Cold Stone Creamery

Cold Stone Creamery is an ice cream franchise founded in 1988 by Donald and Susan Sutherland in Tempe, Arizona. Its made to order format combines fresh ice cream with customer selected candy, fruit, nuts, and baked goods on a frozen granite stone. The concept was designed to make dessert an experience, and remains the brand’s defining feature. Cold Stone operates approximately 1,000 locations in the United States and hundreds more across over 30 international markets. It is one of the three largest ice cream franchise concepts in the country. Kahala Brands owns the brand, and Montreal based MTY Food Group acquired Kahala in 2016 for approximately $310 million. That ownership gives Cold Stone access to MTY’s infrastructure, which spans more than 7,000 locations across 28 or more brands.

Globally, the ice cream market is projected to exceed $121 billion by 2028, supported by premium products, customizable food experiences, delivery, and digital ordering. Cold Stone competes with Baskin Robbins, Marble Slab Creamery, Häagen Dazs shops, artisanal gelato concepts, specialty ice cream brands, frozen yogurt chains such as Menchie’s, and health conscious dessert alternatives styled after sweetgreen. Its stone mixing process, singing employees, and broad selection of flavor combinations create an interactive experience that packaged and self serve products do not offer. That format can support repeat visits and word of mouth referrals while helping operators reduce customer acquisition costs.

The initial franchise fee is $12,000 to $27,000 for traditional stores and $8,000 to $20,000 for nontraditional locations such as mall kiosks, airport terminals, and cobrand spaces. Total initial investment ranges from approximately $120,700 to $655,275, depending on the format and construction needs. The royalty fee is 6% of gross sales, with an additional 3% marketing fee for national advertising, digital campaigns, and brand promotions. Franchise candidates need a minimum net worth of $250,000 and at least $100,000 in liquid capital. Qualified military veterans receive a 20% discount on the initial franchise fee. Compared with full service restaurant franchises, Cold Stone can require less build out and does not typically involve the seven figure capital commitment associated with QSR franchises.

Cold Stone’s initial training lasts approximately two weeks at company facilities in Scottsdale, Arizona. Topics include ice cream production, stone mixing, customer service, inventory management, employee training, and financial management. During opening week, a company representative can provide up to five days of on site assistance. Continuing support includes marketing guidance, supply chain management, technology systems, and operating practices from Kahala Brands and the broader MTY Food Group portfolio. MTY’s purchasing scale across thousands of locations supports pricing on ingredients, packaging, and equipment. Cold Stone also offers online ordering, third party delivery partnerships, and mobile friendly ordering. The brand was among the first multiconcept groups to launch on DoorDash.

Sales generally rise during warmer months and can fall significantly during winter in colder climates, so operators need to account for those changes in cash flow projections. Cobranding with Rocky Mountain Chocolate Factory, Tim Hortons, and other food service brands can create year round traffic within shared locations. Delivery and catering, including ice cream cakes and custom dessert platters, provide additional sources of revenue that rely less on walk in visits. Prospective franchisees should review the most recent FDD and prepare financial projections based on their specific market.

Cold Stone reached approximately 1,400 domestic locations before the 2008 recession led to the closure of hundreds of underperforming units. The remaining system became more concentrated in stronger markets with better unit economics. Cold Stone operates in more than 30 countries, with particularly strong development in Asia and the Middle East. Its stated advantages include the proprietary stone mixing concept, MTY’s operating infrastructure and purchasing leverage, more than 30 years of brand recognition, and appeal across families with young children and millennials seeking shareable social media moments.

The typical franchisee is an engaged operator focused on customer service and community involvement. Cold Stone accepts single unit and multiunit applications, and operators with local market knowledge who actively manage or closely oversee the store tend to achieve stronger financial results. Food service experience is helpful but not required because the training program covers the business. The capital requirements can suit husband and wife teams, young entrepreneurs, and career changers. Standard franchise agreements do not provide exclusive territory, and Cold Stone may establish competing locations, making site selection and market density important considerations. Multiunit development agreements are available for operators seeking rights to multiple locations within a defined market area.

Cold Stone Creamery offers a nationally recognized brand in the premium ice cream and frozen dessert category, with an interactive format, defined investment requirements, and support from MTY Food Group. Cobranding and delivery can help address seasonal sales changes. The system has more than three decades of franchise history, over 1,000 domestic locations, and operations across 30 or more countries.