Milkshake Factory Franchise FDD, Costs & Fees (2025)

Milkshake Factory is a dessert franchise offering gourmet milkshakes and chocolate products. Franchisees benefit from a well-established brand, marketing support, and a business model that focuses on delivering high-quality treats.

The MilkShake Factory is a premium dessert franchise offering handcrafted milkshakes and gourmet chocolates. Founded in 1914 by Greek immigrants Charlie and Orania in Pittsburgh, Pennsylvania, the business began as a small soda fountain and chocolate shop.

In 2003, the fourth generation of the family rebranded it as the MilkShake Factory, and in 2023, the company officially began franchising.

Now headquartered in Ann Arbor, Michigan, the MilkShake Factory features a menu of signature milkshakes made with housemade ice cream, decadent sundaes, dairy-free options, and artisanal chocolates.

The brand sets itself apart with century-old family recipes, top-tier ingredients, and a focus on operational simplicity for franchisees.

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 $60,000
Initial Training Fee $8,500
Training – Costs and Expenses $6,345 to $9,220
Lease – Security Deposit $3,500 to $8,500
Architectural and Design Services $21,500 to $24,000
Real Estate and Construction Management Services $20,000
Leasehold Improvements $155,620 to $324,364
Furniture, Fixtures and Equipment (FFE) $163,328 to $182,997
Signage (exterior) $4,917 to $10,944
Initial Inventory (pre-opening) $14,976 to $22,604
Computer System and IT Equipment (and any initial Required Software fees) $14,000 to $20,530
Interior Signage $8,500 to $15,500
Opening Marketing Spend $11,913 to $16,500
Professional Fees $1,258 to $2,890
Business Permits and Licensing $635 to $4,499
Insurance – Deposit and 3 Months of Premiums $500 to $1,500
Additional Funds – 3 Months $15,000 to $40,000
TOTAL $510,492 to $772,548
Type of Expenditure Amount
Initial Franchise Fee $60,000
Initial Training Fee $8,500
Training – Costs and Expenses $6,345 to $9,220
Lease – Security Deposit $3,500 to $8,500
Architectural and Design Services $21,500 to $24,000
Real Estate and Construction Management Services $20,000
Leasehold Improvements $155,620 to $324,364
Furniture, Fixtures and Equipment (FFE) $163,328 to $182,997
Signage (exterior) $4,917 to $10,944
Initial Inventory (pre-opening) $14,976 to $22,604
Computer System and IT Equipment (and any initial Required Software fees) $14,000 to $20,530
Interior Signage $8,500 to $15,500
Opening Marketing Spend $11,913 to $16,500
Professional Fees $1,258 to $2,890
Business Permits and Licensing $635 to $4,499
Insurance – Deposit and 3 Months of Premiums $500 to $1,500
Additional Funds – 3 Months $15,000 to $40,000
TOTAL $510,492 to $772,548

Milkshake Factory

2025

Franchise Disclosure Document

Number of units

Training

The Milkshake Factory offers a robust training program designed to prepare franchisees and their teams for effective operation of the business. The training is composed of several structured components, each addressing different aspects of running a franchise unit.

  1. Initial Training Program
    This mandatory program consists of three main components: Technical Training, Business Training, and On-Site Pre-Opening Support. Technical Training spans six days and focuses on operational skills, while Business Training lasts three days and covers management and business fundamentals. These sessions are conducted either in Pittsburgh or Ann Arbor, or virtually, and must be completed by the Franchisee Owner Operator and their Assistant General Manager.
  2. On-Site Pre-Opening Support
    Up to five days of in-person guidance are provided at the franchise location by a member of the franchisor’s training team. This includes staff orientation and support during the initial setup and opening phase.

Territory Protection

Milkshake Factory provides territory protection to its franchisees through a designated area called the “Designated Territory.” Once a franchisee secures an approved location, the franchisor defines a surrounding geographic area within which it agrees not to open or authorize another shop using its system and marks, as long as the franchisee remains in compliance.

This area is specified in the franchise agreement and typically includes a two-mile radius or a defined population zone.

However, the protection is limited. The franchisee does not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or different distribution channels under other brands.

Competitors

Below are some of

Milkshake Factory

key competitors in the

Ice Cream

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
Sign up
Gross Profit
Sign up
EBITDA
Sign up

4

New
+
n.a.
n.a.

$60,000

$510,000

$773,000

n.a.

$655,000

$xxx,xxx

69.1%

xx%

n.a.

14.3%

xx%

n.a.

Competitors

Fosters Freeze

Fosters Freeze is a quick-service restaurant franchise offering burgers, sandwiches, and soft-serve desserts, serving families and everyday diners, and known for California heritage, nostalgic drive-in vibes, and a menu of classic comfort food and signature soft-serve treats enjoyed across generations.

Franchisees

?

61
+
-5%
-5%
Investment

?

$178,000 - $1,009,000

The Dolly Llama

The Dolly Llama is a dessert franchise offering Belgian waffles, waffle cones, and artisan ice cream, serving families, students, and social media–savvy dessert lovers, and known for over-the-top creations, Instagram-ready presentation, and a fun, modern café environment.

Franchisees

?

3
+
n.a.
n.a.
Investment

?

$162,000 - $473,000

I Scream Gelato

I Scream Gelato is a gelato-and-dessert franchise offering artisan gelato, sorbets and Italian-style sweets, serving families and dessert fans, and known for handcrafted product, high-quality ingredients and upscale café ambience.

Franchisees

?

1
+
n.a.
n.a.
Investment

?

$224,000 - $452,000

Tipsy Scoop

Tipsy Scoop is a dessert-bar franchise offering alcohol-infused ice creams and boozy creations in a social lounge setting, serving young adults and nightlife patrons, and known for inventive flavors, trendy atmosphere, and strong franchise growth opportunities.

Franchisees

?

2
+
n.a.
n.a.
Investment

?

$224,000 - $348,000

Yogurtland

Yogurtland is a self-serve frozen-yogurt franchise offering premium flavors, toppings, customization and café environment, serving dessert lovers and families, and known for global reach, brand strength and franchisee-friendly model.

Franchisees

?

194
+
-3%
-3%
Investment

?

$232,000 - $637,000

MILLIE’S HOMEMADE

MILLIE’S HOMEMADE is a bakery-café franchise offering cookies, brownies, desserts and café beverages, serving family-friendly shoppers and gift buyers, and known for made-from-scratch recipes, warm ambiance and scalable franchise design.

Franchisees

?

4
+
n.a.
n.a.
Investment

?

$65,000 - $485,000