Icy-N-Spicy
Bottom line
- Total investment $262K – $395K including a $38K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $787K/year.
- Rated CAUTION with a risk score of 70/100.
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 Icy-N-Spicy unit return on the cash you put in?
Unlevered ROIC · per unit
26%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Icy-N-Spicy units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$708K
on $3.5M purchase
Total debt
$2.8M
SBA $1.8M + senior + seller note
Overview
About
Icy-N-Spicy franchisees operate quick-service food establishments focused on frozen treats and spicy flavor combinations. Day-to-day operations include inventory management, food preparation, customer service, marketing, and point-of-sale management in a retail setting.
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 12 · 1 state 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.
1
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Icy-N-Spicy presents HIGH RISK due to an extremely small unit base (2 locations), undisclosed profitability, franchisor going concern issues, unprotected territory, and insufficient historical data to validate the franchise model's viability.
Score breakdown · what drove the 70 / 100 rating
- 01MINOROnly 2 existing units with unknown growth trajectory suggests nascent/stagnant system with no proof of concept at scale
- 02MEDNet income not disclosed despite average revenue of $786,839 — unable to validate actual profitability or ROI on $262k-$395k investment
- 03HIGHGoing concern status is FALSE, indicating potential financial instability or uncertainty at franchisor level
- 04MINORNo protected territory — direct competition risk from other franchisees and franchisor in same market
- 05MED5.5% royalty on disclosed revenue ($786k) = ~$43k annual ongoing fee, but profitability unknown makes true burden unclear
- 06MINORFranchise fee of $38,000 is reasonable, but total investment range suggests high capital requirement with minimal historical performance data
- 07MINOR10-year term locks franchisee into relationship with unproven system during critical early growth phase
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.
FDD download
Icy-N-Spicy · FDD (2025) PDF