $696,000, depending on location and size.
- Jeremiah’s Italian Ice has a loyal customer base, with many locations serving an average of 300-500 customers daily during peak season, highlighting its strong market demand.
Jeremiah’s Italian Ice Franchise Key indicators
Unit Growth YOY (%)
91%
vs industry 1%
Total U.S. Franchised Units
78
3-Year Failure Rate
2%
vs industry 11%
Sales-to-Investment ratio
1.3:1
How much does it cost to open a Jeremiah’s Italian Ice franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Jeremiah’s Italian Ice franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Jeremiah’s Italian Ice franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Jeremiah’s Italian Ice below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $24,000 | $30,000 |
| Development Services Fee | $5,000 | $5,000 |
| Lease/Rent | $6,667 | $37,900 |
| Construction (includes permits) | $72,000 | $280,000 |
| Equipment | $128,000 | $150,000 |
| POS System | $8,000 | $16,500 |
| Signage | $9,500 | $25,000 |
| Opening Advertising | $15,000 | $15,000 |
| Inventory and Start-up Supplies | $10,000 | $17,800 |
| Insurance | $10,000 | $12,000 |
| Training Expenses | $2,000 | $4,000 |
| Business Licenses | $250 | $6,000 |
| Architect and Professional Fees | $10,000 | $20,000 |
| Additional Funds (3 Months) | $25,000 | $75,000 |
| Security/Utility Deposits | $150 | $1,800 |
| Total Estimated Initial Investment | $325,567 | $696,000 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
For Jeremiah’s Italian Ice, the typical financial requirements to open a franchise are as follows:
- Initial Capital Investment The estimated total investment required to open a Jeremiah’s Italian Ice franchise ranges from approximately $326,000 to $696,000. This includes costs for the franchise fee, equipment, build-out, and initial inventory. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Franchisees typically need to have at least $100,000 in liquid assets, which are necessary to cover startup costs and initial operating expenses.
- Net Worth A minimum net worth of around $250,000 to $500,000 is often required to ensure that franchisees have the financial stability needed to sustain the business, particularly in its early stages.
These figures are estimates based on industry standards and the specific financial disclosure documents of Jeremiah’s Italian Ice. For the most accurate and up-to-date information, it’s recommended to contact the franchise directly or consult with a franchise consultant.
How much does a Jeremiah’s Italian Ice franchise owner make?
Calculating the salary of a Jeremiah’s Italian Ice franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Jeremiah’s Italian Ice franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Jeremiah’s Italian Ice Revenue & Gross Sales
Based on the most recent analysis, Jeremiah’s Italian Ice franchises have a median gross sales of $519,374. This demonstrates how the brand’s enduring popularity and established market presence continue to offer solid revenue potential for franchisees.
Which key factors impact the average revenue performance of Jeremiah’s Italian Ice franchisees?
The performance of Jeremiah’s Italian Ice median gross sales this past year may be attributed to several factors. Economic shifts, including inflation and rising costs of goods, could have impacted consumer spending on discretionary items like frozen desserts. Additionally, the post-pandemic landscape has seen fluctuations in foot traffic, with some areas experiencing slower recovery in customer visits. Seasonal weather patterns might also have played a role, as colder or unseasonably wet weather can reduce demand for frozen treats. Finally, the rapid expansion of new locations could have temporarily diluted sales at established locations as market saturation in certain regions grows. Despite these challenges, the brand’s strong customer loyalty and innovative product offerings provide a solid foundation for future growth.
Jeremiah’s Italian Ice Franchise Operational Costs
When opening a Jeremiah’s Italian Ice franchise, key primary ongoing operational costs to consider include:
- Staffing Costs Wages, benefits, and training expenses for employees are significant, especially during peak seasons when additional staff may be required to handle increased customer volume.
- Ingredient and Supply Costs Regular purchasing of high-quality ingredients for Italian ice, soft-serve ice cream, and other menu items is essential to maintaining the brand’s standards. This also includes the cost of packaging and serving supplies.
- Utilities Given the nature of the business, you’ll need to account for higher-than-average utility costs, particularly electricity for freezers, ice machines, and other refrigeration equipment, as well as water usage.
- Maintenance and Equipment Repairs Routine maintenance of refrigeration units, ice machines, and other kitchen equipment is crucial to prevent downtime, along with occasional repair costs that can arise.
- Marketing and Local Advertising While national marketing might be covered by the ad fund, local advertising and promotions are essential to driving traffic to your specific location, especially in competitive markets.
These operational costs are key to keeping the business running smoothly and ensuring that your Jeremiah’s Italian Ice location remains a popular destination for customers.
Jeremiah’s Italian Ice Franchise Fees
When considering the ongoing financial commitments associated with opening a Jeremiah’s Italian Ice franchise, it’s essential to be aware of the various fees that will impact your profitability. Here are some key fees to consider:
- Royalty Fee You’ll be required to pay 6% of your net sales as a royalty fee. For non-traditional shop operations, this increases to 10% of net sales.
- Marketing Contribution Franchisees must contribute 4.5% of their net sales towards marketing, with the franchisor reserving the right to increase this to 5%. This fee is also due weekly, simultaneously with the royalty fee. Currently, 1% of this contribution goes to the marketing fund, while 3.5% is allocated to local marketing efforts.
- Additional Fees It’s important to note that there might be additional fees beyond these primary ones, which can include costs related to technology, training, or special assessments imposed by the franchisor.
Understanding these ongoing fees is crucial for accurately forecasting your franchise’s financial performance and ensuring you’re prepared for the full scope of your investment.
Jeremiah’s Italian Ice Franchise Earnings
Based on the most recent analysis, the median gross sales for a Jeremiah’s Italian Ice franchise are approximately $519,374. For owner-operators, this level of sales typically results in earnings of around $77,906. These figures reflect a strong performance for franchisees in the frozen desserts space.
Owner-operators who are actively engaged in their business can still expect solid returns, particularly when leveraging the brand’s established market presence and customer loyalty. The hands-on approach of owner-operators often allows for better cost management and stronger customer relationships, which can positively impact overall profitability.
How to Open a Jeremiah’s Italian Ice Franchise
Becoming a Jeremiah’s Italian Ice franchisee involves several key steps, beginning with your initial inquiry and culminating in the launch of your new business.
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application Once your inquiry is reviewed, you’ll be asked to complete a more detailed franchise application. This will give the franchisor a clearer understanding of your qualifications, experience, and financial capability to invest in and run a franchise.
- Initial Interview and Discovery Day After your application is reviewed and approved, you’ll participate in an initial interview with the franchise development team. If you pass this stage, you’ll be invited to a Discovery Day at the corporate headquarters, where you’ll meet the leadership team, tour facilities, and gain deeper insight into the business model.
- Signing the Franchise Agreement Once you are comfortable with the FDD, you’ll sign the franchise agreement. This formalizes your relationship with Jeremiah’s Italian Ice and legally binds you to the terms outlined in the FDD.
- Securing Financing and Location With the agreement in place, you’ll need to secure financing (if necessary) and find an appropriate location for your franchise. The franchisor typically provides support in site selection and lease negotiations to help you choose a site that meets their criteria.
- Training Program Before you open your doors, you’ll participate in a comprehensive training program that covers all aspects of running a Jeremiah’s Italian Ice franchise. This includes both classroom instruction and hands-on experience in an existing store.
- Build-Out and Pre-Opening With your location secured, the build-out of your store begins, including design, construction, and outfitting with the necessary equipment. During this phase, you’ll also start marketing your upcoming opening and hiring staff.
- Grand Opening and Operations Once construction is complete and your team is trained, you’ll prepare for your grand opening. The franchisor will provide support during this critical phase to ensure everything runs smoothly. From here, you’ll begin day-to-day operations, serving customers and building your business within the community.
Pros & Cons
Pros
Strong Brand Recognition: Jeremiah’s Italian Ice has a loyal customer base and strong brand recognition, particularly in the Southeast, which can drive steady foot traffic and sales.
Simple Operational Model: With a focused menu of Italian ice and soft-serve products, the operational model is straightforward and easier to manage compared to more complex restaurant franchises.
Family-Friendly Atmosphere: The franchise is designed to appeal to a wide range of customers, from families to young adults, creating a broad market appeal.
Growth Potential: With plans for continued expansion, investing in a Jeremiah’s Italian Ice franchise allows you to be part of a growing brand with strong market potential.
Cons
Seasonal Business: The demand for frozen desserts can be highly seasonal, with lower sales during colder months, which may affect year-round profitability.
Recent Decline in Sales: The recent decrease in median gross sales and earnings may be a concern, indicating potential challenges in maintaining past growth levels.
Competitive Market: The frozen dessert market is highly competitive, with numerous other brands and local businesses vying for the same customer base, which could impact market share.
