Original Rainbow Cone
Bottom line
- Total investment $205K – $3.2M including a $40K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
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 Original Rainbow Cone unit return on the cash you put in?
Unlevered ROIC · per unit
4%
Below typical band (30–60%)
Overview
About
Franchisees operate ice cream and frozen dessert retail locations, likely counter-service model. Day-to-day operations include inventory management, point-of-sale transactions, staff scheduling, food preparation/serving, and local marketing to drive walk-in traffic.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage, rapidly expanding franchise with undisclosed unit economics, franchisor financial concerns, and extreme growth metrics that prioritize recruitment over proven profitability.
Score breakdown · what drove the 62 / 100 rating
- 01MEDNo Item 19 financial disclosure (average revenue/net income not disclosed) — impossible to validate ROI claims
- 02MINORExtreme unit growth of 200% YoY is unsustainable and suggests aggressive recruitment over profitability focus
- 03HIGHGoing Concern status is FALSE, indicating potential financial instability at franchisor level
- 04MINORWide investment range ($205K–$3.2M) with no clarity on what drives 15x cost variance or unit economics
- 05MEDOnly 25 total units suggests early-stage system with limited track record and higher failure risk
- 06HIGHNo litigation disclosed, but combined with lack of financial transparency, raises opacity concerns
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.
Franchisee contacts
6 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Original Rainbow Cone · FDD (2025) PDF