I Scream GelatoFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Per the 2024 FDD, average unit revenue was $648K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $224K – $452K
- 39th pct Service Resta…
- Avg gross sales
- $648K
- 16th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 5
- 22nd pct Service Resta…
- SBA default
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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
31% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $224K – $452K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $648K/year, with an estimated 31% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 49/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- ISG Franchise, LLC
- 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
Franchisees operate small-format gelato retail shops, managing daily production/service of Italian-style frozen desserts, inventory, staffing, and customer operations. The business model relies on high-margin frozen dessert sales in protected territories with ongoing royalty payments to the franchisor.
- CEO
- Nadav Abergel
- Headquarters
- CO
- Founded
- 2022
- FDD year
- 2024
- States available
- 3
FDD Item 7 · 2024 filing · 19 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.
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
$97K
15.0% margin
Unlevered ROIC
25%
EBITDA / total invested capital
Payback
3.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $224K – $452K
- Better than avg vs category
- Liquid capital req'd
- $30K – $60K
- Below avg, review vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
- Payback period
- 3.3 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $10K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $648K
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $103K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 30.6%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Affiliate-owned outlets
- Sample size
- 4 units
- vs category median 28 · small
- Range (low → high)
- $357K→$938K
- Cohort dispersion (min → max)
- Transparency
- 8 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How I Scream Gelato Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 20%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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 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
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
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into I Scream Gelato's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
Score breakdown · what drove the 49 / 100 rating
- 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
- 05MINORNo Item 19 financial data disclosure limits ability to validate the $653k average revenue claim across only 5 units
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 | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| 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
- On-site and corporate
- POS system
- Clover POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Clover POS
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
I Scream Gelato · FDD (2024) PDF
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?
According to Item 19 of the I Scream Gelato FDD, the average gross sales per unit is $648K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 A-grade franchise with a risk score of 49 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.