Milkshake Factory franchise
2025 filing · April 30, 2025GrowingShares sales figures
Milkshake Factory at a glance
A shop selling hand-spun milkshakes, gourmet chocolates and sundaes. At the end of 2024 there were 14 Milkshake Factory locations in the US, 4 franchised and 10 company-owned, so most are run by the company itself.
The business
- Franchisor
- Milkshake Factory Franchise, LLC
- The company that sells the franchises
- Franchising since
- 2023
- 2 years of selling franchises
- Franchisor based in
- Ann Arbor, Michigan
- Typical size
- 1,300–1,800 sq ft
What you pay
- Cost to open
- $510K–$773K
- Fee, build-out and opening working capital
- Franchise fee
- $60,000
- Paid once, when you sign
- Royalty
- 6%
- 6% of adjusted gross sales in the first year of operation, rising in later years, paid weekly
- Brand fund
- 2%
- 2% of adjusted gross sales, paid monthly; it can rise to 3%
- Renewal fee
- $10,000
- When the agreement ends and you sign again
- Agreement length
- 10 years
- Territory
- Limited
- Limited protection
Where it is
- US locations, 2024
- 14
- Franchised and company-owned
- Franchised
- 4
- Company-owned
- 10
- Change in 3 years
- +4
- Franchised locations, 2022–2024
- States
- 5
- Most in Pennsylvania, Michigan and North Carolina
From Milkshake Factory Franchise, LLC’s 2025 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Milkshake Factory among all franchises with the same figure.
| Figure | Milkshake Factory | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $641,520 | Costs more than 73% of franchises |
| Franchise feePaid once, when you sign | $60,000 | Higher than 88% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 14 | Fewer than 56% of franchises |
How much a Milkshake Factory franchise costs
Opening one Milkshake Factory costs an estimated $510,492 to $772,548. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements ($155,620 to $324,364) and furniture, fixtures and equipment (“FFE”) ($163,328 to $182,997). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $60,000 | ||
| Initial Training Fee | $8,500 | ||
| Training – Costs and Expenses | $6,345 | $9,220 | |
| Lease – Security Deposit | $3,500 | $8,500 | |
| Architectural and Design Services | $21,500 | $24,000 | |
| Real Estate and Construction Management Services | $20,000 | ||
| Leasehold Improvements | $155,620 | $324,364 | |
| Furniture, Fixtures and Equipment (“FFE”) | $163,328 | $182,997 | |
| Signage (exterior) | $4,917 | $10,944 | |
| Initial Inventory (pre-opening) | $14,976 | $22,604 | |
| Computer System and IT Equipment (and any initial Required Software fees) | $14,000 | $20,530 | |
| Interior Signage | $8,500 | $15,500 | |
| Opening Marketing Spend | $11,913 | $16,500 | |
| Professional Fees | $1,258 | $2,890 | |
| Business Permits and Licensing | $635 | $4,499 | |
| Insurance – Deposit and 3 Months of Premiums | $500 | $1,500 | |
| Additional Funds – 3 Months | $15,000 | $40,000 | |
| Total | $510,492 | $772,548 | |
Source: Milkshake Factory Franchise, LLC, 2025 filing, page 17
Milkshake Factory franchise fee
The franchise fee is $60,000. You pay it when you sign the franchise agreement.
Source: Milkshake Factory Franchise, LLC, 2025 filing, page 8
Royalty and ongoing fees
| Royalty | 6% of adjusted gross sales in the first year of operation, rising in later years, paid weekly. |
|---|---|
| Brand or marketing fund | 2% of adjusted gross sales, paid monthly; it can rise to 3%. |
| Renewal Fee | $10,000 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Milkshake Factory Franchise, LLC, 2025 filing, page 10
Other fees as filed, from page 13. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Milkshake Factory publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Milkshake Factory Franchise, LLC, 2025 filing, page 49
- Estimate Estimated yearly sales per location
- $550K–$960K
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
SBA loans to Milkshake Factory franchisees
Lenders approved 9 SBA 7(a) loans for Milkshake Factory franchisees from 2025 to 2026, $6.44M in all. None has been paid off or charged off yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
How Milkshake Factory compares
Of the 101 ice cream franchises on this site, Milkshake Factory is the 87th cheapest to open and the 55th largest by number of locations.
| Figure | Milkshake Factory | Typical ice cream brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $510K | $285K | $222K |
| Cost to open, high end | $773K | $597K | $477K |
| Franchise fee | $60K | $35K | $40K |
| Royalty | 6% | 6% | 6% |
| Brand fund | 2% | 2% | 2% |
| US locations | 14 | 18 | 21 |
| Shares earnings figures | Yes | 76 of 101 | 2,147 of 3,352 |
Typical is the median across the 101 brands in ice cream franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 0 (0) | 8 | – | – |
| 2022 | 0 (0) | 9 | 0 | 0 |
| 2023 | 0 (0) | 10 | 0 | 0 |
| 2024 | 4 (+4) | 10 | +4 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: ice cream franchise costs and franchise failure rates.
Over 4 years, from the start of 2021 to the end of 2024, franchised locations went from 0 to 4 (+4). The earlier years come from the brand's 2024 filing.
Source: Milkshake Factory Franchise, LLC, 2025 filing, page 56
2021: Milkshake Factory Franchise, LLC, 2024 filing, page 57
Where Milkshake Factory locations are
At the end of 2024, Milkshake Factory had locations in 5 states. The most are in Pennsylvania, Michigan and North Carolina.
- Pennsylvania10
- Michigan1
- North Carolina1
- Texas1
- Utah1
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| Pennsylvania | 0 | 10 | 10 |
| Michigan | 1 | 0 | 1 |
| North Carolina | 1 | 0 | 1 |
| Texas | 1 | 0 | 1 |
| Utah | 1 | 0 | 1 |
Source: Milkshake Factory Franchise, LLC, 2025 filing, page 56
Who owns Milkshake Factory?
Milkshake Factory franchises are sold by Milkshake Factory Franchise, LLC.
From Milkshake Factory Franchise, LLC’s 2025 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Milkshake Factory Franchise, LLC, 2025 filing, litigation on page 8, bankruptcy on page 8
Milkshake Factory filings
A franchisor files a new disclosure each year it sells franchises. The figures on this page come from Milkshake Factory Franchise, LLC’s 2025 filing, issued April 30, 2025; the earlier ones below are on record with the NASAA Electronic Filing Depository and the Minnesota Department of Commerce and fill in older location counts.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2025 filing | April 30, 2025 | NASAA depository | Costs, fees and locations, 2022–2024 |
| 2024 filing | – | Minnesota | Locations, 2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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