Fosters Freeze Franchise Growth 2023: 61 Units, -2 Last Year

Contents

Key facts


Fosters Freeze franchise at a glance — core figures from the 2023 Franchise Disclosure Document:

Investment (Item 7)

$612K - $1.0M

Franchise fee

$45K

Royalty

4%-8% of Gross Sales

Franchised units

61

Item 19 earnings

$1.3M median

This data is from the 2023 FDD, 3 years old. Fees, unit counts, litigation, and other terms may have changed — always request the current FDD directly from Fosters Freeze International, LLC before making investment decisions.

Shrinking Network — Net -2 units in the reported period

More locations closed than opened. Investigate root causes before investing.

Unit Counts (Item 20)

Franchised Units

Industry avg: 261

65th percentile

Company-Owned

Total System

Years Operating

Openings & Closures (Item 20)

Units Opened

Industry avg: 20 opened

0.0% open rate

Units Closed

Industry avg: 9 closed

3.3% closure rate

Net Growth

-3.3% net growth rate

Network contracting

Industry Benchmark Comparison

How Fosters Freeze compares to 749 other Food & Beverage franchises in the database.

Total Units

Avg: 261 61

Units Opened

Avg: 20 0

Units Closed

Avg: 9 2

Lower is better for closures

Closure Rate Analysis

3.3%

Low closure rate — healthy network

Fewer than 5% of units closed in the reported period. This is a positive indicator of franchisee satisfaction and operational viability.

Healthy

0 – 5%

Moderate

5 – 10%

Elevated

> 10%

Compare Fosters Freeze's growth to Food & Beverage industry averages — unit counts, opening rates, closure analysis, and network health indicators.

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Full Franchise Overview

Growth data is one piece of the puzzle. Review Fosters Freeze's complete profile — financials, fees, territory rights, litigation history, and more — on the overview page.

View Full Profile

Why Fosters Freeze Franchise Unit Growth Data Matters

Item 20 of the Fosters Freeze franchise FDD is the most predictive single section in the document. The table tracks how many units opened, closed, transferred, or were terminated across the system over the past three years. A franchise that grew 15% per year tells a very different story than one that stayed flat or shrank — even if both have identical Item 19 revenue numbers.

Closures vs. transfers: The two columns mean different things. A closure means a franchisee shut down and walked away — usually because the unit wasn't profitable. A transfer means the unit changed hands but stayed open — which can be neutral (retirement, relocation) or negative (the original franchisee couldn't make it work and sold to escape). High transfer rates without growing closures often signal an unhappy franchisee base that's exiting at first opportunity.

Healthy benchmark: Annual closure rates of 5% or less are typical for healthy food & beverage systems. Closure rates above 10% per year suggest unit-level economics are stressed somewhere — labor costs, royalty load, market saturation, or all three. Look at the trend, not just the absolute number — closures rising year over year is a stronger signal than a single bad year.

Cross-reference Fosters Freeze franchise unit growth with the franchisor's pipeline (units in development) and any geographic concentration. A system that's growing in absolute count but only in one region may be hitting saturation in its core market. Talk to franchisees from Item 20 in different geographies to triangulate whether the growth story holds nationally or is a regional phenomenon.

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Data shown is extracted from the 2023 Franchise Disclosure Document filed with state regulators. Fees, investment ranges, and other terms may have changed since this filing. Always request the current FDD directly from the franchisor before making any investment decisions. This information is not financial, legal, or investment advice. Full disclaimer.

Frequently Asked Questions

Investment (Item 7)

$612K - $1.0M

Franchise fee

$45K

Royalty

4%-8% of Gross Sales

Franchised units

61

Item 19 earnings

$1.3M median

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