Cold Stone Creamery Franchise Cost, Revenue & Review 2026
- Investment
- $391K – $681K
- Disclosed sales
- $604K
- gross sales, not profit
- SBA charge-off
- 31.0%
- on 1,224 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Cold Stone Creamery is an ice-cream franchise where staff hand-mix premium ice cream with toppings on a frozen granite stone in front of customers. Franchisees run shops managing made-to-order service, staffing, and mall or street-front foot traffic.
FranchiseVerdict summary · 2026
A Cold Stone Creamery franchise requires a total initial investment of $391K – $681K, including a $12K – $27K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $604K[2]. SBA 7(a) loans show a 31.0% charge-off rate across 1,224 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $391K – $681K
- 63rd pct Service Resta…
- Avg gross sales
- $604K
- 8th pct Service Resta…
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 1,054
- 93rd pct Service Resta…
- SBA charge-off
- 31.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · 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 $391K – $681K including a $27K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $604K/year (median $574K).
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 31.0% across 1224 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +60 franchised outlets in the latest year (63 opened, 3 closed); 273 signed but not yet open (Item 20).
- LEGAL18 litigation matters disclosed in Item 3, higher than typical. Of the 15 listed on this page, 4 name the franchisor itself, 10 its parent, affiliates or predecessor, 1 an officer personally. Pending claims are allegations, not findings.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Kahala Franchising, L.L.C.
- Parent company
- Kahala Brands, Inc.
- FDD Item 1, page 7 of the 2026 FDD
- Ultimate parent
- MTY Food Group, Inc.
- FDD Item 1, page 7 of the 2026 FDD
- Predecessor
- Cold Stone Creamery, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Eric Lefebvre
- Incorporated in
- AZ
- HQ
- 9311 E. Via De Ventura, Scottsdale, Arizona 85258
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $604.2M
- vs $597.5M prior year
Same owner · FDD Item 1, page 7
26 other brands on this site name MTY Food Group, Inc. as parent or ultimate parent in their own FDD.
- Barrio QueenC
- BlimpieD
- Chicken Strips and DipsD
- Extreme PitaF
- Famous Dave’sB
- Ginger Sushi + Poke ShopC
- GrabbagreenC
- Great SteakC
- Kahala Coffee TradersB
- La DiperieB
- Manchu WOKB
- Maui WowiD
- Mucho BurritoB
- NrGize Lifestyle CafeB
- Papa Murphy'sA
- PinkberryB
- Planet SmoothieC
- Samurai Sam’s Teriyaki GrillB
- Sauce Pizza / WineD
- Surf City SqueezeD
- TacoTimeC
- Thai ExpressD
- Village InnD
- Wetzel’s PretzelsA
- +2 more
Portfolio: MTY Food Group · Kahala Brands
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Eric Lefebvre
- Headquarters
- AZ
- Founded
- 1994
- FDD year
- 2026
- States available
- 50
Can you afford it, and what does the money buy?
Entry cost runs 10% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $27K | $27K |
| Working capital (3–6 mo) | $20K | $20K |
| Equipment, build-out, other | $344K | $634K |
| Total initial investment | $391K | $681K |
Source: Cold Stone Creamery 2026 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
- $391K – $681K
- Middle of category vs category
- Liquid capital req'd
- $20K – $20K
- Top 40% of category vs category
- Franchise fee
- $12K – $27K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $75 |
| Transfer fee | $18K |
| Renewal fee | $0 |
| Inventory (initial) | $8K – $8K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 38% below the quick-service restaurants norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Cold Stone Creamery until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$556K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Cold Stone Creamery unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2026 FDD
Financial Performance
- Avg gross sales
- $604K
- Per unit, per year
- Median gross sales
- $574K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 978 outlets
- vs category median 19 · large
- Range (low → high)
- $333K→$965KCited, not corroborated — printed on page 85 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 781 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 $604K/year in gross sales. Revenue-to-investment ratio: 1.1x.
Fee burden
Total ongoing fee load of 9.0% — above the Quick-Service Restaurants median of 7.5%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 10.5% CAGR over 3 years across 1,054 units — operators are staying and new ones are joining.
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 medians
How Cold Stone Creamery Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,054
- Opened
- 63
- Last reporting year
- Closed
- 3
- Turnover rate
- 0.3%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +10.5%
- Net unit change over 3 years
- 3-yr CAGR
- +10.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Signed, not yet open
- 273
- 0.26 per open outlet · Item 20 Table 5
- Projected new
- 72
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 32 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.
Where the owners are · Item 20 owner list
103 current owners across 32 states.
- CA 15
- FL 8
- CO 6
- NJ 6
- VA 6
- WI 6
- MN 5
- AZ 4
- GA 4
- IL 4
- OH 4
- TX 3
- +20 more states
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 1,224
- Loan volume
- $313.0M
- Median loan
- $250K
- 50th percentile
- Charge-off rate
- 31.0%
- on 1,224 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 69.0%
- 5-yr charge-off
- 3.1%
- Loans approved 2021+
- Active lenders
- 218
- Defaults
- 286
- Typical loan rate
- 7.5%
- avg rate to borrowers
- Franchised industry avg
- 31.2%
- brand beats franchise avg ↓
- Jobs supported
- 20,466
- 7.2 per loan
- Lender concentration
- 15%
- top lender's share
Borrower mix: 57% went to startups / new businesses, 43% to established operators
Franchise vs independent — in snack and nonalcoholic beverage bars, franchised businesses charge off at 31.2% vs 27.4% for independents — franchising is associated with 14% higher SBA default risk in this category.
Vintage analysis
Cold Stone Creamery charge-off rate by loan vintage
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Top lenders financing Cold Stone Creamery franchisees
Showing 3 of 218 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Cold Stone Creamery from SBA 7(a) FOIA data.
- Principal loss rate
- 18.6%
- Avg SBA guarantee
- 72%
- Avg interest rate
- 7.51%
- Avg chargeoff amount
- $185K
- Lender concentration
- 14.6%
- Job velocity
- 7.2 per $100K
- Startup risk premium
- -5.0pp
- NAICS benchmark
- 30.1%
- NAICS 722213
- Jobs supported
- 20,466
Top SBA lendersTop lender holds 15% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Comerica Bank | 159 | $42.3M | 36.7% |
| 2 | Wells Fargo Bank National Association | 58 | $10.8M | 15.8% |
| 3 | Northeast Bank | 55 | $18.2M | 74.1% |
| 4 | The Huntington National Bank | 51 | $11.5M | 16.0% |
| 5 | Popular Bank | 50 | $13.1M | 66.0% |
| 6 | Readycap Lending, LLC | 44 | $14.4M | 53.8% |
| 7 | Zions Bank, A Division of | 34 | $6.3M | 15.6% |
| 8 | KeyBank National Association | 28 | $6.3M | 19.2% |
| 9 | U.S. Bank, National Association | 22 | $3.6M | 11.8% |
| 10 | PNC Bank, National Association | 21 | $5.3M | 27.8% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 223 | 28 | 15.2% |
| TXTexas | 78 | 29 | 44.6% |
| FLFlorida | 70 | 15 | 27.3% |
| OHOhio | 49 | 7 | 17.1% |
| COColorado | 39 | 10 | 29.4% |
| AZArizona | 38 | 14 | 43.8% |
| NYNew York | 38 | 15 | 51.7% |
| NJNew Jersey | 37 | 6 | 20.0% |
| VAVirginia | 37 | 7 | 21.9% |
| ILIllinois | 36 | 14 | 42.4% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 31.0% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 31.0% — 94% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Cold Stone presents caution-level risk due to unprotected territory, historical litigation involving fraud allegations, lack of profitability disclosure, and weak unit growth suggesting a maturing system under financial pressure.
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
3 active suits filed by Kahala Franchising against franchisees during FY2025: breach of contract (2 cases) and trademark infringement/unfair competition/breach of contract (1 case). Multiple concluded cases involving affiliates and predecessors disclosed.
Largest disclosed settlement: $410,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited consolidated financial statements are those of Franchisor's parent/guarantor MTY Franchising USA, Inc. (not Kahala Franchising, L.L.C. itself), in thousands of US dollars, FY ended November 30, 2025.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 40 / 100 verdict
- 01MINORUnprotected territory creates direct competition risk from other Cold Stone locations and cannibalization
- 02HIGHLitigation history shows pattern of franchisor-franchisee disputes including fraud/misrepresentation claims and territory buybacks
- 03MINORSlow unit growth (6.0% YoY) on declining base of 1,054 units suggests mature/saturated market with franchisee struggles
- 04MINORHigh initial investment ($390k-$681k) combined with 6% royalty + $10/week surcharge creates thin margin vulnerability
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail18 matters · Item 3
Litigation cases
The franchisor
Concluded (1)
KOHO, Inc. v. Kahala Franchising, L.L.C.
settledBrought by a franchisee · filed 2015 · Superior Court of the State of California for the County of Los Angeles · BC572565
“KOHO, Inc. v. Kahala Franchising, L.L.C.; Superior Court of the State of California for the County of Los Angeles; Case No.: BC572565. On or about February 17, 2015, Koho, Inc. (“Koho”) filed a Complaint against Kahala Franchising, L.L.C. (“Kahala”) alleging: (i) breach of contract; (ii) unjust enrichment; and (iii) declaratory relief.”Page 22 of the 2026 FDD, Item 3
Outcome:“On June 19, 2017, the parties entered into a settlement agreement whereby Kahala repurchased Koho’s Area Developer territory for the sum of $75,000 and forgave the remaining damages owed in the amount of $130,000.” (page 23)
Status not stated in the filing (3)
Kahala Franchising, L.L.C. v. Byron Washington and Bram Berg
Brought against a franchisee · United States District Court for the Southern District of New York · 1:25-cv-06392
“Kahala Franchising, L.L.C. v. Byron Washington and Bram Berg; United States District Court for the Southern District of New York; Case No.: 1:25-cv-06392.”Page 31 of the 2026 FDD, Item 3
Kahala Franchising, L.L.C. v. Golden Enterprises, Inc.; DBH Associates, LP, Deseret Sales, Inc., Randy Herzog, Laurie Herzog, Amy Wilson, Rob Wilson, Clare Hunter, Deobrah Hunter
Brought against a franchisee · United States District Court in and for the Eastern District of Washington · 2:25-cv-00426
“Kahala Franchising, L.L.C. v. Golden Enterprises, Inc.; DBH Associates, LP, Deseret Sales, Inc., Randy Herzog, Laurie Herzog, Amy Wilson, Rob Wilson, Clare Hunter, Deobrah Hunter; United States District Court in and for the Eastern District of Washington; Case No.: 2:25-cv- 00426.”Page 31 of the 2026 FDD, Item 3
Kahala Franchising, L.L.C. v. Mid Valley Foods, Inc., Candyce Dilbeck, Steve Hopkins, Gegory M. Hopkins
Brought against a franchisee · United States District Court in and for the District of Arizona · 2:25-cv-04166-KML
“Kahala Franchising, L.L.C. v. Mid Valley Foods, Inc., Candyce Dilbeck, Steve Hopkins, Gegory M. Hopkins; United States District Court in and for the District of Arizona; Case No.: 2:25-cv- 04166-KML.”Page 31 of the 2026 FDD, Item 3
Parent, affiliates and predecessor
Concluded (10)
Pretzelsdallas1, Inc. v. Wetzel's Pretzels, LLC
settledBrought by a franchisee · Wetzel's Pretzels, L.L.C. · filed 2019 · American Arbitration Association (Los Angeles, California) · AAA Case No.01-19-0002-9326
“Pretzelsdallas1, Inc. v. Wetzel’s Pretzels, LLC; Los Angeles, California; AAA Case No.01-19- 0002-9326. On or about July 19, 2017, we entered into a franchise agreement with Pretzelsdallas1, Inc. (then known as Triple Scoops, Inc.). On or about September 11, 2019, Pretzelsdallas1, Inc., (“Claimant/Counter Respondent”) a franchisee, filed a demand for arbitration against Wetzel”Page 26 of the 2026 FDD, Item 3
Outcome:“On September 24, 2021, the parties entered into a settlement agreement, in which a mutual release of all claims was agreed to, and Respondent/Counter Claimant paid Claimant/Counter Respondent the sum of $125,000. The matter was subsequently dismissed with prejudice.”
Desert Ribs, L.L.C., Famous Gracie, L.L.C., Famous Freddie, L.L.C., Famous George, L.L.C. and Famous Charlie, L.L.C. v. Famous Dave's of America, Inc.
settledBrought by a franchisee · Famous Dave's of America, Inc. · filed 2016-03-14 · American Arbitration Association, Minneapolis, Minnesota · 01 16 0000 8549
“Desert Ribs, L.L.C., Famous Gracie, L.L.C., Famous Freddie, L.L.C., Famous George, L.L.C. and Famous Charlie, L.L.C. v. Famous Dave’s of America, Inc., American Arbitration Association, Minneapolis, Minnesota, Case No. 01 16 0000 8549. On March 14, 2016, the franchisees for the Famous Dave’s® Restaurants in Chandler, Peoria, Mesa and Gilbert, Arizona (“Claimants”) filed a Demand for Arbitration”Page 24 of the 2026 FDD, Item 3
Outcome:“Upon the dismissal of the MFA claims, Claimants voluntarily dismissed their remaining claims against Famous Dave’s and entered into a confidential settlement agreement and mutual release (the “Settlement Agreement”), dated August 22, 2016, with Famous Dave’s.”
Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc., EP Development, Inc., and Feisal Ramjee
settledBrought by a franchisee · The Extreme Pita Franchising USA, Inc. (predecessor in interest to MTY Franchising USA, Inc.), EP Development, Inc., and Feisal Ramjee · filed 2015-06-22 · Superior Court of the State of Washington for King County · 15-2-15120-7
“Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc., EP Development, Inc., and Feisal Ramjee; Superior Court of the State of Washington for King County; Case No. 15-2-15120-7. On June 22, 2015, Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra (collectively “Plaintiffs”), filed a complaint against The Extreme Pita Franchising USA, Inc.”Page 22 of the 2026 FDD, Item 3
Outcome:“The parties entered into a settlement agreement on March 11, 2016, in which Defendants paid Plaintiffs the sum of $20,000. The matter was dismissed on March 16, 2016.”
DTD Pizza LLC, Brian Watson, Alton Spears, LMP Enterprises LLC, et al. v. Papa Murphy's International LLC, et al. (Case No. 14-2-00904-0), consolidated with Mitch and Kristen Brink, et al. v. Papa Murphy's International LLC, et al. (Case No. 14-2-01743-3)
settledBrought by a franchisee · Papa Murphy's International LLC, et al. · filed 2014 · Washington Superior Court, Clark County · 14-2-00904-0 (consolidated; the Brink case was 14-2-01743-3)
“Concluded Arbitration and Litigation Involving Papa Murphy’s International, L.L.C. DTD Pizza LLC, Brian Watson, Alton Spears, LMP Enterprises LLC, Pizza Enterprises LLC, Alan and Denise Barnett, DOB Enterprises, Inc., Douglas and Lesia Billing, Rob & Bud's Pizza, Robert J. Dickerson Trust UA, Rob Dickerson,”Page 26 of the 2026 FDD, Item 3
Outcome:“Each of the plaintiff groups entered into settlements with Papa Murphy’s in which they dismissed all of their claims against defendants with prejudice and the action was dismissed in June 2020.” (page 27)
State of Maryland Determination
concludedGovernment or regulatory action · Triune, LLC (predecessor of affiliate BF Acquisition Holdings, L.L.C.) · filed 2012 · Office of the Attorney General of Maryland · 2012-0073
“State of Maryland Determination; Case Number 2012-0073. In February 2012, the State of Maryland alleged that during the period January 1, 2009 to November 26, 2009, Triune, LLC (“Triune”): (i) did not retain signed acknowledgements of receipt reflecting the dates that its Franchise Disclosure Document was delivered to certain Maryland residents and non-residents;”Page 30 of the 2026 FDD, Item 3
Outcome:“Without admitting or denying the allegations, in September 2012, Triune voluntarily entered into a Consent Order with the Office of the Attorney General of Maryland and agreed to: (i) not violate the Maryland Law in the future; (ii) pay the Office of the Attorney General the sum of $50,000 as a civil penalty;”
State of Virginia Determination
settledGovernment or regulatory action · Triune, LLC (predecessor of affiliate BF Acquisition Holdings, L.L.C.) · filed 2012 · Division of Securities and Retail Franchising of the State Corporation Commission (Virginia) · SEC-2012-00027
“State of Virginia Determination; Case Number SEC-2012-00027. In February 2012, the Division of Securities and Retail Franchising of the State Corporation Commission (the "Commission") alleged that during 2009 Triune, LLC (“Triune”): (i) offered or sold franchises in Virginia in 2009 that were not registered under the Virginia Retail Franchising Act”Page 30 of the 2026 FDD, Item 3
Outcome:“Without admitting or denying the allegations, on November 26, 2012, Triune voluntarily entered into a Settlement Order with the Commission and agreed: (i) to not violate the Virginia Act in the future; (ii) to pay Virginia the sum of $25,000 as a penalty and the sum of $5,000 to defray the Commission’s costs of investigation;”
Matter with no printed caption
judgmentGovernment or regulatory action · Blimpie Associates, Ltd. and Joseph Dornbush (formerly the President of Blimpie) · filed 1992 · New York Department of Law
“Concluded State Administrative Actions Involving Predecessor Blimpie Associates, Ltd. In May 1992, Blimpie Associates, Ltd. (“Blimpie”) and Joseph Dornbush (formerly the President of Blimpie) (collectively “Respondents”) responded to a claim by the New York Department of Law that it had sold franchises during a period of time when Blimpie’s prospectus had not been updated by amendment.”Page 28 of the 2026 FDD, Item 3
Outcome:“Respondents paid the $18,000 in May 1992 and executed the consent judgment on August 25, 1992.”
In the Matter of Maui Wowi Franchising, Inc., Before the Securities Commissioner of Maryland
concludedGovernment or regulatory action · Maui Wowi Franchising, Inc. (predecessor in interest to Kahala Franchising, L.L.C.) · Securities Commissioner of Maryland · 2005-0651
“In the Matter of Maui Wowi Franchising, Inc., Before the Securities Commissioner of Maryland, Case No. 2005-0651. On November 11, 2005, Maui Wowi Franchising, Inc., the predecessor franchisor of the Maui Wowi brand (“MWF”), entered into a Consent Order with the Securities Commissioner of Maryland (“Commissioner”) resulting from MWF inadvertently entering into four franchise agreements”Page 29 of the 2026 FDD, Item 3
Outcome:“At this time, MWF is in full compliance with the Consent Order.”
In the Matter of Maui Wowi Franchising, Inc., Before the Securities Commissioner of Maryland (No. 2007-0194)
concludedGovernment or regulatory action · Maui Wowi Franchising, Inc. (predecessor in interest to Kahala Franchising, L.L.C.) · Securities Commissioner of Maryland · 2007-0194
“In the Matter of Maui Wowi Franchising, Inc., Before the Securities Commissioner of Maryland, Case No. 2007-0194. On September 12, 2007, “MWF” entered into a Consent Order with the Maryland Commissioner resulting from MWF inadvertently entering into two franchise agreements with two Maryland residents (“Second Maryland Franchisees”) without delivering to them the appropriate Offering Circular.”Page 29 of the 2026 FDD, Item 3
Outcome:“MWF fully complied with the Amended Consent Order, and subsequently employed a compliance monitor and was granted registration in the State of Maryland.”
In the Matter of SweetFrog Enterprises, L.L.C. f.k.a. Imagination Enterprises, Inc., d/b/a Sweet Frog, Administrative Proceeding Before the Securities Commissioner of Maryland
concludedGovernment or regulatory action · SweetFrog Enterprises, L.L.C. f.k.a. Imagination Enterprises, Inc. (predecessor to affiliate SFF, L.L.C.) · Securities Commissioner of Maryland · 2012-0055
“In the Matter of SweetFrog Enterprises, L.L.C. f.k.a. Imagination Enterprises, Inc., d/b/a Sweet Frog, Administrative Proceeding Before the Securities Commissioner of Maryland, Case No. 2012-0055. As a result of an inquiry into the franchise related activities of SweetFrog Enterprises, L.L.C.,”Page 28 of the 2026 FDD, Item 3
Outcome:“On August 29, 2012, the Commissioner and SFE agreed to enter into a consent order whereby SFE, without admitting or denying any violations of the law, agreed to: (i) immediately and permanently cease from the offer and sale of franchises in violation of the Maryland Franchise Law; (ii) file and diligently pursue an application for an initial franchise registration in Maryland relating to the license agreements it ...”
Officers and directors (individuals, not the company)
Concluded (1)
In re: Restaurants Acquisition I, LLC (Giuliano vs. W. Craig Barber et. al.)
settledThird-party plaintiff · W. Craig Barber and Robert Langford · filed 2017-12-01 · United States Bankruptcy Court for the District of Delaware · 15-12406 (KG)
“Concluded Arbitration and Litigation Involving VI BrandCo, L.L.C. In re: Restaurants Acquisition I, LLC (Giuliano vs. W. Craig Barber et. al. United States Bankruptcy Court for the District of Delaware on December 2, 2015 (Case No. 15-12406 (KG)).”Page 25 of the 2026 FDD, Item 3
Outcome:“On March 6, 2019, Barber and Langford each settled with the Chapter 7 trustee by each agreeing to pay to the trustee and estate separate payments totaling $150,000 each over a three-year period.” (page 26)
This list shows 15 of the 18 matters Item 3 discloses; the rest are in the filing.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 90 days |
| Mandatory arbitration | Yes |
| Arbitration location | County and state where Franchised Business is located |
| Jury trial waiver | Yes |
| Governing law | State where Franchised Business is located |
| Litigation count | 18 |
View Item 3 litigation summary
3 active suits filed by Kahala Franchising against franchisees during FY2025: breach of contract (2 cases) and trademark infringement/unfair competition/breach of contract (1 case). Multiple concluded cases involving affiliates and predecessors disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 80 hrs
- Training location
- Online, KTEC (Kahala Training & Education Center) in Scottsdale, AZ; In-Store training at Arizona training store
- Ongoing training
- Optional
- Time to open
- 8 mo
- From signing to launch
- Site selection
- Franchisee selects; Franchisor must approve
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
104 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Cold Stone Creamery franchise?
The total investment to open a Cold Stone Creamery franchise ranges from $391K – $681K, with an initial franchise fee of $27K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Cold Stone Creamery franchise owners earn?
According to Item 19 of the Cold Stone Creamery FDD, the average gross sales per unit is $604K. The median is $574K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Cold Stone Creamery?
Cold Stone Creamery is franchised by Kahala Franchising, L.L.C.. Its parent company is Kahala Brands, Inc.. The ultimate parent named in the FDD is MTY Food Group, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Cold Stone Creamery 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 Cold Stone Creamery FDD and qualifies whose outlets they describe.
What is Cold Stone Creamery's franchise failure rate?
Based on SBA 7(a) loan data, Cold Stone Creamery has a charge-off rate of 31.0% across 1,224 loans, meaning 31.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Cold Stone Creamery franchise locations are there?
As of their most recent FDD filing, Cold Stone Creamery has 1,054 total units in the United States, including 1,052 franchised units and 2 company-owned units. 63 new units were opened in the latest reporting year.
Is Cold Stone Creamery a good franchise to buy?
FranchiseVerdict rates Cold Stone Creamery as a C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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If you represent Cold Stone Creamery, you can request corrections or provide updated information.
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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.