Mister Softee Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Mister Softee is a mobile soft-serve ice-cream franchise famous for its jingle-playing trucks. Franchisees operate one or more trucks on seasonal routes, serving cones and frozen treats at parks, neighborhoods, and events.
FranchiseVerdict summary · 2026
A Mister Softee franchise requires a total initial investment of $264K – $314K, including a $8K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $264K – $314K
- 41st pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 601
- 90th 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 $264K – $314K including a $8K franchise fee.
- RETURNSAudited statements of operations for FY ended Dec 31, 2024. Total revenues comprise Royalties $1,548,581, Advertising income $53,923, Paint fund income $274,457, and Franchise fees $35,927. Other income of $21,500 is reported below income from operations.
- RISKVerdict A (Strongest tier), verdict score 76/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Mister Softee Franchise, L.L.C.
- Parent company
- Mister Softee, Inc. (MSI) - affiliate, not parent
- CEO title
- President
- John P. Conway, Jr.
- Incorporated in
- NJ
- HQ
- 901 E. Clements Bridge Road, Runnemede, New Jersey 08078
- Auditor
- Haefele, Flanagan & Co., p.c.
- Audited financials
- Franchisor revenue
- $1.8M
- vs $1.8M prior year
Affiliated brands
- Mister Softee Leasing and Manufacturing
- Mister Softee
- MSI Investments
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- John P. Conway, Jr.
- Headquarters
- NJ
- Founded
- 2000
- FDD year
- 2025
- States available
- 19
Can you afford it, and what does the money buy?
Entry cost runs 56% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $8K | $8K |
| Working capital (3–6 mo) | $15K | $25K |
| Equipment, build-out, other | $241K | $282K |
| Total initial investment | $264K | $314K |
Source: Mister Softee 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $264K – $314K
- Middle of category vs category
- Liquid capital req'd
- $15K – $25K
- Top 40% of category vs category
- Franchise fee
- $8K – $8K
- Top 40% of category vs category
- Royalty
- $3,855 per year, paid monthly according to a payment plan…
- Ad fund
- No advertising fund required; franchisor currently pays G…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | $3,855 per year flat royalty fee |
| Transfer fee | $1K |
| Renewal fee | $500 |
| Inventory (initial) | $6K – $8K |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Mister Softee 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 Mister Softee unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
32%
Within 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: 2025 FDD
Financial Performance
Audited statements of operations for FY ended Dec 31, 2024. Total revenues comprise Royalties $1,548,581, Advertising income $53,923, Paint fund income $274,457, and Franchise fees $35,927. Other income of $21,500 is reported below income from operations.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System roughly stable (+1.7% 3-year CAGR) with 601 units.
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 Mister Softee Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 601
- Opened
- 12
- Last reporting year
- Closed
- 2
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +1.7%
- Net unit change over 3 years
- 3-yr CAGR
- +1.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 15
- Closed (3yr)
- 0
- Terminated (3yr)
- 9
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 8
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
- Termination rate
- 3.4%
- Franchisor-initiated terminations
- Ceased ops
- 0.5%
- Units that stopped operating
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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 10
- Loan volume
- $6.4M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- N/A
- no resolved loans yet — rate needs a terminal outcome
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
- 7
- Defaults
- 1
- Typical loan rate
- 8.1%
- avg rate to borrowers
- Franchised industry avg
- 8.9%
- n=160 loans
- Jobs supported
- 70
- 2.0 per loan
- Lender concentration
- 14%
- top lender's share
Borrower mix: 33% went to startups / new businesses, 67% to established operators
Franchise vs independent — in mobile food services, franchised businesses charge off at 8.9% vs 13.0% for independents — franchising is associated with 32% lower SBA default risk in this category.
Top lenders financing Mister Softee franchisees
Showing 3 of 7 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Mister Softee's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 4 states
- Startup risk premium and job creation velocity
- 7-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
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
Mister Softee presents caution-level risk: stagnant growth, missing profitability disclosure, unclear franchisor financial health, and high capital requirements relative to transparent returns.
Litigation (Item 3)
No litigation required to be disclosed in Item 3.
Largest disclosed settlement: $265,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Haefele, Flanagan & Co., p.c.
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 76 / 100 verdict
- 01MEDNo Item 19 (average revenue/net income) disclosed — impossible to assess actual profitability or ROI
- 02MINORStagnant unit growth at 1.2% YoY indicates mature/declining system with minimal expansion momentum
- 03MINORHigh initial investment ($263.5K-$314K) combined with low royalty ($3,855/year) suggests franchisor prioritizes upfront fees over ongoing support
- 04HIGHGoing Concern status is FALSE — suggests financial or operational stability concerns about the franchisor itself
- 05MINORSeasonal business model (ice cream) creates cash flow volatility and uneven performance quarters
- 06MINORThin disclosure package makes it impossible to validate break-even analysis or realistic payback period
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2025 · 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 | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 20,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | NJ |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 3 hrs
- On-the-job training
- 30 hrs
- Training location
- Runnemede, NJ
- Ongoing training
- Required
- Site selection
- Franchisee
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
78 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Mister Softee · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Mister Softee franchise?
The total investment to open a Mister Softee franchise ranges from $264K – $314K, with an initial franchise fee of $8K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Mister Softee franchise owners earn?
Mister Softee 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 Mister Softee 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 Mister Softee FDD and qualifies whose outlets they describe.
What is Mister Softee's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Mister Softee (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 Mister Softee franchise locations are there?
As of their most recent FDD filing, Mister Softee has 601 total units in the United States, including 601 franchised units and 0 company-owned units. 12 new units were opened in the latest reporting year.
Is Mister Softee a good franchise to buy?
FranchiseVerdict rates Mister Softee as a A-grade franchise with a verdict score of 76 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 Mister Softee, you can request corrections or provide updated information.
Other Quick-Service Restaurants franchises
Compare similar franchise opportunities in the Quick-Service Restaurants category
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.