Italian food is famous all around the world. Opening an Italian place can be an excellent investment because clients, especially American clients, are often attracted by what is known as the best cooking tradition in the world.
Italian restaurants aren’t the only ones that exploit the Italian nuance. Rita’s Ice Franchise, for example, is a chain of quick restaurants that serves primarily Italian Ice and Frozen Custard.
If you are interested in opening one of these quick-service restaurants, the good news is that you can, and in this article, you’ll find out anything you need to know about the Rita’s Franchise.
About Rita’s Italian Ice
As mentioned, Rita’s Italian Ice is a chain of quick-serve restaurants known for its Italian Ice and frozen custards. It also offers other types of specialties, all inspired by the Italian cooking tradition.
Rita’s retail shops are places where they are served quickly, they take their frozen custard, and they often have it outside.
For this reason, Rita’s stores are often small, easy to run and manage, but always crowded with many clients.
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History Of Rita’s Franchise
Rita’s company was founded in 1984 by Bob Tumolo. They served water ice and soon started using the Italian name ice for their products.
The success was so quick that only three years later, Tumolo was already ready to open a second store. In 1989, he decided to franchise the business.
This way, he allowed third-party entrepreneurs to open their Rita’s store after paying a franchise fee to the main company.
With this strategy, more and more Rita stores were opened very quickly.
Today, there are more than 600 Rita locations in the United States. They are spread throughout 30 states, mainly located in the Mid-Atlantic.
In 2013, Rita opened their first store outside the United States, in China.
The Tumolo family is no longer the company owner: in 2017, Argosy Private Equity and MTN Capital acquired control over Rita’s stakes.
Rita Franchise: Business Model
Rita’s has been a franchise almost since it was founded. If you want to open Rita’s restaurant, you can contact the company (check their website), provide your information and any document they require, and obtain a franchise contract. You’d be the owner of Rita’s location.
| Business Model | Quick-serve restaurant franchise |
|---|---|
| Initial Investment | $200,000 |
| Franchise | YES |
| Franchise Fee | $30,000 |
| Number of outlets | 8290 in the U.S. |
| Liquidity | $100,000 |
How Much Does It Cost To Open A Rita’s Store?
Opening a new Rita restaurant is quite a big investment. The initial investment can be calculated, including the franchise fee and the expenses related to the location (rent or purchase), furnishing, and supplying.
Depending on where you want to open your Rita’s, your restaurant can be bigger (so it can host clients inside) or smaller.
Even if it’s a small restaurant, however, you need to consider that you’ll need to create a small area outside where clients can consume their Italian Ice, which will require an investment as well.
The franchise fee is rather high: it’s $30,000. You need to pay this fee to be authorized to use Rita’s name and product. You need to pay for it only once; after that, the restaurant is all yours.
Considering everything, you can consider an initial investment of about $200,000. It could be slightly higher or lower depending on the dimensions of your location.
Requirements
Rita Franchise has some requirements for their franchise candidate. In particular, before you apply, make sure you have minimum $100K cash liquidity and/or $300K minimum net worth.
Training And Support
There is a training program available for Rita’s franchise partners.
The program includes teaching about how to furnish your restaurant, how to prepare and serve the products, where to find suppliers, how to communicate with clients, how to market your business, and so on.
Obligations And Restrictions
The Rita Franchise doesn’t have particular obligations and restrictions for its franchise partners.
Of course, you need to maintain certain quality standards, and you can’t serve products in your Rita’s restaurant that are not Rita’s branded.
Terms Of Agreement And Renewal
The franchise contract allows you to become the owner of your Rita’s location forever.
There is no expiration date on the contract, and that’s why the franchise fee is so high. You pay once to be autonomous for the rest of your business life.
Financial Assistance
Rita’s Franchise program provides some financial assistance, but it is provided to third-party entities.
Comparison Franchise: Rita’s VS 85° Bakery
| Company | Rita’s Franchise | 85 °C Franchise |
|---|---|---|
| Founded | 1984 | 2003 |
| Number of Outlets | 600+ | 1000 |
| Franchise Fee | $35,000 | $15,000 |
| Franchise | Yes | Yes |
Conclusion
Rita’s restaurants are very successful. It could be a good investment if you want to open one, but it’s not little.
If you have the liquidity required (at least $100K), you can invest in your new Rita’s restaurant and become its owner.
To submit your application, you can simply go to Rita’s website and fill in a simple form. They’ll call you back.
Also we recommend you to have a look at Cold Stone Franchise as well ! We are sure you would love that too!!
Rita’s Franchise: FAQ
Is Rita's a franchise or chain?
Rita’s is a franchise. Anyone who has the requirements can submit their request to become Rita’s franchise partner.
Who is the owner of the Rita's Franchise?
Today, the owner of Rita’s franchise is Argosy Private Equity and MTN Capital. Each of the two entities possesses 50% of the company.
How many Rita's restaurants are there?
There are more than 600 Rita’s restaurants in the United States. They are mainly located in the Mid-Atlantic area.
Is the Rita's Franchise a good investment?
The Rita’s Franchise is a big investment, but it can still be worth it because Rita’s is a well-known brand, their restaurants are all successful, and they can quickly create a return on investment.
Is the Rita's Franchise worth it?
Even though the investment is big, it is still worth it, especially if you already have the $100K and don’t have to borrow them.
Reference: Start a Rita’s Franchise Company Franchise, 2022 Costs & Fees (franchisegator.com); Rita’s Italian Ice – Wikipedia
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.