How much does it cost to buy a Rita's franchise?
To buy a franchise with Rita's Franchise Company, you'll need to have at least $100,000 in liquid capital and a minimum net worth of $300,000. Franchisees can expect to make a total investment of $194,863 - $528,061. They also offer financing via 3rd party as well as a discount for veterans ( 20% off Franchise Fee ). *
How long does a RITA’s Italian ice franchise last?
Typical terms of agreements for Rita’s Italian Ice franchisees last for 10 years. At the conclusion of those ten years, you can seek to renew your franchise for a sum if the franchisor wishes to remain in business. Rita's Italian Ice is a family-oriented business that generally tries to provide a location for many families to gather.
Who owns Rita's ice cream franchise?
In 2017, Argosy Private Equity and MTN Capital acquired Rita's Franchise Company. The company continues to search for willing franchisees to expand its reach. As one of the company's commitments to the community, Rita's usually gives out free regular-sized Italian ice on the first day of spring.
How many locations does Rita's have in the US?
The second store opened in 1987, and in 1989 the family decided to start selling franchises. Now there are more than 500 locations in multiple states across the U.S. Rita's Italian Ice is a major player in offering specialty sweet treats. These include frozen custard, Italian ice with real fruit, frozen drinks, and much more.
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Why is Rita's so successful?
Rita’s has thrived because we provide unique frozen desserts that combine the best of American and Italian dessert traditions. The result is an experience unlike any other that has earned Rita’s a cult-like following. Rita’s has also thrived thanks to a business model that helps entrepreneurs start and grow a business that they love. Our walk-up and drive-thru options help make it a simple-to-run, simple-to-grow business model, while our walk-in and mobile options make it a great fit for entrepreneurs who are looking for a fun, community-oriented business.
Why do people choose Rita's?
Customers choose Rita’s because we are a friendly business with unique frozen treats. In the Northeast, we are an institution, thanks to three decades of happy customers who know what to expect. In newer markets, we have a unique advantage: We are unique!
Is Rita's ice cream a walk-in?
Rita’s has thrived since 1984 thanks to our unique frozen desserts like our silky Italian ice and creamy frozen custard. Additionally, our walk-up and drive-thru options help make it a simple-to-run, simple-to-grow business model, while our walk-in and mobile options make it an excellent fit for entrepreneurs who are looking for a fun, community-oriented business.
When did Rita's Italian Ice open?
Guests have been loving our product since the first Rita’s opened in Philadelphia in 1984.
Is Rita's frozen custard a franchise?
Depending on where you live, a frozen custard and Italian ice franchise may sound like a brand new concept. But Rita’s franchisees have been thriving for more than three decades. The recipe for success is fairly simple: Combine unique frozen treats and smiling service with a commitment to engaging with the community — and watch the smiles become contagious!
How long does a franchise last?
Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease.
What is franchise investment?
Definition: The total amount necessary to begin operation of the franchise. What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital.
What is franchise fee?
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor.
What is 3% advertising fee?
3%. Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide.
When did Tumolo start franchising?
Customers began asking about how to open their own Rita's Italian Ice, so Tumolo began franchising in 1989. Today the chain offers frozen custard, gelato, milkshakes, frozen drinks, sundaes and other frozen treats in addition to its ices. Argosy Private Equity and MTN Capital acquired Rita's Franchise Company in 2017.
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Do franchisors have in-house financing?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
Trademark Applications
Trademark applications show the products and services that Rita's Franchise is developing and marketing. Rita's Franchise doesn't have any recent trademark applications, indicating Rita's Franchise is focusing on its existing business rather than expanding into new products and markets.
Recession Risk
Determine whether Rita's Franchise grew or shrank during the last recession. This is useful in estimating the financial strength and credit risk of the company. Compare how recession-proof Rita's Franchise is relative to the industry overall.
Market Share of Rita's Franchise's Largest Competitors
A competitive analysis shows these companies are in the same general field as Rita's Franchise, even though they may not compete head-to-head. These are the largest companies by revenue. However, they may not have the largest market share in this industry if they have diversified into other business lines.
Nearby Competitors
These companies are similar in business line and location to Rita's Franchise. While some companies compete with neighboring businesses for customers, other companies may compete to attract skilled employees.
Future Competition: Rita's Franchise's Fastest Growing Competitors
These companies are in the same general field as Rita's Franchise and are rapidly expanding. Companies may grow organically or through acquisition. In some cases apparently high growth rates may be caused by data that weren't available in previous years.
Why did Rita's bail out?
In less than two years he bailed as he simply couldn’t control all of the areas where they were losing money. Not talking about competitive issues, location issues, seasonality issues or other valid concerns. Mostly it was employee issues as no one is hiring engineers or PHD’s to run the counter (no money to hire better). Not picking on Rita’s here because ANY business that requires minimum wage level of workers to do anything autonomously is destined to fail. Now if YOU buy only one franchise and YOU work it personally 100+ hours per week overseeing EVERY aspect.. then maybe.
What is the responsibility of a franchisee?
The franchisee has some responsibility for other business risks such as location (location, and location), hiring good people, location, setting high standards of behavior, and location. And of course, location. However, no one has any real power over systemic risks.
Do franchises screw up?
Sometimes the franchiser screws up. A very popular restaurant franchise packs so many stores into an area that profits are very hard to find and owners have been forced to acquire multiple stores to make a living .
Can you make phenomenal profits with a low percentage rent?
if you’re fortunate enough to have a high sales volume location with a low percentage rent you can earn phenomenal profits.
Is Baskin Robbins merged with Dunkin Donuts?
Baskin Robbins used to be everywhere…..Then they were merged with Dunkin Donut locations…but even those are thinner than they used to be. A dunkin donuts has customers all day long…and items like a single donut or coffee dont take up much space….ice cream freezers and toppings are a lot of counter space. Every time i see a donut/ice cream place the ice cream is being removed in a renovation.
Do you need a franchise to open a frozen dessert business?
ALSO its a business with very very low barriers to entry. You dont even need a franchise to open a frozen dessert business…just a freezer and some toppings. When I was in boca raton about 8 years ago I laughed that every strip mall was getting a frozen
Does McDonald's make money off of franchisees?
keep in mind that McDonald’s corporate makes its money off of the top line of the franchisee restaurant, not the profit. So while the franchisee is bleeding money the company can’t lose because it still collects percentage rent and service fees.
How long is Rita's training?
There’s a week-long training session that will take you through the operational procedures that Rita’s has developed as well. This organization believes that the greatest levels of profitability come from a commitment to the highest possible standards, so you’ll be taken through the expectations of a quality product and how to make sure one is delivered on a consistent basis.
How many steps are there to open Rita's?
Before beginning the process of opening and financing, Rita’s has a 6 step process that each franchisee must work through in order to qualify as well, even if the financial requirements have been met. The first step is to complete the franchisee application.
What Are the Initial Investment Costs of This Franchise?
If you’re thinking about starting multiple franchise units, your minimum net worth must be a proven $750k and $250k of that must be in liquid assets. In return for your initial investment, you’ll have access to an area agreement for a domestic US territory and a master agreement for international opportunities.
How much does it cost to open a franchise?
The initial franchise fee that you’ll pay upon signing your paperwork is $30k and you’ll receive a 10 year franchise agreement that has the option to renew. You do have the option of being an absentee owner, but none of the 552 registered franchises at the time of this writing are controlled in such a way. There’s an ongoing royalty of 6.5% that is required on weekly gross sales and the initial expected investment is a minimum of $140k. Depending on your location, the high estimate for achieving a grand opening in this franchise model is $379k.
When did Rita's Ice start?
Do you think an Italian ice franchise could take off and be successful? Rita’s started in 1984 on the front porch of a firefighter’s home in Bensalem, PA. Rita was the name of Bog Tumolo’s wife and over the next three years, his mother and his brother helped him put in 3 locations in the Philadelphia area.
Is Italian Ice a franchise?
Italian ice is one of those treats that everyone loves… if it is made the right way. Kids and adults alike love the sweet treat on a warm day, but this nich e market is also transitioning into a year-round type of franchise when it is managed correctly.
Is This the Right Investment For You?
Italian ice is one of those treats that everyone loves… if it is made the right way. Kids and adults alike love the sweet treat on a warm day, but this niche market is also transitioning into a year-round type of franchise when it is managed correctly. If you don’t have a local ice cream store, gelato shop or other dessert store in your community, then you’ll have an automatic attraction that could produce high levels of traffic.
