Are you thinking about owning an ice cream parlor franchise, and the La Michoacana brand caught your eye as a possible investment? This name represents three different businesses and has an estimated location of between 8 and 15 thousand. Even though they represent different businesses, they all sell ice cream and look like a great opportunity.
None of these brands offer franchising, so you can’t own them as a franchisee. However, there might be other opportunities, like a retail model for those who already own a business. In this article, we will try to explain why they are not franchising, what you need to know, and some alternatives in the industry.
About La Michoacana and La Michoacana History
La Michoacana is a set of Mexican ice cream parlors chain network of family-run businesses. There are three different La Michoacana brands currently operating.
Each is run by different families and people, and they are not under one brand. Since the structure of the business is quite informal, the brand name has had many legal disputes over the years.
Because these stores are not franchises, even though they have the same name and very similar logos, the products and their quality vary a lot from location to location. These brands have a total of up to 15,000 stores in Mexico.
Unfortunately, none of these brands have franchise operations. All of them are run by families. However, there is a retail business model where you can sell La Michoacana products in your existing store, which works on a different model.
Franchise Model Table
| Cost Or Fees | Amount |
|---|---|
| Franchise | Retailer Model |
| Franchise-Fee | NO |
| Estimated Outlets | 10,000+ |
How Much Does It Cost to Open a La Michoacana Franchise?
Because La Michoacana doesn’t franchise, there are also no costs associated with opening a La Michoacana franchise. If you opt to work with the retailer model, then you might need the inventory cost, but that’s pretty much it.
The inventory cost and the detailed fee structure will depend from location to location. You can only get this information by applying for it on their website.
Why Doesn’t La Michoacana Offer Franchising?
There is no specific reason why La Michoacana brands don’t offer franchising. We know that each brand is run by families, and none of them never franchised. It might be because they want to keep the quality the same everywhere and ownership to themselves.
In most cases where the companies don’t franchise, it generally boils down to this reason. However, this is not official information because the companies didn’t announce anything.
Profit & Revenue
As we mentioned, La Michoacana brands are all family-run and owned by the families, so they are not public. Because they are not public, they also don’t share financial information with the public. That’s why we don’t know how much they are making individually or in total.
However, there are some reports online from different websites mentioning some average numbers. According to these reports, their revenues are between $4 million and $10 million.
What Are Some Alternatives to La Michoacana?
La Michoacana brands might not be actively franchised, but there are others in the ice cream industry that do. You can consider these alternatives to franchise with.
Dairy Queen
Dairy Queen is a fast-food chain specializing in ice cream and other similar dairy-based desserts. The American company was founded in 1940, and they are offering franchises actively around the world. They operate across tens of countries with thousands of stores, and entrepreneurs can choose where to open their franchises both in the United States and abroad.
The average expected investment for a Dairy Queen franchise is between $1.5 million and $2.5 million. This includes the $45,000 franchise fee and other related startup costs. You also need to pay a 4% royalty fee.
Marble Slab Creamery
Marble Slab Creamery is an ice cream parlor that offers ice cream with its own special technique, called the frozen slab technique. They make hand-mixed, fresh ice cream and use dairy from local farms for freshness. The company was founded in 1983 and has been offering franchises since 1984.
The average investment you need to make for Marble Slab Creamery is between $277,500 and $402,150. The franchise fee is $25,000, and the royalty fee is 6%.
Bruster’s Real Ice Cream
Bruster’s Real Ice Cream is another ice cream parlor shop that operates around 200 walk-up ice cream stores. They were founded in 1989 and started franchising in 1993. They are still franchising, and they mainly operate in the United States. Their menu offers waffle bowls and cones with a variety of ice cream flavors.
The average initial investment is between $318,000 and $2.3 million, depending on the type of store you want. The franchise fee is $35,000, and the royalty fee is 5%.
Opportunities abound for entrepreneurs in ice cream franchising, including brands like Twice The Ice Franchise, Rita Franchise, Twistee Treat Franchise, Sweet Frog, and Menchie’s Franchise.
Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Baskin Robbins | $25,000 | 5.9% | $293,840-$642,360 |
| Cold Stone Creamery | $8,000-$27,000 | 6% | $53,200-$602,775 |
| La Michoacana | NO | NO | NO |
Conclusion
La Michoacana is not one brand, but rather three different brands run independently from each other by three different families.
The company had legal battles about the name, but no one won due to the informal structure of the business. Each brand is pretty much the same in terms of its name and logo, but its offerings might be different in each location.
If you want to open a La Michoacana brand to join up to 10,000 stores in Mexico and the United States, that is not possible.
They don’t offer franchising at all, but they offer a retail model where you can sell their products in your existing store. Details of this are not available to the public. However, you can still opt for other alternatives in the ice cream industry.
FAQ
Is La Michoacana a franchise?
La Michoacana is not a franchise. None of the La Michoacana brands are not franchising, but they offer a retail model where you can sell their products in your store.
How Many La Michoacana stores are there?
It is estimated that there are approximately 8 to 10 thousand La Michoacana stores worldwide, mainly in Mexico.
What is the La Michoacana franchise fee?
Since La Michoacana is not a franchise, there is also no franchise fee associated with La Michoacana.
Sources
https://www.michoacana.com/faq
https://en.wikipedia.org/wiki/Paletería_La_Michoacana
https://www.zippia.com/la-michoacana-careers-146340/revenue/