Dippin’ Dots®Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Dippin’ Dots® franchise requires a total initial investment of $79K – $399K, including a $15K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 14.3% charge-off rate across 20 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $79K – $399K
- 6th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- N/A
- Units
- 260
- 84th pct Service Resta…
- SBA default
- 14.3%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1999. Systems this mature have refined operations and brand recognition.
Franchised units fell from 260 to 239 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $79K – $399K including a $15K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 46/100. SBA loan charge-off rate of 14.3% across 20 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Dippin’ Dots Franchising, L.L.C.
- Parent company
- J & J Snack Foods Corp.
- Incorporated in
- OK
- HQ
- 910 South 5th Street, Paducah, Kentucky 42003
- Auditor
- Blythe CPAs + Advisors
- Audited financials
- Franchisor revenue
- $3.3M
- vs $3.1M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- The ICEE Company
- Doc Popcorn
- DDL
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate Dippin' Dots retail locations (kiosks, carts, or storefronts) selling flash-frozen beaded ice cream products. Day-to-day operations include managing inventory, serving customers, maintaining equipment, and tracking per-unit/per-bag royalty payments on both bulk and pre-packaged products sold.
- CEO
- Daniel Fachner
- Headquarters
- KY
- Founded
- 1999
- FDD year
- 2025
- States available
- 47
FDD Item 7 · 2025 filing · 39 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Combination Store/Distribution)not refundable | $35K | $35K | |
| Grand Opening Advertising Materials Expenditure | $500 | $3K | |
| Office and Retail Supplies | $100 | $500 | |
| Opening Inventory | $3K | $5K | |
| Insurance | $2K | $3K | |
| Printing and Signage | $499 | $5K | |
| Equipment (Freezers, etc.), Furniture, Fixtures & Decor | $66K | $85K | |
| Leased Warehouse and Cold Storage | $5K | $20K | |
| 20 Ft. Box Truck Monthly Payments to Lease or Own | $1K | $2K | |
| Travel, Lodging, Meals, Etc. for Initial Training | $2K | $3K | |
| Real Estate and Improvements | $2K | $120K | |
| Security Deposit and Prepaid Rent | $500 | $10K | |
| Miscellaneous Start-up Costs | $13K | $45K | |
| Additional Funds (6 months) | $10K | $64K | |
| Initial Franchise Fee (Store Only)not refundable | $15K | $15K | |
| Grand Opening Advertising Materials Expenditure (Store Only) | $500 | $3K | |
| Office and Retail Supplies (Store Only) | $100 | $500 | |
| Opening Inventory (Store Only) | $3K | $5K | |
| Insurance (Store Only) | $2K | $3K | |
| Printing and Signage (Store Only) | $499 | $5K | |
| Total initial investment | $331K | $937K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $79K – $399K
- Better than avg vs category
- Liquid capital req'd
- $10K – $64K
- Better than avg vs category
- Franchise fee
- $15K – $35K
- Better than avg vs category
- Royalty
- $2.16 per bag for bulk; $0.09 per unit for pre-pack; Up t…
- Ad fund
- $0.24 per bag for bulk; $0.01 per unit for pre-pack; Up t…
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Transfer fee | $15K |
| Renewal fee | $7K |
| Total fee load | 8.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Dippin’ Dots® Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 260
- Opened
- 28
- Last reporting year
- Closed
- 14
- Turnover rate
- 5.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +5.7%
- Net unit change last year
- 3-yr CAGR
- +8.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 28
- Closed (3yr)
- 0
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 2
- Transfers (3yr)
- 14
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
- Transfer rate
- 5.9%
- Owners selling to other franchisees
- Termination rate
- 1.3%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 40 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.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Indiana
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 20
- Loan volume
- $4.5M
- Median loan
- $50K
- 50th percentile
- Charge-off rate
- 14.3%
- 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)
- 84.6%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 17
- Defaults
- 2
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Dippin’ Dots®'s SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 8-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Dippin' Dots presents caution-level risk due to undisclosed financials, modest growth trajectory, territorial vulnerability, and opaque royalty mechanics that obscure true profitability potential.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $84,900
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Blythe CPAs + Advisors
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 46 / 100 rating
- 01MINORNo Item 19 financial disclosure (average revenue/net income not provided) prevents proper ROI analysis
- 02MEDSlow unit growth of 5.7% YoY with only 260 locations suggests limited market expansion and potential market saturation
- 03MINORUnprotected territory creates risk of internal brand cannibalization and direct franchisee competition
- 04MINORComplex royalty structure (per-bag bulk + per-unit pre-pack + 6% ancillary) lacks transparency on total cost of goods sold impact
- 05MINORWide investment range ($79K-$398K, 5x spread) indicates inconsistent unit economics and unclear cost allocation
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Designated geographic area |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Oklahoma |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 32 hrs
- On-the-job training
- 30 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- Square
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square
Item 20 · call current owners
Franchisee Contacts
180 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Dippin’ Dots® · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Dippin’ Dots® franchise?
The total investment to open a Dippin’ Dots® franchise ranges from $79K – $399K, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Dippin’ Dots® franchise owners earn?
Dippin’ Dots® does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Dippin’ Dots®'s franchise failure rate?
Based on SBA 7(a) loan data, Dippin’ Dots® has a charge-off rate of 14.3% across 20 loans, meaning 14.3% 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 Dippin’ Dots® franchise locations are there?
As of their most recent FDD filing, Dippin’ Dots® has 260 total units in the United States, including 260 franchised units and 0 company-owned units. 28 new units were opened in the latest reporting year.
Is Dippin’ Dots® a good franchise to buy?
FranchiseVerdict rates Dippin’ Dots® as a A-grade franchise with a risk score of 46 out of 100, 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.
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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.