Candy Cloud

Candy Cloud Franchise FDD, Costs & Fees (2025)

Candy Cloud specializes in gourmet cotton candy and other sweet treats, providing a fun and indulgent experience with a variety of unique flavors.

Candy Cloud is a vibrant quick-service beverage franchise. It was founded in 2022 in Rockford, Illinois. The brand is now headquartered in Machesney Park, Illinois.

The company launched its franchise program around March 2022, with its first franchised unit opening soon after.

Candy Cloud offers a mix of specialty coffee, boba drinks, layered ice-cream beverages, lemonade, horchata, and seasonal treats.

It features over 20 core menu items with monthly and seasonal rotations. Signature drinks are served in branded cans, making them visually striking and social-media friendly. The franchise model is backed by sleek digital ordering tools and fast three-minute service. It blends innovation with convenience to stand out from big chains.

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$40,000
Leasehold Improvements$75,000 – $170,000
Lease Deposits$3,967 – $15,000
Architect & Engineer Fees$7,000 – $10,000
Furniture and Fixtures$2,600 – $2,860
Equipment$85,000 – $110,000
Computer Equipment$7,000
Software – 3 months$1,200
Internal System Fee$600
Misc. Equipment & Supplies$3,475 – $3,823
Accounting Service – 3 months$2,400
Signage$8,000 – $15,000
Smallware$2,500 – $2,750
Uniforms$400 – $700
Initial Inventory$8,000 – $15,000
Rent (3 months)$11,900 – $45,000
Utilities (3 months)$2,100 – $2,700
Utility Deposit$0 – $900
Insurance$2,100 – $2,850
Your Training Expenses$5,000 – $7,000
Marketing Campaign$6,000
Professional Fees$3,000 – $4,000
Business Permits and Licenses$500 – $2,000
Additional Funds – 3 months$15,000 – $20,000
Total$292,742 – $486,783

Franchise Disclosure Document

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Competitors

Below are some of

Candy Cloud

key competitors in the

Coffee & Tea

sector.

Started franchising
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Franchise fee

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Gross Profit

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Home-based

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Passive investment

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FDD
Candy Cloud
2022
0
+
n.a.
n.a.
$40,000
6.00%

$293,000

-

$487,000

n.a.

$0

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n.a.

n.a.

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n.a.

n.a.

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No
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No
Yes
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Yes
2011
5
+
67%
67%
$30,000
6.00%

$88,000

-

$517,000

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n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2011
76
+
62%
62%
$45,000
5.00%

$466,000

-

$597,000

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n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2017
14
+
17%
17%
$35,000
6.00%

$244,000

-

$490,000

Upgrade

n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2020
5
+
150%
150%
$30,000
6.00%

$269,000

-

$576,000

Upgrade

n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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No
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No
Yes
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Yes
2017
18
+
125%
125%
$35,000
6.00%

$1,594,000

-

$3,314,000

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n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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2020
2
+
n.a.
n.a.
$50,000
6.00%

$155,000

-

$299,000

Upgrade

n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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Upgrade

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Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

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Franchise Disclosure Documents
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Training

Candy Cloud provides franchisees with a detailed and multi-phase training program designed to ensure a consistent and successful franchise launch and operation.

  1. Initial Management Training
    Candy Cloud offers initial management training at a designated location, typically including their affiliate-owned outlet in Rockford, Illinois. This training is required for the majority owner and up to two managers, and completion is mandatory before operating the franchised business. The franchisor covers the cost of instructors and materials for these individuals, but franchisees must cover all travel and accommodation expenses.
  2. On-Site Opening Support
    During the soft opening phase, the franchisor provides on-site training, supervision, and assistance for up to six days. This helps franchisees and their staff apply training in real-world operations directly within the new location. The trainer's expenses during this period are generally the responsibility of the franchisor unless additional services are requested.
  3. Annual Training & Conferences
    Franchisees are required to attend mandatory annual training, conferences, or national business meetings, which can last up to five days. Attendance is crucial and non-compliance is considered a default under the Franchise Agreement. Associated costs, including a $750 registration fee and all travel expenses, are borne by the franchisee.

Territory Protection

Candy Cloud grants its franchisees a limited form of territory protection. While franchisees do not receive an exclusive territory, the franchisor agrees not to open another Candy Cloud outlet within the defined territory, as long as the franchisee remains in compliance with the agreement.

This area typically consists of a minimum two-mile radius defined by ZIP codes or other geographic boundaries and is formalized in the franchise documents.

Despite this protection, Candy Cloud reserves significant rights to operate within a franchisee’s territory through other distribution channels. The franchisor may authorize sales of similar or competing products through third-party retailers, online platforms, or non-dedicated locations not branded as Candy Cloud.

Number of units

2023
Franchised units

0

0

0

Company-owned units

0

0

1

Total units

0

0

1

Competitors

Kahala Coffee Traders

Franchisees

?

5
+
67%
67%
Investment

?

$88,000 - $517,000

It's Boba Time

Franchisees

?

76
+
62%
62%
Investment

?

$466,000 - $597,000

7 Leaves

Franchisees

?

14
+
17%
17%
Investment

?

$244,000 - $490,000

Junbi

Franchisees

?

5
+
150%
150%
Investment

?

$269,000 - $576,000

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