Original Rainbow ConeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Original Rainbow Cone franchise requires a total initial investment of $205K – $3.2M, including a $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $846K[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $205K – $3.2M
- 33rd pct Service Resta…
- Avg gross sales
- $846K
- 27th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 25
- 50th pct Service Resta…
- SBA default
- N/A
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
At 0.5x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
The system grew 200% year-over-year. Fast growth means demand, but can strain support.
Bottom line
- Total investment $205K – $3.2M including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $846K/year.
- Verdict B (Above Average) with a risk score of 54/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Five Flavors Franchising LLC
- Incorporated in
- IL
- HQ
- 7075 Veterans Blvd., Burr Ridge, IL 60527
- Auditor
- R.J. Augustine & Associates, Ltd.
- Audited financials
- Franchisor revenue
- $582K
- vs $741K prior year
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.
- CEO
- Mike Buonavolanto
- Headquarters
- IL
- Founded
- 2018
- FDD year
- 2025
- States available
- 6
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $15K | $75K |
| Equipment, build-out, other | $150K | $3.1M |
| Total initial investment | $205K | $3.2M |
Source: Original Rainbow Cone 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$119K
14.0% margin
Unlevered ROIC
7%
EBITDA / total invested capital
Payback
14.8 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $205K – $3.2M
- Better than avg vs category
- Liquid capital req'd
- $15K – $75K
- Better than avg vs category
- Franchise fee
- $20K – $40K
- Below avg, review vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $4K |
| Training fee | $10K |
| Renewal fee | $8K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $846K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Historical Results
- Sample size
- 17 units
- vs category median 28
- Range (low → high)
- $109K→$1.6M
- Cohort dispersion (min → max)
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 453 Quick-Service Restaurants brands
Revenue is only 0.5x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Quick-Service Restaurants averages
How Original Rainbow Cone Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 25
- Opened
- 4
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 19
- Corporate units in the system
- % franchised
- 24%
- vs corporate-owned
- Multi-unit owners
- 9.1%
- Net growth (yr3)
- +200.0%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 8
- Franchisor's next-year forecast
- Ceased ops
- 4.0%
- Units that stopped operating
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 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
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.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · R.J. Augustine & Associates, Ltd.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 54 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Radius or Population |
| Protected territory | Yes |
| Territory radius | 0.5 mi |
| Territory population | 40,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Illinois |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 135 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
6 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Original Rainbow Cone · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Original Rainbow Cone franchise?
The total investment to open a Original Rainbow Cone franchise ranges from $205K – $3.2M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Original Rainbow Cone franchise owners earn?
According to Item 19 of the Original Rainbow Cone FDD, the average gross sales per unit is $846K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Original Rainbow Cone's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Original Rainbow Cone (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 Original Rainbow Cone franchise locations are there?
As of their most recent FDD filing, Original Rainbow Cone has 25 total units in the United States, including 0 franchised units and 19 company-owned units. 4 new units were opened in the latest reporting year.
Is Original Rainbow Cone a good franchise to buy?
FranchiseVerdict rates Original Rainbow Cone as a B-grade franchise with a risk score of 54 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.
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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.