Rita’s Italian Ice
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Since 1984, when Bob Tumolo and his mother Elizabeth began experimenting with Italian ice recipes made with chunks of real fresh, Rita’s Italian Ice has experienced enormous growth. Today, the Italian Ice franchise has more than 500 stores in 17 states, serving guests with one of the best-tasting, highest-quality Italian Ice around - made with real fruit available in more than 30 flavors.
With its adherence to the “RITA” values–Respect, Integrity, Trust and Accountability, Rita’s has received top rankings by highly regarded industry publications, such as Entrepreneur magazine and The Wall Street Journal’s StartupJournal.com.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
546 |
560 |
552 |
| | % Change | -- |
2.6% |
-1.4% |
| | Company-Owned |
6 |
2 |
1 |
| | % Change | -- |
-66.7% |
-50.0% |
| | Total |
552 |
562 |
553 |
| | % Change | -- |
1.8% |
-1.6% |
| | Franchised as % of Total |
98.9% |
99.6% |
99.8% |
Investment Required
The fee for a Rita’s Italian Ice franchise is $35,000. A development agreement is available for franchisees interested in purchasing two or more shops. Rita’s Italian Ice participates in a minority program sponsored by the IFA and the IFA’s Veterans Transition Franchise Initiative.
Rita’s provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced. The costs listed below are for an Inline Store; for a Free Standing Store the Total Initial Investment ranges from $256,300 to $561,400.
| |
Item | Established Low Range | Established High Range |
| |
Initial Franchise Fee | $35,000 | $35,000 |
| |
Development Fee |
0 |
$66,500 |
| |
Lease Deposit |
$1,000 |
$10,000 |
| |
Leasehold Improvements |
$50,000 |
$150,000 |
| |
Equipment |
$60,000 |
$80,000 |
| |
Computer |
$500 |
$1,000 |
| |
Permits & Licenses |
$100 |
$2,000 |
| |
Signs & Awnings |
$5,000 |
$15,000 |
| |
Prepaid Insurance Premium |
$1,500 |
$1,500 |
| |
Initial Order |
$14,000 |
$18,000 |
| |
Grand Opening Advertising |
$2,500 |
$3,500 |
| |
Advertising Fee & Local Advertising |
$800 |
$800 |
| |
Expenses While Training |
$500 |
$5,000 |
| |
Utility Costs and Deposits |
$1,000 |
$1,600 |
| |
Architect and Attorney Fees |
$2,500 |
$15,000 |
| |
Additional Funds (3 Months) |
$25,000 |
$40,000 |
| |
Total Initial Investment |
$199,400 |
$444,900 |
On-going Expenses
Rita’s Italian Ice Franchise Partners pay a royalty fee equal to 6.5% of estimated and/or gross sales, an advertising fee equal to 2.5% of estimated and/or gross sales and minimum weekly advertising expenditures equal to 2% of gross sales.
What You Get–Training and Support
Training takes place at Rita’s Cool University in Bensalem, PA, where franchise partners learn how to successfully operate their store through a series of intensive workshops. A dedicated team of Rita’s Education Specialists teaches franchise partners how to make Rita’s famous treats, as well as how to uphold company standards, program registers, train staff and other essential operating procedures. Following this workshop, franchise partners train at specially designated Rita’s locations, working alongside seasoned franchise partners to gain hands-on experience in a store environment.
Rita’s assists with store setup, staff development and grand opening marketing. Following store opening, franchise partners have access to support via the “Cool Support Center,” Rita’s corporate headquarters that is home to 80 staff members dedicated to supporting franchise partners, ensuring the best quality products and building the Rita’s brand. Rita’s online support website, the “CoolNet,” provides franchise partners easy access to all resources and information that is required to operate their Rita’s Store.
Franchise partners continue to benefit from one-on-one field support and on-going local marketing support throughout their relationship with Rita’s.
Territory
Rita’s Italian Ice grants exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of Bond’s Hottest New Franchises publication.
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