Chill-N Franchise: Nitrogen Ice Cream (2024)
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Chill-N Franchise Background
Chill-N opened its first corporate store in Miami in 2012, becoming one of the first liquid nitrogen ice cream shops in the country.
The decision to make their ice cream with liquid nitrogen originated from that fact that made to order ice-cream is the highest quality you can achieve.
Chill-N’s servings are of 6 to 8 ounces, and each batch is flash frozen and flavored in front of the client according to their choice of flavor and toppings. Additionally, the majority of ingredients used are fresh, generating a result that leaves clients never wanting traditional ice cream again.
Chill-N Nitrogen Ice Cream Video
Chill-N Ice Cream | Build Your Own Equation Video
Management Team
Chill-N Nitrogen Ice Cream was created by Danny Golik – an ice cream lover who, after 6 months perfecting the ideal nitrogen ice cream equation in the garage of his parents home, created and opened his first Chill-N location in Pinecrest, FL.
In addition to Danny and Donna as founders, they brought onboard David Leonardo, who has extensive experience in Franchising. The family will continue to operate 5 corporate and 2 licensed stores while growing the Franchise Division.
Additionally, a sixth Corporate store is scheduled to open in August 2020 in Coconut Grove, FL.
Franchise Food Services Industry Analysis
Franchise Strenghts
- Artisanal, high quality ice-cream
- Operationally simple, easy to learn
- Franchisor offers joint venture opportunity where they handle all aspects of the business
- Strong leadership team based in FL committed to growing within numerous markets
Franchise Weaknesses
- Success of business is highly dependent on location of the store
- Solid corporate store financials but new to franchising
- Sales impacted by weather (i.e. rainy days)
- Americans are still unfamiliar with nitrogen ice cream
Franchise Opportunities
- Ability to adapt and grow with an emerging franchisor in an under-penetrated market
- Model allows for centralized productions and economies of scale through smaller units
- Opportunities for B2B business, delivery sales, etc.
Franchise Threats
- Profitability can be negatively impacted by close location of like competitors (frozen yogurt and gelato)
- Potential for Nitrogen-base ice cream to not catch on with the American masses
- Prime costs for ingredients like Nutella and Dulce de Leche could become more expensive over time
How Much is a Chill-N Franchise?
Chill-N Franchise cost ranges from $335,578 to $474,164 according to the 2020 FDD.
| Item | Estimated Amount (in USD) | When Due | To Whom Payment is to Be Made | |
|---|---|---|---|---|
| Low | High | |||
| Initial Franchise Fee | $39.000 | $39.000 | Signing of FDD | Franchisor |
| Construction, Leasehold Imporvements, Furniture and Fixtures | $96.150 | $152.169 | Before Opening | Contractor/Third-party providers |
| Equipment (Financed or Leased) | 133.728 | 154.195 | Before Opening | Third-party providers |
| Signage (interior and exterior) | 6.500 | 7.500 | Before Opening | Third-party providers |
| Opening Package | 1.200 | 1.200 | Before Opening | Franchisor |
| Point of Sales System | 800 | 1.600 | Before Opening | Third-party providers |
| Computer System | 0 | 1.000 | Before Opening | Third-party providers |
| Opening Inventory | 6.000 | 8.000 | Before Opening | Third-party providers or Franchisor |
| Rent | 4.500 | 20.400 | Before Opening | Landlord |
| Utility Deposits | 0 | 500 | Before Opening | Utility providers |
| Insurance Deposits and Premiums | 600 | 2.500 | Before Opening | Insurance company |
| Pre-opening Travel Expense | 1.000 | 5.000 | Before Opening | Airline, Hotel, Restaurants |
| Grand Opening Advertising | 5.000 | 7.000 | Prior to Opening | Third Parties |
| Professional Fees | 1.000 | 2.000 | Before Opening | Attorneys, accountants |
| Business Permits and Licenses | 500 | 1.500 | Before Opening | Licensing Authorities |
| Nitrogen Supply | 5.600 | 10.600 | Before and After Opening | Third-party providers |
| Construction Management Services | 19.000 | 20.000 | Before Opening | Third-party vendor |
| Additional Funds- 3 months | 15.000 | 40.000 | After Opening | Various |
| Total | $335,578 | $474,164 | ||
How Much does a Chill-N Franchise make?
FDD Disclaimer: “This Item sets forth certain historical sales and cost information for four Chill-N-Ice Cream businesses located in Southeastern Florida operated by our founders, Danny and Donna Golik (the “Founders’ Businesses”). The Founders’ Businesses are substantially similar to the Businesses being offered in this franchise disclosure document. Excluded from this Item 19 is one non-traditional Chill-N-Ice Cream business opened by our founders in January 2019 as this business is not substantially similar to the business being offered under this disclosure document. Substantiation of the data used in preparing this information will be made available to you upon reasonable request.”
