About Negranti Franchise
Negranti Creamery is a gourmet sheep's milk ice cream franchise where franchisees operate a quick-serve ice cream shop featuring proprietary sheep's milk ice cream and complementary products.
Day-to-day operations involve preparing and serving artisan ice cream to the general public, managing inventory of proprietary products sourced from approved affiliate suppliers, and maintaining the distinctive store environment.
Target customers are members of the general public seeking premium frozen desserts in a quick-serve setting, with sales being stronger during warmer periods.
Negranti Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2.5% of Gross Revenue (local marketing) + 1.5% of Gross Revenue (Brand Fund) | National brand fund |
| Total Investment Range | $248,300 – $475,700 | Includes build-out, inventory, working capital |
The investment range of $248K–$476K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Gross Revenue) and marketing fee (2.5% of Gross Revenue (local marketing) + 1.5% of Gross Revenue (Brand Fund)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Evaluation Fee | $0 | $1,500 |
| Rent – Three Months | $2,500 | $18,000 |
| Utilities | $600 | $2,500 |
| Leasehold Improvements | $75,000 | $200,000 |
| Grand Opening Advertising | $3,000 | $3,000 |
| Furniture, Fixtures, & Equipment | $75,000 | $100,000 |
| Computer Systems | $1,500 | $4,500 |
| Insurance – Three Months | $1,000 | $3,000 |
| Signage | $5,000 | $25,000 |
| Office Supplies | $500 | $1,000 |
| Inventory | $2,000 | $4,000 |
| Ice Cream/Ice Cream Products Inventory | $12,000 | $16,000 |
| Licenses and Permits | $800 | $2,000 |
| Dues and Subscriptions | $400 | $1,200 |
| Professional Fees | $1,000 | $3,000 |
| Living Expenses During Training | $3,000 | $6,000 |
| Additional Funds – Three Months | $40,000 | $60,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of then-current initial franchise fee for new franchisees; $5,000 for existing franchisees |
| Renewal Fee | 25% of then-current initial franchise fee or $7,500, whichever is greater |
| Technology Fee | Currently $0 (Internal Systems Fee) |
| Audit Fee | Cost of examination plus related expenses |
| Advertising Cooperative | Pro-rata share of actual advertising costs |
| Initial Training (additional trainees) | $1,000 per person plus expenses |
| Additional Training | $300 per person per diem plus expenses |
| Remedial Training Fee | $300 per diem plus expenses |
| Relocation Fee | $5,000 or actual costs, whichever is greater |
| Interim Management Fee | 10% of Gross Revenue plus expenses |
| Quality Assurance Review | Up to $300 per review |
| Proposed Item or Supplier Evaluation | $500 plus actual cost of inspection and testing |
| Late Charge | $50 per incident |
| Insufficient Funds Fee | $35 per occurrence |
| Interest Charge | 18% per annum |
| Non-Compliance Fee | $250 per incident per day |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3 days initial training plus up to 7 days on-site opening assistance |
| Classroom Training | 8 hours |
| On-the-Job Training | 16 hours |
| Training Location | Boise, Idaho; Paso Robles, CA; virtually; or at franchisee's outlet |
| Additional Training | Mandatory additional training up to 3 days per year and/or national meeting or conference up to 3 days per year at franchisor-designated location. $300 per person per diem fee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Minimum two-mile radius around outlet address, typically identified by contiguous zip codes |
| Description | Territory determined on individual basis considering minimum households, average home prices, and household incomes. Franchisor will not open or grant another Negranti Creamery outlet within Territory during term, but reserves rights to sell through alternative distribution channels (grocery stores, airports, malls, food trucks, internet, etc.) within Territory without compensation to franchisee. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two additional terms of 10 years each |
| Renewal Fee | 25% of then-current initial franchise fee or $7,500, whichever is greater |
| Renewal Conditions | Full compliance with agreement; no more than 3 defaults during current term; written notice at least 6 months before end of term; execute new franchise agreement (may have materially different terms); pay successor agreement fee; right to occupy premises or approved relocation; remodel to current standards; execute general release; complete additional training |
| Transfer Fee | 50% of then-current initial franchise fee for new franchisees; $5,000 for existing franchisees |
| Transfer Conditions | Transferee meets franchisor standards; transferee signs then-current franchise agreement; transferee completes training; all amounts owed paid; general release executed; franchisor approval of transfer terms; landlord consent if applicable; payment of transfer fee; subject to franchisor right of first refusal |
| Termination for Cause | Curable defaults: 5 days to cure non-payments and non-monetary defaults. Non-curable defaults include: insolvency, bankruptcy, ceasing operations 5+ days, loss of premises, understating gross revenue twice, unauthorized transfer, conviction of felony, 3+ defaults during term, and others |
| Non-Compete Period | 24 months |
| Non-Compete Details | For 24 months after termination, franchisee may not divert customers to competitors or participate in any ice cream business within 10 miles of former outlet location or any other Negranti Creamery location |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee is not required to personally supervise the outlet but should be actively engaged. A general manager who has completed the training program must be on-site at all times. General manager must devote full time to the job and cannot have an interest in competitors. |
| Required Suppliers | Pacific Northwest Creamery LLC and Scoops and Cheers LLC are the only approved suppliers of ice cream and ice cream products. Architect and building contractor must meet franchisor approval. All equipment, fixtures, furnishings, ingredients, supplies and services must be purchased from designated suppliers or in accordance with franchisor specifications. |
| Supply Restrictions | Approximately 80%-90% of establishment costs and 75%-85% of ongoing operating costs must be from approved suppliers or those meeting franchisor specifications. Franchisor may collect and retain all allowances, rebates, credits, and incentives from suppliers. |
| Franchisor Revenue from Suppliers | During fiscal year ended December 31, 2023, affiliate did not earn revenue from required product sales as there were no franchisees in the System. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Franchisor does not offer direct or indirect financing and does not guarantee any note, lease, or obligation. |
Negranti Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Negranti Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Negranti System Growth
Negranti currently operates 0 franchised locations and 4 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 3 | 0 | 4 |
| 2022 | 0 | 0 | 4 |
| 2023 | 0 | 0 | 4 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 1 states: CA
Franchisor Financials (Item 21)
Audited by Pulliam & Associates, Chartered for year ending December 31.
Negranti Franchise — FAQ
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