FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Fosters Freeze.
Based on 2024 FDD · 4 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Fosters Freeze franchise shows an estimated initial investment of $178K – $4.9M. The franchisor does not provide enough Item 19 data for a clean profit estimate. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $45K franchise fee · 7% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
Fosters Freeze requires a total initial investment of $178K to $4.9M (midpoint approximately $2.6M), with an initial franchise fee of $45K. The ongoing fee burden is 7% (4% royalty plus 3% advertising fund). This is below the industry average of approximately 14.2%, leaving more margin for the operator.
Fosters Freeze does not publicly disclose Item 19 financial performance data in their FDD. This is a significant transparency gap — franchisees must rely on validation calls and personal research rather than audited financial representations. Prospective buyers should demand current unit-level financials from existing operators during due diligence.
Fosters Freeze operates approximately 61 franchised units. However, the brand has been contracting with a 3.2% net unit decline, which may signal franchisee dissatisfaction, territory saturation, or competitive pressure. The SBA 7(a) loan default rate of 0.0% is well below the industry average of approximately 9.4%, indicating strong franchisee financial outcomes.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2024 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2018-2023). 8 loans across 1 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
Common questions buyers ask about Fosters Freeze, answered from FDD and SBA data.
The total initial investment for a Fosters Freeze franchise ranges from $178K to $4.9M, according to their Franchise Disclosure Document.
Fosters Freeze charges a 4% royalty fee on gross sales.
The initial franchise fee for Fosters Freeze is $45,000.
There are approximately 61 Fosters Freeze franchise locations as of 2023.
Profit data for Fosters Freeze is disclosed in FDD Item 19 (Financial Performance Representation). Check their most recent Franchise Disclosure Document for current figures.
Fosters Freeze has an SBA loan default rate of 0.0% based on SBA 7(a) loan data.
Whether a Fosters Freeze franchise is worth it depends on total startup cost, royalty burden, FDD Item 19 economics, SBA loan performance, and local operator execution. FDDIQ compares these signals against similar franchises so buyers can screen the opportunity before paying for diligence.
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