Andy's Frozen Custard
Bottom line
- Total investment $1.1M – $2.9M including a $32K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.4M/year. Estimated payback in 3.1 years.
- Rated STRONG with a risk score of 22/100. SBA loan default rate of 0.0% across 3 loans (below the industry average).
- System growing at 4590% CAGR over 3 years with 147 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one ANDY'S FROZEN CUSTARD unit return on the cash you put in?
Unlevered ROIC · per unit
8%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 ANDY'S FROZEN CUSTARD units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.1M
on $5.4M purchase
Total debt
$4.3M
SBA $2.7M + senior + seller note
Overview
About
Franchisees operate quick-service frozen custard shops focused on premium ice cream products, seasonal menu items, and drive-through service. Day-to-day operations include managing 15-30 staff members across shifts, maintaining strict food quality and temperature controls, managing inventory of dairy and mix-ins, and executing marketing in protected territories. Success depends on operational consistency, customer service excellence, and seasonal traffic management typical of the QSR dessert category.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Andy's Frozen Custard presents a strong fundamental opportunity with healthy unit growth, profitability, and no litigation, but the substantial capital requirement and opaque royalty tiers warrant careful financial modeling and franchisee validation.
Score breakdown · what drove the 22 / 100 rating
- 01MINORHigh initial investment range ($1.1M-$2.9M) requires strong financial reserves and creates extended payback period
- 02MINORTiered royalty structure (6% to 4%) lacks transparency—unclear at what unit count thresholds apply and actual franchisee economics
- 03MINORRapid 20.3% YoY growth may strain support infrastructure, training quality, and supply chain consistency
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
47 numbers
One-time purchase · CSV download · Validation questions included
FDD download
ANDY'S FROZEN CUSTARD · FDD (2024) PDF