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FDD Talk 2015: The Andy’s Frozen Custard Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on July 23, 2015

in FDD Talk 2017: Food Franchises, Franchise Earnings, Frozen Dessert Franchise



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Andy's Frozen Custard Photo by Rinabobina

In this FDD Talk 2015 post, you’ll learn the following:

  • Section I – Background information on the Andy’s Frozen Custard franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for the Andy’s Frozen Custard franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of Andy’s Frozen Custard’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • 2014 actual and average gross sales for the 8 franchised and 12 company-owned Andy’s Frozen Custard Stores that operated during Andy’s entire 2014 fiscal year period from January 1, 2014 until December 31, 2014
  • 2014 actual and average cost of goods sold and gross profit for the 12 company-owned Andy’s Frozen Custard Stores that operated during Andy’s entire 2014 fiscal year period from January 1, 2014 until December 31, 2014

Section I – Background Information

Andy’s Frozen Custard got its start back in 1986 in Osage Beach, Missouri. John and Carol Kuntz named the company after their son and started making their tasty frozen treat there, but soon established a location in Springfield, Missouri as well. Customers enjoy either drive-thru or walk-up window service at each location.

Eventually Andy and his wife Dana got involved at the Springfield location, learning the business from the ground up. Together, this family has built the brand into a chain that has more than 24 locations in Missouri, Arkansas, Oklahoma, Texas, and Illinois. Locations in Florida and Tennessee are in the works.

Andy is now the president and CEO of the company.



The Andy’s approach to business includes three surprisingly simple rules described on the company website as follows: “Take care of your customers, take care of your employees, and take care of your product.”

Here’s how Andy’s Frozen Custard accomplishes each of those in the world of frozen custard:

Taking Care of Its People

John and Carol’s philosophy runs like this: “If you are in the service business, you have to hire people that have a strong desire to serve. Pay them above average, train them well and demand nothing but the best.” Although John passed away in 2008, Andy’s still believes in this same approach to taking care of its employees.

Taking Care of Its Product

The frozen custard at Andy’s is made using the freshest ingredients possible. The base product is simple – frozen custard made with just cream, sugar, eggs, and vanilla extract. Base flavors include chocolate and vanilla.

But the possibilities are endless when you start working with toppings like chocolate chip cookie dough, mint chocolate chip, Bordeaux cherry chip, hot fudge brownie, and butter pecan.

There are cones, concrete mixers, freezes, jackhammers, sundaes, splits, malts, shakes, floats, and all kinds of other unique creations. All fruits are real – no syrups or sauces at Andy’s!

Taking Care of Customers

Obviously the first key to taking care of customers is offering a superior product, but there’s a lot more going on in this kind of customer-centric approach than great frozen custard.

Focusing on fast service in unique buildings, Andy’s creates a customer experience that is nothing short of thrilling. Unlike many custard places, it offers its treats year-round, including during wintertime with heated patios.

And your pets are even on the radar screens of service at Andy’s, where dogs can enjoy free puppy cones along with whatever treats their owners get.

Those who suffer from nut allergies will find staff at Andy’s very accommodating, from opening new containers to avoiding contact with nuts and residue.



The Dessert Market

There’s no way around it, America has one gigantic sweet tooth. In fact, 99% of people throughout the country eat dessert, and of those, 70% eat it at least once per week. That’s a solid market that’s not going anywhere any time soon, no matter how health-conscious we become.

Section II – Estimated Costs

  • Please click here for detailed estimates of Andy’s Frozen Custard franchise costs, based on Item 7 of the company’s 2015 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis



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