Dippin’ Dots is an ice cream store. The confection is created by a flash-freezing ice cream mix in liquid nitrogen.
Dippin’ Dot franchise may be the appropriate spot to put your money if you’re willing to expand your portfolio and get into franchising.
Here we have discussed some significant points related to this franchise that will help you understand the company and its franchise policies.
About Dippin’ Dot
Dippin’ Dot is a concept generated by Curt Jones. The concept is a bit different from other ordinary ice creams.
He used cryogenic technology to invent a Dippin’ Dot. An unconventional ice cream that’s remarkably fresh and flavorful, introducing the world to beaded ice cream.
Customers love this ice cream, and the demand for beaded ice cream is started increasing; its products have also increased through a variety of outlets, including expanded e-commerce home delivery, convenience store channel, and hundreds of additional fair and event locations.
History Of Dippin’ Dot
In 1988, Dippin’ Dots was founded by microbiologist Curt Jones. He used his knowledge of cryogenic technology to invent Dippin’ Dots.
The Dippin’ Dot dealer network began, and various theme and amusement parks discovered their customer’s love for their exciting new ice cream.
In 1995, Dippin’ dot opened its first international store in Japan. In 2012, Dippin’ dot was bought by Fischer Enterprises.
Dippin’ Dot can currently be found in more than 100 shopping centers and retail stores and in more than thousands of theme parks, movie theaters, stadiums, and other entertainment venues across the country.
Dippin’ Dot Franchise Model
| Cost Or Fees | Amount |
|---|---|
| Initial Investment | $120,000- $367,000 |
| Franchise-Fee | $15,000 |
| Royalty-Fee | Varies on the Locations |
| Liquidity | $250,000 |
| Area Requirement | N/A |
| Total Outlets | 230 |
Dippin’ Dot Franchise Revenue & Profit
The revenue and profit earned by each Dippin’ Dot franchise can vary depending on the store size, location, operating costs, competitors in the area, and more.
But according to our research, a Dippin’ Dot franchise owner generates an average of $150,000 in revenue. And if we consider a profit margin of 30% as per the industry standards, then we can find out that a Dippin’ Dot franchise owner make estimated $45,000 in net profits on average.
| Financial Overview | Percentage of Revenue | Amount ($) |
|---|---|---|
| Individual Franchise Annual Revenue | 100% | 150000.00 |
| Rent | 8.75% | (13125.00) |
| Insurance | 4.38% | (6562.50) |
| Salaries | 17.50% | (26250.00) |
| Franchise Royalty Fees | 4.38% | (6562.50) |
| Utilities | 1.75% | (2625.00) |
| Cost of Goods Sold (COGS) | 21.88% | (32812.50) |
| Labor (Variable) | 11.38% | (17062.50) |
| Total (Expenses) | 70.00% | (105000.00) |
| Net Profit | 30.00% | 45000.00 |
Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.
Training & Support Of Dippin’ Dot Franchise
Dippin’ Dot provides basic management training of four days (minimum of seven hours per day) for up to two trainees at its office.
After the compelling training, all trainees must clear the basic management training test for satisfaction.
They also provide opening support to franchisors, if necessary, for up to two days to assist in the opening of the Dippin’ Dot.
They also offer additional training programs, seminars, or advanced management training for their employees.
Failure Rate Of Dippin’ Dot
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2018 | 210 | 221 | +11 |
| 2019 | 221 | 228 | +7 |
| 2020 | 228 | 224 | -4 |
For the Franchised outlets:
- In 2018, the growth rate was (11)/210×100≈5.23%
- In 2019, the growth rate was (7)/228×100≈3.16%
- In 2020, the failure rate was (4)/228×100≈1.75%
According to the above-mentioned data, we can see that the franchised outlets for Dippin’ Dot grew from 2018 to 2019, showing a growth rate between 5.23% and 3.16%.
However, the company then started to lose number of outlets, showing a failure rate of 1.75% in the year 2020.
Payback Period Of Dippin’ Dot
With the total investment of $367,000 and the annual profit of the franchise owner, which is $45,000, we can calculate the payback period of Dippin’ Dot.
So, to find out how long it will take to earn back the initial investment:
Payback Period = Total Investment / Yearly Profit = $367,000 / $45,000 = 8.1 years
Based on these figures, it will take approximately 8 years to pay back the initial investment for Dippin’ Dot. This time period could be longer or shorter depending on your sales, revenue, and profit figures.
Term Of Agreement & Renewal
The actual length of the initial franchise agreement is five years.
The franchisor is eligible to renew the term only for two additional consecutive terms of five years each if the franchisor is in good standing and satisfies the condition in the franchise agreement.
How Much Does A Dippin’ Dot Franchise Owner Make?
There are several aspects that determine the profitability of the Dippin’ Dot franchise.
Profit varies depending on the size of the investment, expenses, and demand for the product.
As per our calculation, a Dippin’ Dot franchise owner makes estimated $45,000 in net annual net profits on average.
Dippin’ Dot Comparison
| Company | Dippin’ Dot | Ben & Jerry’s |
|---|---|---|
| Founded In | 1988 | 1978 |
| Initial Investment | $120,000- $367,00000 | $143,400-$446,100 |
| Franchise-Fee | $15,000 | $37,000 |
| Total Outlet | 230 | 615 |
| Annual Revenue | $330 Million | $450.0 Million |
Frequently Asked Question
Who invented Dippin Dots ice cream?
A microbiologist, Curt Jones, invented a Dippin Dot ice cream. It is created by flash-freezing ice cream mixed in liquid nitrogen.
How much does it cost to start a Dippin' Dot?
Opening a Dippin’ Dot franchise requires an initial investment of $120,000- $367,000.
What is the best-selling flavor of Dippin Dots?
Vanilla is the #1 best-selling Dippin’ Dot ice cream flavor.
Is Dippin' Dot a franchise?
Yes, Dippin’s Dot is a franchise organization.
How much does a Dippin's Dot Franchise Cost?
To buy a franchise of Dippin’s Dot, you’ll require an investment of $120,000- $367,000 and $15,000 as an initial franchise fee.
Where is Dippin Dot headquartered?
The headquarters of Dippin Dot is in Paducah, Kentucky, United States.
How many locations does Dippin Dot has?
There are a total of 121 Dippin’s Dot locations in the United States, and the city with the most number of locations in the United States is Ocean City.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.