Fosters FreezeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Fosters Freeze franchise requires a total initial investment of $178K – $1.0M, including a $45K franchise fee and an ongoing 4.0% royalty[2]. Per the 2024 FDD, average unit revenue was $1.3M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $178K – $1.0M
- 8th pct Service Resta…
- Avg gross sales
- $1.3M
- 14th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 61
- 38th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-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
Bottom line
- Total investment $178K – $1.0M including a $45K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $1.3M/year (median $1.3M).
- Verdict A (Top Quintile) with a risk score of 29/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Fosters Freeze International, LLC
- CEO title
- President and Chief Executive Officer
- Nealesh Dahya
- Incorporated in
- DE
- HQ
- 14071 Peyton Drive, Suite 2697, Chino Hills, CA 91709
- Auditor
- Naper CPA Group
- Audited financials
- Franchisor revenue
- $1.3M
- vs $1.4M prior year
Overview
About
Foster's Freeze franchisees operate quick-service restaurants serving frozen desserts and light food items. Day-to-day operations include managing point-of-sale systems, staffing and training crew members, maintaining food safety standards, and driving local marketing to maintain the ~$1.28M average annual revenue.
- CEO
- Nealesh Dahya
- Headquarters
- CA
- Founded
- 2015
- FDD year
- 2024
- States available
- 1
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $15K | $30K |
| Equipment, build-out, other | $118K | $934K |
| Total initial investment | $178K | $1.0M |
Source: Fosters Freeze 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$141K
11.0% margin
Unlevered ROIC
23%
EBITDA / total invested capital
Payback
4.4 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $178K – $1.0M
- Better than avg vs category
- Liquid capital req'd
- $15K – $30K
- Better than avg vs category
- Franchise fee
- $45K – $150K
- Better than avg vs category
- Royalty
- 4.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $16K |
| Renewal fee | $23K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $1.3M
- Per unit, per year
- Median gross sales
- $1.3M
- Item 19 type
- gross_sales
- Sample size
- 9 units
- vs category median 13
- Range (low → high)
- $427K→$2.1M
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Fosters Freeze Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 61
- Opened
- 0
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (yr3)
- -3.2%
- Net unit change last year
- 3-yr CAGR
- -4.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 2
- Projected new
- 1
- Franchisor's next-year forecast
- Transfer rate
- 3.3%
- Owners selling to other franchisees
- Continuity rate
- 96.8%
- Units that stayed open
- Ceased ops
- 3.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 9 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 9
- Loan volume
- $11.6M
- Median loan
- $817K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 8
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Fosters Freeze's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 8 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 5-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Foster's Freeze presents a cautionary profile due to unit contraction, lack of net income transparency, and unclear unit economics across a wide investment range.
Litigation (Item 3)
No litigation required to be disclosed in Item 3
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Naper CPA Group
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 29 / 100 rating
- 01MEDSystem shrinking: 61 units with -3.2% YoY decline indicates contraction and potential market saturation concerns
- 02MINORNo Item 19 (Net Income) disclosure: Cannot verify actual profitability; $1.28M average revenue doesn't guarantee positive returns after $178K-$1M investment
- 03MINORWide investment range ($178K-$1M): Suggests vastly different unit economics; unclear what drives 465% variance in initial investment
- 04MINORRoyalty structure complexity: 4-8% royalties on gross (not net) sales creates cash flow burden regardless of profitability
- 05MINORModest average revenue: $1.28M for quick-service/frozen dessert is acceptable but tight margin for covering 4-8% royalties plus labor and COGS
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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 0.5 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 2 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Chino Hills, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 69 hrs
- On-the-job training
- 91 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
67 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Fosters Freeze · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Fosters Freeze franchise?
The total investment to open a Fosters Freeze franchise ranges from $178K – $1.0M, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Fosters Freeze franchise owners earn?
According to Item 19 of the Fosters Freeze FDD, the average gross sales per unit is $1.3M. The median is $1.3M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Fosters Freeze's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Fosters Freeze (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Fosters Freeze franchise locations are there?
As of their most recent FDD filing, Fosters Freeze has 61 total units in the United States, including 61 franchised units and 0 company-owned units.
Is Fosters Freeze a good franchise to buy?
FranchiseVerdict rates Fosters Freeze as a A-grade franchise with a risk score of 29 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.