Ralph's Famous Italian IcesFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Ralph's Famous Italian Ices franchise requires a total initial investment of $112K – $318K, including a $20K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $112K – $318K
- 11th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- N/A
- Units
- 83
- 71st pct Service Resta…
- SBA default
- 0.0%
- 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 2001. Systems this mature have refined operations and brand recognition.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $112K – $318K including a $20K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 47/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Ralph’s Famous Italian Ices Franchise Corp.
- Incorporated in
- NY
- HQ
- 501 Port Richmond Avenue, Staten Island, New York 10302
- Auditor
- Tiffany Montaruli, CPA, PLLC
- Audited financials
- Franchisor revenue
- $589K
- vs $564K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Franchisees operate Italian ice retail shops (primarily seasonal in cold climates, year-round in warm regions) selling pre-packaged frozen Italian ice products, soft-serve ice cream mix, and add-on products. Day-to-day operations include inventory management of branded tubs/mix, point-of-sale transactions, staffing seasonal employees, and marketing within protected territory.
- CEO
- John Scolaro
- Headquarters
- NY
- Founded
- 1928
- FDD year
- 2025
- States available
- 3
FDD Item 7 · 2025 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $20K | $20K | |
| Leasenot refundable | $1K | $5K | |
| Leasehold Improvementsnot refundable | $15K | $90K | |
| Fixtures & Furnishingsnot refundable | $3K | $10K | |
| Equipmentnot refundable | $50K | $150K | |
| Signage/Neon Lightsnot refundable | $6K | $12K | |
| Suppliesnot refundable | $2K | $3K | |
| Opening Inventorynot refundable | $3K | $6K | |
| Grand Opening Advertisingnot refundable | $2K | $2K | |
| Advertisingnot refundable | $1K | $2K | |
| Prepaid Insurance Premiumsnot refundable | $2K | $3K | |
| Traveling and Living Expenses While Trainingnot refundable | $100 | $200 | |
| Utility Depositsnot refundable | $1K | $1K | |
| Permits & Licensesnot refundable | $250 | $3K | |
| Additional Funds - 3 monthsnot refundable | $8K | $12K | |
| Total initial investment | $112K | $318K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $112K – $318K
- Better than avg vs category
- Liquid capital req'd
- $8K – $12K
- Better than avg vs category
- Franchise fee
- $20K – $20K
- Better than avg vs category
- Royalty
- $1 per 2.5 gal tub; $3 per gal soft-serve mix; 5% of Addi…
- Ad fund
- 50¢ for each 2.5 gallon tub
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | $1 per 2½ gallon tub + $3 per gallon soft-serve mix + 5% of Additional Products |
| Transfer fee | $8K |
| Renewal fee | $20K |
| Total fee load | 5.0% of rev |
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 Ralph's Famous Italian Ices Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 83
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (yr3)
- +1.2%
- Net unit change last year
- 3-yr CAGR
- -1.2%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 5
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 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 loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $610K
- Median loan
- $130K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Ralph's Famous Italian Ices's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 3 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Ralph's operates a small, slow-growing system with complete financial opacity and an unconventional tiered royalty model that obscures true unit economics and franchisee profitability.
Litigation (Item 3)
No litigation section provided in the document excerpt
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Tiffany Montaruli, CPA, PLLC⚠ Going-concern note flagged
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 47 / 100 rating
- 01MINORZero financial disclosure (no Item 19 average revenues or net income) — impossible to validate ROI claims or unit economics
- 02MEDStagnant unit growth (1.2% YoY, only 83 units) — suggests limited scalability, weak recruitment, or franchisee struggles
- 03MINORUnusual royalty structure (per-tub + per-gallon mix + percentage) — creates opaque cost tracking and potential margin compression
- 04MEDMid-range investment ($111K–$318K) with no disclosed average returns — high capital at risk relative to system transparency
- 05MINOR7-year term is shorter than industry standard (10 years typical) — higher renewal risk and shorter payback window
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 | 7 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 0.5 mi |
| 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 | 15 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | New York City, New York |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation section provided in the document excerpt
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 17 hrs
- Training location
- on-site
- Field support
- 16 hrs/yr
- On-site visits per year
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
12 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Ralph's Famous Italian Ices · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Ralph's Famous Italian Ices franchise?
The total investment to open a Ralph's Famous Italian Ices franchise ranges from $112K – $318K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Ralph's Famous Italian Ices franchise owners earn?
Ralph's Famous Italian Ices 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 Ralph's Famous Italian Ices's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Ralph's Famous Italian Ices (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 Ralph's Famous Italian Ices franchise locations are there?
As of their most recent FDD filing, Ralph's Famous Italian Ices has 83 total units in the United States, including 82 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is Ralph's Famous Italian Ices a good franchise to buy?
FranchiseVerdict rates Ralph's Famous Italian Ices as a A-grade franchise with a risk score of 47 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.