Rita's is a brand that serves assorted flavors of Italian ice and custard. For over xxx years they've been in the business of selling these frozen desserts to a loyal base of customers in more than 500 locations in the Usa and around the globe. But is Rita's nonetheless a audio business organization to invest in?

Yous should know that more Rita's Italian Ice shops have been endmost than opening. Between 2016 and 2018 alone, the franchise had 159 total units close for business concern permanently.

How much does information technology toll to open a Rita's Franchise? Y'all'll need a liquid capital of $100,000 and a cyberspace worth of $300,000. The initial investment range for this franchise is $194,863 to $528,061 with a franchise fee is $35,000.

Read on below for more than data on how to franchise Rita's Italian Water ice and the many advantages and challenges you can await in running this popular frozen dessert chain. Take our 7-minute franchise quiz to find out if Rita's is the right opportunity for you.

  • Fiscal Requirements and Fees
  • Boilerplate Sales / Acquirement per Year
  • Rita's Franchise Facts
  • How Much Does Rita's Franchise Brand in Profit?
  • Advantages of a Rita's Franchise
  • Challenges of a Rita's Franchise
  • Is the Rita's Franchise Right For Yous?

Fiscal Requirements and Fees

The post-obit are the financial requirements to franchise Rita's Italian Ice.

Fees / Expenses Financial Amount
Liquid Uppercase $100,000
Cyberspace Worth $300,000
Total Investment $194,863 to $528,061
Franchise Fee $35,000

In add-on to these fees, Rita's besides accuse a royalty fee of 6.5% and an advertizing royalty fee of 3%. This means you lot'll exist handing over 9.5% of total revenue to corporate. This is an above boilerplate franchise fee where the industry average is simply 5%. This would be a betoken worth negotiating with the company before signing an agreement.

Rita's also offers a 20% disbelieve on franchise fee for veterans. The term of agreement to run a Rita's Italian Ice is 10 years.

Average Sales / Revenue per Year

Information technology isn't known officially how much Rita'south Italian Ice makes annually but a Rita's location in Adamsdale, Pennsylvania saw gross revenue of $173,866. Subsequently expenses this business had an annual cashflow of $38,729.

This revenue causeless you were managing the unit yourself and not hiring a full-fourth dimension manager. If you did hire a manager, the business organization would be operating at a break-even point at best. Information technology would exist up to you to improve the marketing and sales of the unit to increase acquirement.

Jim Hagan, a former Rita'southward franchise operator in Virginia, said there wasn't enough business to keep the business operating in his market. While sales started strong the start few months, traffic volume couldn't be sustained and the unit went out of business back in 2013.

Rita's Franchise Facts

Total Units Over 500
Incorporated Name Rita's Franchise Visitor, LLC
Franchising Since 1989
Industry Frozen Desserts
Subsector Nutrient and Beverage

Rita's Italian Water ice started in 1984 in Philadelphia. Bob Tumolo, a sometime fireman, opened the business on his front porch and named the shop subsequently his wife Rita. By 1987, Bob, along with his brother John, branched out and expanded their locations across Philadelphia. The demand for their Italian ice was high that past 1989, they started to franchise Rita's.

Rita's Italian Ice is known to accept and so many different flavors. At that place are over 95 flavors you can cull from and Rita'south assures yous that they're all made fresh. In fact, batches of flavored water ice must be sold within 36 hours.

Rita'due south carte du jour consists of Italian ice, frozen custard, Gelati (layered Italian ice and custard), Blendini (Italian water ice and custard blended together), Physical (creamy thick custard), Misto shakes (Italian water ice shakes with custard), milkshakes, and frozen drinks. For food, Rita's also sells frozen custard cakes, custard cookie sandwiches and custard by the pint.

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The flavors that Rita's sells range from fruit flavors such as mango (their all-time seller), to chocolate, cookies and cream, root beer, and fifty-fifty peanut butter and jelly. They too accept options for those that are looking for sugar-gratuitous treats.

Rita's is mainly located in the Usa merely they've also recently branched out to several Caribbean nations, the Philippines (until 2022), India, and China. At their superlative, the company had more 600 units.

The majority of stores in the Us operate in a seasonal schedule. This means that they open up on the first twenty-four hour period of March until the third Sun of September wherein they shut during the cold conditions months. However, if a Rita's store is located in shopping malls or if they are located in warmer areas, they could be open all year circular.

Rita'south also has a rewards program for customers. In one case registered, you just have to scan the app every time you visit Rita'due south. By the 8th visit, you lot'll be able to get a free care for from the menu.

The Italian water ice brand is also well-known for giving abroad free Rita's Italian Water ice every yr on the first day of spring. Millions of Italian ice are given out during this event and information technology has been going on for 25 years. The simply fourth dimension this event was cancelled was in 2020 and 2021 due to the pandemic.

To franchise a Rita'southward, yous'll need to download their franchise study which can only be done so once you complete their franchise class and questionnaire here. Inside one business organization twenty-four hours, a representative from Rita'southward will call y'all to respond any questions you may take and confirm the personal information. If your questionnaire is approved and you meet their fiscal qualifications, you'll be able to receive their current Franchise Disclosure Document.

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One time you lot've reviewed the document and go back to them, you'll get through an Operations and Training Overview. You will as well go through a validation process that connects y'all with current Rita's franchisees to help you decide whether Rita's is the right franchise for you. The company will also deport a background and credit bank check.

You will then encounter the team at their headquarters in Trevose, Pennsylvania. You'll be given a tour at Rita'due south and also taste their products. Once you and Rita's are in agreement regarding the franchise, you'll be given a franchise agreement to sign. Y'all volition as well pay all the initial fees and start the process on opening your Rita'southward franchise. Now, the president and CEO of Rita'southward Italian Water ice is Linda Chadwick.

How Much Does Rita's Franchise Make in Profit?

In that location is no official data as to how much a Rita'due south franchise makes in profit. But a shop upwardly for auction claims that sales that reached $38,729 a yr. This was for a seasonal unit that was only open up between March – September.

Advantages of a Rita's Franchise

There are many advantages in owning a Rita's Italian Ice franchise. Here are a few:

For Everyone

Rita's caters to the young and quondam. It'south been operating for thirty years serving frozen desserts to everyone. No alcoholic beverages are included although Rita's had a mocktail line in one case. Just all in all, it's a family friendly identify with treats everyone tin can enjoy.

Card Diverseness

Rita'southward may only exist known for their Italian ice and frozen custard. But the varieties they offering are plenty. There are as well many flavors to choose from. And aside from drinks and custard, y'all tin also get snacks.

No-Frills Concern

All in all, Rita's Italian Ice seems like a no-frills kind of concern. The product line is simple and the target customers are everyone who enjoys frozen desserts. Fifty-fifty the franchise reviews are positive. One review claims that Rita'south has fifty-fifty provided them with stability.

Challenges of a Rita's Franchise

To prepare for a Rita'south Italian Ice franchise, you lot need to know what the challenges are. Here are some to expect:

Units are Closing

Here are the number of unit closures for Rita's according to Franchise Disclosure Documents:

  • 2016: 65
  • 2017: 51
  • 2018: 43

Considering these closures occurred before the wellness crunch this is not a stiff indicator for health of the business. Successful operators don't just exit of business.

To make matters worse, as of Jan 15th, 2022, the company closed their operations in the Philippines. This included shuttering the doors of seven units operating in Manilla.

Seasonal Hours

As mentioned to a higher place, Rita'southward operates on a seasonal schedule. There will exist months that the business will be closed. This seems like a big disadvantage and a challenge because yous could have more than sales if you were open up all year round. If you lot're non open year round, you won't generate as much acquirement.

This would exist no problem if yous're in a location with a warmer climate throughout the year or you lot're in a shopping mall location. So be sure to plan out your time to come Rita's location carefully.

Employee Issues

Ane poster on Quora said that most of the problems his friend had while running Rita's Italian Ice were employee bug. Some would not show up for shifts while others would not exist able to clean the surroundings properly. The poster cited this might take been because the business could simply offering minimum wage.

We merely promise these problems were studied and resolved such every bit making sure employees were trained properly and wages were increased even a flake. Unfortunately, for many units the revenues don't appear to support a college wage.

Is the Rita'south Franchise Right For You?

Dissimilar other companies, Rita'south has not made their most recent financial reports open up to the public so it'due south hard to study whether or non Rita's is profitable. But if y'all're still interested, y'all can discuss your concerns straight with Rita'south squad by messaging them on the details provided above.

But as you lot tin see from the examples I've listed, you should be conscientious and conduct due diligence earlier investing in this franchise. This is a concept that has seen more closures than grand openings that past 5 years. This is never a good sign for a franchise business.

What is an culling Rita'due south Italian Ice franchise?

A frozen dessert business concern you can open near yous is Pelican's SnoBalls. They're well known for their flavored snowfall balls and accept over 500 locations around the Usa.

To franchise Pelican's SnoBalls, look the investment to be $61,150 to $195,300. You can check out our full guide on Pelican's SnoBalls here.

And at that place yous have it! With this guide, I hope you better understand the opportunities and risks of a Rita's Italian Ice franchise.