How to Finance an Always Ice Cream Company Franchise: Shop Costs
By Marc Cornella
An Always Ice Cream Company franchise loan funds a scoop shop from a Maryland-based ice cream brand that now invites franchise inquiries on its website. Because the system is small and its fees are not published online, the financing work starts with the Franchise Disclosure Document (FDD) and a careful build-out budget rather than with brand-wide averages.
This article explains what the company says about itself, what an ice cream shop typically costs to open, how the brand’s SBA Franchise Directory listing and its two notes affect an Always Ice Cream Company franchise loan, and how to put together a request a lender can approve.
US Professional Funding is not affiliated with, sponsored by or endorsed by Always Ice Cream Company; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice, so review the current FDD and franchise agreement with a franchise attorney and an accountant before you sign.
Always Ice Cream Company Franchise Loan at a Glance
- Concept: handcrafted, ultra-premium ice cream made in-house and served from scoop shops, a food truck and catering packages.
- Roots: grew out of a long-running shop on the main street of Annapolis, Maryland, that still operates as Annapolis Ice Cream Company.
- System size: the company’s website lists 11 scoop shop locations in Maryland plus a food truck.
- Menu: more than 200 flavors on rotation, including vegan flavors and flavors with pies, cakes and cheesecakes swirled in.
- Franchising: the company’s franchise page invites inquiries from people interested in opening a location.
- Fees and investment: not published on the franchise page; the initial fee, royalty, marketing fee and Item 7 investment range must come from the current FDD.
- SBA Franchise Directory: listed under code S8524, with two notes about lease addenda and lien position.
What Is Always Ice Cream Company?
Always Ice Cream Company was created by the owners of Annapolis Ice Cream Company, a shop they ran for years on the main street of Annapolis. The company says that shop has been voted the best ice cream in Annapolis every year since 2004, and it describes the newer brand as a focus on premium ice cream paired with modern shop design.
Product and positioning. The company calls its product award-winning, ultra-premium and handcrafted, made with wholesome and uncomplicated ingredients. Flavors rotate, vegan options are part of the lineup, and many recipes fold whole pies, birthday cakes and cheesecakes into the ice cream.
More than scoops. Beyond its shops, the company runs a food truck that can be booked for events, sells catering packages, offers nationwide shipping of pints, sells gift cards and runs a rewards program. Its website also lists a wholesale program. For a franchisee, the key question is which of those revenue lines a franchised shop is allowed to offer and which stay with the company.
How lenders see the brand. Lenders will view it as an emerging franchise system: a strong local reputation but a short franchised track record, so the borrower’s experience, reserves and site plan carry extra weight. See our article on financing a newer franchise system.
Always Ice Cream Company Franchise Costs
The company’s franchise page does not list fees or investment figures, so every number in your loan request should come from the current FDD. Here is how to think about each category while you wait for that document.
Initial franchise fee. Item 5 of the FDD discloses the initial fee, when it is due and whether it is refundable. Ask whether there is a reduced fee for a second shop or a development fee for several shops. Lenders can usually finance the franchise fee as part of a start-up loan, but they will want to see it in the sources and uses.
Real estate and build-out. A scoop shop needs a counter, freezer and dipping cabinet space, prep and dish areas, restrooms and seating. Costs depend on whether you take a second-generation food space or raw shell space and on any landlord allowance, so get contractor bids early. Our page on financing a restaurant build-out covers construction draws.
Equipment. Expect dipping cabinets, freezers, refrigeration, display cases, point-of-sale hardware, small wares and signage.
Opening costs and working capital. Budget for inventory, packaging, training travel, grand-opening marketing, insurance, permits and early payroll. Because ice cream is seasonal, working capital should cover slow winter months too.
Total investment. Item 7 of the FDD gives the estimated initial investment range. When you receive it, check these line items and make sure your own budget totals match:
- Initial franchise fee
- Leasehold improvements and construction
- Furniture, fixtures and equipment, including freezers and dipping cabinets
- Signage and exterior graphics
- Opening inventory and packaging
- Training expenses and travel
- Rent, security deposits and utility deposits
- Licenses, permits, insurance and professional fees
- Grand-opening marketing
- Additional funds for the initial operating period stated in the FDD
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists the royalty, any marketing or brand fund contribution, technology fees, transfer and renewal fees and any required remodel obligations. These fees come off the top of revenue before you pay rent, payroll and your loan, so lenders build them into every projection.
How lenders use the numbers. A lender subtracts cost of goods, labor, rent, royalty and marketing fees from your sales projection and compares what remains with the annual loan payment. If shops must buy product from the company or an approved source, Item 8 explains the rules. Because sales are seasonal, expect a request for a month-by-month cash flow.
Franchisor Requirements for New Owners
The company’s franchise page does not list a minimum net worth or liquid capital requirement. The inquiry form asks for your preferred location, a description of your background and why you are interested in Always Ice Cream, which suggests the company screens for fit and market before sharing the FDD.
What to ask during discovery. Request the current FDD, ask about any net worth or liquidity minimum, how many franchised shops are open or in development, and where new owners train.
Ways to Own an Always Ice Cream Company Shop
A new franchised shop. Most buyers in a young system will open a new location. That means a franchise start-up loan covering the fee, build-out, equipment and working capital.
Buying an existing location. If franchised shops change hands in the future, a buyer can use acquisition financing based on the shop’s historical financials. Item 17 of the FDD explains transfer conditions and fees. See our article on buying a franchise resale for how lenders review existing units.
More than one shop. If development rights are offered, financing usually happens one shop at a time.
Financing Options for an Always Ice Cream Company Franchise
SBA 7(a) loans. Because the brand appears on the SBA Franchise Directory, an SBA 7(a) loan can fund the franchise fee, build-out, equipment, opening inventory and working capital in one package. This is often the first option a buyer looks at for a leased scoop shop.
SBA 504 loans. If you plan to buy a building or a freestanding pad for your shop, an SBA 504 loan can finance the real estate and long-lived equipment over a long term. This applies only when you are purchasing property, not leasing an inline space.
Conventional term loans. Borrowers with strong credit, liquidity and restaurant experience may qualify for conventional business loans, which often ask for more collateral or a larger cash injection.
Equipment financing. Dipping cabinets, hardening freezers, walk-in freezers, display cases and POS systems can be financed separately through restaurant equipment financing and leasing, which preserves cash for the build-out and opening.
Working capital and lines of credit. An ice cream shop has a busy summer and slow winter months. A line of credit or restaurant working capital can cover payroll, rent and inventory during slow months, or fund extra staffing and supplies for summer peaks and catering events.
Seller financing on resales. On a future resale, a seller may carry part of the price. Seller notes are typically subordinate to the main loan, and SBA programs may limit them.
SBA Loans for Always Ice Cream Company Franchisees
The SBA Franchise Directory lists franchise brands whose agreements have been reviewed for SBA loan eligibility. Always Ice Cream Company is listed under code S8524, which means a lender does not need to separately review the franchise agreement for affiliation issues. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
What the directory notes mean. The listing carries two notes:
- Lease addendum and real estate collateral: if the real estate where the shop is located will secure the SBA-guaranteed loan, the brand’s Addendum to Lease Agreement may not be executed. In plain English, if you own the building and pledge it as collateral, the lease addendum the franchisor normally uses should not be signed in that situation, so plan the documents with your lender and attorney.
- Lien position: the lender must make sure it gets the correct lien position on all assets as required by SBA rules. Expect the lender to review any liens, equipment leases or landlord rights before closing.
SBA application tips. Gather tax returns, a personal financial statement, a resume, the franchise agreement, a lease or letter of intent, contractor bids and a seasonal cash flow projection. Our SBA loan calculator helps you test loan amounts.
How Lenders Evaluate an Always Ice Cream Company Deal
Credit, net worth and liquidity. Lenders review credit reports, tax returns and debts, and they want cash for the equity injection plus reserves. With a seasonal business, extra liquidity is a real strength.
Industry and management experience. Restaurant, retail or food service management experience helps. If you are new to food service, plan to hire an experienced shop manager and show that in your plan.
Business plan and projections. Reflect the site’s foot traffic, summer and winter sales patterns, any permitted catering revenue and labor for long summer hours.
The FDD and franchise agreement. Lenders read Items 5, 6, 7, 17, 19 and 20 closely; our article on using the FDD for franchise financing explains why.
Site and lease. Lenders check lease length, renewals, rent and whether the term covers the loan.
Resale financials. For an existing shop, lenders review several years of returns and sales reports.
Equipment and Production: What to Clarify Early
The company describes its ice cream as homemade and made in-house. Find out whether franchised shops make product on site, which means batch and hardening freezers and more back-of-house space, or receive it from a central kitchen, which keeps equipment lighter but makes product purchases a larger ongoing cost. The answer changes the loan amount and the monthly cash flow.
Multi-Unit Growth and Development Agreements
If the company offers development rights, read the schedule carefully. Lenders usually finance the first shop and review its results before funding the next, so plan reserves for the equity each later shop will need.
Real-World Scenarios
A first-time owner with management experience. A retail manager opens a suburban Maryland shop with an SBA 7(a) loan and keeps a line of credit for winter.
A restaurant operator adding a dessert concept. An experienced operator uses a conventional term loan backed by his current business and finances freezers separately.
A buyer purchasing the building. Because the real estate will secure the loan, the lender follows the directory note on the lease addendum and uses SBA 504 for the property.
Common Mistakes to Avoid
- Building a budget before you receive the current FDD.
- Underestimating winter cash needs for a seasonal product.
- Skipping the production question and guessing at equipment costs.
- Signing a lease before your lender reviews it.
- Ignoring the SBA directory notes on lease addenda and lien position.
- Using all your cash for the build-out and leaving no reserves.
Read our list of common restaurant loan mistakes for more.
Next Steps to Finance Your Always Ice Cream Company Franchise
Step 1: Submit an inquiry. Use the company’s franchise form and confirm your target area.
Step 2: Get the FDD. Review it with an attorney and accountant.
Step 3: Confirm the production model. Pin down equipment and supply.
Step 4: Find a site. Get a letter of intent and contractor bids.
Step 5: Build seasonal projections. Prepare a month-by-month cash flow.
Step 6: Apply. Choose a loan structure and submit a complete package.
Always Ice Cream Company Franchise Loan FAQs
How much does an Always Ice Cream Company franchise cost?
The company does not publish its fees or investment range on its franchise page. Item 7 of the current FDD gives the estimated initial investment, and Item 5 gives the initial franchise fee.
What is the royalty?
The royalty and any marketing fee are disclosed in Item 6 of the FDD. Build them into your projections as soon as you receive the document.
How much liquid capital or net worth do I need?
The company’s franchise page does not list a minimum. Ask during discovery, and remember that lenders will also require an equity injection and reserves.
Is Always Ice Cream Company eligible for SBA loans?
Yes. The brand is listed on the SBA Franchise Directory under code S8524, with two notes about lease addenda and lien position.
Can I get an Always Ice Cream Company franchise loan as a first-time owner?
Yes, if you have solid credit, enough liquidity and relevant management experience, or a plan to hire an experienced manager.
Can I finance equipment separately?
Yes. Freezers, dipping cabinets, display cases and POS systems can often be financed through equipment loans or leases.
Does the company offer financing?
Item 10 of the FDD discloses whether the franchisor offers any financing. Check that section when you receive the document.
How long is the franchise term?
The term and renewal conditions are in Item 17 of the FDD. Lenders like to see a term and lease that both cover the loan.
What documents do I need for a loan?
Tax returns, a personal financial statement, a resume, the FDD and franchise agreement, a lease or letter of intent, contractor bids and projections.
Does the FDD include financial performance information?
Check Item 19. If it does not include financial performance representations, your projections will need to rely on market research and your own assumptions.
Final Thoughts
An Always Ice Cream Company franchise loan is a bet on a strong local brand that is still early in franchising. Get the FDD, settle the production and equipment questions early, plan for seasonal cash flow and follow the SBA directory notes on lease addenda and lien position.
US Professional Funding helps buyers finance scoop shops and other food concepts. Learn more about our franchise financing programs and our restaurant financing solutions, and speak with a specialist about your plans.
