Dippin' Dots Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$15,000 to $35,000
Investment required
$79,000 - $387,000
Royalty fee
$2.16 per bag for bulk ice cream plus $0.09 per unit for prepack units

Dippin' Dots: A Trailblazer in Frozen Desserts

Dippin' Dots, an innovator in the frozen dessert industry, has been delighting customers with its unique ice cream since its founding. Established by Curt Jones in 1988 in Paducah, Kentucky, Dippin' Dots revolutionized the ice cream experience with its signature flash-frozen beads, offering a refreshing and enjoyable treat.

Based in Paducah, Kentucky, this franchise has consistently pushed the envelope in the world of frozen desserts, securing a beloved spot among dessert lovers around the globe.

The franchise began its expansion through franchising in 1999, inviting entrepreneurs to be a part of the frozen dessert revolution. Dippin' Dots is celebrated for its distinctive ice cream, available in a wide variety of flavors. These range from classic favorites like chocolate and vanilla to inventive flavors like cotton candy and birthday cake.

What sets Dippin' Dots apart from traditional ice cream is its pioneering cryogenic freezing method, which results in tiny, individual ice cream beads. This innovative approach, along with the smooth and creamy texture, distinguishes Dippin' Dots from other frozen dessert brands. With a focus on creating a fun and memorable experience, Dippin' Dots has become a popular choice for families, dessert aficionados, and event attendees seeking a unique ice cream experience.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Territory Franchised Business (Low) Territory Franchised Business (High) Store Only Franchised Business (Low) Store Only Franchised Business (High) Distribution Franchised Business (Low) Distribution Franchised Business (High)
Initial Franchise Fee $35,000 $35,000 $15,000 $15,000 $25,000 $25,000
Grand Opening Advertising Materials Expenditure $500 $2,500 $500 $2,500 $500 $2,500
Credit Card and Gift Card Processing $755 $800 $755 $800 $755 $800
Office and Retail Supplies $100 $500 $100 $500 $100 $500
Opening Inventory $2,500 $5,250 $2,500 $5,250 $2,500 $5,250
Insurance $1,500 $2,500 $1,500 $2,500 $1,500 $2,500
Printing and Signage $499 $5,000 $499 $5,000 $499 $5,000
Equipment (Freezers, etc.) $65,700 $84,900 $65,700 $84,900 $20,000 $40,000
Leased Warehouse and Cold Storage $5,000 $20,000 - - $2,500 $7,500
20 Ft. Box Truck Monthly Payments to Lease or Own $1,000 $2,000 - - $1,000 $2,000
Travel, Lodging, Meals, Etc. for Initial Training $1,500 $2,500 $1,500 $2,500 $1,500 $2,500
Real Estate and Improvements $2,400 $120,000 $2,400 $120,000 - -
Security Deposit and Prepaid Rent $500 $10,000 $500 $10,000 $500 $1,000
Miscellaneous Startup Costs $12,500 $32,500 $12,500 $32,500 $12,500 $32,500
Additional Funds (6 months) $10,250 $63,500 $10,250 $63,500 $10,250 $63,500
TOTALS $139,704 $386,950 $113,704 $344,950 $79,104 $190,550

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Number of units

2024
Franchised units

231

239

246

Company-owned units

0

0

0

Total units

231

239

246

Franchise Disclosure Document

Training 

Basic Management Training

  • Duration and Location: This essential training spans four days, with sessions lasting at least seven hours each day. It takes place at Dippin' Dots headquarters or a designated business location. The franchisor may adjust the training length based on the trainees' progress.
  • Content: Franchisees receive instruction in marketing, promotion and advertising strategies, sales techniques, and relevant computer applications.
  • Trainees: The program is designed for up to two participants per franchise, including the franchisee (or the principal owner if the franchise is owned by an entity) and another key individual involved in daily operations. All participants must be approved by Dippin' Dots.
  • Certification: To complete the program, trainees must achieve a satisfactory score on the Basic Management Training test.

Ongoing Training and Support

  • Refresher or Advanced Management Training: Dippin' Dots may require additional training or seminars, typically no more than twice a year, at the franchisor's discretion. Franchisees are responsible for all related costs, including training fees and travel expenses.
  • New Manager Training: If a franchisee's manager is unable to fulfill their responsibilities, a new or replacement manager must complete the Basic Management Training. The franchisee covers the training expenses, including a daily fee for the program.

Territory Protection

Dippin' Dots provides franchisees with territory protection under specific conditions outlined in the franchise agreement. This agreement details the rights and responsibilities associated with the designated "Territory."

Territory Franchise

  • Rights Granted: Franchisees are authorized to operate one retail store or kiosk at an approved location within the territory for in-person sales and catering. They are also permitted to participate in an unlimited number of fairs, festivals, and similar events, and to place unlimited vending machines and stand-alone freezers within other retail locations in the territory.
  • Exclusivity: Dippin' Dots will not place another Distribution franchise within the designated territory.

Store Only Franchise

  • Rights Granted: Franchisees can operate one retail store or kiosk at an approved location within the territory for in-person sales and catering.
  • Additional Stores: Franchisees may open additional stores within the territory, subject to an additional fee and Dippin' Dots' approval.

Distribution Franchise

  • Rights Granted: Franchisees can operate an unlimited number of vending machines and stand-alone freezers within other retail locations in the territory and fulfill catering orders within the territory.

Protection Commitment Dippin' Dots ensures that no other franchise or license will be granted to establish a business in the same enclosed mall, strip mall, shopping center, or facility where a franchisee's fixed location store or kiosk operates. This protection is contingent on the franchisee meeting the performance requirements specified in a mutually agreed performance plan.

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