Rita's Ice Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$35,000
Investment required
$22,000 - $643,000
Royalty fee
6.50%

Rita's Italian Ice: Revolutionizing Frozen Treats with Tradition and Innovation

Rita's Italian Ice is a popular American quick-service restaurant chain known for its delectable Italian ice, frozen custard, a variety of frozen treats, and other unique specialty creations.

Founded in 1984 in Bensalem, Pennsylvania, by former firefighter Bob Tumolo, the chain is named after Tumolo's wife, Rita. Despite its growth, Rita’s Italian Ice maintains its family roots and dedication to the communities it serves.

In addition to its signature Italian ice, Rita’s offers an impressive range of frozen desserts, including frozen yogurt, ice cream, and indulgent milkshakes, blending American and Italian traditions.

The chain began franchising in 1989 and has since expanded significantly. Rita's is renowned for its seasonal flavors and innovative menu items, constantly introducing new treats to delight its customers. Additionally, the company emphasizes community involvement, often participating in local events and supporting charitable causes.

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.

Rita's Ice offers 5 types of franchises:

Type of Rita’s Shop Initial Investment
Standard Rita’s Shop without Drive-Thru $278,333 - $624,695
Standard Rita’s Shop with Drive-Thru $420,773 - $643,094
Express Rita’s Shop $179,005 - $518,504
Satellite $131,550 - $298,500
Mobile Unit $21,600 - $149,000

We are summarizing below the main costs associated with opening a Standard Rita’s Shop with Drive-Thru franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Standard Rita’s Shop with Drive-Thru

Type of Expenditure Amount
Initial Franchise Fee $35,000
Lease Deposit $0 - $12,500
Leasehold Improvements $212,537 - $292,000
Equipment $108,500 - $154,753
Permits & Licenses $1,313 - $10,000
Signage $10,628 - $37,421
Insurance $200 - $3,920
Initial Order $8,000 - $17,500
Minimum New Shop Marketing Expenditure $12,000
Training $50 - $5,000
Architect and Attorney Fees $12,545 - $33,000
Additional Funds (3 months) $20,000 - $30,000
TOTAL $420,773 - $643,094

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Number of units

2023
Franchised units

564

538

537

Company-owned units

0

0

0

Total units

564

538

537

Franchise Disclosure Document

Training 

Pre-Opening Training and Assistance: Before opening a Rita's Italian Ice shop, the company provides extensive initial training for franchisees and managers. This "Initial Training" program is designed to equip up to two trainees at no charge. Additional trainees can also be trained, though a fee may apply for their training.

On-Site Pre-Opening Oversight: In addition to the initial training, Rita's Italian Ice provides on-site pre-opening oversight and assistance. This support ensures that franchisees are fully prepared and confident before starting their operations.

Employee Training: Franchisees are responsible for ensuring their staff is well-trained and capable of maintaining excellent customer relations. Employees must provide competent, prompt, courteous, and knowledgeable service, adhering to the company's high standards.

Marketing and Promotion: Rita's Italian Ice offers guidance on local advertising and promotional activities. This includes assistance with purchasing advertising materials, media planning, promotions, and other related expenses, helping franchisees effectively market their new business.

Territory Protection

Franchisees are granted the right to operate a Rita's Italian Ice shop at a specific location approved by the company. This location falls within a "Designated Area" outlined in the Franchise Agreement. However, this Designated Area is solely for site selection purposes and does not provide territorial exclusivity or protection to the franchisees.

The size and scope of the Territory are determined by Rita's Italian Ice on a case-by-case basis. Factors considered include demographics, existing and potential competition, projected growth in the area, and the overall economic environment. This tailored approach ensures that each franchise location is strategically chosen for optimal success.

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