Chill-N Nitrogen Ice Cream
Bottom line
- Total investment $462K – $679K including a $39K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $658K/year (median $643K). Estimated payback in 5.3 years.
- Rated MODERATE with a risk score of 61/100. SBA loan default rate of 0.0% across 14 loans (below the industry average).
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 Chill-N Nitrogen Ice Cream unit return on the cash you put in?
Unlevered ROIC · per unit
11%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Chill-N Nitrogen Ice Cream units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$395K
on $2.0M purchase
Total debt
$1.6M
SBA $1.0M + senior + seller note
Overview
About
Franchisees operate quick-service ice cream shops featuring nitrogen-frozen desserts. Day-to-day operations include preparing and serving custom ice cream products, managing POS systems, staffing counter/production, inventory management, and local marketing to drive foot traffic in their protected territory.
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 · 13 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
Micro-franchise system with unproven unit economics, missing financial disclosures, and franchisor stability concerns outweigh the protected territory advantage.
Score breakdown · what drove the 61 / 100 rating
- 01MINOROnly 5 units in system with unknown growth trajectory indicates minimal scale and market validation
- 02HIGHGoing Concern status is FALSE — suggests franchisor financial instability or operational uncertainty
- 03MEDNo Item 19 (financial performance representations) disclosed — cannot verify if $657,949 avg revenue or $108,697 net income are achievable
- 04MINORHigh initial investment ($462k-$679k) paired with only 5 existing units creates validation risk
- 05MINOR16.4% net margin (108,697/657,949) is thin for food service and may not sustain royalties, labor costs, and rent
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
18 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Chill-N Nitrogen Ice Cream · FDD (2022) PDF