Sub Zero Nitrogen Ice Cream Franchise Cost, Revenue & Review 2026
- Investment
- $217K – $356K
- Disclosed sales
- $228K
- gross sales, not profit
- SBA charge-off
- Limited · 16 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Sub Zero Nitrogen Ice Cream is a dessert franchise that freezes custom ice cream to order with liquid nitrogen for a live show. Franchisees run the shops, managing made-to-order prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A Sub Zero Nitrogen Ice Cream franchise requires a total initial investment of $217K – $356K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $228K[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $217K – $356K
- 28th pct Service Resta…
- Avg gross sales
- $228K
- 0th pct Service Resta…
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 40
- 62nd 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 $217K – $356K including a $35K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $228K/year (median $220K).
- RISKVerdict B (Above average), verdict score 69/100 (higher is better).
- GROWTHPositive: net +2 franchised outlets in the latest year (5 opened, 3 closed) (Item 20).
- DECLINESystem contracting at -9.1% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Sub Zero Franchising, Inc.
- Parent company
- Sub Zero Franchise Company, LLC
- FDD Item 1, page 6 of the 2025 FDD
- Predecessor
- Sub Zero Franchise Company, LLC
- Prior franchisor entity
- CEO title
- Founder, CEO and Chairman of the Board
- Jerry Hancock
- Incorporated in
- Utah
- HQ
- 62 W. Center St., Provo, UT 84601
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $756K
- vs $858K prior year
Overview
About
- CEO
- Jerry Hancock
- Headquarters
- UT
- Founded
- 2010
- FDD year
- 2025
- States available
- 11
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 | $35K | $35K |
| Working capital (3–6 mo) | $15K | $30K |
| Equipment, build-out, other | $167K | $291K |
| Total initial investment | $217K | $356K |
Source: Sub Zero Nitrogen Ice Cream 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
- $217K – $356K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $30K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 6.0%
- Set by a formula · 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 | $65 |
| Training fee | $3K |
| Transfer fee | $5K |
| Renewal fee | $3K |
| Inventory (initial) | $6K – $8K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 77% below the quick-service restaurants norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Sub Zero Nitrogen Ice Cream until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
Total invested capital · disclosed
$309K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Sub Zero Nitrogen Ice Cream 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 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
- Avg gross sales
- $228K
- Per unit, per year
- Median gross sales
- $220K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical gross sales averages/medians by ranking segment
- Sample size
- 18 outlets
- vs category median 19
- Range (low → high)
- $95K→$446KCited, not corroborated — printed on page 49 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 781 Quick-Service Restaurants brands
Revenue is only 0.8x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $228K/year in gross sales. Revenue-to-investment ratio: 0.8x.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -9.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Sub Zero Nitrogen Ice Cream 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
- 40
- Opened
- 5
- Last reporting year
- Closed
- 3
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.5%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- +5.3%
- Net unit change over 3 years
- 3-yr CAGR
- -9.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 1
- Transfer rate
- 2.5%
- Owners selling to other franchisees
- Termination rate
- 5.0%
- Franchisor-initiated terminations
- Ceased ops
- 7.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 11 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
11
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 16
- Loan volume
- $2.9M
- Median loan
- $181K
- average
- Charge-off rate
- Limited · 16 loans
- Limited SBA coverage: 16 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 · 16 loans
- 5-yr charge-off
- Limited · 16 loans
- Loans approved 2021+
- Active lenders
- 13
- Defaults
- 9
Vintage analysis
Sub Zero Nitrogen Ice Cream charge-off rate by loan vintage
Top lenders financing Sub Zero Nitrogen Ice Cream franchisees
Showing 3 of 13 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 Sub Zero Nitrogen Ice Cream from SBA 7(a) FOIA data.
Top SBA lenders
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wallis Bank | 2 | $476K | 100.0% |
| 2 | Harvest Small Business Finance, LLC | 2 | $876K | N/A |
| 3 | The Huntington National Bank | 2 | $272K | N/A |
| 4 | Dollar Bank, A Federal Savings Bank | 1 | $95K | N/A |
| 5 | Florida Capital Bank, National Association | 1 | $350K | N/A |
| 6 | Eastern Bank | 1 | $165K | N/A |
| 7 | PNC Bank, National Association | 1 | $20K | 0.0% |
| 8 | Peoples Trust and Savings Bank | 1 | $215K | N/A |
| 9 | Needham Bank | 1 | $275K | N/A |
| 10 | Georgia's Own Credit Union | 1 | $180K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 2 | 0 | -- |
| COColorado | 2 | 0 | -- |
| GAGeorgia | 2 | 0 | -- |
| PAPennsylvania | 2 | 0 | 0.0% |
| TXTexas | 2 | 2 | 100.0% |
| FLFlorida | 1 | 0 | -- |
| INIndiana | 1 | 0 | -- |
| MAMassachusetts | 1 | 0 | -- |
| NHNew Hampshire | 1 | 0 | -- |
| WAWashington | 1 | 0 | 0.0% |
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
No litigation, bankruptcy, or going-concern; audited financials with Item 19 disclosed. Sole concern is contraction: net unit growth of -9.1% with 40 total units. Revenue of $755,969 and avg gross sales of $228,079 are modest.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Total franchisor revenue for fiscal year ended June 30, 2024 was $755,969, including $29,267 (3.8%) from product sales/rebates
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 69 / 100 verdict
- 01MINORNegative net growth -9.1%
- 02MINORSmall system (40 units)
- 03MEDOtherwise clean: no litigation/bankruptcy, audited, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Territory population | 100,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| 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 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Salt Lake City, Utah |
| Jury trial waiver | Yes |
| Governing law | Utah |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 28 hrs
- On-the-job training
- 58 hrs
- Training location
- On-site at franchisee's restaurant and franchisor's facility
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisor approves site; franchisee/local architect and franchisor system design architect collaborate
- Franchisor financing
- Offered
- Item 10
- POS system
- Profit Keeper
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Profit Keeper
Item 20 · call current owners
Franchisee Contacts
31 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 Sub Zero Nitrogen Ice Cream franchise?
The total investment to open a Sub Zero Nitrogen Ice Cream franchise ranges from $217K – $356K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sub Zero Nitrogen Ice Cream franchise owners earn?
According to Item 19 of the Sub Zero Nitrogen Ice Cream FDD, the average gross sales per unit is $228K. The median is $220K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Sub Zero Nitrogen Ice Cream?
Sub Zero Nitrogen Ice Cream is franchised by Sub Zero Franchising, Inc.. Its parent company is Sub Zero Franchise Company, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Sub Zero Nitrogen Ice Cream 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 Sub Zero Nitrogen Ice Cream FDD and qualifies whose outlets they describe.
What is Sub Zero Nitrogen Ice Cream's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Sub Zero Nitrogen Ice Cream (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 Sub Zero Nitrogen Ice Cream franchise locations are there?
As of their most recent FDD filing, Sub Zero Nitrogen Ice Cream has 40 total units in the United States, including 38 franchised units and 2 company-owned units. 5 new units were opened in the latest reporting year.
Is Sub Zero Nitrogen Ice Cream a good franchise to buy?
FranchiseVerdict rates Sub Zero Nitrogen Ice Cream as a B-grade franchise with a verdict score of 69 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
Are you the franchisor?
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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.