Tipsy ScoopFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Tipsy Scoop franchise requires a total initial investment of $224K – $348K, including a $45K franchise fee and an ongoing 5.5% royalty[2]. Per the 2025 FDD, average unit revenue was $393K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $224K – $348K
- 39th pct Service Resta…
- Avg gross sales
- $393K
- 4th pct Service Resta…
- Royalty
- 5.5%
- 40th pct Service Resta…
- Units
- 4
- 17th 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
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
44% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $224K – $348K including a $45K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $393K/year, with an estimated 44% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 51/100.
- Revenue data based on only 2 reporting units. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Tipsy Scoop Franchising LLC
- Incorporated in
- DE
- HQ
- 217 E 26th Street, New York, New York 10010
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $54K
- vs $154K prior year
Affiliated brands
- Tipsy Scoop Joint Ventures
- has not in the past and does not now offer franchises in any lines of business
- Tipsy Scoop Brooklyn
- is the owner of the Licensed Marks
- maintains a pr
- provides ice cream and other food ingredients to franchisees
- Tipsy Scoop
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Tipsy Scoop is an alcoholic ice cream shop where franchisees manage point-of-sale operations, inventory, customer service, and staff management for a novelty dessert concept. Day-to-day operations involve scooping/serving boozy ice cream, managing alcohol compliance, handling cash/card transactions, and maintaining store appearance in a retail storefront location.
- CEO
- Melissa Tavss
- Headquarters
- NY
- Founded
- 2022
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $45K | $45K | |
| Construction and Leasehold Improvements | $30K | $55K | |
| Lease Deposits and Rent - Three Months | $11K | $21K | |
| Furniture and Fixtures | $12K | $16K | |
| Equipment | $30K | $53K | |
| Signage | $8K | $9K | |
| Computer, Software, and Point of Sale System | $3K | $5K | |
| Grand Opening Marketing | $10K | $15K | |
| Initial Inventory | $22K | $40K | |
| Utility Deposits | $969 | $1K | |
| Insurance Deposits - Three Months | $289 | $2K | |
| Travel for Initial Training | $2K | $5K | |
| Professional Fees | $19K | $24K | |
| Licenses and Permits | $3K | $4K | |
| Liquor License | $0 | $12K | |
| Printing, Stationery, and Office Supplies | $2K | $3K | |
| Additional Funds - Three Months | $27K | $39K | |
| Total initial investment | $224K | $348K |
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.
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
$61K
15.5% margin
Unlevered ROIC
19%
EBITDA / total invested capital
Payback
5.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $224K – $348K
- Better than avg vs category
- Liquid capital req'd
- $27K – $39K
- Below avg, review vs category
- Franchise fee
- $41K – $45K
- Below avg, review vs category
- Royalty
- 5.5%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
- Payback period
- 2.3 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $150 |
| Training fee | $500 |
| Transfer fee | $23K |
| Renewal fee | $11K |
| Total fee load | 6.5% of rev |
A 6.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $393K
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $125K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 43.8%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Affiliate/Company Owned Outlets
- Sample size
- 2 units
- vs category median 28 · small
- Range (low → high)
- $328K→$457K
- Cohort dispersion (min → max)
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Tipsy Scoop Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 2
- Last reporting year
- Closed
- 1
- Turnover rate
- 25.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 50%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- 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
Tipsy Scoop represents a speculative micro-franchise with unproven unit economics, no financial disclosure, and a 4-unit system too small to validate investment viability.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $45,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 51 / 100 rating
- 01MEDOnly 4 units in system with unknown growth trajectory indicates extremely limited track record and high risk of system collapse
- 02HIGHNo Item 19 financial performance representations (Going Concern: False) means franchisor provides no audited revenue/profit claims — critical due diligence gap
- 03MEDHigh initial investment ($223-348K) relative to only 4 existing units creates unproven unit economics and limited comparable performance data
- 04MINOR5.5% royalty on $409K avg revenue = $22,528 annual royalty burden with no guarantee franchisor reinvests in system support/marketing
- 05MEDExtremely small franchise system suggests limited purchasing power, brand recognition, and operational support infrastructure
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 | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Distance/Population based |
| Protected territory | Yes |
| Territory sizeℹ | 75,000 people |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 22 hrs
- Training location
- On-site and off-site
- POS system
- Square
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Tipsy Scoop · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Tipsy Scoop franchise?
The total investment to open a Tipsy Scoop franchise ranges from $224K – $348K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Tipsy Scoop franchise owners earn?
According to Item 19 of the Tipsy Scoop FDD, the average gross sales per unit is $393K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Tipsy Scoop's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Tipsy Scoop (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 Tipsy Scoop franchise locations are there?
As of their most recent FDD filing, Tipsy Scoop has 4 total units in the United States, including 3 franchised units and 2 company-owned units. 2 new units were opened in the latest reporting year.
Is Tipsy Scoop a good franchise to buy?
FranchiseVerdict rates Tipsy Scoop as a A-grade franchise with a risk score of 51 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.
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.