Chill-N Nitrogen Ice Cream Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Chill-N Nitrogen Ice Cream is a dessert franchise that freezes custom ice cream to order with liquid nitrogen. Franchisees run the shops, managing made-to-order prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A Chill-N Nitrogen Ice Cream franchise requires a total initial investment of $462K – $679K, including a $39K franchise fee and an ongoing 6.0% royalty[2]. Per the 2022 FDD, average unit revenue was $658K[2]. FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2022 FDD issuance
Overview
- Investment
- $462K – $679K
- 73rd pct Service Resta…
- Avg gross sales
- $658K
- Company-owned only7th pct Service Resta…
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 5
- 24th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $462K – $679K including a $39K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $658K/year (median $643K) (company-owned outlets only - not franchisee performance). Note: this is gross profit, not take-home income.
- RISKVerdict F (Weakest tier), verdict score 25/100 (higher is better).
- FLAGAuditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Chill-N Nitrogen Ice Cream Franchising, LLC
- Parent company
- None
- CEO title
- Chief Executive Officer
- David Leonardo
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 3051 NW 75th Avenue, Miami, FL 33122
- Auditor
- DJJCPA, LLC
- Audited financials
- Franchisor revenue
- $377K
- vs $130K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2022
- Status as of 2022; may have been resolved in a later filing we don't yet have.
Overview
About
- CEO
- David Leonardo
- Headquarters
- FL
- Founded
- 2018
- FDD year
- 2022
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 13% below the typical quick-service restaurants franchise.
Source: FDD 2022 · Items 5–7
FDD Item 7 · 2022 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $39K | $39K |
| Working capital (3–6 mo) | $15K | $40K |
| Equipment, build-out, other | $408K | $600K |
| Total initial investment | $462K | $679K |
Source: Chill-N Nitrogen Ice Cream 2022 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $462K – $679K
- Bottom third — review vs category
- Liquid capital req'd
- $15K – $40K
- Top 40% of category vs category
- Franchise fee
- $39K – $39K
- Middle of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $150 |
| Transfer fee | $0 |
| Renewal fee | $0 |
| Inventory (initial) | $8K – $9K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 46% below the quick-service restaurants norm.
Company-owned outlets only - not franchisee performance
Source: FDD 2022 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$92K
14.0% margin
Unlevered ROIC
15%
EBITDA / total invested capital
Payback
6.5 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Chill-N Nitrogen Ice Cream unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
15%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
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
$921K
on $4.6M purchase
Total debt
$3.7M
SBA $2.3M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2022 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
- Avg gross sales
- $658K
- Per unit, per year
- Median gross sales
- $643K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- affiliate owned stores
- Sample size
- 4
- vs category median 20 · small
- Range (low → high)
- $561K→$785K
- Cohort dispersion (min → max)
- Reporting year
- 2021
- Fiscal year the figures cover
- Source filing
- FDD 2022
- Disclosed in the 2022 filing, covering 2021
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 782 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $658K/year in gross sales. Revenue-to-investment ratio: 1.2x. Company-owned outlets only - not franchisee performance.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants average).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence. Sample size of 4 units — treat as directional only.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Chill-N Nitrogen Ice Cream Compares
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 5
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 7 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 7
- Loan volume
- $1.3M
- Median loan
- $91K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (7 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Micro-franchise system with unproven unit economics, missing financial disclosures, and franchisor stability concerns outweigh the protected territory advantage.
Litigation (Item 3)
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DJJCPA, LLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 25 / 100 verdict
- 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
- 03MINORHigh initial investment ($462k-$679k) paired with only 5 existing units creates validation risk
- 04MINOR16.4% 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
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 2 mi |
| Territory population | 40,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Mandatory arbitration | No |
| Arbitration location | Miami, FL (mediation then litigation) |
| Jury trial waiver | Yes |
| Governing law | FL |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 30 hrs
- Training location
- Miami, Florida (or another location designated by franchisor)
- Ongoing training
- Required
- Field support
- 30 hrs/yr
- On-site visits per year
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisee selects site with franchisor approval; franchisor provides prototype layout and construction management
- Franchisor financing
- Not offered
- Item 10
- POS system
- Designated vendor POS (iPad-based with kiosks)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Designated vendor POS (iPad-based with kiosks)
Item 20 · call current owners
Franchisee Contacts
9 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Chill-N Nitrogen Ice Cream · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Chill-N Nitrogen Ice Cream franchise?
The total investment to open a Chill-N Nitrogen Ice Cream franchise ranges from $462K – $679K, with an initial franchise fee of $39K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Chill-N Nitrogen Ice Cream franchise owners earn?
According to Item 19 of the Chill-N Nitrogen Ice Cream FDD, the average gross sales per unit is $658K. The median is $643K. Important context: Company-owned outlets only - not franchisee performance. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Chill-N Nitrogen Ice Cream FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Chill-N Nitrogen Ice Cream FDD and qualifies whose outlets they describe.
What is Chill-N Nitrogen Ice Cream's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Chill-N Nitrogen Ice Cream (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Chill-N Nitrogen Ice Cream franchise locations are there?
As of their most recent FDD filing, Chill-N Nitrogen Ice Cream has 5 total units in the United States, including 0 franchised units and 5 company-owned units.
Is Chill-N Nitrogen Ice Cream a good franchise to buy?
FranchiseVerdict rates Chill-N Nitrogen Ice Cream as a F-grade franchise with a verdict score of 25 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.