Jeni’s Splendid Ice Creams, a roughly 90-unit ice cream shop and retail brand, is launching a franchising program for the first time.
The chain has built up substantial brand awareness both through its shops and its partnerships with major retailers like Whole Foods, Target and Kroger, which could be an asset to prospective franchisees. The brand’s experience building up a company-operated storebase and establishing its brand through retail partnerships mean it is ready to franchise, a Jeni’s spokesperson said in an email.
Jeni’s plans to take a collaborative approach to franchising, Sean Bock, senior advisor for franchising at Jeni’s, said in a Tuesday press release. Brock cited the chain’s relationship with suppliers — who help craft its flavors — as a model for its franchisee relationships. The brand develops more than a dozen new flavors each year, giving operators a stable of LTOs and premium options to drive traffic.
The brand’s corporate units average roughly $1 million in net sales, according to the franchise disclosure document. That is significantly higher than the sales driven by more established competitors, like Häagen-Dazs, which has a $700,000 AUV across 178 measured locations, or Baskin-Robbins, which has a $530,000 AUV across 844 locations, according to their respective franchise disclosure documents.
According to Jeni’s franchising website, the brand has trade areas available for franchised development in 29 states, with the remainder of the country coming soon.
Jeni’s is “focused on regions where we already see strong demand and community alignment, specifically the Sunbelt and Midwest. As with our current growth strategy, our goal with franchise expansion is not volume, it’s meeting our customers where they are,” the spokesperson said.
Jeni’s has worked to expand its offerings, launching ice cream bars in retailers for the first time earlier this year. And the chain plans to open seven company-owned units this year, after four closures and two openings last year led to a modest decline in its store system, according to its FDD. Jeni’s said those closures were part of a strategic decision and did not reflect the health of the brand.
Jeni’s Splendid Ice Cream franchising requirements
Total investment: $696,000 to $1,265,750
Minimum Net Worth: $1.5 million
Liquidity requirement: $500,000
Royalty rate: 5%
Brand fee: 2%
Source: https://jenis.com/pages/franchise