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Updated RecentlyCarvel vs Ritter's Frozen Custard Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Carvel vs Ritter's Frozen Custard including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $250,600 - $415,500 | $369,000 - $1,100,000 |
| Franchise Fee | $30,000 | $27,500 |
| Royalty Fee | $2.44/gal. | 5% |
| Advertising Fee | $2.13/gallon | - |
| Year Founded | 1934 | 1990 |
| Year Franchised | 1947 | 1994 |
| Term Of Agreement | 20 years | 10 years |
| Term Of Agreement | 20 years | 10 years |
| Renewal Fee | Then current fee | $5K |
Business Experience Requirements |
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| Experience | ||
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/Yes | No/No |
| Start-up Costs | No/Yes | No/No |
| Equipment | No/Yes | No/No |
| Inventory | No/Yes | No/No |
| Receivables | No/No | No/No |
| Payroll | No/No | No/No |
Training & Support |
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| Training | - | - |
| Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations |
| Marketing | Co-op advertising, Ad slicks, Regional advertising | Co-op advertising, Ad slicks, Regional advertising |
| Operations |
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) |
70% of all franchisees own more than one unit Number of employees needed to run franchised unit: 20 Absentee ownership of franchise is NOT allowed. (90% of current franchisees are owner/operators) |
Expansion Plans |
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| US Expansion | Yes | Yes |
| Canada Expansion | No | No |
| International Expansion | Yes | No |
Company Overviews
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.
#273 in Franchise 500 for 2021.
About Ritter's Frozen Custard
OUR FRANCHISES ARE LIKE OUR FROZEN CUSTARD - THE BEST
Ritter's Frozen Custard is an award-winning premium ice cream chain. We offer a proprietary, super-premium ice cream menu, served in an engaging, clean, friendly atmosphere. We offer superior training, a proven franchise model, and the tools and support you need to succeed.