Kilwins Chocolates Franchise Review 2026: Costs, Fees, News, Average Revenues and/or Profits

Ambrosio’s Take

Kilwins is a specialty chocolate, ice cream, and confections brand that has built its identity around in-store production, which gives it a craft authenticity and a gross profit margin of 71% that most retail franchises cannot match. The system has grown steadily, adding 36 franchised outlets over three years, and average gross sales recovered to $951,795 in 2025 after a modest dip in 2024. The state-by-state data in this FDD is worth studying carefully before choosing a location: Florida’s 33 stores averaged $1,209,130 while Indiana’s 3 stores averaged $660,850, a gap that reflects how significantly tourism traffic, foot traffic density, and local demographics can influence outcomes for a concept that depends on impulse purchases and experiential retail.

Ambrosio’s Take is a new feature on all Franchise Chatter FDD Talk posts based on the 2026 FDD.

In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Kilwins Chocolates franchise, based on Item 7 of the company’s 2026 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Kilwins Chocolates franchise, based on Items 5 and 6 of the company’s 2026 FDD

Section III – Number of franchised and company-owned Kilwins Chocolates outlets at the start of the year and the end of the year for 2023, 2024, and 2025, based on Item 20 of the company’s 2026 FDD

Section IV – News updates on the Kilwins Chocolates franchise opportunity

Section V – Presentation and analysis of Kilwins Chocolates’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2026 FDD, including information on the:

• 2025 average and median Gross Sales for the 143 franchised Kilwins Stores that were in operation during the entire period of January 1, 2025 through December 31, 2025 and that reported Gross Sales to the franchisor

• 2024 average Cost of Sales and Non-Owner Payroll Costs for the 139 franchised Kilwins Stores from whom the franchisor was able to obtain applicable information

• 2025 average Transaction Value for the 143 franchised Kilwins Stores that were in operation during the year January 1, 2025 to December 31, 2025 that reported complete transaction values to the franchisor

Section VI – Key ratios, comparables, computations, and analyses for the Kilwins Chocolates franchise opportunity (exclusive content for Platinum subscribers)

Section I – Kilwins Chocolates Franchise Costs

• Kilwins Chocolates (full-line store) franchise costs, based on Item 7 of the company’s 2026 FDD:

• Initial Franchise Fee:  $35,000 to $45,000
• Plans and Construction (includes architectural and building permits):  $198,797 to $394,877
• Site Development Fee:  $27,000
• Equipment:  $110,539 to $185,699
• Computer Systems (includes POS based on 2 stations and network management equipment):  $14,169
• Inventory:  $38,966 to $58,066
• Signs and Awnings:  $8,395 to $24,461
• Advertising:  $10,000
• Insurance:  $519 to $21,528
• Training Expenses:  $3,253 to $7,680
• Business Licenses:  $25 to $3,400
• Professional Fees:  $7,500 to $10,000
• Additional Funds (3 months):  $30,000 to $75,000
• Security Deposits:  $475 to $3,415
• Total Estimated Kilwins Chocolates Franchise Costs (Excluding Real Estate Costs):  $484,638 to $880,295

Section II – Kilwins Chocolates’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Kilwins Chocolates’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2026 FDD:

• Initial Franchise Fee:  $35,000 to $45,000
• Royalty:  5% of Gross Sales
• Marketing Contribution:  currently 3% of Gross Sales (which Kilwins Chocolates has the right to increase up to 5% of Gross Sales)

Section III – Number of Franchised and Company-Owned Kilwins Chocolates Outlets

Franchised

2023

• Outlets at the Start of the Year:  145
• Outlets at the End of the Year:  159
• Net Change:  +14

2024

• Outlets at the Start of the Year:  159
• Outlets at the End of the Year:  168
• Net Change:  +9

2025

• Outlets at the Start of the Year:  168
• Outlets at the End of the Year:  181
• Net Change:  +13

Company-Owned

2023

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  5
• Net Change:  +1

2024

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  4
• Net Change:  -1

2025

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  6
• Net Change:  +2

Section IV – News Updates on the Kilwins Chocolates Franchise

• Kilwins Opened 19 New Locations in 2025

• Levine Leichtman Keeps Kilwins’ Spirit Amid Modernization Effort

• Kilwins’ Strong Year of Growth Highlights Scalable Business Opportunities

• Kilwins Sets Its Sights on Expansion into High-Traffic Markets Across Arizona

• Kilwins to Add 10 Locations in Texas

• Right-Sized Real Estate Gives Franchises Room to Grow

• Kilwins Franchise Thrives on Tradition, Innovation and Sweets

• Kilwins Ranked No. 113 on Entrepreneur’s 2026 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Kilwins Chocolates Franchise (Item 19, 2026 FDD)

• Presented below are historical financial operating results for certain franchised Kilwins Stores. Please note that the data reported below in this Item 19 is only for Full-Line Stores and does not apply to Scoops & Sweets (and because few Scoops & Sweets are in operation, Kilwins provides no operating results, data, or other information relating to Scoops & Sweets).

• The averages presented below were prepared from the company’s internal operating records, which, in turn, were prepared from information obtained from franchisees. To the best of the franchisor’s knowledge, this information has been prepared according to generally accepted accounting principles. The information presented in this Item 19 has not been audited.

Gross Sales (2025)

• Gross Sales figures include revenues reported for calendar year 2025 from the sale of goods to retail customers, including the full range of required products.

• This section represents results from 143 franchised Kilwins Stores, and no company-owned Stores.

• These Stores represent all Stores that were in operation during the entire period of January 1, 2025 through December 31, 2025 and that reported Gross Sales to the franchisor.

• The franchisor excluded from the results 10 Stores that are seasonally operated and were not open for the entire 12-month period, and 2 Stores without full cooking capacity. The franchisor excluded from the results 22 franchised Kilwins Stores which were not open, even seasonally, for the entire 12-month period, and 2 stores that are not a typical format.

• The franchisor separately listed only those states in which it has three or more franchisees who are operating Stores so that it does not provide information (even in summary form) that could be directly linked to any of its franchisees, or that others could use to determine the performance of any particular Store. However, data for all of the Stores (except those excluded Stores as explained above) were included in the “total” figures under the heading “All States.”

All States (143 Stores)

• Average Per Store:  $951,795
• Median Per Store:  $814,852
• Number of Stores Above Average:  57
• Percent of Stores Above Average:  40%

Colorado (4 Stores)

• Average Per Store:  $718,913
• Median Per Store:  $715,391
• Number of Stores Above Average:  2
• Percent of Stores Above Average:  50%

Florida (33 Stores)

• Average Per Store:  $1,209,130
• Median Per Store:  $1,251,170
• Number of Stores Above Average:  18
• Percent of Stores Above Average:  55%

Georgia (12 Stores)

• Average Per Store:  $737,068
• Median Per Store:  $768,967
• Number of Stores Above Average:  6
• Percent of Stores Above Average:  50%

Illinois (12 Stores)

• Average Per Store:  $717,655
• Median Per Store:  $657,254
• Number of Stores Above Average:  5
• Percent of Stores Above Average:  42%

Indiana (3 Stores)

• Average Per Store:  $660,850
• Median Per Store:  $722,742
• Number of Stores Above Average:  2
• Percent of Stores Above Average:  67%

Michigan (10 Stores)

• Average Per Store:  $757,910
• Median Per Store:  $647,756
• Number of Stores Above Average:  3
• Percent of Stores Above Average:  30%

New York (3 Stores)

• Average Per Store:  $778,020
• Median Per Store:  $665,919
• Number of Stores Above Average:  1
• Percent of Stores Above Average:  33%

North Carolina (16 Stores)

• Average Per Store:  $908,166
• Median Per Store:  $682,922
• Number of Stores Above Average:  4
• Percent of Stores Above Average:  25%

Pennsylvania (5 Stores)

• Average Per Store:  $677,546
• Median Per Store:  $555,891
• Number of Stores Above Average:  2
• Percent of Stores Above Average:  40%

South Carolina (5 Stores)

• Average Per Store:  $935,427
• Median Per Store:  $1,127,966
• Number of Stores Above Average:  3
• Percent of Stores Above Average:  60%

Tennessee (4 Stores)

• Average Per Store:  $1,367,558
• Median Per Store:  $1,118,723
• Number of Stores Above Average:  2
• Percent of Stores Above Average:  50%

Texas (8 Stores)

• Average Per Store:  $817,636
• Median Per Store:  $793,695
• Number of Stores Above Average:  3
• Percent of Stores Above Average:  38%

Virginia (5 Stores)

• Average Per Store:  $850,444
• Median Per Store:  $755,403
• Number of Stores Above Average:  2
• Percent of Stores Above Average:  40%

Cost of Sales (2024)

• Cost of Sales includes the cost of purchased and manufactured product (including delivery charges) that is sold in the Store, computed as a percentage of Gross Sales.

• These figures are for Stores open during 2024, the most recent period for which figures have been reported.

• The information included in these figures was accumulated from internally generated Store financial statements and tax returns provided to the franchisor by 139 franchised Stores from whom the franchisor was able to obtain applicable information.

• These financial statements and tax returns have not been audited and the franchisor relies on the representations of the Store owners for their accuracy.

• The franchisor believes that the results below are a reasonable representation of the entire population of Stores.

• Cost of Sales figures will vary from Store to Store and you need to prepare your own estimates of the Cost of Sales you expect to achieve in your Store.

• Some of the items impacting Cost of Sales, many of which will have a material impact on actual Cost of Sales percentages, include: actual product sales mix; the cost of commodities, including chocolate, sugar, milk, and other materials over which you will have little control; the availability of local supply for products not supplied by Kilwins; the amount of product manufactured in the Store and the efficiency with which it is made; control over serving sizes by your employees; and customer pricing sensitivity in your market.

All States (139 Stores)

• Average Per Store:  29%
• Median Per Store:  30%
• Number of Stores Above Average:  70
• Percent of Stores Above Average:  56%

Non-Owner Payroll (2024)

• Non-Owner Payroll includes direct wages paid to employees, excluding any compensation paid to Store owners, computed as a percentage of Gross Sales.

• Payroll expenses used in this computation do not include any taxes or benefits incurred by the Store.

• These figures are for Stores open during 2024, the most recent period for which figures have been reported.

• The information included in these figures was accumulated from internally generated Store financial statements and tax returns provided to the franchisor by 139 franchised Stores from whom the franchisor was able to obtain applicable information. These financial statements and tax returns have not been audited.

• The franchisor believes that the results below are a reasonable representation of the entire population of Stores.

• Payroll figures vary from Store to Store and you need to prepare your own estimates of payroll for your Store. Some of the items impacting actual payroll, many of which will have a material impact on actual payroll costs, will include the amount of time an owner works in the Store, the compensation of manager(s) employed, any applicable minimum wage requirements, the level of benefits other than wages provided to employees, local labor market competition, the mix of full-time and part-time employees, and the Store’s sales volume.

All States (139 Stores)

• Average Per Store:  23%
• Median Per Store:  22%
• Number of Stores Above Average:  51
• Percent of Stores Above Average:  41%

Transaction Value (2025)

• Transaction Value amounts are for single customer transactions in Stores reported for calendar year 2025 from the sale of goods to retail customers, including the full range of required products.

• This section represents results from 128 franchised Kilwins Stores, and no company-owned Stores.

• These Stores represent all franchised Stores that were in operation during the year January 1, 2025 to December 31, 2025 that reported complete transaction values to the franchisor.

• The franchisor excluded from the results 10 Stores that are seasonally operated and were not open for the entire 12-month period, and 2 Stores without full cooking capacity. The franchisor excluded from the results 22 franchised Kilwins Stores which were not open, even seasonally, for the entire 12-month period, and 2 stores that are not a typical format.

All States (143 Stores)

• Average Per Store:  $18.11
• Median Per Store:  $18.09
• Number of Stores Above Average:  71
• Percent of Stores Above Average:  50%

Other Expenses

• Gross Sales, Cost of Sales, Payroll, and Transaction Value figures provide only a part of the information that you will need to evaluate the franchise opportunity. Franchisees will incur business expenses that are likely to be significant.

• All of the Stores included in the operating results are franchised units. As a franchisee, you will be required to pay royalty fees and make local advertising expenditures, as well as to make contributions to the Marketing Fund and Regional Fund (if a Regional Fund is formed for your market).

• Among the additional categories of expense that you may incur are:

• rent and occupancy costs;
• franchisee compensation over and above that earned from the operations of the Store business (such as a salary that you may draw);
• employee benefits, such as health, vacation, and pension plan contributions (none of which are included in the payroll numbers presented);
• debt service;
• insurance;
• Store facilities and property maintenance (and reserves for future maintenance);
• business and regulatory fees and licenses;
• ongoing and supplemental training expenses;
• recruitment expenses;
• legal and accounting fees; and
• bookkeeping and other professional services.

Section VI – Kilwins Chocolates Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️