The Original Rainbow Cone franchise
2025 filing · April 18, 2025GrowingShares sales figures
The Original Rainbow Cone at a glance
An ice cream shop serving Chicago's five-flavor Rainbow Cone and other frozen treats. At the end of 2024 there were 25 The Original Rainbow Cone locations in the US, 6 franchised and 19 company-owned, so most are run by the company itself.
The business
- Franchisor
- Five Flavors Franchising LLC
- The company that sells the franchises
- Franchising since
- 2019
- 6 years of selling franchises
- Franchisor based in
- Burr Ridge, Illinois
What you pay
- Cost to open
- $804K–$1.36M
- Leased free-standing shop
- Franchise fee
- $40,000
- Free-standing or in-line shop; $20,000 for an Express shop.
- Royalty
- 6%
- 6% of gross sales, paid weekly
- Brand fund
- 2%
- 2% of gross sales, paid weekly; it can rise to 3%
- Renewal fee
- $7,500
- When the agreement ends and you sign again
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2024
- 25
- Franchised and company-owned
- Franchised
- 6
- Company-owned
- 19
- Change in 3 years
- +6
- Franchised locations, 2022–2024
- States
- 6
- Most in Illinois, Florida and Indiana
From Five Flavors Franchising LLC’s 2025 filing; revenue and net loss from its audited financial statements, page 203; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
The Original Rainbow Cone among all franchises with the same figure.
| Figure | The Original Rainbow Cone | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $1,083,487 | Costs more than 85% of franchises |
| Franchise feePaid once, when you sign | $40,000 | Lower than 46% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 25 | More than 53% of franchises |
How much a The Original Rainbow Cone franchise costs
Opening leased free-standing shop costs an estimated $804,320 to $1,362,653. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements ($333,000 to $630,000) and furniture, fixtures and equipment (excluding sign package and POS) ($196,001 to $247,580). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $40,000 | ||
| Design and Architect Fees | $25,000 | $60,000 | |
| Lease, Utility and Security Deposits | $24,500 | $38,500 | |
| Lease Rental Payments – 1st 3 months | $24,500 | $52,500 | |
| Leasehold Improvements | $333,000 | $630,000 | |
| Travel and Living Costs While Training | $19,067 | $26,196 | |
| Initial Inventory and supplies | $10,000 | $20,000 | |
| Furniture, Fixtures and Equipment (excluding Sign Package and POS) | $196,001 | $247,580 | |
| Sign Package | $52,000 | $71,500 | |
| POS System | $5,200 | $8,000 | |
| Miscellaneous expenses | $9,000 | $37,500 | |
| Grand Opening Advertising and Marketing | $10,000 | $25,000 | |
| On-Site Training Fee | $21,053 | $30,877 | |
| Additional Funds – 3 Months | $35,000 | $75,000 | |
| Total | $804,320 | $1,362,653 | |
Source: Five Flavors Franchising LLC, 2025 filing, page 25
The Original Rainbow Cone franchise fee
The franchise fee is $40,000, Free-standing or in-line shop; $20,000 for an Express shop.. You pay it when you sign the franchise agreement.
Source: Five Flavors Franchising LLC, 2025 filing, page 15
Royalty and ongoing fees
| Royalty | 6% of gross sales, paid weekly. |
|---|---|
| Brand or marketing fund | 2% of gross sales, paid weekly; it can rise to 3%. |
| Renewal Fee | $7,500 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Five Flavors Franchising LLC, 2025 filing, page 16
Other fees as filed, from page 17. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures The Original Rainbow Cone publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Five Flavors Franchising LLC, 2025 filing, page 68
- Estimate Estimated yearly sales per location
- $370K–$650K
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
SBA loans to The Original Rainbow Cone franchisees
Lenders approved 3 SBA-backed loans for The Original Rainbow Cone franchisees from 2024 to 2026, $4.85M in all: 2 7(a) loans and 1 504 loan. 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 The Original Rainbow Cone compares
Of the 101 ice cream franchises on this site, The Original Rainbow Cone is the 95th cheapest to open and the 44th largest by number of locations.
| Figure | The Original Rainbow Cone | Typical ice cream brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $804K | $285K | $222K |
| Cost to open, high end | $1.36M | $597K | $477K |
| Franchise fee | $40K | $35K | $40K |
| Royalty | 6% | 6% | 6% |
| Brand fund | 2% | 2% | 2% |
| US locations | 25 | 18 | 21 |
| Closed or left per year | 0% | 3.2% | – |
| 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) | 4 | – | – |
| 2022 | 0 (0) | 8 | 0 | 0 |
| 2023 | 2 (+2) | 14 | +2 | 0 |
| 2024 | 6 (+4) | 19 | +4 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating. Company-owned shops are run by the franchisor's affiliates.
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 6 (+6). The earlier years come from the brand's 2024 filing.
Source: Five Flavors Franchising LLC, 2025 filing, page 81
2021: Five Flavors Franchising LLC, 2024 filing, page 76
Where The Original Rainbow Cone locations are
At the end of 2024, The Original Rainbow Cone had locations in 6 states. The most are in Illinois, Florida and Indiana.
- Illinois17
- Florida2
- Indiana2
- Wisconsin2
- Michigan1
- Texas1
Source: Five Flavors Franchising LLC, 2025 filing, page 82
Who owns The Original Rainbow Cone?
The Original Rainbow Cone franchises are sold by Five Flavors Franchising LLC.
From Five Flavors Franchising 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: Five Flavors Franchising LLC, 2025 filing, litigation on page 14, bankruptcy on page 15
The Original Rainbow Cone filings
A franchisor files a new disclosure each year it sells franchises. The figures on this page come from Five Flavors Franchising LLC’s 2025 filing, issued April 18, 2025; the earlier ones below are on record with the Minnesota Department of Commerce and fill in older location counts.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2025 filing | April 18, 2025 | Minnesota | 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.
Other ice cream franchises
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The Original Rainbow Cone is also on these lists: food franchises.