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rita's italian ice business plan

FDD Talk 2021: Rita’s Italian Ice Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

Last updated on September 5, 2022 by Franchise Chatter Leave a Comment in FDD Talk: Food Franchises , Franchise Earnings , Frozen Dessert Franchise

Rita's Italian Ice Photo by infinitesmilesx

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In this FDD Talk post, you’ll learn the following:

  • Section I – Background information on the Rita’s Italian Ice franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Rita’s Italian Ice franchise, based on Item 7 of the company’s 2021 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Rita’s Italian Ice franchise, based on Items 5 and 6 of the company’s 2021 FDD
  • Section IV – Number of franchised and company-owned Rita’s Italian Ice outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD
  • Section V – Presentation and analysis of Rita’s Italian Ice’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:
  • 2020 average, median, highest, and lowest gross sales for the top tier, middle tier, and bottom tier of the 424 Rita’s Italian Ice shops that reported gross sales during the 2020 season
  • 2020 product percentages (i.e. sales mix) for Italian ice, gelati, frozen custard, Misto shakes, Blendini/concrete, milkshakes, and miscellaneous items, as a percentage of total systemwide sales

Section I – Background Information

19 things you need to know about the rita’s italian ice franchise.

Anticipates Record-Breaking 2021 Season Following 75 New Franchise Signings Amid the Pandemic

1.  At the end of April 2021, Rita’s Italian Ice & Frozen Custard announced that even amid the ongoing COVID-19 pandemic, the company was continuing to grow. Following an impressive 2020 featuring franchise sales growth numbers that haven’t been reached since 2014, the frozen treat franchise is planning on having another banner year.

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2.  In addition to signing 75 new franchise agreements in 2020, Rita’s grew same-store sales year-over-year, expanded into new markets, and remained innovative in order to keep its teams and guests safe in a time of uncertainty.

3.  The brand kicked-off the year with an impressive first quarter with openings across Florida, Pennsylvania, and Alabama, all of which make up its strategic plan to bring the beloved concept to well over 600 markets across the country.

4.  While 2020 presented a year filled with challenges, Rita’s leadership team and franchisees found opportunities with new ways to grow, adapt, and expand their offerings in local communities. Many implemented third-party delivery, curbside pick-up, and some even built drive-thrus to keep communities safe and maintain social distancing. These innovations are still an active part of Rita’s strategy today and have fueled growth that will surely impact overall performance as the brand enters the busy spring and summer seasons.

5.  One of Rita’s franchisees went above and beyond to propose the creation of a DIY Treat Take Home Kit. This kit allows families to take home custard, Italian ice, and toppings to mix & match and “do it themselves” from the comfort of home. The piloted kit was such a success in 2020 that Rita’s has rolled out the DIY Treat Take Home Kit nationwide this year.

6.  Linda Chadwick, CEO of Rita’s Italian Ice & Frozen Custard, said, “Rita’s locations across the country served as a sweet escape throughout 2020 and will continue to be there for our guests in every capacity in 2021. Prospective franchisees saw firsthand that Rita’s brand loyalty, adaptive systems and innovative thinking helped the brand achieve positive growth amid a difficult year.”

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Signs Milestone Multi-Unit Agreement to Bring First Location to Kentucky

7.  At the beginning of May 2021, Rita’s Italian Ice & Frozen Custard announced that it was expanding into Kentucky. The brand signed its latest multi-unit deal to bring franchise locations to the state with the first slated to open in 2021. The agreement was finalized with a multi-generational family franchise team.

8.  Soon to be a neighborhood favorite, the franchise group has already secured a location for their first shop at 1840 Christian Care Way – right off of Campbell Lane in the heart of the city. The 1,500 square foot location will feature a drive-thru, a dine-in area for guests to enjoy treats on the spot, and will be open year-round.

9.  The local franchise is owned and operated by a husband-and-wife team, David and Erin Smith, with the addition of Erin’s mother, Christine Hillard. Before moving to Bowling Green in 2002, David and Erin lived in Pennsylvania and would frequent their neighborhood Rita’s. While they fell in love with the Bowling Green community, they were disappointed to find out there were no Rita’s locations nearby.

10.  Two decades and three kids later, the Italian ice franchise was still top of mind for the Smiths. In 2020, the two started researching franchises to invest in – Rita’s was first on the list. When they brought Erin’s mother, Christine, to try the Italian ice, she was immediately hooked.

11.  David Smith said, “Rita’s has always held a special place in our hearts, so when the opportunity arose to invest, we were incredibly excited to have the opportunity to bring the brand to Kentucky. Erin, Christine and I can’t wait to introduce our neighborhood to a business that has meant so much to our family – we hope to one day pass this business down to our children. And, while Rita’s may not be a household name in Kentucky yet, you can bet it will be soon.”

12.  Prior to becoming Rita’s franchisees, Christine, David, and Erin have all been passionate about helping others and giving back to their local community. Erin works as a teacher at an area school, while David has spent the last two decades working at an auto body shop. Christine will bring her wealth of business management to the group as she’s currently a part-owner and operator of 27 radio stations throughout Kentucky and Tennessee. Christine will head up behind the scenes operations, such as bookkeeping and marketing, and David will be the day-to-day partner, leveraging his years of customer service experience.

13.  Christine Hillard added, “David and Erin have been long-time fans of the brand. When they brought me in, I was immediately impressed with the quality of the product, but also with the support of the Rita’s team. They have really perfected the franchise sales and development process, and have continued to provide expertise on everything from marketing to training to real estate selection. David, Erin and I all feel confident in our choice to invest in the Rita’s brand, and we know the community will fall in love with it just as we did!”

Company History

14.  Rita’s Italian Ice (also called Rita’s Water Ice) was founded in 1984 by Bob Tumolo from his front porch in a suburb of Philadelphia, Pennsylvania. Tumolo’s Italian ice was based on a recipe that he acquired from an elderly neighbor and then adjusted it to enhance the flavors and feature fresh fruit.

15.  Following his early success, Tumolo opened a storefront in Bensalem, Pennsylvania, where Rita’s Italian Ice is still headquartered. After a few years, Tumolo opened a second location and started franchising the concept in 1989.

16.  Over the next few decades, Rita’s Italian Ice continued to expand around the country and new items were added to the menu, including frozen custard, sundaes, milkshakes, fat-free soft serve, and numerous items that blend Italian ice with Rita’s other products.

17.  The Tumolos owned and operated Rita’s until 2005, when the family sold the business to McKnight Capital Partners, a private equity group with extensive franchise experience. Less than a decade later, a controlling interest in Rita’s Italian Ice was acquired by Falconhead Capital. In 2017, Argosy Private Equity and MTN Capital acquired a controlling stake in Rita’s from Falconhead Capital.

18.  Today, there are Rita’s Italian Ice & Frozen Custard locations in more than 31 states.

Entrepreneur’s Franchise 500

19.  Rita’s Italian Ice did not rank on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

  • Please click here for detailed estimates of Rita’s Italian Ice franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Please click here for detailed information on Rita’s Italian Ice’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

  • Outlets at the Start of the Year:  591
  • Outlets at the End of the Year:  565
  • Net Change:  -26
  • Outlets at the Start of the Year:  565
  • Outlets at the End of the Year:  564
  • Net Change:  -1
  • Outlets at the Start of the Year:  564
  • Outlets at the End of the Year:  532
  • Net Change:  -32

Company-Owned

  • Outlets at the Start of the Year:  0
  • Outlets at the End of the Year:  0
  • Net Change:  0

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

  • This Item 19 presents information about the financial performance of certain Shops that operated at a minimum during the period starting March 1, 2020 and ending September 30, 2020 (the “2020 Season”).
  • Rita’s Italian Ice has not made permanent, material changes to its concept as a result of the COVID-19 pandemic (the “Pandemic”).

Part 1 – Reported Gross Sales for Shops Systemwide Open During at Least the 2020 Season

  • Except as noted below, Part 1 reflects reported Gross Sales data for Shops Systemwide that were continuously operating during at least the 2020 Season and reported Gross Sales for the 2020 Season. Rita’s Franchise Agreements require all Shops operating under the System to operate for the entire Season.
  • Shops that are Seasonal are only required to operate for the Season, and Shops that are Year Around must operate the entire year. Shops that are Seasonal are permitted, at their option, (i) to open before the Season starts and (ii) to close after the Season ends.
  • The reported Gross Sales data in Part 1 includes Gross Sales for both Seasonal and Year Around Shops. There were 71 Year Around Shops and 353 Seasonal Shops operating during the 2020 calendar year.
  • Some Shops that are Seasonal (i) are located in resort towns/cities and operated for less than the 2020 Season, and (ii) operated for longer than the 2020 Season (in some cases, the entire 2020 calendar year). The data reflects the Gross Sales for the entire period that each Shop operated in 2020.
  • Gross Sales for each Shop includes any sales through Mobile Units and/or Satellites operating under such Shop’s Franchise Agreement. Many System franchisees actively pursue Catering Activities and Mobile Events at a location other than the Shop. The reported Gross Sales data in Part 1 includes Catering Activities and Mobile Events for Shops that engage in those opportunities. Franchisees who do not pursue these opportunities may be negatively affected and have less Gross Sales.
  • The figures reflected in Part 1 (i) reflect 424 Shops that reported Gross Sales during the 2020 Season (the “2020 Sample”), and (ii) do not include 16 Shops (excluded from the Sample) that operated for the 2020 Season but closed at some point in 2020 or were terminated at some point in 2020 (because such Shops were generally in winddown mode and/or operating with a reduced staff and a product offering limited to their remaining inventory).
  • There were 134 Shops in the 2020 Sample that reported between 1 and 6 weeks where they did not maintain full operations due to Restrictions & Orders or other issues related to the Pandemic. Of those 134 Shops, the average Shop reported 1 week where they did not maintain full operations due to Restrictions & Orders or other issues related to the Pandemic and the median weeks those Shops did not maintain full operations due to Restrictions & Orders or other issues related to the Pandemic was 3 weeks.
  • Additionally, because of the Pandemic and Restrictions & Orders, many Shops were limited or prohibited from engaging in Catering Activities and Mobile Events during the 2020 Season. Many walk-in Shops also faced Restrictions & Orders that limited the capacity of guests in the Shops.
  • During the 2020 Season, many of the Shops in the 2020 Samples offered products through third-party delivery services (e.g., Uber Eats, Grubhub, DoorDash), preorder pickup, and curbside service which became a focus because of the Pandemic and Restrictions & Orders.
  • The 2020 Sample excludes 7 Express Shops that are located in special venues or captive venues (the “Excluded Special and Captive Shops”) that did not open in 2020 because of Restrictions & Orders. The Excluded Special and Captive Shops remain operational but are temporarily unable to provide services until the Restrictions & Orders are lifted and/or the venues reopen.
  • Of the Shops in the 2020 Sample, 7 of the Shops did not operate their Satellites because those Satellites were located in special venues or captive venues that did not open in 2020 because of Restrictions & Orders. Therefore, those 7 Shops did not have revenue from their Satellites in 2020.
  • Part 1 divides the Sample into three categories (Top Tier, Middle Tier, and Bottom Tier), based on their Gross Sales as compared with the sales for the 424 total Shops considered in arriving at these figures. Each average represents the average Gross Sales for Shops within each Tier. High sales and low sales represent the Shops within each tier that attained the highest and lowest Gross Sales.
  • Number of Shops in Tier:  141
  • Highest Gross Sales for Tier:  $705,764
  • Lowest Gross Sales for Tier:  $271,332
  • Average Gross Sales for Tier:  $352,771
  • Number of Shops in Tier That Obtained or Exceeded Average Gross Sales for Such Tier:  62 (44.0% of the Top Tier and 14.6% of the 2020 Sample)
  • Median Gross Sales for Tier:  $342,925

Middle Tier

  • Number of Shops in Tier:  142
  • Highest Gross Sales for Tier:  $271,282
  • Lowest Gross Sales for Tier:  $202,939
  • Average Gross Sales for Tier:  $239,230
  • Number of Shops in Tier That Obtained or Exceeded Average Gross Sales for Such Tier:  73 (51.4% of the Middle Tier and 17.2% of the 2020 Sample)
  • Median Gross Sales for Tier:  $240,504

Bottom Tier

  • Highest Gross Sales for Tier:  $201,607
  • Lowest Gross Sales for Tier:  $43,192
  • Average Gross Sales for Tier:  $151,508
  • Number of Shops in Tier That Obtained or Exceeded Average Gross Sales for Such Tier:  85 (60.3% of Bottom Tier and 20% of the 2020 Sample)
  • Median Gross Sales for Tier:  $161,647

Part 2 – Mix of Menu Items Sold Systemwide in 2020

  • Part 2 reflects the mix of menu items sold systemwide during the 2020 calendar year. The figures in the table below reflect the sales of each menu item as a percentage of total systemwide sales during the 2020 calendar year.
  • Italian Ice:  29.8%
  • Gelati:  27%
  • Custard:  19.6%
  • Misto Shake:  4.3%
  • Blendini/Concrete:  6.2%
  • Milkshakes:  4.1%
  • Miscellaneous:  9%
  • Total:  100.0%
  • Rita’s and its affiliates do not own any Shops and, therefore, the financial performance representation is not based on any company or affiliate-owned Shops.
  • The financial performance representation figures do not reflect the cost of goods, operating expenses, or other costs or expenses (i.e. rent) that must be deducted from the Gross Sales figures to obtain potential net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in opening and operating a Shop.
  • Many of the Shops included in this data have been open and operating for years. These franchisees have achieved their level of sales after spending many years building customer goodwill at a particular location. A newly-opened business should not be expected to achieve sales volume (or maintain expenses) similar to those of an established business.
  • The sales results for a Shop are affected by a number of factors including but not limited to:
  • whether the Shop has a Satellite and/or engages in Mobile Events and Catering;
  • weather conditions in the market;
  • the physical location of the Shop;
  • local demographics (including daytime and residential population and income levels);
  • site characteristics (i.e. visibility, traffic count, ease of ingress and egress, parking availability);
  • the offering of online ordering and/or curbside service;
  • the presence of a walk-up window and/or drive thru;
  • seasonality (particularly in colder climates);
  • local competition;
  • brand and product awareness in the market;
  • the number of Shops in the market;
  • the use of third-party delivery apps in the market;
  • the presence of a Cooperative in the market; and
  • your individual marketing efforts.
  • Sales may also be affected by other factors such as the length of the seasons, unusual weather events, and road construction affecting traffic patterns.
  • Sales may also be affected by the strength of and public reception to the Rita’s brand in the market, the length of time the Rita’s brand has been in the market, by overall brand marketing within the market (which is determined by the number of Shops in the media market and whether there is a Cooperative in the media market), by flavor availability, by the overall public familiarity with Italian ice in the market, and by the overall public desire for Italian ice and custard in the market.
  • Rita’s does not make any promises or representations of any kind that you will achieve any particular results or level of sales or profitability or even achieve break-even results in any particular year of operation.

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Rita's Italian Ice

FREE Franchise Guide!

Rita's Italian Ice is an international chain that offers Italian ice, frozen custard, and other unique creations. The company was founded by a former firefighter, Bob Tumolo, who named it after his wife, Rita. He felt he could improve the Italian ice product. With the help of his mother, he did. Tumolo accomplished his goal, creating what was then called "water ice."

In May 1984, Rita's Italian Ice opened its first store. The second store opened in 1987, and in 1989 the family decided to start selling franchises. Now there are more than 500 locations in multiple states across the U.S. Rita's Italian Ice is a major player in offering specialty sweet treats. These include frozen custard, Italian ice with real fruit, frozen drinks, and much more. Rita's Italian Ice offers many sweet treats, potentially guaranteeing that there is something for everyone.

In 2017, Argosy Private Equity and MTN Capital acquired Rita's Franchise Company. The company continues to search for willing franchisees to expand its reach. 

Why You May Want to Open a Rita's Italian Ice Franchise

As one of the company's commitments to the community, Rita's usually gives out free regular-sized Italian ice on the first day of spring. The company typically also gives back to communities every year with fundraising events for sports, health, organization, and school teams.

What Might Make Rita's Italian Ice a Good Choice?

If you consider opening a Rita's Italian Ice franchise, you should make sure you are financially stable enough to cover the initial investment made up of a franchise fee and other startup costs. Additionally, you should prepare yourself for ongoing fees that will consist of royalty fees, advertising fees, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.

Typical terms of agreements for Rita’s Italian Ice franchisees last for 10 years. At the conclusion of those ten years, you can seek to renew your franchise for a sum if the franchisor wishes to remain in business. 

Rita's Italian Ice is a family-oriented business that generally tries to provide a location for many families to gather. Rita's Italian Ice enjoys being a contributor to their community. They offer birthday parties, large or small. No matter the size, Rita's Italian Ice generally provides the sweets. Rita's Italian Ice usually provides various ice cream choices for their special Party Pack as well. 

How To Open a Rita's Italian Ice Franchise

Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. Look around your community and decide if they could benefit from the presence of a Rita’s Italian Ice franchise. Are there other companies that specialize in water ice and frozen custard in your area? Does the community seem likely to be accepting of a water ice franchise?

Rita's Italian Ice might require their franchisees to go through a few weeks of training to become an effective part of the team. Rita's Italian Ice is ready to support you with your fresh franchise.

Find Your Perfect Franchise

Company Overview

About rita's italian ice, business overview, information for franchisees.

Here's what you need to know if you're interested in opening a Rita's Italian Ice franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

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Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

Additional details about running this franchise.

Take our quick quiz to find your ideal franchise

Franchise 500 Ranking History

Compare where Rita's Italian Ice landed on this year's Franchise 500 Ranking versus previous years.

Additional Rankings

Curious to know where Rita's Italian Ice ranked on other franchise lists? Find out below.

Ranked #424 in 2024

Franchise 500

Ranked #5 in Miscellaneous Frozen Desserts in 2022

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Are you eager to see what else is out there? Browse franchises that are similar to Rita's Italian Ice.

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The Untold Truth Of Rita's Italian Ice

Cup of lemon flavor Rita's Italian Ice

As soon as the weather gets warmer, there's nothing like a frozen sweet treat that hits the spot on a sunny afternoon. Sure, you could go for a scoop of ice cream , but you could also go for a refreshing cup of Italian ice. And fortunately, you don't have to travel to Italy to get it—you can simply head over to your neighborhood Rita's Italian Ice. With more than  600 locations across 30 states, Rita's has become a summertime staple for kids and adults alike, serving up its namesake Italian ice, as well as frozen custard, soft serve ice cream, and more to hungry fans.

While you may know your favorite flavor (Cookies and Cream, anyone?) and your favorite toppings ( whipped cream , of course), you may be surprised to learn more about the national chain, like how it all started and what the most popular flavors are. Here are some of the lesser-known facts about Rita's Italian Ice.

Rita's started on a front porch in Philadelphia

We love a good start-up story—and the history of Rita's Italian Ice doesn't disappoint. It all begin in 1984, when a former Philadelphia firefighter by the name of Bob Tumolo decided to sell Italian ice from his front porch in Bensalem, a suburb of Philly, as a way to make a little extra money. With the help of his mother, Elizabeth, Bob perfected his recipe using fresh fruit. The name of his new endeavor? Rita's, in honor of his wife (via Santa Clarita Magazine ).

Just three years later, by the end of 1987, Bob and his brother John had expanded to three additional locations across Philadelphia. Given the high demand, in 1989, Bob chose to start franchising out Rita's, and the rest—as they say—is history. The only downside? According to Thrillist , Bob sadly divorced Rita in 2005. 

You can get free Rita's Italian Ice on one day every year

The only thing better than Rita's Italian Ice is free Rita's Italian Ice. That's what you can get on the first day of spring every year at your local stop. It's been an annual tradition at the chain for more than 25 years, and is something that fans look forward to when March rolls around. "Just our way of kicking off the season—and spreading a little happiness," Rita's says on its website . The event began in 1992 and, according to Lehigh Valley Live , has given out millions of free cups of Italian ice across the country every year on that day alone. 

Unfortunately for customers, due to the COVID-19 pandemic, Rita's canceled the Italian ice giveaway in 2020 and again in 2021 to avoid large crowds and in order to keep everyone safe, Penn Live reports. They're the only times that Rita's has had to call off the annual event.

There are over 95 Rita's flavors made fresh every single day

If you're someone who likes a lot of options when it comes to Italian ice, you'll love the extensive lineup at Rita's. The chain offers a rotating cast of more than 95 unique flavors, each of which is made fresh in-store every morning. Some of the  flavors include Florida Orange, Chocolate, Cookies and Cream, Margarita, and even Unicorn. According to Thrillist , every batch must be sold within 36 hours of mixing, so you can ensure you're getting a fresh cup whenever you go. 

Not sure which one to choose? You likely can't go wrong with Mango, which Rita's reveals in its FAQ section is the most popular flavor among customers. Runners-up include Cherry and Swedish Fish. For the health-conscious, you can also opt for Rita's new All-Natural Italian Ice , which the company says is made without any artificial colors or flavors.

It was originally called Rita's Water Ice

You may know it now as Rita's Italian Ice, but the popular attraction wasn't always called that. The national chain actually started out as Rita's Water Ice. If you're confused, you're not alone—many people don't know the difference between Italian ice and water ice. And here's the plot twist: There is no difference. According to Wide Open Eats , Italian ice and water ice are exactly the same thing. They're a non-dairy frozen treat that's made from blending ice and sweetened fruit juice together for a texture slightly firmer than a smoothie . Water ice is merely the Philadelphia slang term for Italian ice.

Some Philly locals may disagree, though. Eater describes water ice as "looser than Italian ice and smoother than shaved ice" and something that's exclusive to Philadelphia. Regardless of what you call it, however, Rita's recipe has remained largely unchanged (and delicious) since the chain first opened its doors.

Rita's offers an extended menu at select locations

Rita's may be most famous for its Italian ice and other assortment of frozen treats—including custards, Gelatis (layers of Italian ice and custard), and Blendinis (Italian ice and custard blended together)—but the chain also has a few non -frozen treats. They aren't offered everywhere, but if you're lucky to live close to one of the Rita's locations with an extended menu, they're worth checking out. One of the most popular special snacks is the Custard Cookie Sandwich, which Rita's describes as "a treat that's hard to beat." You'll get the company's famous frozen custard sandwiched between your choice of fluffy chocolate chip cookies or Oreo cookies and, if you're feeling extra, a heavy helping of sprinkles.

Thrillist also reports that select stores have additional food on the menu, like soft pretzels (called "Tasty Twisters"). And in 2015, Rita's partnered with Sandella's Flatbread Cafe to start offering wraps, paninis, and even flatbread pizzas in some shops. Hungry yet?!

As the CEO of Rita’s, I know that franchise business ownership can change lives

Franchising helps people of all backgrounds, genders, and abilities earn a living, provide for their families, and chase their dreams.

Business owner Aaron Anderson at his Rita's Italian Ice location in Philadelphia, Friday, March 26, 2021.

For many of us, summers are marked by barbecues, beaches, and baseball. Nothing pairs better with each than a tasty treat like Italian Ice or frozen custard — especially after a Phillies win.

As President and CEO of Rita’s Italian Ice & Frozen Custard , I have a front-row seat to watching kids, families, and entire communities make those lasting memories. Our passion for serving up happiness has led to growth for our brand. What started as a front-porch business founded by a retired Philadelphia firefighter in the spring of 1984 now has over 550 shops nationwide and is 100% franchised. This means that the national brand owns no shops, and all Rita’s locations are owned by individual entrepreneurs.

Earlier this year, I had the opportunity to appear on CBS’s Undercover Boss to get an inside look at three of our Rita’s franchise locations around the country — even serving up smiles and many Italian ices, frozen custards, and gelatis myself. But as I visited these local franchise businesses, I quickly discovered something I didn’t expect. Rita’s is more than just the delicious creamy custard and tart Italian ice we serve. We are a community of people, a franchise community, passionate about the local businesses we represent in cities and towns across the nation.

Owning a franchise can be life-changing. Take Hezrron Gonzales, an immigrant from the Philippines who started with us as a Treat Team member, proved himself and climbed the ladder fast, then became the owner of his own Rita’s in Tom’s River, New Jersey. I met Stefani Nieves, too — a single mother — who used franchise ownership as a vehicle to improve her family’s life in Holland, Michigan. Chip Byers and Andrew Collins, franchisees devoted to creating a more inclusive society in Lake Buena Vista, Florida, showed me what it means to be committed to your community by hiring individuals with disabilities and autism.

While each local franchise owner I met was different, they all left me in awe. I am proud to be a part of a franchise that works to help people of all backgrounds, genders, and abilities earn a living, provide for their families, and chase their dreams.

The franchise industry offers this same opportunity to Americans every day. When someone opens their own store, they are largely on their own. But when a person buys a store that’s part of a franchise, they have access to support, resources, and guidance from brands. As a result, franchises help make owning a business accessible for many aspiring entrepreneurs. In fact, nearly one-third of all local franchise business owners say they would not be able to own a business without the franchise model.

The support of the franchise business model has been especially valuable for entrepreneurs who may face bigger hurdles, like women and people of color. The International Franchise Association estimates that 26% of franchises are owned by people of color , compared with 17% of independent businesses. Evidence suggests that the franchise model is a helpful tool to encourage higher rates of entrepreneurship among women , too.

“Franchise owners are in business for themselves — not by themselves.” Linda Chadwick

Business ownership has never been more important. With the economy slowly rebounding from the turbulence caused by the global pandemic, our local franchise owners face challenges finding workers and planning for the future. Fortunately, the franchise model means that no small business owner has to tackle these challenges alone. The support of a proven business and a franchise network means that our local franchise owners are in business for themselves — not by themselves.

As the International Franchise Association’s “Open for Opportunity” Roadshow rolled into Philadelphia last week, it facilitated a conversation about diversity in franchising at Thomas Jefferson University, a discussion around supporting franchisees at CertaPro in Audubon, and an event featuring local franchisees and elected officials to discuss the state of the franchise sector at our headquarters in Trevose. It’s a great time to pay attention to the many unique stories that the franchising industry has to offer — stories like that of Hezrron, Stefani, Chip, and countless others.

Franchise businesses like Rita’s offer our communities more than just sweet treats. We offer the opportunity to make any American Dream a reality.

Linda Chadwick is President and CEO of Rita’s Franchise Company, LLC headquartered in Trevose, Pa.

About Rita's

Rita's didn't invent Italian Ice, but we certainly made it cool. That's what happens when you combine Italian Ice and happiness. And yes, in case you were wondering, there really was a Rita.

Ice. Custard. Happiness. It's a simple, straightforward Promise. And one we work hard to make good on. Every day. In every location. With every Guest.

Everyone has a calling in life. At Rita's, ours involves serving up heaping helpings of our one-of-a-kind happiness.

Cool University

We don't think of it as training so much as taking great people, teaching them the art of happiness, and letting them loose on the world.

Own a Rita's

The business that first started on a front porch in Philadelphia is now one of today's freshest and fastest growing franchise concepts with opportunities across the country and around the world.

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rita's italian ice business plan

While the answer can depend on a variety of factors, we strive to increase the Rita’s revenue potential for our franchisees with a scalable business model and low-cost operations that focus on profit margins. In our Franchise Information Center (FIC), we offer a detailed look at the Financial Performance Representations section of our current Franchise Disclosure Document (FDD) to give you a better idea of what Rita’s owners make.

While restaurant experience is very helpful, it is not required. We are looking for someone who is passionate about customer service, willing to get involved in their community and can be both a leader and a team player. Financially, we require candidates to have a minimum of $100,000 in liquid assets and a net worth of at least $300,000.

The Rita’s investment can vary based on several factors, but the standard shop ranges from $194,863 to $528,061. For a detailed breakdown of the startup costs, fill out the form on this page to access our FIC.

We serve two core products, Italian ice and frozen custard, in a variety of ways for a simple menu in a pared-down business model that is relatively easy to run.

Rita’s marketing boosts business through methods like community involvement, traditional advertising and digital and social media outreach. We offer hands-on support that helps franchisees stand out from the crowd, highlighting the uniqueness and quality of our product.

We have plenty of room nationwide for single-unit and multi-unit operators. Our simple operations enable us to fit a Rita’s franchise into a flexible array of spaces, so that you can find a great spot with potentially much lower real estate costs. There are also a number of ways franchisees can grow their business, from opening more stand-alone stores to operating food trucks, mobile carts and catering.

We work with our franchisees to analyze each market and determine whether a seasonal or a year-round franchise is the best fit. Some franchisees stay open year-round, either full- or part-time, which can help them bring in revenue to help with fixed costs like leases. Other franchisees simply use the off-season to recharge, spend time with family, attend to other business ventures or focus on opening more locations.

Yes, in all the best possible ways. Frozen custard must contain at least 1.4% egg yolk. It’s like a cross between soft-serve, due to its soft and creamy texture, and hard-packed ice cream, with its smooth texture and depth of flavor.

Glad you asked. Our Italian ices, also known as “water ice” in the Philadelphia area, are like the Italian dessert known as granita, in which juices and other flavored liquids are frozen to a certain consistency. By maintaining quality ingredients and the right temperature, Rita’s Italian Ice, which comes in over 70 flavors, is a delicious treat you can enjoy with a straw.

This information is not intended as an offer to sell a franchise. We will not offer you a franchise until we have complied with disclosure and registration requirements in your jurisdiction. Contact Rita’s Franchise Company, LLC, located at 1210 Northbrook Drive, Suite 310, Trevose, PA 19053 to request a copy of our Franchise Disclosure Document (FDD). RESIDENTS OF NEW YORK: This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the New York Department of Law.

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Rita’s Is My 26-Year-Old Ritual

Perfectly situated between water ice and custard, an order of chocolate gelati is the summer treat I never miss out on

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A photo-collage shows a person’s hand holding a quart of Rita’s Italian ice up to the sky.

I’ve eaten no fewer than 26 orders of Rita’s gelati in my life, but almost certainly far more. I’ve had at least one each summer since the year I moved to this country, right into the heart of water ice territory (Pennsylvania). In most places, Rita’s is known as Rita’s Italian Ice. Where I’m from, it’ll never be anything but water ice, though I never quite picked up the accent to prove it.

The gelati, as defined by Rita’s, solves the problem of having to choose between water ice, which is the chain’s flagship product, and custard, which is inarguably its better option. The latter is so thick it would pass the flip test if this were another nostalgic frozen-dessert chain. The gelati is both at once: a foundation of custard, a thick middle of water ice, a final swirl of custard at the top. It’s the best thing at Rita’s — for me, as much a marker of the season as hearing the twinkling tones of the ice cream truck or eating a tomato sandwich.

At this point, I should have a ranking. I should be able to state with certainty the best flavor to pair with chocolate, the best with vanilla. I should have realized that you can swirl the two. Rita’s has been hard at work on its menu; there was no Sour Patch Kids watermelon nor “mermaid” gelati when I was growing up. But I’ve only ever had one order. When I was little, I chose chocolate water ice with chocolate custard, because I was the age when my praxis was “More chocolate is always better,” and then I never changed my mind again. My gelati is no longer a choice but an inevitability, the same way I know that I’ll get sand in my beach BLT.

You can eat a gelati by burrowing straight down to strike the lower layer of custard, spoonful by spoonful, or you can excavate it one layer at a time. I’m a burrower; I want a little bit of everything at once. The gelati offers a few distinct textures, and I like how the distinct layers custard and Italian ice bleed together without the homogeneity of a Blendini, Rita’s offering which blends custard and water ice into a uniform texture. On top, is custard in its purest form, a thick and perfect dollop. Beneath it is pure slush, crystals that almost crackle when they come into contact with teeth. Below that lies custard that’s softened and pliable like stirred ice cream. It mixes slightly with the melting slush; this is, after all, exactly where you put your utensil. Burrow a spoon down, and melted gelati pools in the opening. That’s my favorite part: slurpable syrup that tastes like a cold, liquified Tootsie Roll.

At most places, I don’t order the same thing twice, and that’s if I even go back more than once. I’m drawn to variety and compelled by novelty. At Rita’s, however, I require repetition, not just in flavor but also in experience. This is the ideal Rita’s experience: I must drive there in a car; I must order a gelati and then wrap a few napkins around it, preventing both melting and stickiness; then I must eat my gelati while sitting in the car’s popped trunk. Rita’s, to me, is meant to be eaten in a parking lot, and for this reason, I see it as an exclusively suburban pleasure. I only visit it when I’m home, by which I mean Southeastern Pennsylvania.

It feels funny to call it “home” when I haven’t lived there in over a decade. A lot has changed. Walmarts and Wawas have replaced the empty lots. Vape stores fill up old storefronts. Still, every time I go back, I’m shocked by how much is the same. The strip-mall salons and pizza joints persist. The mall maintains its imposing presence. The diners look as anachronistic as they ever did. So many former classmates still live nearby that I walk through grocery stores warily. What becomes clear in these circumstances is how much I’ve changed: how wide the gap has grown between the self I am in the moment, and the self I remember who lived here, the one who saw no other place as home.

Every gelati is different in the way that the teenagers working at Rita’s are always replaced by another set of teenagers. Its melting quickens or slows depending on the weather, or how hungry I am. But every gelati is also effectively the same. Or at least, it conjures the same experience. Eating it, I remember that I was 6, with my parents in this exact parking lot. Then, the concept of “water ice” was still as weird to us as the idea of Wal-Mart ( Did they sell walls? I remember thinking when my dad, full of immigrant eagerness, suggested we go there for the first time), or the way locals referred to the creek (“crick”), or how they asked “How’s it going?” (“What’s ‘it’?” we thought).

In this parking lot, I eat my gelati overlooking the set of orange traffic pylons where I learned to parallel park. With a spoonful, suddenly I’m 16. My dad is telling me to cut the wheel to the left once my shoulder passes the pylon. The green station wagon awkwardly clunks into place. I’m 26 here too, visiting with my now-husband. He’s never quite gotten the appeal of Rita’s, but he always indulges my nostalgia tour anyway.

In another Rita’s parking lot, the one that’s on the crest of the hill next to my high school, I eat the gelati while watching the sunset. I was 17 here, getting dessert on my way home from Key Club meetings. Then, I was 20, visiting with the few high school friends I’d still catch up with over breaks, before that fateful moment when one of us decided to come home without texting the other. I remember how, at that point, we were more likely to drive by this parking lot past-closing; we preferred to hang out at the hookah bar.

I was 24 here too, when my family and I got Rita’s to commemorate my sibling’s graduation. I remember the feeling of untethering: Soon, they’d be leaving town, one thing keeping me rooted vanishing.

In Pennsylvania now, I am too aware that there is no way to ever go back to feeling rooted. It is a home, but it is not my home and likely won’t be ever again. Home is New York City, where instead of water ice we have a cavalcade of competing ice cream trucks. Here, I say I’m not a “dessert person,” forgoing it most of the time. Even when I do get dessert, I almost never choose chocolate anymore. That I feel so out of place in Pennsylvania these days is a reality softened by the understanding that there is a place where I feel entirely myself — this other home that I’ve chosen and built.

And of course, there is the gelati. It’s always the same gelati, just as it is always almost exactly the same view, though the bowling alley across the street is now a car dealership. When these pieces of summer are the same, it feels easier for me to be the thing that’s different. I’ll eat the same chocolate gelati at 36 as I did when I was 6. The gelati is a tether. It awakens and allows me to move through all these memories.

This gelati is not ultimately a forgone conclusion, I know. I am capable of choosing differently. I am, after all, a different person. But by giving up my control over this one little thing, I give myself the gift of another feeling: that I can freeze-frame, rewind, and stop time, even if only for as long as it takes water ice to melt. In all those memories, I wouldn’t change a thing.

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Rita's Ice

  • OWN A RITA’S

Cool Career Opportunities

Just because you work for a living doesn’t mean it can’t be fun.

At Rita’s, our number one job is creating Happiness. Not a bad occupation, don’t you think?

Corporate Positions

We are always looking for talented professionals to join the fastest growing Italian Ice concept in the nation as part of our full-time Cool Support Center staff headquartered in Trevose, PA. We offer competitive salaries and a comprehensive benefit program, including tuition assistance, a 401K program, and of course, the inside scoop on Rita’s tasty treats!

Please click on any of the job titles below for more information or submit your resume to Human Resources at: [email protected] .

Store Positions

If you are interested in working at your local independently owned Rita’s store, please apply in person or visit their individual website by using our  store locator  to browse to their website and select the  Join the Team  link at the bottom of the page.

Store Locator Link:   Click link at left to find a local Rita’s store close to you!

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rita's italian ice business plan

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COMMENTS

  1. Start a Rita's Franchise Company Franchise, 2024 Costs & Fees

    To buy a franchise with Rita's Franchise Company, you'll need to have at least liquid capital of $100,000 and a minimum net worth of $300,000. Franchisees can expect to make a total investment of $194,863 - $528,061. They also offer financing via 3rd party as well as a discount for veterans ( 20% off Franchise Fee ).

  2. business model Archives

    Higher margins and simple operations help Rita's owners expand with mobile units, venues. With simple operations and high margins, mobile business and special venues offer Rita's owners a big Italian ice business opportunity in a small package Rita's franchisees can expand their business in a number of ways, like food trucks, Express Units...

  3. Own a Rita's Italian Ice Franchise

    Rita's Italian Ice is a fun and unique frozen dessert business with a dedicated customer following. See if we're the right franchise opportunity for you! ... To start a Rita's, you and/or your business partners need at least $100,000 available to invest and a net worth of $300,000. Feel free to explore the opportunity by clicking "learn ...

  4. Rita's Italian Ice Franchise Financial Model

    Rita's Italian Ice Franchise Financial Model. The model presented above is an example. Fully editable financial model template in Excel format specifically built for Rita's Ice franchises with the latest Franchise Disclosure Document. 5-year financial projections. 3 pro forma financial statements. 20+ charts & metrics (breakeven, ROI, etc.)

  5. Rita's Italian Ice Franchise Costs, Fees, Revenues, Profits (2022 Review)

    Rita's Italian Ice's initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company's 2022 FDD: Initial Franchise Fee: $10,000 to $35,000. Royalty: 6.5% of estimated sales on Rita's Mix Items and/or 6.5% of Gross Sales on Menu Items that are Non-Mix Items or Non-Mix Items charged as an additional fee.

  6. Rita's Italian Ice Franchise Review

    Less than a decade later, a controlling interest in Rita's Italian Ice was acquired by Falconhead Capital. In 2017, Argosy Private Equity and MTN Capital acquired a controlling stake in Rita's from Falconhead Capital. 18. Today, there are Rita's Italian Ice & Frozen Custard locations in more than 31 states. Entrepreneur's Franchise 500. 19.

  7. Puerto Rican migrant becomes a Rita's Italian Ice franchisee

    Alfano taught herself English, and worked as an office manager for many years before opening her first business with Rita's Italian Ice in New Jersey, which she has owned for 21 years.

  8. Start a Rita's Italian Ice Franchise in 2024

    Initial investment. $293K - $673K. Units as of 2023. 533 6% over 3 years. Jump to Franchising Overview. Rita's Italian Ice is an international chain that offers Italian ice, frozen custard, and ...

  9. 3 reasons to own a Rita's franchise

    2. Flexible footprints and investment. Rita's offers a variety of service models from carts, kiosks and trucks to a walk-up, walk-in or dine-in footprint. Average startup costs on a walk-up range from $108,700 to $294,300. The affordable startup costs allow you to grow your business and scale up more quickly than you might with other franchises.

  10. Rita's Italian Ice

    Rita's Franchise Company, LLC, doing business as Rita's Italian Ice (originally and now informally known as Rita's Water Ice), is a privately owned and operated American quick service restaurant chain originating in the Philadelphia metropolitan area that expanded throughout and now operates primarily in the Mid-Atlantic United States.The chain is known for its Italian ice or "water ice" and ...

  11. The Untold Truth Of Rita's Italian Ice

    We love a good start-up story—and the history of Rita's Italian Ice doesn't disappoint. It all begin in 1984, when a former Philadelphia firefighter by the name of Bob Tumolo decided to sell Italian ice from his front porch in Bensalem, a suburb of Philly, as a way to make a little extra money. With the help of his mother, Elizabeth, Bob ...

  12. Home

    Download the Rita's app to start earning points toward a free treat. Virtually punch your card every time you visit your local Rita's location. Rita's Italian Ice is a restaurant chain, based in Bensalem, Pennsylvania, which sells mainly Italian ice, frozen custard, and specialty creations.

  13. As the CEO of Rita's, I know that franchise business ownership can

    As President and CEO of Rita's Italian Ice & Frozen Custard, I have a front-row seat to watching kids, families, and entire communities make those lasting memories.Our passion for serving up happiness has led to growth for our brand. What started as a front-porch business founded by a retired Philadelphia firefighter in the spring of 1984 now has over 550 shops nationwide and is 100% franchised.

  14. About Us

    IT STARTED IN THE SUMMER OF 1984…. Bob Tumolo, a former Philadelphia firefighter, opened a small Italian Ice business on his front porch in a suburb of Philly. That first shop, named after his wife, Rita, was created to offer the best-tasting, highest-quality Italian Ice. Today, Rita's is in over 30 states, serving up Ice, Custard, and ...

  15. Rita's Ice Digital Menu Boards

    Rita's didn't invent Italian Ice, but we certainly made it cool. That's what happens when you combine Italian Ice and happiness. And yes, in case you were wondering, there really was a Rita. ... Own a Rita's. The business that first started on a front porch in Philadelphia is now one of today's freshest and fastest growing franchise concepts ...

  16. Jamie's Italian ice business plan

    This document outlines a business plan to sell Italian ices by day and a frozen alcoholic treat by night. This product will be distributed from a push cart located in the heart of New Paltz. Through data, research, and my own personal findings, a complete breakdown of the company is discussed in detail. This breakdown includes the company ...

  17. FAQ's

    Rita's marketing boosts business through methods like community involvement, traditional advertising and digital and social media outreach. ... Our Italian ices, also known as "water ice" in the Philadelphia area, are like the Italian dessert known as granita, in which juices and other flavored liquids are frozen to a certain consistency ...

  18. Rita's Is My 26-Year-Old Ritual

    Photo illustration by Lille Allen; see below for full credits. I've eaten no fewer than 26 orders of Rita's gelati in my life, but almost certainly far more. I've had at least one each ...

  19. ALLIANCE

    Alliance. 1 review. #1 of 1 small hotel in Zheleznodorozhny. Gidrogorodok St., 3, Zheleznodorozhny 143982 Russia. Write a review. Check availability. Have you been to Alliance?

  20. Treats

    View Rita's menu of flavors. See all of our Italian ice flavors, custards, shakes, ice creams, and more!

  21. Elektrostal

    Indoor practice ice rink named after A. Ionov. Pool «Kristall» - school of the Olympic reserve: diving, synchronized swimming, swimming. Home arena hockey team Kristall Elektrostal - Ledovyi Dvorets Sporta «Kristall» in 1995 year. The city ice hockey team Kristall Elektrostal was established in 1949 and plays in the Junior Hockey League ...

  22. Geographic coordinates of Elektrostal, Moscow Oblast, Russia

    Geographic coordinates of Elektrostal, Moscow Oblast, Russia in WGS 84 coordinate system which is a standard in cartography, geodesy, and navigation, including Global Positioning System (GPS). Latitude of Elektrostal, longitude of Elektrostal, elevation above sea level of Elektrostal.

  23. Careers

    Corporate Positions. We are always looking for talented professionals to join the fastest growing Italian Ice concept in the nation as part of our full-time Cool Support Center staff headquartered in Trevose, PA. We offer competitive salaries and a comprehensive benefit program, including tuition assistance, a 401K program, and of course, the ...

  24. THE BEST Things to Do in Elektrostal with Kids (Updated 2024)

    Fun Things to Do in Elektrostal with Kids: Family-friendly activities and fun things to do. See Tripadvisor's 801 traveller reviews and photos of kid friendly Elektrostal attractions