The Cost of Owning an Ice Cream Franchise: A Complete Guide

Owning an ice cream franchise can be an exciting and profitable venture, but it requires careful planning and financial management. The total cost of owning an ice cream franchise depends on various factors, such as the brand, location, and size of the store. The franchise fee is typically one of the first costs you’ll encounter. Franchise fees for ice cream businesses can range from ₹2 lakh to ₹10 lakh. This fee grants you the right to operate under the brand\'s name and access their business model and support. Next, you’ll need to budget for equipment and store setup. Equipment like freezers, refrigerators, and ice cream machines can cost between ₹5 lakh to ₹15 lakh. Store setup, including furniture, interior design, signage, and POS systems, can add an additional ₹3 lakh to ₹10 lakh to your expenses. These costs vary depending on the store size and location. Ongoing expenses include royalty fees, usually between 4-8% of monthly sales, as well as marketing fees and inventory costs. Operational costs such as rent, utilities, staff wages, and supplies must also be factored into your budget. You’ll need to set aside working capital to cover these expenses until the business becomes profitable. Lastly, remember to consider unexpected costs and allow for a contingency fund. By planning carefully and budgeting for all potential costs, you can ensure a smooth startup and a successful ice cream