Handel’s Homemade Ice Cream
Bottom line
- Total investment $461K – $997K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $959K).
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 7 loans (below the industry average).
- System growing at 66.7% CAGR over 3 years with 153 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Handel’s Homemade Ice Cream unit return on the cash you put in?
Unlevered ROIC · per unit
14%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Handel’s Homemade Ice Cream units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$637K
on $3.2M purchase
Total debt
$2.5M
SBA $1.6M + senior + seller note
Overview
About
Franchisees operate ice cream retail shops focused on premium, homemade-style ice cream products. Day-to-day operations include inventory management, staff scheduling, in-store production/assembly, point-of-sale transactions, and local marketing to drive foot traffic in their protected territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Handel's presents moderate-to-caution risk: litigation threatens brand integrity, missing profitability data obscures true returns, and regulatory missteps suggest inconsistent franchise operations oversight.
Score breakdown · what drove the 52 / 100 rating
- 01HIGHActive consumer class action litigation alleging false advertising regarding 'homemade' claims—core to brand identity and marketing
- 02MEDRegulatory action by California Commissioner regarding FDD delivery timing raises compliance concerns at corporate level
- 03MEDNet income not disclosed in Item 19—inability to assess actual profitability despite $1.06M average revenue
- 04MEDHigh initial investment range ($460k–$996k) with 6% royalty and no disclosed average net profit creates uncertainty on ROI timeline
- 05MINORRapid unit growth (23.9% YoY) may indicate quality control challenges or oversaturation in existing markets
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
98 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Handel’s Homemade Ice Cream · FDD (2025) PDF