Rita's vs Carvel Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Rita's vs Carvel including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees

 
Rita's Franchise
Carvel Franchise
Investment $15,100 - $435,000$250,600 - $415,500
Franchise Fee $10,000 - $30,000$30,000
Royalty Fee 6.5%$2.44/gal.
Advertising Fee 3%$2.13/gallon
Year Founded 19841934
Year Franchised 19891947
Term Of Agreement 10 years20 years
Term Of Agreement 10 years20 years
Renewal Fee 50% of current franchise feeThen current fee


Business Experience Requirements

 
Rita's Franchise
Carvel Franchise
Experience -
  • General business experience

  • Financing Options

     
    Rita's Franchise
    Carvel Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/NoNo/Yes
    Start-up Costs No/YesNo/Yes
    Equipment No/YesNo/Yes
    Inventory No/NoNo/Yes
    Receivables No/NoNo/No
    Payroll No/NoNo/No

    Training & Support

     
    Rita's Franchise
    Carvel Franchise
    Training 5 days at Cool University and 4 days on site-
    Support Cool Support Center, newsletter, meetings, toll-free phone line, grand opening, security/safety procedures, field operations/evaluationsNewsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
    Marketing Ad slicks, National media, Regional advertisingCo-op advertising, Ad slicks, Regional advertising
    Operations 50% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: average 2 full-time, 15 part-time

    International franchisees required to buy multiple units/master licenses; 25% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 6

    Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators)


    Expansion Plans

     
    Rita's Franchise
    Carvel Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion NoYes

    Company Overviews

    About Rita's

    From a small porch front in 1984 in Northeast Philadelphia and a seasonal phenomenon, Rita's continues to see unprecedented growth as it continues to grow across the nation becoming a year round spectacular with its cult-like following. Rita's - made fresh daily - Italian ice obsession is hitting everyone's taste buds and creating a passion not just for the brand but the opportunity to become a Rita's Italian ice franchise owner. It's no wonder we are wired for success and fueled up for our expansion not only across the nation, but internationally we are making our presence known. Rita's franchisees come from all walks of life with one thing in common - the desire to choose their own destiny with a proven system providing on-going support; not to mention all having a passion for Rita's cool treats and foregoing happiness. There's no better time than today to begin evaluating the Rita's business model. Why not get a taste of success and view our fresh and desirable products!


    The total investment necessary to begin operation of a standard Rita’s shop is between $175,500 and $435,000. These figures include between $50,000 to $55,000 that must be paid to the franchisor or its affiliate.
    The total investment necessary to begin operation of an express Rita’s shop is between $121,100 and $309,900. These figures include between $33,000 to $33,500 that must be paid to the franchisor or its affiliate.
    If you enter into an agreement for a standard Rita’s shop or express Rita’s shop, we may offer you the opportunity to enter into an addendum to operate a Rita’s satellite shop and/or a Rita’s mobile unit.
    The total investment necessary to begin operation of a Rita’s satellite shop is between $131,550 and $296,400. These figures include between $19,200 to $25,500 that must be paid to the franchisor or its affiliate.
    The total investment necessary to begin operation of a Rita’s mobile unit is between $15,100 and $144,600. These figures include between $10,000 to $13,000 that must be paid to the franchisor or its affiliate.

    About Carvel

    In 1934 Tom Carvel opened his first ice cream shop in Hartsdale, New York. Over the years, he developed formulas and equipment for creating and serving his ice cream. The company started franchising in 1947, and by 1951 had opened 100 stores. Today the company distributes its line of ice cream, cakes, pies and other treats in its own locations and in stadiums, club stores and supermarkets.

    The total investment necessary to begin operation of a Shoppe selling a full range of Carvel® products (a “Full Shoppe”) ranges from $250,600 to $415,500. This includes $30,000 to $32,000 that must be paid to the franchisor or their affiliates.
    The total investment necessary to begin operation of a Shoppe selling selected Carvel® products (an “Express Shoppe”) ranges from $39,600 to $148,400.
    The total investment necessary to begin operation of an Express Shoppe within the space of another restaurant, food service facility, or business approved by the franchisor (a “Hosted Express Shoppe”) ranges from $33,100 to $66,500. These total investment estimates for Express Shoppes and Hosted Express Shoppes include $10,000 to $12,000 that must be paid to the franchisor or their affiliates.
    The total investment necessary to begin operation of a Shoppe in an ice cream truck (an “Ice Cream Truck”) is $95,050 to $195,000. This includes $5,000 to $7,000 that must be paid to the franchisor or their affiliates.

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    #361 in Franchise 500 for 2020.
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