I Scream Gelato Franchise Cost, Revenue & Review 2026
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 does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $224K – $452K
- 31st pct Service Resta…
- Avg gross sales
- N/A
- Company-owned only
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 5
- 24th 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 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 $224K – $452K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 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).
- RISKVerdict B (Above average), verdict score 50/100 (higher is better).
- DATAItem 19 reports affiliate owned outlet financials rather than annual gross sales, so unit revenue is not directly comparable. 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 49% below the typical quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $30K | $30K | |
| Rent and Lease Security Deposit | $1K | $30K | |
| Utilities | $200 | $500 | |
| Leasehold Improvementsnot refundable | $40K | $100K | |
| Market Introduction Programnot refundable | $5K | $12K | |
| Furniture, Fixtures, and Equipmentnot refundable | $90K | $175K | |
| Computer Systemsnot refundable | $1K | $3K | |
| Insurancenot refundable | $500 | $2K | |
| Signagenot refundable | $3K | $12K | |
| Office Expensesnot refundable | $500 | $1K | |
| Inventory and Packagingnot refundable | $15K | $30K | |
| Licenses and Permitsnot refundable | $350 | $800 | |
| Staff Payrollnot refundable | $5K | $15K | |
| Professional Fees (lawyer, accountant, etc.)not refundable | $1K | $3K | |
| Travel, Lodging and Meals for Initial Trainingnot refundable | $1K | $3K | |
| Accessoriesnot refundable | $5K | $10K | |
| Additional Funds (for first 3 months)not refundable | $30K | $60K | |
| Additional Initial Franchise Fees for Additional 1-4 Units (MUDA)not refundable | $23K | $90K | |
| Business Planning and Miscellaneous Expenses (MUDA)not refundable | $1K | $5K | |
| Total initial investment | $252K | $582K |
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%
- percentage · 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
I Scream Gelato 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 I Scream Gelato unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
29%
Below 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: 2024 FDD
Financial Performance
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).
Company-owned outlets only - not franchisee performance
- Item 19 type
- affiliate owned outlet financials
- Sample size
- 4
- vs category median 20 · small
- Range (low → high)
- $357K→$938K
- 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 782 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 average).
Disclosure
Item 19 reports affiliate owned outlet financials rather than annual gross sales, so unit revenue is not directly comparable.
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 I Scream Gelato Compares
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
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 20%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
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
- N/A
- limited sample (2 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- 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)
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)
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
- 02HIGHGoing Concern = False suggests franchisor financial instability or accounting red flags requiring immediate clarification
- 03MED15.8% net profit margin is modest for food retail; combined with 6% royalty leaves limited cushion for franchisee profitability
- 04MINORWide 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 |
| 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?
I Scream Gelato 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 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), 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
Are you the franchisor?
If you represent I Scream Gelato, you can request corrections or provide updated information.
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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.