About The Meadows Original Frozen Custard Franchise
The Meadows Original Frozen Custard is a dessert franchise specializing in authentic frozen custard, a rich, creamy alternative to traditional ice cream.
This Maryland filing represents the brand's presence in the state, where the franchise has been operating since 1987, making it one of the longest running frozen custard franchise concepts in the country.
The franchise fee is $25,000.
The Meadows Original Frozen Custard Franchise Cost & Fees
Minimum Investment
$148K
Average Investment
$221K
Maximum Investment
$294K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 0% of Gross Sales (currently) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Sales (National Advertising Program, if merited); Not to exceed 3% of Gross Sales (Regional Advertising and Sales Cooperative, if merited); 2% of Gross Sales (Local Advertising Fee, 1% if contributing to Regional Co-op) | National brand fund |
| Total Investment Range | $148,000 – $294,000 | Includes build-out, inventory, working capital |
The investment range of $148K–$294K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (0% of Gross Sales (currently)) and marketing fee (1% of Gross Sales (National Advertising Program, if merited); Not to exceed 3% of Gross Sales (Regional Advertising and Sales Cooperative, if merited); 2% of Gross Sales (Local Advertising Fee, 1% if contributing to Regional Co-op)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Real Estate | $0 | $0 |
| Leasehold Improvements, Furnishings, Equipment and Signs | $105,000 | $215,000 |
| Initial Inventory | $5,000 | $10,000 |
| Opening Advertising and Promotions | $2,000 | $10,000 |
| Training Expenses | $1,000 | $3,000 |
| Miscellaneous Opening Costs | $6,000 | $21,000 |
| Additional Funds - Three months | $4,000 | $10,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | $5,000 |
| Audit Fee | Deficiencies in fees and advertising contribution plus interest. If understatement is more than 2% of Royalty fees paid by Franchisee and/or 2% of the Contribution to Advertising paid by Franchisee (if required), for the audit period, you also must pay the reasonable costs and expenses of the audit. |
| Additional Training | $50 per day |
| Interest | The higher of the rate of 10% per year, 2 points above the Prime Rate as reported by The Wall Street Journal, on the first day of each calendar quarter, or such lower rate as required by law. |
| Indemnification | The losses and expenses incurred by Meadows. |
| Collection Costs and Expenses | Meadows' costs and expenses. |
| Testing Expense | Actual cost of testing. |
| Extended Opening Assistance | Travel and living costs, salaries and fringe benefits of Meadows personnel. |
| Replacement Operating Manual | $500 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 26 days (8 hours per day), consisting of 5 days before opening and 21 days after opening. |
| Classroom Training | 4 hours |
| On-the-Job Training | 204 hours |
| Training Location | Affiliate operated custard stand at 169 Mini Mall Rd, Ebensburg, PA 15931, or predecessor's custard stand at 1391 Route 220 N. Business, Duncansville, PA 16635, or The Meadows of Greensburg, 660 Mount Pleasant Street, Greensburg, PA 15601. |
| Additional Training | Mandatory advanced training programs may be offered at times and places designated by the franchisor. If sales consistently rank in the bottom 25% of similarly situated custard stands for six or more consecutive months, management may be required to complete the then-current initial training program again. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | The size of your exclusive territory will depend on the demographics prevailing in the area in which your Custard Stand is located. |
| Description | Franchisor will not operate a custard stand or grant franchises for a similar or competitive business within the franchisee's exclusive territory. However, the franchisor retains the right to offer goods and services under its brands through other channels of distribution to customers anywhere, including within the territory, and may solicit/accept orders from inside the territory using current technology without compensation to the franchisee. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years from the date your Custard Stand opens |
| Renewal Term | 10 years or the Initial Term then being offered for new franchises, whichever is less |
| Renewal Fee | $5,000 |
| Renewal Conditions | Timely written notice of desire to renew (180-270 days prior to expiration), not in default of any agreement, make capital expenditures for renovation/modernization to conform to current image, have right to possession of franchised location (or approved new premises), execute new franchise agreement (which may differ), pay renewal fee, and execute a general release. |
| Transfer Fee | $5,000 |
| Transfer Conditions | Franchisor's prior written consent is required. Conditions include: first offer to sell to franchisor, satisfaction of all monetary obligations, execution of a general release by transferor, transferee meeting franchisor's managerial/operational/business standards, good moral character, business reputation, credit rating, aptitude/ability, adequate financial resources, execution of current standard form franchise agreements, and completion of initial training program for new franchisees. |
| Termination for Cause | Automatic termination for bankruptcy, insolvency, general assignment for creditors. Termination upon notice for failure to satisfy judgments, falsifying reports, ceasing operations for 5+ days, unauthorized transfer, felony conviction, threat to public health/safety, loss of possession of location (unless relocated), inoperable stand for 210+ days, default under other agreements, or second intentional alteration of formula mix. Termination after cure period for other defaults, or if two or more defaults occur within 12 months, or failure to pass three consecutive inspections. |
| Non-Compete Period | 24 months |
| Non-Compete Details | During the term of the franchise, franchisee may not directly or indirectly own, maintain, engage in, acquire any interest in or operate any business materially similar to the Custard Stand or that sells frozen custard without franchisor's consent. After termination or expiration, for 24 months, franchisee may not directly or indirectly engage in any business materially similar to the Custard Stand or that sells frozen custard within ten miles of the franchised location. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | A designated individual must devote personal full-time efforts (at least 40 hours per week during the season) to promote and develop the Custard Stand and avoid conflicting activities. If the franchisee is an individual, this must be the franchisee. If a corporation, the designated individual must own at least a 5% equity interest and act as a principal operating officer. If a partnership, the designated individual must be a general partner. |
| Required Suppliers | Formula mixes for frozen custard and frozen yogurt must be purchased solely from Meadows or designated suppliers. Paper goods bearing the Meadows logo must be purchased from Lipari Foods LLC. |
| Supply Restrictions | Franchisee must use ingredients, supplies, furnishings, and equipment that conform to franchisor's standards and specifications. Other items (not formula mixes or logo paper goods) may be purchased from approved suppliers, with franchisor approval required for alternate suppliers. |
| Franchisor Revenue from Suppliers | Designated suppliers (Lipari Food Service and Galliker Dairy Company) pay Meadows a fee of $1.00 per gallon (prior to 11/30/2016) or $1.50 per gallon (after 12/1/2016) for frozen yogurt mix, ices, or frozen custard mix purchased by franchisees. Meadows may also receive rebates from product manufacturers. For the year ending November 30, 2020, revenue from formula mixes was $159,893, representing 74.1% of Meadows' total revenues of $215,699. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Meadows does not offer direct or indirect financing. Meadows does not guarantee your note, lease or obligation. |
The Meadows Original Frozen Custard Franchise Earnings — Item 19
The Meadows Original Frozen Custard does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
The Meadows Original Frozen Custard does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
The Meadows Original Frozen Custard Litigation & Risk Flags
Clean Litigation RecordThe Meadows Original Frozen Custard 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.
The Meadows Original Frozen Custard System Growth
Total Units
24
Franchised
24
Company-Owned
0
The Meadows Original Frozen Custard currently operates 24 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 3 | 0 | 28 |
| 2020 | 0 | 4 | 24 |
| 2021 | 0 | 0 | 24 |
Transfers: 1 | Closures: 4
State Registrations
Registered in 7 states: GA, MD, NY, NC, PA, TX, WV
Franchisor Financials (Item 21)
Revenue
$68K
Net Income
$7K
Total Assets
$160K
The Meadows Original Frozen Custard Franchise — FAQ
The total investment to open a The Meadows Original Frozen Custard franchise ranges from $148,000 to $294,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
The Meadows Original Frozen Custard charges a royalty fee of 0% of Gross Sales (currently) of gross sales, plus a 1% of Gross Sales (National Advertising Program, if merited); Not to exceed 3% of Gross Sales (Regional Advertising and Sales Cooperative, if merited); 2% of Gross Sales (Local Advertising Fee, 1% if contributing to Regional Co-op) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the The Meadows Original Frozen Custard 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 The Meadows Original Frozen Custard to ensure you have the most up-to-date version.
The Meadows Original Frozen Custard does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
The Meadows Original Frozen Custard has been franchising since 1987. The FDD shows an investment range of $148,000-$294,000, a 0% of Gross Sales (currently) 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 $25,000 and the total investment ranges from $148,000 to $294,000 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 The Meadows Original Frozen Custard and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with The Meadows Original Frozen Custard or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com