The Milkshake Factory has now started offering franchises. Yes, you heard it right! If you are a beloved customer who has always wanted to run his/her own Milkshake Factory franchise, then this might be a golden time for you!
With a solid customer base, Milkshake Factory has finally decided to expand its business operations in the United States only as of now.
So if you want to find out the investment, profit, and other requirements of owning this franchise, then keep on reading!
About Milkshake Factory
Milkshake Factory began in 1914 as a small soda fountain and chocolate shop in Pittsburgh’s Lawrenceville neighborhood where owning a refrigerator was a luxury, and a milkshake was a true treat.
In the 2000s, the fourth-generation kids, Chris, Dana, and Mark, eventually took over the business. Soon Dana came up with the idea of creating a Milkshake factory, and shortly the family decided to implement the concept in an existing retail location on the south side of Pittsburgh.
Today, Milkshake Factory is one of the best places in America to grab a refreshing milkshake from.
This company is now looking for candidates who have a passion for business and are smart enough to drive a successful business.
To find out how much you can earn from the Milkshake factory franchise and other requirements, keep on reading!
The Milkshake Factory Franchise Model
| Initial Franchise Fee | $60,000 |
|---|---|
| Initial Investment | $462,545 – $697,024 |
| Net Worth Requirement | $700,000 (including liquid asset) |
| Cash Requirement | $200,000 |
| Royalty Fee | 6% |
| Marketing Fee | 2% |
| Term of Agreement | N/A |
| Is franchise term renewable? | N/A |
How Much Does It Cost To Open The Milkshake Factory Franchise?
One of the biggest questions in your head right now might be how much it costs to open a Milkshake Factory franchise.
Well, according to our research, the initial investment required to open a Milkshake Factory franchise is between $462,545 to $697,024.
Apart from this, you are also required to pay initial franchise fees of $60,000.
6% of royalty fees and 2% of advertisement fees are some ongoing expenses that you would have to bear in order to own this franchise.
Milkshake Factory Franchise Requirements
There are always some requirements that different franchisors impose to find the best entrepreneurs to run their businesses.
In order to be eligible for the Milkshake Factory franchise, the candidate must have a minimum net worth of $700,000, including $200,000 in liquid assets.
Apart from this, the company’s website mentions that the candidate needs to have a business-driven mindset and passion for running a successful business.
The franchisor has not mentioned any industry-experience requirement, which is great.
Training & Support
Training and support from the franchisor are two very important concerns that a potential franchise may have, especially if they do not have relevant experience.
The good news is that Milk Shake Factory offers mandatory classroom and on-the-job training to prepare the candidate. This includes everything right from operations to marketing.
Also, the franchisor offers onboarding support to set up the franchise. This includes site selection, acquiring real estate, lease negotiation, equipment purchasing, and more.
So you do not have to worry about being strangled. Milkshake Factory is there to give you all the support that you may need to settle in.
Term Of Agreement & Renewal
The term of agreement & renewal depicts for how long your agreement to run the Milkshake Franchise legally, or any franchise for that matter, will last.
And the renewal policy tells if, after the term of the agreement is over, you can extend or renew your term to run the franchise for more years or not.
Unfortunately, the company has not disclosed information regarding its franchise term of agreement and renewal. We suggest you get in touch with the company to learn about the same.
The Milkshake Factory Franchise Profit & Revenue
The profit and revenue of each Milkshake Factory location could vary depending on the size of the outlet, its location, the total number of employees, daily operating expenses, and more.
However, The Milkshake Factory has not revealed how much profit and revenue their franchises make.
In order to find this information, we advise you to get in touch with the company and ask for their Financial Disclosure Document, also known as FDD.
The FDD contains all the details and terms and conditions of owning a franchise.
Comparison
| Company | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Smoothie King | $15,000 – $30,000 | 6% | $268,900 – $858,900 |
| Steak N Shake | $25,000 | 5.5% | $1,476,250 to $2,420,500. |
| The Milkshake Factory | $60,000 | 6% | $462,545 – $697,024 |
Wrap Up
Milkshake Factory is a popular place to grab refreshing and delicious thick milkshakes. And because of their uncompromised flavour and quality, it is quite loved among customers.
As such, starting a Milkshake Factory Franchise might be a good business opportunity for entrepreneurs.
However, since the company has not revealed the revenue and profit figures of its franchises, we advice you to get in touch with the company and go through the FDD before making the final decision.
FAQs
Is Milkshake Factory allows absentee ownership?
No, Milkshake Factory does not allow absentee ownership and requires the franchisee to be involved in the day-to-day operations regularly.
Is Milkshake Factory a master franchise?
Yes, Milkshake Factory is a master franchise opportunity. A master franchise is responsible for recruiting, supporting, and training the franchisees.
Does Milkshake Factory offer veteran discount?
Yes, Milkshake Factory does offer a veteran discount.
Sources: