Creamistry offers a unique spin on ice cream using a process of liquid nitrogen and flash freezing to create a made-to-order treat you can’t find anywhere else.
How much does it cost to open Creamistry? The estimated investment range for Creamistry is $224,500 to $576,500 and the franchise fee is $40,000. You’ll also need a liquid capital of $300,000 and a net worth of $500,000.
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- Financial Requirements and Fees
- Average Sales / Revenue per Year
- Creamistry Franchise Facts
- How Much Does Creamistry Make in Profit?
- Advantages of a Creamistry Franchise
- Challenges of a Creamistry Franchise
- Is the Creamistry Franchise Right For You?
Financial Requirements and Fees
These are the fees and expenses to expect when you franchise Creamistry near you:
|Fees / Expenses||Financial Amount|
|Total Investment||$224,500 to $576,500|
As for the franchise fee indicated above, $40,000 is the fee you pay for one store. However, if you get a second store that would be $30,000 and the subsequent stores will be $20,000.
In addition, to all the expenses and fees mentioned above there are Continuing License Fees (also known as Royalty Fees) that represent 6% of gross sales as well as Marketing Contribution (also known as Ad Royalty Fees) that is 1.5% of gross sales. Make sure okay handing over 7.5% of each transaction before enrolling in this franchise.
If you are a veteran, Creamistry also provides a veteran’s incentive fee that’s $5,000 off the franchise fee. The term of agreement to run a Creamistry is 10 years and franchise terms are renewable.
Average Sales / Revenue per Year
Creamistry has not released their financial records nor are mentions of their revenue found online so it is difficult to give an accurate data on what their average annual sales are. We do know Creamistry brings in a reported $6.02 million in annual sales. This is not much revenue considering there are 37 total locations to split up that revenue. This could be one reason detailed revenue numbers are hard to find.
Creamistry Franchise Facts
|Incorporated Name||Creamistry Franchise Inc.|
|Subsector||Food and Beverage|
Creamistry was founded in 2013 by Jay Yim. He got the idea for the frozen treat when he went for a trip to South Korea. Jay and his wife Katie then created homemade ice cream using liquid nitrogen. His father, who was a baker, helped them in producing this unique kind of ice cream.
The concept at Creamistry is serving ice cream that’s made to order. This means it is fresh and not stored in freezers for a long time. Creamistry uses liquid nitrogen and the process in making their ice cream involves flash freezing a customer’s order at -321° F. This results in a creamier texture. And since every order is fresh, Creamistry’s menu is all about customizable ice creams.
To customize an ice cream at Creamistry, you are given a base to choose from which ranges from dairy, vegan, and fruit sorbets. For the dairy base they use 100% USDA organic and all natural ingredients. They’re also non-GMO and kosher. For the vegan base they use plant based all-natural, and gluten and egg free ingredients. The vegan options are coconut or cashew base. And for the fruit sorbets, they’re all non-dairy water based with flavors such as mango, piña colada, pineapple nitrodole, and strawberry.
There are a lot of flavors that customers can choose from. Creamistry offers classic flavors such as chocolate and mint. But they also have bold flavors such as Madagascar Vanilla Bean, Sea Salt Caramel, Cinnamon Roll, and Cookie Butter.
Toppings are also an option to add-on at Creamistry. They have a wide range of toppings from candies, cereals, cookies, cakes, fruits, nuts, and sauces. You can also choose savory toppings such as candied bacon, chamoy, Tajin, and Takis Fuego. As for upgrades, you can choose to have a waffle cone, waffle bowl or a brownie bowl.
Creamistry also gives customers the freedom to choose from if they’re not into customizing their ice creams. These sets already have an ice cream flavor and toppings so you can just choose the size you want.
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Aside from just ice cream, Creamistry also sells ice cream cakes at select locations. These ice cream cakes are not simply just ice cream formed into a circular cake but they have cake bases as well as icing and decorations.
The franchising process for Creamistry starts off with submitting your Franchise Application and Personal Finance Statement here. Creamistry will then review them and afterwards, you’ll be requested to submit copies of your past two years’ Federal Tax Returns and three months’ latest bank statements. This will be emailed at [email protected].
You’ll then schedule a meeting with Creamistry’s Corporate Team to discuss more about franchising with them. Everything is considered official once you submit the requisite franchise fee and sign their franchise agreement.
Selecting the right location for your Creamistry shop comes next and this is with the help of Creamistry’s franchise team. Along with that, their corporate trainers will start orienting and teaching you as well as you staff all about Creamistry’s ice cream, how to operate a store, and what their brand is all about in preparation for running the ice cream shop.
By then, you will be ready for your grand opening. Creamistry will provide all the support you need before, during, and after the opening.
Interested in buying an existing Creamistry franchise? Listings for an existing creamistry shop may be found and purchased through this site but you have to keep tabs constantly since some postings can be inactive quickly or some may have already been bought.
At present, Creamistry has over 37 locations in the United States and is also known to have opened a branch in Chengdu, China although it is unclear if the location is still running now. The headquarters is located at Yorba Linda, California.
How Much Does Creamistry Make in Profit?
Since Creamistry has not made their financial records public, it is difficult to find data on their profit as of the moment. I was not able to find accurate profit estimates for this business. While this is not an apples-to-apple comparison, the average ice cream shop will generate $20,000 – $49,000 range.
Advantages of a Creamistry Franchise
Signing up for a Creamistry franchise has a number of distinct advantages. Here are a few of them you can expect.
Liquid Nitrogen Ice Cream
Creamistry uses liquid nitrogen to flash freeze their ice cream. This process creates small ice crystals which results in a really smooth and creamier texture for the ice cream. It’s also quite dense which means the ice cream is thick. With this kind of consistency, your customers are sure to enjoy delicious ice cream at Creamistry.
Lots of Options
Have you seen the flavor and topping options we listed above? There were a lot of them which makes Creamistry a great place to go to for ice cream. Your customers will never run out of options and will find themselves visiting the place from time to time to try out different concoctions.
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Ice cream cakes are also sold at Creamistry so if it isn’t just the usual ice cream you’re looking for, you can also indulge in some cake. Creamistry also provides instruction on how to properly serve ice cream so you know just how long it’s good for.
The downside may only have to be that there are only select locations where you can get these ice cream cakes. So remember to ask during your discussion with the franchise team if your location offers premium Creamistry ice cream cakes. You want to make sure you can create and sell these cakes for birthdays and other special events. This creates a whole new revenue stream for the business supporting special events.
Ice Cream Made Fresh
It’s the idea of serving ice cream fresh that’s the major selling point at Creamistry. Who knew ice cream can even be made at once right as you ordered it? We’re so used to ice cream that has been made in batches and frozen in a bucket. But at Creamistry, you’re able to choose your base, customize it, and have it made right in front of you. It’s the experience that’s going to wow your customers and make them come back for more. Not only do you get a dessert, but you also get a show.
Challenges of a Creamistry Franchise
Franchising any ice cream concept will present its share of challenges for the operator. Here are some you should expect when you decide to sign up with Creamistry.
There aren’t a lot of locations where Creamistry is available. Before the pandemic, there used to be double the number of their shops. But there have been many closures and though that’s understandable, it kind of makes you wonder if developments in opening new stores are slow or if this is an undesirable business.
New store openings can be one indicator that a business is thriving so we only hope that there will be more Creamistry locations opening soon. Generally speaking, if a franchisee is making good revenue from one unit, they will want to expand further and invest in more locations.
Downside to Liquid Nitrogen Ice Cream
Liquid nitrogen ice cream sounds cool and all. But according to a news report by NBC-2, the U.S. Food and Drug Administration said that consuming liquid nitrogen ice cream could be “harmful”. Since liquid nitrogen is so cold, it could burn your throat and might even cause internal damage. In 2017, it was also reported that a 30-year-old man suffered with a big hole in his stomach due to drinking a liquid nitrogen drink at a bar in Delhi.
Though there hasn’t been an issue like that at Creamistry, the company does address this on a Twitter post saying their ice cream is safe since they only use liquid nitrogen in the production process. The liquid nitrogen evaporates before serving it to customers, there will be people who might be cautious about this and afraid of trying any liquid nitrogen product.
There have been a couple of reports that say Creamistry ice cream is expensive. One review claimed that the price was “outrageous” for $5.95 for a scoop. Another one said it was “gimmicky and expensive” citing that a medium order was around $9.
While the customer complaints are understandable, competing dessert chains charge similar prices. I pay around $6 for a large Blizzard at Dairy Queen. Having expensive products will be one of the challenges you’ll face as a franchise owner of Creamistry so be prepared on how to deal with customer complaints should there be any.
Is the Creamistry Franchise Right For You?
Ice cream is always a favorite treat so there’s always going to be a market for it. And Creamistry looks like they are beginning to open up more stores around the United States like this new location in Phoenix.
However, it’s difficult to know how they’re doing financially since no public financial records can be accessible. These are details you’ll want to discuss with Creamistry upon submitting an application form.
What is an alternative Creamistry franchise?
If it’s a frozen treat you’re looking for, check out Rita’s. Their treats may not be made from liquid nitrogen but their Italian ice has been a global favorite for years. They also serve custards and shakes aside from their Italian ice. This business can be operated seasonally in some areas with colder environments.
To franchise Rita’s, expect to investment between $194,863 to $528,061 and the franchise fee to be $35,000. Check out our full guide in franchising Rita’s Italian Ice here. This is a lower cost option.
Ice cream production in the United States is an $8.8 billion industry. Everyone just seems to be down for frozen treats that you know ice cream isn’t going anywhere. Even a majority of ice cream manufacturers have been around for more than 50 years so you know ice cream is well loved, always in-demand, and here to stay.
That’s it! May this guide help you on your way to becoming a Creamistry franchisee soon!