Franchise Deep Dive: Sub Zero Nitrogen Ice Cream Franchise Costs, Fees, Profit and Data

Sub Zero Nitrogen Ice Cream is a quick-service dessert concept that specializes in providing customers with customized, freshly made ice cream that is flash-freezed at -321 degrees using liquid nitrogen. The first Sub Zero location was opened in Orem, Utah in 2005 by Jerry Hancock , who utilized his chemistry degree from Brigham Young University to develop the innovative freezing method.

After starting from humble beginnings, Sub Zero has gained significant popularity for its approach to ice cream preparation and its commitment to offering a wide range of flavor options, including options for customers with dietary restrictions. In fact, the business also appeared on the hit television show “ Shark Tank ” in 2013.

Due to its offerings, Sub Zero claims to offer an experience “like no other in the ice cream business.”

As of September 2023, there are more than 30 Sub Zero locations open and in development across the country.

At its core, Sub Zero’s business model revolves around providing customers with the ability to create their own ice cream concoctions. With a wide array of ingredients (including vegan, lactose-free, gluten-free and sugar-free options), the dessert is then flash-frozen with liquid nitrogen for a smooth texture and visually engaging experience.

For prospective owners, the brand offers two different business models for those looking to open their own Sub Zero franchise. Individuals can choose between opening a physical storefront or operating a fully mobile franchised unit. Brick-and-mortar Sub Zero stores are more costly to open, but according to the brand’s consumer-facing website, do well in areas with heavy foot traffic.

Mobile units are completely self-contained and can accommodate customers in a variety of mobile situations and offerings. In addition to in-store operations, Sub Zero provides catering services for everything from weddings to corporate events.

The initial investment required to open a Sub Zero Ice Cream franchise varies based on the type of franchise.

• The cost to open a storefront franchise ranges from $107,450 to $267,000.

• The cost to open a mobile franchise ranges from $105,000 to $241,500.

Interested parties must also have at least $100K in verifiable liquid assets and a minimum net worth of $250K. Franchise owners are also required to pay an ongoing 6% royalty of ongoing sales and a 2% national marketing fee.

The initial franchise fee required to open a Sub Zero Ice Cream franchise depends on the type of franchise.

• Storefront franchise fee: $35,000

• Mobile unit franchise fee: $20,000

Sub Zero Ice Cream also offers a $5,000 discount on its initial franchise fee for qualified veterans and first responders.