Creamistry Franchise in 2024: Costs, Fee & FDD
Discover how Creamistry’s innovative liquid nitrogen ice cream franchise is redefining the dessert industry. Explore key insights, costs, and earning potential to determine if this customizable, Instagram-worthy concept is the right investment for you!
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Creamistry is a premium ice cream franchise founded in 2013 by Jay Yim in Southern California. Built on the concept of creating made-to-order ice cream using liquid nitrogen, Creamistry quickly gained recognition for its innovative approach to dessert. By combining science and indulgence, the franchise has carved out a unique niche in the competitive ice cream market. Creamistry appeals to customers seeking personalized, high-quality desserts, positioning itself as a standout in the frozen treat industry.
At the heart of Creamistry’s offering is its made-to-order ice cream, crafted using liquid nitrogen for a dramatic, fog-like effect. Customers can fully customize their dessert by selecting from a variety of premium bases, flavors, and toppings. The menu also includes vegan and non-dairy options, milkshakes, and specialty creations, ensuring a wide appeal. Creamistry’s core market includes families, young professionals, and dessert enthusiasts who appreciate a unique and interactive dining experience.
Creamistry has expanded rapidly, with dozens of locations across the United States and international markets such as the Middle East and Asia. Each location serves hundreds of customers daily, with its customizable and Instagram-worthy treats contributing to its popularity. The brand’s focus on creating a memorable customer experience has helped it develop a loyal following and attract franchisees looking to invest in a fun, scalable business.
Franchisees benefit from Creamistry’s comprehensive support system, which includes initial training on operations, equipment, and customer service, as well as ongoing marketing and operational assistance. The franchise also provides guidance in site selection, store setup, and grand opening strategies to help ensure a successful launch. With its unique product, strong branding, and dedicated support, Creamistry presents an exciting opportunity in the growing dessert franchise market.
Creamistry Franchise Insights
- Creamistry offers over 50 flavor and topping combinations, allowing customers to create truly personalized desserts, a feature that drives repeat business and customer loyalty.
- With locations spanning the U.S. and international markets, Creamistry has tapped into a global trend for premium, Instagram-worthy desserts, attracting a diverse customer base.
- The liquid nitrogen freezing process is not only functional but also serves as entertainment, creating a unique selling point that enhances the customer experience and encourages social media engagement.
- By offering vegan, non-dairy, and traditional options, Creamistry caters to a wide range of dietary preferences, increasing its market potential.
Creamistry Franchise Key indicators
Total U.S. Franchised Units
>30
Sales-to-Investment ratio
0.8:1
How much does it cost to open a Creamistry franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Creamistry 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 Creamistry 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 Creamistry below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Training Fee | $0 | $5,000 |
| Real Estate Security/Utility Deposits, Licenses, and Prepaid Fees | $5,000 | $25,000 |
| Equipment, Furniture, and Video Surveillance System | $28,000 | $119,000 |
| Patented Nitrogen Dispensing System and License | $42,000 | $56,000 |
| Leasehold Improvements | $35,000 | $225,000 |
| Opening Inventory | $10,000 | $25,000 |
| Insurance | $3,000 | $6,000 |
| Signage, Menu Board | $12,000 | $20,000 |
| Grand Opening Promotion | $15,000 | $20,000 |
| Cash Registers/Other Office Equipment | $4,500 | $5,500 |
| Additional Funds – 3 Months | $30,000 | $30,000 |
| TOTAL BASIC PACKAGE | $224,500 | $576,500 |
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
To open a Creamistry franchise, the required capital involves both the initial investment costs and a net worth requirement set by Creamistry. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $224,500 to $576,500. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. 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 Requirement While Creamistry does not publicly disclose its liquid asset requirements, similar franchises in the dessert and food sector typically require franchisees to have $100,000 to $150,000 in liquid assets to cover startup costs and early operations.
- Net Worth Requirement Based on comparable franchises, it is generally recommended that prospective franchisees have a minimum net worth of $400,000 to $600,000, which ensures long-term financial stability and the ability to sustain the business through its initial growth phase.
How much does a Creamistry franchise owner make?
Calculating the salary of a Creamistry 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 Creamistry 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.
Creamistry Revenue & Gross Sales
The last reported median gross sales figure for Creamistry franchises was $327,830, showcasing the revenue potential of the business model.
Which key factors impact the average revenue performance of Creamistry franchisees?
The performance of Creamistry’s U.S. franchisee median gross sales likely reflects several key factors. Increased consumer interest in premium, customizable desserts, paired with Creamistry’s unique liquid nitrogen experience, may have driven higher foot traffic and repeat customers. The brand’s ability to adapt to changing consumer preferences, such as offering vegan and non-dairy options, also expanded its customer base. Strategic marketing efforts, including social media campaigns showcasing its Instagram-worthy creations, likely enhanced brand visibility and customer engagement. Additionally, local market factors like competition, location quality, and effective operational management by franchisees would have played a significant role in influencing sales performance compared to the prior year.
Creamistry Franchise Operational Costs
When operating a Creamistry franchise, key ongoing operational costs to consider include:
- Ingredient and Supply Costs Regular replenishment of high-quality ingredients such as liquid nitrogen, ice cream bases, flavors, and toppings.
- Staff Wages Salaries for trained employees, including kitchen staff and customer-facing team members, who ensure smooth operations and excellent customer service.
- Facility Rent and Utilities Leasing costs for the retail location and utilities like electricity, water, and gas, especially given the additional energy needs for liquid nitrogen equipment.
- Equipment Maintenance Routine upkeep and potential repairs for specialized equipment, such as nitrogen tanks and freezers, to ensure consistent product quality and safety.
- Cleaning and Sanitation Regular investment in cleaning supplies and sanitation services to maintain health and safety standards in the store.
Efficient management of these costs is critical to ensuring profitability and delivering a consistent customer experience.
Creamistry Franchise Fees
As a Creamistry franchisee, you will encounter several ongoing fees essential to maintaining franchise operations and adhering to the franchisor’s standards. Below are the key fees based on the provided data:
- Royalty Fee 6% of gross sales, payable weekly on or before Wednesday, based on the prior week’s gross sales. Payments are required via electronic funds transfer (EFT).
- Marketing Fee 1.5% of gross sales, payable monthly via EFT, to contribute to system-wide marketing efforts that support brand visibility and growth.
- Local Advertising Fee 1% of gross sales, to be spent on local promotional activities as agreed with vendors, ensuring community outreach and customer acquisition.
- Potential Additional Fees Franchisees should be aware that there might be other costs, such as technology fees, training for new staff, or additional marketing initiatives, depending on the needs of their location.
Understanding these fees is crucial for planning and budgeting to ensure financial sustainability and compliance with the franchise agreement.
Creamistry Franchise Earnings
The most recent reported data for Creamistry franchises indicates a median gross sales figure of $327,830, offering a snapshot of potential revenue for franchisees. For owner-operators, the estimated earnings are around $49,000.
While individual earnings can vary based on location, operational efficiency, and local market dynamics, the data highlights the importance of effective cost management and customer engagement to optimize profitability.
How to Open a Creamistry Franchise
Becoming a Creamistry franchisee is a rigorous process that involves financial scrutiny, extensive training, and thorough evaluation. However, it offers the potential for a lucrative business opportunity backed by a globally recognized brand and comprehensive support system.
The full process for how to open a Creamistry franchise is outlined below:
- 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).
- Introductory Call Participate in a discovery call with the Creamistry team to discuss your goals, qualifications, and the franchise opportunity in detail. This step helps both parties assess compatibility and mutual fit.
- Franchise Application Complete and submit a formal application, including your financial qualifications. Creamistry evaluates your application to ensure you meet the required net worth, liquid assets, and overall readiness for franchise ownership.
- Discovery Day Attend a Discovery Day at Creamistry’s corporate headquarters. You’ll meet the leadership team, gain in-depth knowledge about operations, and experience the brand firsthand.
- Agreement Signing If both parties agree to move forward, you’ll sign the franchise agreement and pay the initial franchise fee, securing your territory and beginning your journey as a franchisee.
- Site Selection and Build-Out Work with Creamistry’s real estate and development team to select a suitable location and oversee the design and construction process, ensuring it meets brand standards.
- Initial Training Program Participate in comprehensive training covering store operations, equipment usage, product preparation, customer service, and marketing. This training prepares you to successfully manage your franchise.
- Pre-Opening Marketing and Hiring Launch local marketing campaigns to build awareness and hire your team. Creamistry provides guidance on recruitment, staff training, and pre-opening promotions.
- Grand Opening Once your store is ready, host a grand opening event with support from the Creamistry corporate team to ensure a smooth and successful launch.
Pros & Cons
Pros
Unique Product Offering: Creamistry’s use of liquid nitrogen to create customizable, made-to-order ice cream sets it apart in the competitive dessert market, offering a distinctive and memorable customer experience.
Broad Customer Appeal: With options for vegan, non-dairy, and traditional ice cream bases, Creamistry caters to diverse dietary preferences, expanding its customer base.
Trending Concept: The interactive, Instagram-worthy product attracts younger demographics and families, driving foot traffic and social media engagement.
International Brand Recognition: With locations in the U.S. and abroad, Creamistry has established a global presence, leveraging a growing brand reputation.
Cons
Specialized Equipment Maintenance: The unique liquid nitrogen equipment requires ongoing upkeep, adding to operational costs and complexity.
Operational Demands: Running a high-volume, customizable ice cream shop can be labor-intensive and operationally challenging, requiring careful management.
Market Saturation Risk: In areas with other premium dessert or frozen treat options, franchisees may face stiff competition for market share.
Outdated Performance Data: The last reported figures areiutdated, making it difficult to assess current earning potential without further research.
