Franchise Deep Dive: Dippin' Dots Franchise Costs, Fees, Profit and Data

Dippin’ Dots has been in business for over 30 years. In 1988, microbiologist Curt Jones combined his knowledge of cryogenic technology with his love for ice cream. Dippin’ Dots is the world’s largest beaded ice cream brand and has redefined the sweet treat.

Dippin’ Dots rose in popularity in the ‘90s. The ice cream made its first appearance in an amusement park in 1989 in Opryland in Nashville, Tennessee. In 1995, it made its international debut in Japan. In 2000, the ice cream brand began franchising. It was founded in Paducah, Kentucky and is still headquartered there today. In 2012, Dippin’ Dots was acquired by Scott Fischer, CEO of Fischer Capital, for $12.9 million. In 2022, the company was then sold to J&J Snack Foods, owner of Icee, Real Italian Ice and more, for $222 million.

Dippin’ Dots’ is a powerhouse of an ice cream brand. There are over 22,000 points of access for Dippin’ Dots across the world. Many of the access points are in malls, fairs and amusement parks.

The Dippin’ Dots model includes co-brand opportunities with its sister company Doc Popcorn, which was acquired by Dippin’ Dots in 2014. Most franchisees take their business mobile, serving Dippin’ Dots at thousands of fairs and festivals—from food trucks and mobile carts and in schools and convenience stores.

According to Dippin’ Dots’ 2022 Franchise Disclosure Document, the brand does not report any information about a franchise’s financial performance or a company-owned location’s financial performance. Employees and representatives are not authorized to share such information either. If you were to buy an existing location, you may be provided with records for that outlet.

To open a Dippin’ Dots, you need a minimum net worth of $250,000 and minimum liquid capital of $80,000. The initial investment cost is $119,704 to $366,950. When opening a Dippin’ Dots, you are technically purchasing two brands: Dippin’ Dots and Doc Popcorn. When you buy your ice cream, the royalty and ad royalty are already built into the price the franchisee pays. The franchisee does not pay any additional fees on Dippin’ Dots. Doc Popcorn charges a 6% royalty on gross revenues, excluding the Dippin’ Dots sales. Additionally, each franchisee currently contributes 1% of gross revenues.

A breakdown of the fees according to Entrepreneur is below.

Initial Franchise Fee: $15,000 Initial Investment: $119,704 to $366,950 Net Worth Requirement: $250,000 Cash Requirement: $80,000 Veteran Incentives: 15% off franchise fee Royalty Fee: Varies Ad Royalty Fee: Varies Term of Agreement: Five years Is the franchise term renewable?: Yes

The franchise fee for Dippin’ Dots is $15,000.

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