Mister Softee Franchise Cost, Revenue & Review 2026
- Investment
- $264K – $314K
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 10 loans
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. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 3 headline figures on this page cite a page of the filing.
Overview
- Investment
- $264K – $314K
- 40th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- Flat fee
- 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 median · 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.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better).
- GROWTHPositive: net +7 franchised outlets in the latest year (12 opened, 5 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 41% 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
- Top 40% 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Mister Softee unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Mister Softee Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- 5
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.8%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 3
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 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.
Where the owners are · Item 20 owner list
74 current owners across 12 states; 4 former (terminated, transferred or not renewed) listed separately.
- NJ 31
- NY 27
- FL 4
- CA 3
- CT 2
- AZ 1
- DE 1
- KY 1
- MN 1
- NC 1
- PA 1
- TX 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 10 loans
- Limited SBA coverage: 10 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 10 loans
- 5-yr charge-off
- Limited · 10 loans
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Mister Softee from SBA 7(a) FOIA data.
- Principal loss rate
- 1.5%
- Avg SBA guarantee
- 77%
- Avg interest rate
- 8.10%
- Avg chargeoff amount
- $51K
- Lender concentration
- 14.3%
- Job velocity
- 2.0 per $100K
- NAICS benchmark
- 3.6%
- NAICS 722330
- Jobs supported
- 70
Top SBA lendersTop lender holds 14% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Citizens Bank, National Association | 1 | $75K | 0.0% |
| 2 | KeyBank National Association | 1 | $150K | 0.0% |
| 3 | Celtic Bank Corporation | 1 | $60K | 100.0% |
| 4 | Sturdy Savings Bank | 1 | $150K | 0.0% |
| 5 | Harvest Small Business Finance, LLC | 1 | $2.3M | 0.0% |
| 6 | American Business Bank | 1 | $498K | N/A |
| 7 | CDC Small Business Finance Corp. | 1 | $150K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 3 | 0 | 0.0% |
| NJNew Jersey | 2 | 0 | 0.0% |
| CTConnecticut | 1 | 0 | 0.0% |
| SCSouth Carolina | 1 | 1 | 100.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
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)
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.
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 75 / 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
- 04MINORSeasonal business model (ice cream) creates cash flow volatility and uneven performance quarters
- 05MINORThin 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 territory |
| 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
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Mister Softee?
Mister Softee is franchised by Mister Softee Franchise, L.L.C.. Its parent company is Mister Softee, Inc. (MSI) - affiliate, not parent. Source: FDD Item 1, 2025 filing.
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 75 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.