Frequently Asked Questions :: Oberweis Franchise Systems, LLC.

Why is Oberweis Ice Cream better than ice Cream "made" in a retail store location?

Our scooped ice cream products are:

Made with farm fresh milk provided by farmers who certify their milk as recombinant bovine growth hormone-free (rBGH-free)
Made in our modern plant to the highest standards of quality-our superpremium ice cream begins as an 18% butterfat base, unlike purveyors that hide their poor ice cream flavors with candy
Made from the very best flavors and ingredients available
Allowed to properly freeze and harden to ensure Oberweis quality standards are met
Delivered by us directly to our stores and therefore the distribution network is focused only on our products
Treated with care and not allowed to thaw until they're served-ensuring the superior quality of our products are not comprised
Never re-frozen…never made from a pre-manufactured mix out of a box or plastic bag (except for our soft-serve products which are, by definition, frozen from a mix in the store)
Not abused by being spread on a metal or stone surface which can be contaminated with bacteria or other substances. We add inclusions (the insiders' term for chunks in ice cream) at the right time in the process. We love our ice cream and don't abuse it!
Our products are the best - taste the difference!

What is the franchise fee?

The franchise fee is $40,000 for your first store. We also offer qualified individuals the ability to enter into an area development agreement to establish multiple stores on a discounted basis. We do not finance stores, but we will assist franchisees who purchase an Oberweis franchise in working with any third-party lender and/or financing process.

How much does it cost to open an Oberweis store?

The cost will vary broadly depending on the location requirements, but the typical range for a leased end-cap location is $579,400 to $869,410 and a Free-Standing Building is $332,400 to $1,699,410. The investment for a single unit requires a minimum net worth of $750,000.00, of which $250,000.00 should be in available liquid capital, per store. Area developers will require a higher net worth and working capital based on the number of anticipated locations they will open. The operating capital requirement is based on geographic location, size of your store and staff.

Leased End-Cap	Estimated Amount or Estimated Low-High Range
Initial Franchise Fee	$32,000 to $40,000
Utility Deposits	$0 to $1,500
Leasehold Improvements	$250,000 to $375,000
Office Equipment and Supplies	$2,000 to $3,500
Furniture, Fixtures, Equipment & Signage	$211,000 to $250,000
Business Licenses and Permits	$250 to $1,000
Professional Fees	$15,000 to $30,000
Computer System	$18,000 to $20,200
Initial Inventory	$20,000 to $25,000
Grand Opening Marketing Program	$5,000 to $25,000
Insurance	$7,000 to $15,000
Training Expenses	$9,000 to $15,000
Additional Funds - 3 months	$10,150 to $50,210

TOTAL ESTIMATED INITIAL INVESTMENT	$579,400 to $869,410


Free-Standing Building	Estimated Amount or Estimated Low-High Range
Initial Franchise Fee	$32,000 to $40,000
Utility Deposits	$0 to $1,500
Building Exterior and Interior Construction	$0 to $1,160,000
Office Equipment and Supplies	$2,000 to $3,500
Furniture, Fixtures, Equipment & Signage	$211,000 to $250,000
Business Licenses and Permits	$250 to $1,000
Professional Fees	$15,000 to $70,000
Computer System	$18,000 to $20,200
Initial Inventory	$20,000 to $25,000
Grand Opening Marketing Program	$5,000 to $25,000
Insurance	$10,000 to $20,000
Training Expenses	$9,000 to $15,000
Additional Funds - 3 months	$10,150 to $50,210

TOTAL ESTIMATED INITIAL INVESTMENT	$332,400 to $1,699,410

When you visit our suburban Chicago (North Aurora) headquarters, you will receive our Uniform Franchise Offering Circular (UFOC) which includes an Earnings Claim Document based on our experience. This will give you the basis to better understand the financial results of our existing stores. Many franchisors are not willing to make this information available, but we have due to our desire to develop strong, lasting relationships with our franchisees. We strongly encourage you to aggressively compare the information contained in our earnings claim with that of other franchise opportunities.

How much revenue and gross profit can I expect?

Do you provide financing?

We do not provide direct financing. However, we work directly with two different lenders who understand our franchise opportunity. We also support you in the financing process by supporting your development of a business plan for your store, working with your local bank and by referring you to lenders and leasing companies that can finance qualified applicants.

What should I look for in an area for my Oberweis store?

Here are our recommendations when thinking about a store location area:

Friendly neighbors...

Family-friendly area
Near better local or national retailers
Near complimentary retailers (i.e. restaurants and coffee shops, movie theaters, skating rinks, community activity locations, lifestyle centers, high schools, college campuses, bookstores, video rental stores, and others)

Community demographics…

Population: 50,000 people and 2,000+ households in the $100-125k income range within 3 miles of the store location
Age: 1-100 years old (everybody loves ice cream!)
Income: Area median household income of $60,000+ annually (although this can vary based on cost of living within a specific market area)

What should I look for in terms of a specific site?

Excellent visibility, accessibility, and parking
High traffic counts traveling at 40 mph or less
2,500 to 2,800 square feet (empty shell space is preferred)
Restaurant/retail zoned
Ability to install internally-illuminated red channel lettering and our signature backlit red and white striped awnings
Access to space on a pylon/monument sign
HVAC: 15 tons via two 2-stage 7.5 ton units
Electrical: 300 amps
Water: 1" minimum tap
Grease Trap: Ability to install a grease trap (preferably the outdoor catch basin variety)
Landlords LOVE and WANT long term leases. We won't approve an initial term of < 5 years.

Do I need to have previous experience in the industry to be a franchisee?

While some prior experience in retail or restaurants may be helpful (even if it was as a teenager or young adult!) No prior experience in the food service or dairy industry is required. We do, however, look for franchise candidates that share our interest in providing quality products and outstanding service, and who have business, marketing, management, and/or customer service skills and experience.

What do I get for my franchise fee?

Pursuant to the franchise agreement, your Oberweis franchise fee and royalty provides:

Permission to use our trademarks for your franchise and therefore capitalize on the valuable Oberweis brand
Access to our proprietary products for sale in your store
Site selection consulting
Extensive upfront training to become proficient at operating an Oberweis store
Ongoing store training and support services
Access to sophisticated software tailored to Oberweis stores developed through a partnership with Micros
Participation in our meetings and events
Training and operation manuals and materials
All sales manuals and materials
An initial supply of printed materials and forms
Access to all vendor purchasing programs

What is the rate of royalty I pay?

Oberweis franchisees initially pay a royalty of 1% of the first $750,000 of annual sales and 17% of annual sales above $750,000. This is done to financially underscore our commitment to your success. When your sales are below $750,000, we earn very little royalty; however, both you and we share in a store's growth.

Additionally, we will allow you a one-time option to move your store to a fixed 5.5% (of store revenue) royalty if you prefer as you become more successful. Also, we may collect an additional 0.5% contribution to the National Advertising Fund. This fund is used for the promotion of the brand and trademarks, never to support the sale of additional franchises.

How long will it take for me to get a business operating?

Typically from 9-15 months for an existing location and 12-24 months for a new construction location after signing your franchise agreements, based on your sense of urgency, completion of the site selection process and construction requirements, store equipment delivery, hiring of the managers and staff, along with the scheduling of your training class.