Thinking about opening a dessert shop? The MilkShake Factory is a popular, century-old brand known for its amazing milkshakes and gourmet chocolates. But before you jump in, you need to know the price tag.
Here is the cost breakdown in simple words:
1. The Big Picture: How Much to Start?
Starting a MilkShake Factory franchise is a major investment. It is not a cheap business to open.
| Cost Category | Simple Range | What This Covers |
| Total Startup Cost | Around $477,000 to $773,000 | Everything from start to finish: the initial fee, building the store, buying equipment, starting inventory, and having a small cash cushion for the first few months. |
The final price depends on things like the size of your store, how much construction is needed, and where it is located.
2. The Must-Have Cash: Financial Requirements
The company wants to make sure you have enough money to handle this big investment and run the business smoothly.
- Cash on Hand (Liquid Capital): You must have at least $200,000 available in cash, stocks, or other assets you can quickly sell.
- Total Worth (Net Worth): Your total assets (everything you own minus everything you owe) must be at least $750,000.
3. Key Upfront Payments (Before You Open)
These are the main one-time fees you pay before the store even opens:
- Initial Franchise Fee:$60,000
- Simple: This is the cost to buy the license to use the MilkShake Factory name, recipes, and business system.
- Building the Store (Leasehold Improvements): The biggest cost, ranging from about $134,000 to over $324,000 (sometimes more).
- Simple: This is the cost to change the empty space into a fully functional and beautiful MilkShake Factory shop (like plumbing, wiring, walls, flooring, etc.).
- Equipment and Furniture: Around $150,000 to $180,000.
- Simple: This pays for the milkshake machines, chocolate displays, freezers, counters, tables, chairs, etc.
- Training and Opening: About $25,000 to $30,000.
- Simple: This covers your mandatory training fee, travel costs for training, and your first marketing push (Grand Opening ads).
4. Ongoing Fees (After You Open)
Once your store is open and making money, you have to pay the company a percentage of your sales every month.
- Royalty Fee:6% of your sales.
- Simple: This is the ongoing fee to stay part of the brand and get continued support, like using their recipes and business model.
- Brand Development Fund (Marketing Fee):2% of your sales.
- Simple: This money goes into a central fund for national and system-wide marketing to build the brand’s name.
- Local Advertising: You are required to spend an additional amount on advertising in your local area (usually 1% to 2% of your sales).
5. The Sweet Rewards: What You Get
Why pay so much? You are buying a complete business system:
- A Proven Plan: You get a tested business model, from how the store should look to how to make the products.
- Training & Help: You get full training on operations and chocolate-making, plus ongoing support.
- Dual Income: You don’t just sell milkshakes; you also sell gourmet chocolates and sundaes, giving you more ways to make money.
- Strong Sales Potential: Existing stores have shown strong average yearly sales, proving the business can be profitable if managed well.
Final Thought
The MilkShake Factory is a premium opportunity with a high cost. It’s for serious business owners who have significant savings and are ready to be hands-on operators. If you have the required money and a passion for desserts, this could be a rewarding investment!
Would you like me to find out if there are any current financing options available to help cover the startup costs.
