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Cold Stone Creamery Franchise Cost, Revenue & Review 2026

Quick-Service RestaurantsAZFranchising since 2010
CAverageAverage40/100Editorial grade from public filings; not investment advice.
Investment
$391K – $681K
Disclosed sales
$604K
gross sales, not profit
SBA charge-off
31.0%
on 1,224 loans

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-00592FDD 2026Data QualityExcellent91%Pre-opening
Manager-run OKNo: No territory protection

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

Total Investment
$391K – $681K
Median $486K
above median ↑, worse than category
Franchise Fee
$12K – $27K
Median $35K
below median ↓, better than category
Liquid Capital Req'd
$20K – $20K
Median $33K
below median ↓, better than category
Avg Revenue
$604K
Median $975K
below median ↓, worse than category
Royalty Rate
6.0%
Median 5.5%
near median
Ongoing Fees
9.0% of rev
Median 7.5%
above median ↑, worse than category
SBA Charge-Off Rate
31.0%
1,224 loans · Median 14.3%
above median ↑, worse than category
System Size
1,054 units
Median 18 units
above median ↑, better than category
Turnover Rate
0.3%
Median 0.0%
Territory
None
The franchisor can open or license outlets nearby
Owner-Operator
Optional
Can hire a manager
Litigation
18 cases
Review carefully

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.

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.

Total investment (Item 7)$391K – $681KCited, not corroborated — printed on page 42 of the 2026 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$27,000Verified — printed on page 31 of the 2026 FDD (Item 5), and another item of the same filing prints the same figure on a labelled row, which is an independent restatement.
Royalty6.0%Cited, not corroborated — printed on page 34 of the 2026 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Ad fund3.0%Cited, not corroborated — printed on page 34 of the 2026 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Working capital$20K – $20K

Source: FDD 2026 · Items 5–7

FDD Item 7 · 2026 filing

Initial investment breakdown

Cold Stone Creamery: Item 7 initial investment breakdown
Cost componentLowHigh
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

Cold Stone Creamery: Item 6 recurring fees
FeeAmount
Royalty6.0% of gross sales
Marketing / ad fund3.0% of gross sales
Technology fee$75
Transfer fee$18K
Renewal fee$0
Inventory (initial)$8K – $8K
Total fee load9.0% of rev

What do units actually make?

Average unit sales run 38% below the quick-service restaurants norm.

Avg gross sales$604KCited, not corroborated — printed on page 85 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
Median gross sales$574KCited, not corroborated — printed on page 85 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
Item 19 typegross sales
Sample size978 outlets

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
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

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?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearFDD
FDD Item 19 reports $604,392 per unit
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

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.

Total invested capital · what you put in to openFDD
FDD Item 7: $391K–$681K (midpoint used)
FDD reports $20K–$20K

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.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$556K
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

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
Gross sales rank8th
Item 19 reporting methods vary across brands
Investment cost rank63th
Lower investment ranks lower (better)
Royalty rate rank48th
Lower royalty = lower percentile (better)
Unit count rank93th
vs Quick-Service Restaurants peers
Risk score rank74th
Lower risk = lower percentile (better)

Compared against 781 Quick-Service Restaurants brands

Showing the headline figures — all 149 extracted fields are in the Full FDD Report · $19 →

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

Metric
Cold Stone Creamery
Category median
vs median
Investment
$536K
$486Kmiddle half $342K–$748K · n=780
Above median, worse than category
Revenue
$604K
$975Kmiddle half $664K–$1.4M · n=284
Below median, worse than category
Unit Count
1,054
18middle half 5–79 · n=755
Above median, better than category

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?

Total units1,054Cited, not corroborated — printed on page 86 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
3-yr growth+10.5% (favorable vs category)
Turnover rate0.3% (favorable vs category)

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
2023
952
Franchised units
2024
992+40
Franchised units
2025
1,052+60
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Active operators · 32 states
No contacts on file

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.

F
SBA Lending Health
Weak SBA lending record · 31.0% charge-off
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

BrandNational avg
Cold Stone Creamery charge-off rate by loan vintage. Showing 24 vintages from 1998 to 2022. Rates range from 0.0% to 60.3%.0%5%10%15%20%25%30%35%40%45%50%55%60%65%'98'03'08'14'19'22

Shaded area: recent vintages with few resolved loans; rates may change as loans mature.

Top lenders financing Cold Stone Creamery franchisees

Comerica Bank159 loans36.7%
Wells Fargo Bank National Association58 loans15.8%
Northeast Bank55 loans74.1%

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.

Total loans
1
Loan volume
$96K
Charge-off rate
N/A
Jobs created
6

Historical SBA 504 lending data via CDCs, not predictive of future performance.

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

#LenderLoansVolumeDefault %
1Comerica Bank159$42.3M36.7%
2Wells Fargo Bank National Association58$10.8M15.8%
3Northeast Bank55$18.2M74.1%
4The Huntington National Bank51$11.5M16.0%
5Popular Bank50$13.1M66.0%
6Readycap Lending, LLC44$14.4M53.8%
7Zions Bank, A Division of34$6.3M15.6%
8KeyBank National Association28$6.3M19.2%
9U.S. Bank, National Association22$3.6M11.8%
10PNC Bank, National Association21$5.3M27.8%

Geographic failure vector

StateLoansDefaultsRate
CACalifornia2232815.2%
TXTexas782944.6%
FLFlorida701527.3%
OHOhio49717.1%
COColorado391029.4%
AZArizona381443.8%
NYNew York381551.7%
NJNew Jersey37620.0%
VAVirginia37721.9%
ILIllinois361442.4%

SBA 7(a) lending trend

1997
2
1998
7
1999
9
2000
11
2001
19
2002
57
2003
113
2004
168
2005
201
2006
126
2007
52
2008
33
2009
6
2010
17
2011
9
2012
1
2013
6
2014
10
2015
17
2016
23
2017
11
2018
13
2019
14
2020
17
2021
25
2022
34
2023
26
2024
23
2025
36
2026
4

Borrower profile

Startup86 (45%)
Existing (2+ yr)42 (22%)
Ownership change37 (19%)
New (< 2 yr)23 (12%)
Unanswered3 (2%)
New (< 1 yr)1 (1%)

Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict

Lending insight

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.

SBA charge-off31.0% · 1,224 loans
Verdict score40/100 (higher is better)
Litigation18 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

CAverage40Verdict score 40/100

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.

High confidence±4 pts
3644

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)

Yr 1: $604.2MYr 2: $597.5M

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

  1. 01MINORUnprotected territory creates direct competition risk from other Cold Stone locations and cannibalization
  2. 02HIGHLitigation history shows pattern of franchisor-franchisee disputes including fraud/misrepresentation claims and territory buybacks
  3. 03MINORSlow unit growth (6.0% YoY) on declining base of 1,054 units suggests mature/saturated market with franchisee struggles
  4. 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

Showing the headline figures — all 149 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

Litigation case detail18 matters · Item 3

Litigation cases

The franchisor

Concluded (1)

  • KOHO, Inc. v. Kahala Franchising, L.L.C.

    settled

    Brought 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

    settled

    Brought 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.

    settled

    Brought 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

    settled

    Brought 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)

    settled

    Brought 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

    concluded

    Government 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

    settled

    Government 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

    judgment

    Government 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

    concluded

    Government 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)

    concluded

    Government 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

    concluded

    Government 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.)

    settled

    Third-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.

Initial term10 yrs
Renewal term5 yrs
TerritoryNone (caution)
Initial training120 hrs

Source: FDD 2026 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term10 years
Renewal term5 years
Allowed renewalsℹ1
Territory typeNo territory protection
Protected territoryNo
Exclusive territoryℹNo
Online sales rightsℹRestricted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorOptional
Non-compete (years)ℹ2 years
Non-compete (miles)ℹ10 mi
Right of first refusalℹYes
Transfer requires consentYes
Termination notice90 days
Mandatory arbitrationYes
Arbitration locationCounty and state where Franchised Business is located
Jury trial waiverYes
Governing lawState where Franchised Business is located
Litigation count18
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

✓Site selection assistance
✓Grand opening support
✓Lease negotiation help

Item 20 · call current owners

Franchisee Contacts

104 owners to call

Name · phone · city · state. Extracted from FDD Item 20

Unlock 104 contacts · $49
Free preview
(678) 707-••••GA
Unlock all 104 contacts
(703) 327-••••VA
(623) 703-••••AZ
(954) 889-••••FL
(914) 918-••••NY

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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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.