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

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
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Gross Profit
Upgrade
EBITDA
Upgrade

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

Winchell's Donut House

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Franchisees

?

105
+
0%
0%
Investment

?

$3,000 - $72,000

Sloan's

Sloan's is an ice cream and sweets franchise offering premium ice creams, chocolates, candy, and bakery items, serving families and dessert lovers, and known for whimsical décor, indulgent flavors, and a playful, imaginative experience.

Franchisees

?

4
+
0%
0%
Investment

?

$581,000 - $1,503,000

Hokulia Shave Ice

Hokulia Shave Ice is a dessert franchise offering authentic Hawaiian shave ice with tropical syrups and add-ons, serving families and event guests, and known for generous portions, beach-inspired branding, and mobile catering flexibility.

Franchisees

?

49
+
4%
4%
Investment

?

$86,000 - $930,000

Tifa

Tifa is a dessert & café franchise offering artisan gelato, chocolates, espressos, pastries, and sweets, serving dessert aficionados and café guests, and known for its warm café atmosphere, handcrafted flavors, and community focus. :contentReference[oaicite:0]{index=0}

Franchisees

?

9
+
200%
200%
Investment

?

$500,000 - $676,000

Ice Cream Emergency

Ice Cream Emergency is a mobile dessert franchise offering on-demand ice cream trucks or carts serving events, campuses, and neighborhoods, serving dessert lovers of all ages, and known for mobility, event flexibility, and fun branding.

Franchisees

?

14
+
133%
133%
Investment

?

$147,000 - $162,000

Repicci's Real Italian

Repicci’s Real Italian is a dessert franchise offering authentic Italian ice, gelato, and frozen treats, serving families and dessert lovers, and known for real ingredients, regional recipes, and high-quality frozen desserts.

Franchisees

?

26
+
160%
160%
Investment

?

$84,000 - $173,000