MilkShake Factory is a chain of milkshake and chocolate stores. Though the MilkShake Factory brand was born in the early 2000s, it emerged from a family business that stretches back over a hundred years, from a soda store to chocolate manufacturing and now milkshakes. As a result, considerable expertise and experience go into its processes and recipes.
The milkshake menu offers a range of sweet flavors including signature shakes and non-dairy options, as the company keeps up with current concerns about diet and the search for novel food and drinks. There’s an emphasis on high quality ingredients, including sustainably sourced cocoa, and a variety of distinctive chocolates.
Times aren’t easy for food and drink franchises, with fluctuating prices for ingredients and disrupted supply chains, as well as a more challenging staffing market since the Covid pandemic. Tapping into online buzz through distinctive and visually pleasing shakes can help to counter this, and a substantial chain with a range of products and a strong story benefits franchisees.
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does.Milkshakes are ideally suited to customization, giving customers both novelty and a feeling of engagement with their food, so this could suit a franchisee looking for a way to cut through the noise and make sales in the food market.
In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a MilkShake Factory franchise, based on Item 7 of the company’s 2025 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a MilkShake Factory franchise, based on Items 5 and 6 of the company’s 2025 FDD
Section III – Number of franchised and company-owned MilkShake Factory outlets at the start of the year and the end of the year for 2022, 2023, and 2024, based on Item 20 of the company’s 2025 FDD
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Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.Section IV – News updates on the MilkShake Factory franchise opportunity
Section V – Presentation and analysis of MilkShake Factory’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2025 FDD, including information on the:
- 2024 average gross revenue, discounts, adjusted gross revenue, cost of goods sold, labor, other operating costs and expenses, franchise expenses (Royalties and Brand Fund), and net revenue less COGS, labor, other operating costs and expenses, and franchise fees for the top 1/3, middle 1/3, and bottom 1/3 of the 9 affiliate-owned shops that were open and operating over the entirety of the 2024 calendar year
- average gross revenue, discounts, adjusted gross revenue, cost of goods sold, labor, other operating costs and expenses, franchise expenses (Royalties and Brand Fund), and net revenue less COGS, labor, other operating costs and expenses, and franchise fees during the first three months of operations for MilkShake Factory’s first three franchised locations which opened in 2024
- revenue mix of product sales with respect to product type as well as shop type (affiliate and franchise) for all reporting locations that operated during the 2024 calendar year for at least one month
- 2024 historical number of checks per day and average ticket size for both franchised and affiliate locations that operated during the 2024 calendar year for at least one month
- percentage of gross sales generated amongst all affiliate shops during the 2024 calendar year broken down by: (i) month of operation in 2024; and (ii) each business day and each hour of operation amongst these shops over the typical and recommended operational hours MilkShake Factory recommends in its current manuals (12 pm EST to 10 pm EST) over that period
Section VI – Key ratios, comparables, computations, and analyses for the MilkShake Factory franchise opportunity (exclusive content for Platinum subscribers)
Section I – MilkShake Factory Franchise Costs
- MilkShake Factory franchise costs, based on Item 7 of the company’s 2025 FDD:
- Initial Franchise Fee: $60,000
- Initial Training Fee: $8,500
- Training – Costs and Expenses: $6,345 to $9,220
- Lease – Security Deposit: $3,500 to $8,500
- Architectural and Design Services: $21,500 to $24,000
- Real Estate and Construction Management Services: $20,000
- Leasehold Improvements: $155,620 to $324,364
- Furniture, Fixtures, and Equipment (“FFE”): $163,328 to $182,997
- Signage (Exterior): $4,917 to $10,944
- Initial Inventory (Pre-Opening): $14,976 to $22,604
- Computer System and IT Equipment (and Any Initial Required Software Fees): $14,000 to $20,530
- Interior Signage: $8,500 to $15,500
- Opening Marketing Spend: $11,913 to $16,500
- Professional Fees: $1,258 to $2,890
- Business Permits and Licensing: $635 to $4,499
- Insurance – Deposit and 3 Months of Premiums: $500 to $1,500
- Additional Funds – 3 Months: $15,000 to $40,000
- Total Estimated MilkShake Factory Franchise Costs: $510,492 to $772,548
Section II – MilkShake Factory’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- MilkShake Factory’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2025 FDD:
- Initial Franchise Fee: $60,000
- Royalty Fee: during your first year of operations, 6% of Adjusted Gross Sales generated by your Franchised Business over the preceding reporting period. During your second year of operations, the greater of: (i) 6% of Adjusted Gross Sales generated by your Franchised Business over the preceding reporting period; or (ii) $1,200 per month. During your third and each subsequent year of operations, the greater of: (i) 6% of Adjusted Gross Sales generated by your Franchised Business over the preceding reporting period; or (ii) $1,500 per month.
- Brand Development Fund: currently, 2% of Adjusted Gross Sales generated by your Franchised Business over the preceding reporting period
- Local Advertising Requirement: currently, your minimum Local Advertising Requirement amounts to the following: (i) 2% of Adjusted Gross Sales generated by your Franchised Business during the preceding calendar month in connection with Adjusted Gross Sales generated by the Franchised Business up to $500,000 in a given calendar year of operations; and (ii) 1% of the Adjusted Gross Sales generated by your Franchised Business in excess of $500,000 in any calendar year of operations
Section III – Number of Franchised and Company-Owned MilkShake Factory Outlets
Franchised
2022
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2023
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code to see which franchises are still available near you, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does.- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2024
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 4
- Net Change: +4
Company-Owned
2022
- Outlets at the Start of the Year: 8
- Outlets at the End of the Year: 9
- Net Change: +1
2023
- Outlets at the Start of the Year: 9
- Outlets at the End of the Year: 10
- Net Change: +1
2024
- Outlets at the Start of the Year: 10
- Outlets at the End of the Year: 10
- Net Change: 0
Section IV – News Updates on the MilkShake Factory Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the MilkShake Factory Franchise (Item 19, 2025 FDD)
Part 1 – Average Gross Sales and Adjusted Gross Sales Generated, as Well as Certain Operating Costs and Expenses Incurred
- Part 1 in this Item below discloses the historical average Adjusted Gross Sales generated by the 9 Affiliate-Owned Shops that were open and operating over the entirety of the 2024 calendar year (each, a “Part 1 Shop”) over that 2024 calendar year (the “Part 1 Measurement Period”).
- The nine shops are divided into 3 equal tertiles by Adjusted Gross Revenue.
- As of December 31, 2024, there were 10 total Affiliate-Owned Shops. Of the 10 total Affiliate-Owned Shops that were open and operating as of December 31, 2024, Part 1 excludes one Shop that had hours of operation and staffing in 2024 that were substantially different from the franchise model.
Corporate Stores (Pittsburgh)
Top 1/3 Stores
Gross Revenue: $922,771
Less Discounts: $47,677
Adjusted Gross Revenue: $875,094
Primary Operating Costs
- COGS: $271,262
- Labor: $204,514
Adjusted Gross Revenue Less COGS and Labor: $399,317
Certain Other Operating Costs and Expenses
- Occupancy-Related Costs: $79,017
- Bank Fees: $23,554
- Cleaning Supplies: $14,823
- Maintenance/Repairs/Equipment: $11,865
- IT-Related Fees and Costs: $8,549
- Utilities: $21,638
- Other: $12,339
- Estimated Local Advertising (1.5%): $13,126
- Total Operating Expense: $184,912
Franchise Expenses
- Royalties: $52,506 (6%)
- Brand Fund: $17,502 (2%)
Net Revenue Less COGS, Labor, Other Operating Costs and Expenses Disclosed Above: $144,398
Middle 1/3 Stores
Gross Revenue: $693,759 (105.9%)
Less Discounts: $38,725 (5.9%)
Adjusted Gross Revenue: $655,034 (100.0%)
Primary Operating Costs
- COGS: $202,467 (30.9%)
- Labor: $159,435 (24.3%)
Adjusted Gross Revenue Less COGS and Labor: $293,132 (44.8%)
Certain Other Operating Costs and Expenses
- Occupancy-Related Costs: $72,315 (11.0%)
- Bank Fees: $16,895 (2.6%)
- Cleaning Supplies: $10,419 (1.6%)
- Maintenance/Repairs/Equipment: $7,045 (1.1%)
- IT-Related Fees and Costs: $5,629 (0.9%)
- Utilities: $18,291 (2.8%)
- Other: $6,651 (1.0%)
- Estimated Local Advertising (1.5%): $9,826 (1.5%)
- Total Operating Expense: $147,071 (22.5%)
Franchise Expenses
- Royalties: $39,302 (6.0%)
- Brand Fund: $13,101 (2.0%)
Net Revenue Less COGS, Labor, Other Operating Costs and Expenses Disclosed Above: $93,658 (14.3%)
Bottom 1/3 Stores
Gross Revenue: $531,706
Less Discounts: $29,384
Adjusted Gross Revenue: $502,323
Primary Operating Costs
- COGS: $162,755
- Labor: $134,915
Adjusted Gross Revenue Less COGS and Labor: $204,653
Certain Other Operating Costs and Expenses
- Occupancy-Related Costs: $62,142
- Bank Fees: $12,807
- Cleaning Supplies: $12,486
- Maintenance/Repairs/Equipment: $8,794
- IT-Related Fees and Costs: $5,676
- Utilities: $17,569
- Other: $5,595
- Estimated Local Advertising (1.5%): $7,535
- Total Operating Expense: $132,603
Franchise Expenses
- Royalties: $30,139 (6%)
- Brand Fund: $10,046 (2%)
Net Revenue Less COGS, Labor, Other Operating Costs and Expenses Disclosed Above: $31,864
Part 2 – Consolidated Gross Sales and Adjusted Gross Sales Generated, as Well as Certain Operating Costs and Expenses Incurred by Franchisees During Their First Three Months of Operations
- Part 2 of this Item discloses historical averages for the first full three months of operations for MilkShake Factory’s first three franchised locations which opened in 2024.
- One location that opened in 2024 only operated for a partial month and was excluded from this disclosure since it was not open for at least three months.
Gross Revenue: $181,580 (104.9%)
Less Discounts: -$8,494 (4.9%)
Adjusted Gross Revenue: $173,086 (100.0%)
Primary Operating Costs
- COGS: $59,357 (34.3%)
- Labor: $53,294 (30.8%)
Adjusted Gross Revenue Less COGS and Labor: $60,435 (34.9%)
Certain Other Operating Costs and Expenses
- Occupancy-Related Costs: $13,153 (7.6%)
- Bank Fees: $5,513 (3.2%)
- Cleaning Supplies: $6,273 (3.6%)
- Maintenance/Repairs/Equipment: $1,789 (1.0%)
- IT-Related Fees and Costs: $2,302 (1.3%)
- Utilities: $3,402 (2.0%)
- Other: $2,054 (1.2%)
- Estimated Local Advertising (1.5%): $6,860 (4.0%)
- Total Operating Expense: $41,346 (23.9%)
Franchise Expenses
- Royalties: $10,385 (6.0%)
- Brand Fund: $3,462 (2.0%)
Net Revenue Less COGS, Labor, Other Operating Costs and Expenses Disclosed Above: $5,242 (3.0%)
- Gross Revenue means all gross receipts, less tips and sales tax.
- Discounts means any approved coupon, discounts, and promotion. You will be able to deduct only approved coupons, discounts, and promotions from Adjusted Gross Revenue.
- Adjusted Gross Revenue means Gross Revenue less Discounts, and represents the amount upon which you will base your Royalty Fee, Local Advertising Requirement, and Fund Contribution under your Franchise Agreement with MilkShake Factory.
- COGS means all variable cost inputs to facilitate customer sales, including all food items, cups, lids, and other paper goods.
- Labor means all hourly and salaried labor, such as shift leads and assistant general managers, including base wages, payroll taxes, and benefits. This definition excludes the cost of multi-unit managers and general managers.
- Adjusted Gross Revenue less COGS and Labor means Adjusted Gross Revenue less COGS and Labor.
- Occupancy-Related Costs means base rent and all related NNN (triple net) costs, including common area maintenance, insurance, and tax-related obligations under the lease.
- Bank Fees means all credit card processing fees and other special processing fees.
- Cleaning Supplies means all cleaning and janitorial supplies to operate the store.
- Maintenance/Repairs/Equipment means all standard maintenance items, such as floor mat replacement services and HVAC maintenance, necessary repair items, and any equipment replacement.
- IT-Related Fees and Costs means all store level expenses for Point-of-Sale, Restaurant Management Software, Gift Cards, Panther Funds, and Security Camera services.
- Utilities means the following utility expenses: electric, water, power, internet, and phone.
- Other means general and administrative expenses that could not be categorized into another itemized category.
- Certain Other Operating Costs and Expenses Incurred in Operations means a certain license fee, uniforms, employee morale events, charitable contributions, licenses, permits, fees, parking leases, and travel. This range does not include or account for any other operating costs or expenses that are not specifically identified in this Explanatory Note.
- Estimated Local Advertising means the calculated estimated local marketing expenditures a location would have been required to pay had it been a franchise operating pursuant to the Franchise Disclosure Document.
- Total Operating Costs means the sum of Occupancy-Related Costs, Bank Fees, Cleaning Supplies, Maintenance/Repairs/Equipment, IT-Related Fees and Costs, Utilities, Other, and Certain Other Operating Costs and Expenses Incurred in Operations, and Estimated Local Advertising.
- Estimated Royalties (calculated at 6% of Adjusted Gross Sales) means the calculated estimated Royalty Fees a location would have been required to pay had it been a franchise operating pursuant to the Franchise Disclosure Document.
- Estimated Brand Fund (calculated at 2% of Adjusted Gross Sales) means the calculated estimated Brand Fund expenditures a location would have been required to pay had it been a franchise operating pursuant to the Franchise Disclosure Document.
Part 3 – Revenue Mix
- Part 3 of this Item discloses the revenue mix of product sales with respect to product type as well as Shop type (affiliate and franchise). This chart includes historical information for all reporting locations that operated during the 2024 calendar year for at least one month.
Corporate Stores
- All Shakes: 79%
- Chocolate: 14%
- Sundaes: 6%
- Other: 1%
Franchise Stores
- All Shakes: 79%
- Chocolate: 13%
- Sundaes: 6%
- Other: 2%
Part 4 – 2024 Average Check and Total Checks Per Day
- Part 4 of this Item discloses the 2024 historical number of checks per day and average ticket size for both franchised and affiliate locations. One location was excluded on the basis that it did not have a complete month in operation in 2024.
Corporate Stores
- Average Ring: $14.01
- Average Daily Transactions: 142
Franchise Stores
- Average Ring: $16.09
- Average Daily Transactions: 135
- “Average Ring” means the total revenue received divided by the total number of transactions for the identified store type for the 2024 calendar year (or first 90 days in the case of franchisees).
- For each Affiliate Shop in Part 3 above, the term “Average Daily Transactions” is calculated by taking the Total Transactions generated by that Shop type and dividing that by (b) the number of days that Shop was open and operating during the 2024 calendar year (which is the first 90 days in the case of franchisees).
Part 5 – Percentage of Total Transactions Generated in Terms of Month/Seasonality and Business Day/Hour
- Part 5 of this Item discloses the percentage of Gross Sales generated amongst all affiliate Shops during the 2024 calendar year broken down by: (i) month of operation in 2024; and (ii) each business day and each hour of operation amongst these Shops over the typical and recommended operational hours MilkShake Factory recommends in its current Manuals (12 pm EST to 10 pm EST) over that period.
- Franchise locations were excluded on the basis that no franchise locations operated for an entire year.
By Month
- January: 7.9%
- February: 8.5%
- March: 9.5%
- April: 9.1%
- May: 8.7%
- June: 8.5%
- July: 8.6%
- August: 8.6%
- September: 7.8%
- October: 8.5%
- November: 7.3%
- December: 7.0%
By Hour of Operation
- Noon to 1 pm: 4.3%
- 1 to 2 pm: 5.3%
- 2 to 3 pm: 6.5%
- 3 to 4 pm: 7.6%
- 4 to 5 pm: 7.5%
- 5 to 6 pm: 8.2%
- 6 to 7 pm: 11.6%
- 7 to 8 pm: 15.5%
- 8 to 9 pm: 16.5%
- 9 to 10 pm: 13.0%
- Total: 96.0%
- The remaining 4% of revenue generated by all Disclosed Affiliate Locations was generated after MilkShake Factory’s System-recommended (and expected) hours of operation noted in the Chart above, and was generated by a few of the Affiliate Locations that have typical operating hours outside the 10-hour period of operations disclosed above.
- The information and data provided in this Item is historical in nature and was provided/reported to MilkShake Factory by the affiliate owners of the Part 1 Shops for the measurement period(s) discussed above.
- Some affiliate outlets sold these amounts. Your individual results may vary. There is no assurance that you will sell as much.
- Excluded from all parts is a licensed Shop located in the Southside area of Pittsburgh, PA. This shop is in a non-traditional venue and offers a single menu item which is not substantially similar to the other Affiliate-Owned Shops or the Franchised Business being offered in the Disclosure Document. This Shop is also not listed in Item 20 of the Disclosure Document.
Section VI – MilkShake Factory Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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