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Food Franchisor- Sit back & collect $380K royalties per year

Food Franchisor- Sit back & collect $380K royalties per year

Food Franchisor for Sale. Re-locatable anywhere.  They are a specialty, premium Ice Cream product selling ice cream. Currently 20 Franchisees pay Royalties to this Franchisor with locations in 5 states, most in California. The owner does not currently operate any stores. All 20 are Franchisees. Franchise fees start at $40,000 per location. Royalties are 6% of sales and Advertising is 1.5% of sales. Seller let the FDD expire and has not sold any new franchises for a few years. Seller will assist Buyer in renewing the FDD so Buyer can sell new California franchises. Cost estimated at $20,000. The brand has a good name and reputation as a premium product in its segment.

Current run rate for 2023 of collecting Royalties only is on track for just over $500,000 of revenue and a net profit of $380,000. 2022 was $600,000 with a $435,000 Net. 

The company is now run lean and mean with very little overhead run by the 1 full time employee who has been with the company from the beginning and he deals with franchisees. Seller has very little involvement in the business. 


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