How Much Does it Cost to Open a Chill-N Nitrogen Ice Cream?
Chill-N Nitrogen Ice Cream
Our Mission is to serve happiness to our local communities one cup at a time
For prospective franchisees interested in opening a Chill-N franchise of their own, here is a guide to what costs you can expect to incur as an owner and the support you can expect.
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Chill-N Nitrogen Ice Cream offers a strong opportunity for entrepreneurs eager to dive into the specialty ice cream market. Chill-N’s unique, made-to-order, flash-frozen approach creates a deliciously rich and creamy product, setting the brand apart.?
Backed by a solid business model, cutting-edge technology and robust corporate support, Chill-N provides franchisees with a comprehensive framework for success. But how much does it cost? Here’s a breakdown.?
The Main Costs Involved
One of the biggest costs franchisees will come across during the franchise process is construction.?
“Close to 40-50% of your costs of opening a location will probably be construction itself,” said Chill-N CEO David Leonardo. “So depending on what market you're in in the country, those prices can vary. They can also vary depending on the site.”
Leonardo notes that the franchise is seeing a growth in second generation spaces that already have existing infrastructure. These can open at a discount because they already have features such as bathrooms, grease traps, kitchen equipment and more — which all reduce construction costs. On the other end of the spectrum, there is what's called the “Grey Shell” where Chill-N franchisees are going to have to build in an unfinished commercial space.?
“Between kitchen equipment, nitrogen equipment, furniture and fixtures, that could take up the lion's share of the rest of it,” Leonardo said. “We also make sure to budget some working capital, along with franchise fees and other non-capital investments, such as marketing spend, legal expenses and travel costs. I always tell candidates that the advantage of our approach to estimating opening costs is that we include everything, right down to the last M&M, before you open.”
Here’s a breakdown of what goes into the initial investment, according to the brand’s 2024 Franchise Disclosure Document:
For franchisees who require financing assistance, Chill-N has a partnership with Guidant Financial. “Guidant evaluates credit scores, available liquid capital, and can structure rollovers from 401(k)s or IRAs,” said Leonardo. “While Guidant doesn't directly provide the loans, their main role is to connect franchisees with the best lenders in the franchise lending space, ensuring they receive the right financing support.”?
Ongoing Fees and Support to Expect
The ongoing fees for franchisees consist primarily of a 6% royalty paid weekly. Franchisees receive an invoice every Tuesday for the previous week’s sales, with royalty payments automatically deducted on Wednesdays.
“That goes towards all the support that you receive as a franchisee, from operation support to technology support to marketing support,” said Leonardo. “One of the things we take great pride in is providing comprehensive support from start to finish.”
For instance, the franchisor assists with site selection through a dedicated team that understands demographics and site requirements nationwide. On the real estate side, there is a construction management team that handles all aspects of architecture, bidding with general contractors (GCs) and the entire construction process, so franchisees don’t need prior experience in this area. Chill-N will also monitor the construction progress through weekly calls with the franchisee and GCs to ensure milestones are met.?
“Additionally, we provide operational support not only from our corporate office but also by sending a team to the store a week before opening,” said Leonardo. “This team ensures that staff are properly trained, the store is in top shape and the grand opening is a success. Essentially, franchisees receive full-service support from us as their franchisor.”
In addition to the royalty, franchisees are charged a monthly fee of $250, which includes $150 for technology and $100 for intellectual property (IP). Unlike many other franchises, there is no national advertising fund due to the brand's current size of 16 stores. Instead, franchisees are required to allocate 3% of their revenue to local marketing, with the flexibility to decide how to spend it, supported by the franchise’s marketing team and available resources.
For more information on the costs to buy this franchise, please visit https://1851franchise.com/growth-club/chill-n-nitrogen-ice-cream.