About Sub Zero Franchise
Sub Zero is an ice cream franchise known for its unique instant freezing method, creating made to order ice cream and related frozen treats right in front of the customer.
The brand offers both storefront and mobile unit franchise models, giving owners flexibility in how they bring the concept to market.
Franchising since 2010 under Sub Zero Franchise Company, LLC, the storefront franchise fee is $35,000 and the mobile unit fee is $20,000.
Sub Zero Franchise Cost & Fees
Minimum Investment
$125K
Average Investment
$210K
Maximum Investment
$295K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 (Storefront) / $20,000 (Mobile Unit) | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales (Brand Development Fee) | National brand fund |
| Total Investment Range | $125,382 – $294,581 | Includes build-out, inventory, working capital |
The investment range of $125K–$295K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (2% of Gross Sales (Brand Development Fee)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Site Selection | $0 | $5,000 |
| Real Estate/Rent/Deposits | $5,200 | $20,000 |
| Construction, Remodeling and Leasehold Improvements | $20,000 | $85,000 |
| Furniture, Fixtures, POS System, Signage & Equipment | $20,000 | $55,000 |
| Architect Design Set | $2,000 | $2,000 |
| Local Architect | $3,500 | $18,000 |
| Office Equipment & Supplies | $1,000 | $2,500 |
| Catering Equipment Package | $9,432 | $10,581 |
| Inventory to Begin Operating | $5,000 | $7,500 |
| Initial Advertising | $3,000 | $7,500 |
| Initial Training Fee | $2,500 | $2,500 |
| Training Expenses (our reimbursement and your out-of-pocket expenses) | $1,750 | $6,000 |
| Insurance | $1,000 | $3,000 |
| Miscellaneous Expenses | $1,000 | $5,000 |
| Additional Funds -- 3 months | $15,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | $2,500 |
| Technology Fee | $65 per month (POS Software) |
| Audit Fee | Cost of the audit plus any shortfall amount found to be due |
| Local Advertising Expenditure | At least 2% of Gross Sales |
| Loyalty Program | Currently $10 to $20 per month |
| Advertising Cooperative Contribution | Up to 2% of Gross Sales |
| Additional Training or Assistance | $1,000 per person plus travel expenses |
| Additional On-Site Training or Assistance | $500 per day per trainer plus travel, lodging, and meal expenses |
| Late Charges | At the lesser of 1.5% per month and the highest rate allowed by law plus a $50 service fee |
| Cure Fee | $500 for the first breach, $1,000 for the second breach, and $2,500 for the third breach and any other breach |
| Conference or Convention Fee | Currently $500 |
| Missed Conference or Convention Fee | $2,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 7-10 days |
| Classroom Training | 25-30 |
| On-the-Job Training | 54-61 |
| Training Location | Provo, Utah or another designated location and the Franchised Store/Territory |
| Additional Training | $1,000 per person beyond the initial three individuals (including replacement managers) to attend the training program. Franchisee pays all travel, lodging, and meal expenses for attendees and franchisor representatives for on-site training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Territory |
| Exclusive Territory | Yes |
| Territory Size | Storefront: two driving miles (or 1/4-mile in high population density areas); Mobile Unit: primarily based on zip codes or other political boundaries. |
| Description | For storefronts, a protected territory of two driving miles (or 1/4-mile in high-density areas) is granted where no other Sub Zero store will be placed. Mobile Unit franchisees receive a protected territory primarily based on zip codes or political boundaries, with a population up to 100,000 persons. Catering and school presentations can be offered within the protected territory, but prior written approval is needed for activities outside this radius. Non-Traditional Locations do not receive a protected territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | additional 5-year terms |
| Renewal Fee | $2,500 |
| Renewal Conditions | Franchisee must not be in default, have the right to maintain possession of the location, provide 6 months' notice, pay the renewal fee, sign the then-current franchise agreement and a general release of claims, and renovate/refurbish the Franchise to current standards. |
| Transfer Fee | $5,000 |
| Transfer Conditions | Franchisee and owners must be in full compliance, provide timely notice, prospective transferee receives disclosure document, transferee meets character/reputation/standards, transferee has sufficient business experience/aptitude/financial resources, franchisee pays all owed amounts, initial franchise fee paid in full, franchisor approves material terms of transfer, any financing by franchisee/owner is subordinate to franchisor, franchisee/owners execute non-competition covenant, franchisee/owners agree not to identify as current/former Sub Zero franchisee, and franchisee submits required information. |
| Termination for Cause | Franchisor can terminate for various reasons including failure to open the franchise on time, failure to complete initial training, abandonment of the franchise, materially false statements, felony conviction, dishonest/unethical conduct, loss of occupancy, unauthorized transfer, unauthorized use of confidential information, intentional understatement of Gross Sales, failure to pay taxes, repeated defaults, or assignment for benefit of creditors/insolvency. Curable defaults have specific cure periods (72 hours for health/safety, 10 days for monetary, 15 days for laws/regulations, 30 days for other non-compliance). |
| Non-Compete Period | During term: For the term of this Agreement. Post-termination: 730 days. |
| Non-Compete Details | During the term, franchisee cannot engage directly or indirectly as an owner, operator, or manager in any business offering liquid nitrogen products/services or specializing in food preparation/service without consent (excluding equity securities <2% on stock exchange). Post-termination, for 730 days, franchisee cannot hold direct or indirect interest in a competitive business (liquid nitrogen products/services, desserts, or ice cream as primary menu item) within a 10-mile radius of the former Franchise Location, Franchise Territory, or any other Sub Zero location. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | While full-time owner-operator engagement is encouraged, it's not strictly required. However, a managing owner or a full-time manager must be designated to manage day-to-day operations and must successfully complete the franchisor's training program. |
| Required Suppliers | Franchisees must purchase required equipment, fixtures, furnishings, signs, products, and supplies from franchisor-designated or approved suppliers. Specific items like gift cards, timers, certain branded items, inventory, food products, nitrogen tanks, valves, and foot pedals must be obtained from the franchisor or approved suppliers. Mobile Unit trailers and equipment must be purchased from American Kinetics, the sole designated vendor. |
| Supply Restrictions | Franchisees are restricted to purchasing from designated or approved suppliers. The franchisor is the sole approved supplier for gift cards and timers. The franchisor or its affiliates are the sole and exclusive suppliers of certain uniform, clothing, marketing, promotional materials, and proprietary products. |
| Franchisor Revenue from Suppliers | In fiscal year 2021-2022, the franchisor received approximately $24,359 from the sale of products/services to franchisees and rebates from approved suppliers, which was 3% of total revenues of $800,166. The franchisor may also receive rebates from its system design architect and from purchases of flavor items and credit card transactions. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may finance up to $10,000 of the first Initial Franchise Fee for qualified franchisees. For a Storefront franchise, a $25,000 down payment is required, with $10,000 financed. For a Mobile Unit franchise, a $10,000 down payment is required, with $10,000 financed. The financing terms include a 5% annual interest rate, compounded monthly, with monthly installments over a 24-month period. A Promissory Note with a personal guarantee is required. Prepayment is allowed without penalty. |
Sub Zero Franchise Earnings — Item 19
Average Revenue
$207K
Median Revenue
$153K
Revenue Range
$59K – $544K
Sample Size
23 units
Past financial performance does not guarantee future results. Individual results will vary.
Sub Zero Litigation & Risk Flags
Clean Litigation RecordSub Zero has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Sub Zero System Growth
Total Units
34
Franchised
32
Company-Owned
2
Sub Zero currently operates 32 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 3 | 22 | 37 |
| 2021 | 3 | 7 | 34 |
| 2022 | 5 | 5 | 34 |
Transfers: 5 | Closures: 34
State Registrations
Registered in 21 states: CA, CT, FL, HI, IL, IN, IA, MD, MI, MN, NE, NY, ND, OR, RI, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$800K
Net Income
$-54,428
Total Assets
$340K
Audited by PAULA J. PALMER CPA, LLC for year ending June 30.
Sub Zero Franchise — FAQ
The total investment to open a Sub Zero franchise ranges from $125,382 to $294,581, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000 (Storefront) / $20,000 (Mobile Unit). The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Sub Zero charges a royalty fee of 6% of Gross Sales of gross sales, plus a 2% of Gross Sales (Brand Development Fee) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Sub Zero Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Sub Zero to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Sub Zero franchise owners report average revenue of $207K and median revenue of $153K. This is based on a sample of 23 units. Past performance does not guarantee future results.
Sub Zero has been franchising since 2010. The FDD shows an investment range of $125,382-$294,581, a 6% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $35,000 (Storefront) / $20,000 (Mobile Unit) and the total investment ranges from $125,382 to $294,581 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Sub Zero and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Sub Zero or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com