The Original Rainbow Cone Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

2
+
n.a.
n.a.
Investment required

?

$210,000 - $3,300,000
Revenue (AUV)

?

$1,390,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$20,000 - $40,000
Royalty fees

?

6.00%
+
5.00%
Operating Profit

?

23.7%

Pro
Franchisees

?

2
+
n.a.
n.a.
Investment required

?

$210,000 - $3,300,000
Franchise fee

?

$20,000 - $40,000
Royalty fees

?

6.00%
+
5.00%
Revenue (AUV)

?

$1,390,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

23.7%

Pro

The Original Rainbow Cone: A Slice of Chicago's Sweet Legacy

The Original Rainbow Cone is a beloved ice cream franchise that began in 1926 in Chicago, Illinois. Founded by Joe and Katherine Sapp, the brand has become an iconic name known for its one-of-a-kind, layered ice cream cone.

The company is currently headquartered in Berwyn, Illinois, and has remained a staple in the Chicago area for decades. In 2019, The Original Rainbow Cone began franchising, offering entrepreneurs the chance to bring this unique dessert concept to new markets.

The franchise features a signature five-flavor ice cream cone—Chocolate, Strawberry, Palmer House (vanilla with cherries and walnuts), Pistachio, and Orange Sherbet—sliced rather than scooped. This visually striking and flavorful presentation stands out in the competitive ice cream industry.

The brand also offers traditional scoop cones, sundaes, shakes, ice cream cakes, and mini donuts, providing a full dessert experience. Its retro charm and colorful products attract both loyal locals and new visitors alike.

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.

The Original Rainbow Cone offers 3 types of franchises:

Franchise Type Initial Investment
The Original Rainbow Cone Free Standing $2,101,500 - $3,299,550
The Original Rainbow Cone In-Line $386,125 - $782,325
The Original Rainbow Cone Kiosk $209,560 - $346,400

We are summarizing below the main costs associated with opening a The Original Rainbow Cone Free Standing franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure Amount
Initial Franchise Fee$40,000
Land Acquisition$300,000 - $800,000
Site Work$200,000 - $450,000
Construction of Building$1,160,550 - $1,418,450
Travel and Living Costs While Training$19,100 - $26,200
Initial Inventory and Supplies$10,000 - $15,000
Furniture, Fixtures and Equipment (excluding Sign Package and POS)$224,200 - $283,200
Sign Package$64,000 - $88,000
POS System$5,400 - $6,600
Miscellaneous Expenses$9,000 - $37,500
Grand Opening Advertising and Marketing$10,000 - $25,000
On-Site Training Fee$24,250 - $34,600
Additional Funds – 3 Months$35,000 - $75,000
Estimated Total$2,101,500 - $3,299,550

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

2

+
n.a.
n.a.
No growth
New

$20,000 - $40,000

$210,000

-

$3,300,000

n.a.

$1,390,000

Pro

78.8%

Pro

23.7%

Pro

Food & Beverage

Training

The Original Rainbow Cone franchise provides a comprehensive suite of training programs to ensure the franchisee’s preparedness and success. These programs are structured to support both initial setup and ongoing operational excellence:

  1. Initial Training Program: The Operating Owner and designated managers must attend and complete the initial training, which includes a virtual pre-training component. This in-person program typically lasts one week for the owner and two weeks for managers. The training is conducted at franchisor-designated locations, and while the cost of instruction and materials is covered by the franchisor, all other expenses are the franchisee’s responsibility.
  2. On-Site Training and Opening Assistance: Before and immediately after the store opening, the franchisor sends representatives to provide hands-on training and operational support at the franchise location. This support lasts for a duration determined by the franchisor and involves a training fee plus travel expenses.
  3. Supplemental Education: The franchisor may periodically require franchisees and their managers to attend additional seminars, regional meetings, or webinars. These events may last up to five days annually, and the franchisor may charge a tuition fee for participation.
  4. Additional Training (Upon Request): Franchisees may request extra training sessions beyond what is standard. If granted, the franchisee must pay the franchisor’s current training fees and cover any related travel and accommodation costs.
  5. Food Truck Training (if applicable): For operations involving a food truck, the Operating Owner must complete a separate, specialized three-day training program. This ensures the mobile unit is run by properly trained staff in accordance with the Food Truck Training Manual.

Territory Protection

The Original Rainbow Cone provides limited territory protection to its franchisees under specific conditions. For Free Standing and In-Line franchises, the franchisee is granted a “Protected Area,” which typically includes either a one-half mile radius in urban locations or a minimum population-based boundary in non-urban settings.

Within this area, the franchisor agrees not to open or franchise another store under the same brand, so long as the franchisee remains in good standing with the agreement. However, this protection is not absolute. The franchisor retains the right to operate or franchise businesses at captive locations such as airports, colleges, and stadiums, even within a franchisee’s Protected Area.

In addition, the franchisor may engage in other forms of distribution—including internet sales, wholesale channels, or the establishment of similar businesses under different trademarks—which can affect the territory without providing compensation to the franchisee.

Number of units

2024
Franchised units

0

0

2

Company-owned units

4

8

14

Total units

4

8

16

Competitors

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-
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+
0%
0%

Gofer Ice Cream

Investment required
$234,000
-
$434,000
Franchisees
5
+
67%
67%

Tikiz Shaved Ice and Ice Cream

Investment required
$173,000
-
$185,000
Franchisees
38
+
27%
27%

Popbar

Investment required
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-
$461,000
Franchisees
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