Mister SofteeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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). SBA 7(a) loans show a 16.7% charge-off rate across 10 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $264K – $314K
- 50th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- N/A
- Units
- 601
- 90th pct Service Resta…
- SBA default
- 16.7%
- system-wide median varies by category
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
Franchising since 2000. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $264K – $314K including a $8K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 55/100. SBA loan charge-off rate of 16.7% across 10 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- No 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
- Legal entity
- Mister Softee Franchise, L.L.C.
- Incorporated in
- NJ
- HQ
- 901 E. Clements Bridge Road, Runnemede, New Jersey 08078
- Auditor
- Haefele, Flanagan & Co., p.c.
- Audited financials
- Franchisor revenue
- $1.9M
- 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
Franchisees operate ice cream/frozen dessert retail carts or kiosks, typically in high-traffic locations (parks, boardwalks, street corners). Day-to-day involves managing inventory, cash handling, equipment maintenance, operating seasonal routes, and customer service in outdoor/mobile settings.
- CEO
- John P. Conway, Jr.
- Headquarters
- NJ
- Founded
- 2000
- FDD year
- 2025
- States available
- 17
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
- Near category avg vs category
- Liquid capital req'd
- $15K – $25K
- Better than avg vs category
- Franchise fee
- $8K – $8K
- Better than avg vs category
- Royalty
- $3,855 per year
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Transfer fee | $1K |
| Renewal fee | $500 |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Mister Softee Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 601
- Opened
- 12
- Last reporting year
- Closed
- 5
- Turnover rate
- 0.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +1.2%
- Net unit change last year
- 3-yr CAGR
- +1.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 12
- Closed (3yr)
- 3
- Terminated (3yr)
- 14
- Non-renewed (3yr)
- 6
- Transfers (3yr)
- 0
- 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 · 26 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
- 16.7%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 83.3%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 1
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
0 case reference(s): 0 pending, 0 settled.
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: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: No
Score breakdown · what drove the 55 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Defined geography |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 15 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 3 hrs
- On-the-job training
- 30 hrs
- Training location
- On-site and off-site
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
101 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 Mister Softee's franchise failure rate?
Based on SBA 7(a) loan data, Mister Softee has a charge-off rate of 16.7% across 10 loans, meaning 16.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
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 585 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 B-grade franchise with a risk score of 55 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.
For franchisors
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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.