Dippin’ Dots® Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Dippin' Dots is a novelty frozen-dessert franchise serving its signature flash-frozen ice-cream beads. Franchisees run kiosks, stores, or event and vending operations selling Dippin' Dots and related treats.
FranchiseVerdict summary · 2026
A Dippin’ Dots® franchise requires a total initial investment of $113K – $344K, including a $15K – $35K franchise fee. The 2026 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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $113K – $344K
- 7th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 259
- 85th pct Service Resta…
- SBA charge-off
- 14.3%
- % 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 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 $113K – $344K including a $15K franchise fee.
- RETURNSOnly figure extracted is net revenue of $1,164,528 for the unaudited partial period ended March 28, 2026 (royalties and advertising fees $1,018,651 plus franchise and transfer fees $145,878) — not a full fiscal year figure, so not mapped to franchisor_revenue_yr1/yr2 or total_revenue.
- RISKVerdict A (Strongest tier), verdict score 64/100 (higher is better). SBA loan charge-off rate of 14.3% across 20 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- Dippin' Dots Franchising, L.L.C.
- Parent company
- Dippin' Dots Holdings, L.L.C. (DDH)
- Ultimate parent
- J & J Snack Foods Corp.
- Predecessor
- Dippin' Dots, Inc. (DDI)
- Prior franchisor entity
- CEO title
- President, Chief Executive Officer and Chairman (of parent J&J Snack Foods Corp.)
- Daniel Fachner
- Incorporated in
- Oklahoma
- HQ
- 910 South 5th Street, Paducah, Kentucky 42003
- Auditor
- Blythe CPAs
- Audited financials
- Franchisor revenue
- $1.2M
- 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
- CEO
- Daniel Fachner
- Headquarters
- Kentucky
- Founded
- 1999
- FDD year
- 2026
- States available
- 44
Can you afford it, and what does the money buy?
Entry cost runs 65% below the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown39 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
- $113K – $344K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $64K
- Top 40% of category vs category
- Franchise fee
- $15K – $35K
- Top 40% of category vs category
- Royalty
- $2.16 per bag (bulk ice cream) / $0.09 per pre-pack unit,…
- Ad fund
- $0.24 per bag (bulk) / $0.01 per pre-pack unit, plus up t…
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Training fee | $500 |
| Transfer fee | $15K |
| Renewal fee | $7K |
| Inventory (initial) | $3K – $5K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Dippin’ Dots® did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Dippin’ Dots® unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
37%
Within the 30–60% "attractive franchise" band
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
Only figure extracted is net revenue of $1,164,528 for the unaudited partial period ended March 28, 2026 (royalties and advertising fees $1,018,651 plus franchise and transfer fees $145,878) — not a full fiscal year figure, so not mapped to franchisor_revenue_yr1/yr2 or total_revenue.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System roughly stable (+4.4% 3-year CAGR) with 259 units.
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 Dippin’ Dots® Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 259
- Opened
- 14
- Last reporting year
- Closed
- 11
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +4.4%
- Net unit change over 3 years
- 3-yr CAGR
- +4.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 11
- Closed (3yr)
- 1
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 2
- Transfers (3yr)
- 5
- 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
- Typical loan rate
- N/A
- Franchised industry avg
- 21.6%
- brand beats franchise avg ↓
- Jobs supported
- 51
- 6.1 per loan
- Lender concentration
- 15%
- top lender's share
Franchise vs independent — in all other specialty food stores, franchised businesses charge off at 21.6% vs 22.8% for independents — franchising is associated with 5% lower SBA default risk in this category.
Top lenders financing Dippin’ Dots® franchisees
Showing 3 of 17 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.
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.
What could kill this investment?
SBA loans charge off at 14.3% — 11% below the 16.0% national norm, i.e. lower 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
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)
No litigation disclosed in Item 3.
Largest disclosed settlement: $84,900
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Blythe CPAs
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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: No
- 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 64 / 100 verdict
- 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
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 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Minimum territory equals the shopping mall or general shopping center containing the store location; actual territory size varies by mutual agreement based on location, population density, income, and franchisee resources |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 20 |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | Oklahoma City, Oklahoma |
| Jury trial waiver | Yes |
| Governing law | Oklahoma |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 32 hrs
- On-the-job training
- 30 hrs
- Training location
- Paducah, Kentucky (DDF's offices) and at the Franchised Business location
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- P.O.S. System (unbranded)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: P.O.S. System (unbranded)
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 (2026) 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 $113K – $344K, 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 Item 19 in the Dippin’ Dots® 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 Dippin’ Dots® FDD and qualifies whose outlets they describe.
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 259 total units in the United States, including 259 franchised units and 0 company-owned units. 14 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 verdict score of 64 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
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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.