I Scream Gelato Franchise Cost, Revenue & Review 2026
- Investment
- $224K – $452K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Under 10 loans (2)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
I Scream Gelato is a dessert franchise serving Italian-style gelato and frozen treats. Franchisees run the shops, managing gelato production, inventory, and counter service.
FranchiseVerdict summary · 2026
A I Scream Gelato franchise requires a total initial investment of $224K – $452K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. The 2024 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: B (Above 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: high - issued more than two years ago
Evidence: partial✓ 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 scored6 of 6 headline figures on this page cite a page of the filing.
Overview
- Investment
- $224K – $452K
- 30th pct Service Resta…
- Avg gross sales
- N/A
- Company-owned only
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 5
- 23rd pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
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 $224K – $452K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
- RISKVerdict B (Above average), verdict score 50/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed) (Item 20).
- DATAItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- ISG Franchise, LLC
- CEO title
- Owner
- Nadav Abergel
- Incorporated in
- CO
- HQ
- 8105 E. Bayaud Avenue, Denver, CO 80230
- Auditor
- Naper CPA Group
- Audited financials
- Franchisor revenue
- $27K
- vs $123K prior year
Overview
About
- CEO
- Nadav Abergel
- Headquarters
- CO
- Founded
- 2022
- FDD year
- 2024
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 30% below the typical quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
The filing's Item 7 TOTAL row prints $223,917 to $451,800. Its own line items add to $228,917 to $486,800. The total is shown as the franchisor printed it; the lines are listed as printed. NOT FOOTING (lines sum 228,917/486,800 vs printed TOTAL 223,917/451,800): filing's arithmetic: the 17 printed lines of the FRANCHISE AGREEMENT table sum to $228,917 / $486,800 while the printed Total is $223,917 / $451,800 (+5,000 low, +35,000 high over the print).
Full Item 7 breakdown17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial franchise fee | $30K | $30K | |
| Rent and Lease Security Deposit | $1K | $30K | |
| Utilities | $200 | $500 | |
| Leasehold Improvements | $40K | $100K | |
| Market Introduction Program | $5K | $12K | |
| Furniture, Fixtures, and Equipment | $90K | $175K | |
| Computer Systems | $1K | $3K | |
| Insurance | $500 | $2K | |
| Signage | $3K | $12K | |
| Office Expenses | $500 | $1K | |
| Inventory and Packaging | $15K | $30K | |
| Licenses and Permits | $350 | $800 | |
| Staff Payroll | $5K | $15K | |
| Professional Fees (lawyer, accountant, etc.) | $1K | $3K | |
| Travel, lodging and meals for initial training | $1K | $3K | |
| Accessories | $5K | $10K | |
| Additional funds (for first 3 months) | $30K | $60K | |
| Total initial investment | $229K | $487K |
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
- $224K – $452K
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $60K
- Middle of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $10K |
| Inventory (initial) | $15K – $30K |
| Total fee load | 7.0% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for I Scream Gelato is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one I Scream Gelato unit return on the cash you put in?
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.
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 annual revenue, 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.
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: 2024 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
- Item 19 type
- affiliate owned outlet financials
- Sample size
- 4
- vs category median 19 · small
- Range (low → high)
- $357K→$938KCited, not corroborated — printed on page 41 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 781 Quick-Service Restaurants brands
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 7.0% (near the Quick-Service Restaurants median).
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
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 I Scream Gelato Compares
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?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 20%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 4
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 3 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
3
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $292K
- Median loan
- $146K
- 50th percentile
- Charge-off rate
- Under 10 loans (2)
- Insufficient SBA coverage: 2 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (2)
- 5-yr charge-off
- Under 10 loans (2)
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Micro-franchise system with unproven growth, franchisor financial concerns, and insufficient disclosure depth creates substantial execution and viability risk.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Naper CPA Group
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 states the franchisor (ISG Franchise, LLC, formed 3/15/2022) has not been in business 3+ years. Exhibit F in the FDD text contains only the UNAUDITED opening balance sheet dated 6/01/2022 (Total Assets $1,000 = cash; Total Liabilities $1,000 = due to affiliates; Member's Equity $0). Item 21 references audited statements as of 12/31/2022 and 12/31/2023 plus unaudited 12/31/2024, but those figures and the auditor/CPA firm name are NOT present in the extracted text. Item 5 notes Maryland required financial assurance (fee deferral). Item 10 prior-year total revenue stated as $0 (new franchisor).
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 50 / 100 verdict
- 01MINOROnly 5 operating units with unknown growth trajectory indicates minimal system traction and high concentration risk
- 02MED15.8% net profit margin is modest for food retail; combined with 6% royalty leaves limited cushion for franchisee profitability
- 03MINORWide investment range ($223k-$451k) lacks transparency on what drives 102% cost variance between low and high estimates
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 75,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Denver, Colorado |
| Jury trial waiver | Yes |
| Governing law | CO |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 57 hrs
- On-the-job training
- 34 hrs
- Training location
- Denver, CO or franchisee's location
- Time to open
- 5 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- Clover
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Clover
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a I Scream Gelato franchise?
The total investment to open a I Scream Gelato franchise ranges from $224K – $452K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do I Scream Gelato franchise owners earn?
Item 19 of the I Scream Gelato FDD discloses outlet figures from $357K to $938K but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns I Scream Gelato?
I Scream Gelato is franchised by ISG Franchise, LLC. Source: FDD Item 1, 2024 filing.
What is Item 19 in the I Scream Gelato 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 I Scream Gelato FDD and qualifies whose outlets they describe.
What is I Scream Gelato's franchise failure rate?
SBA 7(a) loan charge-off data is not available for I Scream Gelato (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 I Scream Gelato franchise locations are there?
As of their most recent FDD filing, I Scream Gelato has 5 total units in the United States, including 1 franchised units and 4 company-owned units. 1 new units were opened in the latest reporting year.
Is I Scream Gelato a good franchise to buy?
FranchiseVerdict rates I Scream Gelato as a B-grade franchise with a verdict score of 50 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
Are you the franchisor?
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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.