16 Handles Franchise FDD, Costs & Fees (2025)

16 Handles is a frozen yogurt chain offering a variety of self-serve frozen yogurt flavors and toppings, providing customers with a customizable and delicious dessert experience.

16 Handles is a fast-casual, self-serve frozen yogurt and dessert franchise founded in New York City’s East Village in 2008 by Solomon Choi. The brand name reflects its concept—offering 16 rotating flavors at any time—and its signature self-serve format invites customers to fully customize their treats.

Headquartered at 450 Park Avenue South in Manhattan, 16 Handles began franchising in 2010.

In August 2022, the company was acquired by its largest franchisee, Neil Hershman, who now serves as CEO. He partnered with YouTube star Danny Duncan, who took on the role of Chief Creative Officer, to help lead a new phase of brand expansion.

The 16 Handles menu includes frozen yogurt, all-natural ice cream, vegan oat milk soft serve, real-fruit sorbets, smoothies, shakes, Fro-Yo cakes, waffle bowls, pints, and more than 50 toppings. The brand also offers a loyalty app, branded delivery packaging, and grab-and-go options, making it a tech-friendly and versatile dessert destination.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $30,000
Rent and Security Deposit $5,000 to $30,000
Utility and Other Deposits $500 to $3,000
Architect and Design Fees $7,500 to $20,000
Leasehold Improvements $60,000 to $180,000
Exterior Signage $3,000 to $12,000
Furniture, Fixtures and Equipment $110,000 to $310,000
Smallwares $2,500 to $5,000
POS System and BackOffice Computer; License Fee $500 to $2,000
Office Equipment and Supplies $500 to $2,000
Business Licenses & Permits $500 to $2,000
Professional Fees $500 to $5,000
Initial Inventory of Food and Paper Supplies $5,000 to $10,000
Insurance (Initial 3 Months) $1,000 to $3,000
Training Expenses (Travel and Accommodation) $500 to $3,000
Grand Opening Marketing $8,000
Additional Funds (for initial period of operations) $7,500 to $20,000
Total Estimated Initial Investment $242,500 to $645,000
Type of Expenditure Amount
Initial Franchise Fee $30,000
Rent and Security Deposit $5,000 to $30,000
Utility and Other Deposits $500 to $3,000
Architect and Design Fees $7,500 to $20,000
Leasehold Improvements $60,000 to $180,000
Exterior Signage $3,000 to $12,000
Furniture, Fixtures and Equipment $110,000 to $310,000
Smallwares $2,500 to $5,000
POS System and BackOffice Computer; License Fee $500 to $2,000
Office Equipment and Supplies $500 to $2,000
Business Licenses & Permits $500 to $2,000
Professional Fees $500 to $5,000
Initial Inventory of Food and Paper Supplies $5,000 to $10,000
Insurance (Initial 3 Months) $1,000 to $3,000
Training Expenses (Travel and Accommodation) $500 to $3,000
Grand Opening Marketing $8,000
Additional Funds (for initial period of operations) $7,500 to $20,000
Total Estimated Initial Investment $242,500 to $645,000

Franchise Disclosure Document

Competitors

Below are some of

16 Handles

key competitors in the

Ice Cream

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
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Gross Profit
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EBITDA
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29

New
+
0%
0%

$30,000

$243,000

$645,000

n.a.

$631,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

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Number of units

Training

16 Handles provides a structured training program to equip franchisees and their staff with the skills needed to successfully operate a store. The training is mandatory and spans pre-opening instruction, on-site guidance, and ongoing educational opportunities.

  1. Initial Training Program: Before opening, the Designated Principal and up to two managers (maximum three people) must complete a 12-day training course at a location designated by the franchisor. The training covers store operations, with instructional materials provided. The franchisor waives the tuition fee for the first three attendees but all travel-related expenses must be covered by the franchisee.
  2. On-Site Opening Assistance: For up to four days around the store’s launch, a franchisor representative provides hands-on support at the franchisee’s premises. This includes standardizing operations and assisting in staff training.
  3. Training for Additional or Replacement Managers: If a manager leaves or additional staff need training, the franchisee may train them internally, provided the trainer is certified. Otherwise, these individuals must attend the franchisor’s training at the franchisee's expense.

Territory Protection

16 Handles grants each franchisee a Designated Territory where no other franchise using its proprietary marks and system will be established. This protection lasts for the duration of the franchise agreement and ensures the franchisee can operate without internal brand competition from similar outlets.

The size of the territory is outlined in the agreement and depends on whether the store is in an urban or suburban location. However, this territory is not exclusive in the broader sense. 16 Handles retains the right to open or license outlets at “non-traditional sites” such as airports or stadiums within any area, including inside a franchisee’s territory.

Additionally, the franchisor may distribute products through alternate channels like the internet, grocery stores, or mobile vending, without owing any compensation to the franchisee for sales made within their designated area.

Competitors

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Gofer Ice Cream

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5
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67%
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Tikiz Shaved Ice and Ice Cream

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+
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Popbar

Popbar serves handcrafted gelato, sorbet, and frozen yogurt on a stick with customizable dips and toppings for a delightful treat.

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Sub Zero Nitrogen Ice Cream

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Milkshake Factory

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Franchisees

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4
+
n.a.
n.a.
Investment

?

$510,000 - $773,000