How to Finance a Bruster’s Real Ice Cream Franchise: Buy or Lease
By Anthony Cornella
A Bruster’s Real Ice Cream franchise loan can look like two very different deals depending on the store you choose. The classic free-standing Bruster’s means buying land and building a walk-up ice cream shop, while an end-cap location is leased and costs far less, so the financing plan starts with that choice.
Ice cream is made fresh in every store, which adds batch freezers and production equipment to the budget, and a walk-up model tied to the weather shapes how lenders read cash flow. The sections below cover the franchisor’s published costs and requirements, how real estate changes the loan, where SBA 7(a) and SBA 504 loans fit and what to prepare.
US Professional Funding is not affiliated with, sponsored by or endorsed by Bruster’s Real Ice Cream; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Bruster’s Real Ice Cream Franchise Loan at a Glance
- Free-standing store investment: $1,215,120 to $2,669,060, according to the franchisor’s opportunity page, which says this format requires purchasing land and building the store.
- End-cap store investment: $414,900 to $1,143,700 for a leased end-cap location.
- Minimum net worth: $800,000 for free-standing and $500,000 for end-cap.
- Minimum liquid capital: $350,000 for free-standing and $150,000 for end-cap.
- Fee policies: the franchisor says the franchise fee is discounted for subsequent units and for veterans, and that there are no renewal fees.
- System size: about 220 locations in the U.S. and Guyana, all franchised except the original store, according to the company’s fact sheet.
- SBA Franchise Directory: Bruster’s Real Ice Cream is listed, so its franchisees are eligible for SBA review.
The franchisor’s public pages do not state the initial franchise fee, royalty or advertising contribution. Those terms are in Items 5 and 6 of the FDD, which qualified candidates receive.
What Is Bruster’s Real Ice Cream?
Bruce Reed opened the first Bruster’s on July 13, 1989, in Bridgewater, Pennsylvania, a suburb of Pittsburgh, and the company is still headquartered there. The brand describes itself as privately held and family-focused.
Made in the store. Each Bruster’s makes ice cream on site in small batches. The company owns a dairy in Titusville, Pennsylvania, which supplies its proprietary homestyle mix to stores, and Certified Ice Cream Makers prepare the flavors in each shop. The menu also includes yogurts, ices, sorbets, cones, sundaes, shakes and custom cakes and pies.
Store formats. Bruster’s offers free-standing and end-cap designs, both built around a walk-up window model with optional patio seating. Stores can have several walk-up windows to serve more guests at peak times, franchisees are encouraged to add a drive-thru where available, and the franchisor offers alternative designs for colder climates.
Growth. The company reported more than 40 new franchise location agreements signed in 2023.
Why lenders view it the way they do. Lenders see a long-established, almost entirely franchised system with in-store production that customers can see. They also see a seasonal, weather-sensitive business. In a free-standing deal, the land and building give a Bruster’s Real Ice Cream franchise loan real collateral; in an end-cap deal, the lease and equipment are the main assets.
Bruster’s Real Ice Cream Franchise Costs
Initial franchise fee. The fee is disclosed in Item 5 of the FDD. The franchisor states that the fee is discounted for veterans and for subsequent units, which matters for owners planning more than one store.
Real estate and construction. This is the biggest difference between the two formats. The franchisor says the free-standing option requires purchasing land and building your own store, which is why its investment range sits well above the end-cap range. An end-cap store is leased, so the owner pays for leasehold improvements, a walk-up window and interior finishes instead of land and a building.
Equipment. Because every store makes its own ice cream, the equipment package includes batch freezers, hardening and storage freezers, dipping cabinets, refrigeration, shake and blending stations and point-of-sale technology that lets owners monitor the business remotely.
Opening costs and working capital. Initial inventory, training, signage, grand opening marketing and a reserve for the first months of operation round out the budget. Opening timing matters: a store that opens ahead of warm weather has a very different first year than one that opens going into winter.
Total investment. The franchisor publishes the two ranges below. Its public pages do not break them into line items, so read the Item 7 table in the current FDD, which typically covers:
- Initial franchise fee
- Land purchase (free-standing) or lease deposits (end-cap)
- Building construction or leasehold improvements
- Ice cream production and refrigeration equipment
- Furniture, fixtures, patio and signage
- Point-of-sale and technology systems
- Opening inventory and supplies
- Training expenses
- Grand opening marketing
- Additional funds for the initial operating period
For a free-standing store, the total runs from $1,215,120 to $2,669,060. For an end-cap store, it runs from $414,900 to $1,143,700. The spread inside each range reflects land and construction costs, site conditions and market.
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists the royalty, any advertising or marketing fund contribution, technology fees and other recurring charges. The franchisor describes a national marketing program backed by data-driven analytics; the cost of participating will be in the FDD.
No renewal fee. The franchisor says there are no renewal fees, which removes one cost a lender might otherwise model near the end of the term.
Seasonality and debt service. Ice cream sales rise and fall with the weather. Lenders typically look at monthly cash flow, not just annual totals, to confirm the store can make loan payments through the slower months. Owners who plan for this often build a larger reserve or seek payment structures that fit the business’s rhythm.
Occupancy costs. A free-standing owner carries a mortgage or real estate loan; an end-cap owner pays rent and common area charges. Either way, occupancy is a fixed cost that does not shrink in winter.
Franchisor Requirements for New Owners
The franchisor’s pages list these requirements:
- Net worth of $500,000 to $800,000 depending on store type
- Liquid capital of $150,000 for end-cap and $350,000 for free-standing
- Business, marketing or financial experience
- College education preferred
- Single-unit and multi-unit operators are both considered
The franchisor describes the franchisee as a brand ambassador who leads a team that is often made up of teens and young adults, many in their first job. It also says owners can be owner-operators or semi-absentee and that new franchisees’ progress is monitored against benchmarked goals throughout the first year.
The approval process. Candidates submit a request form confirming they meet the minimum net worth and liquidity requirements, complete an application and receive the current FDD once qualified.
Ways to Own a Bruster’s Real Ice Cream
A new free-standing store. This route combines a real estate purchase, a construction project and a franchise launch. It needs the most capital and the most planning. See our page on franchise start-up financing.
A new end-cap store. An end-cap is leased, so the loan funds the build-out, equipment and opening costs. It is the lower-investment way into the system.
Buying an existing store. Because nearly all Bruster’s stores are franchised, resales come from other franchisees. A buyer can review real seasonal sales history, and the deal may include the land and building if the seller owns them. Transfer requires franchisor approval. Our article on buying a franchise resale explains the process.
Adding stores. The franchisor discounts the fee for subsequent units and has reported that most of the agreements it signed in summer 2020 were with existing franchisees.
Financing Options for a Bruster’s Real Ice Cream Franchise
SBA 7(a) loans. An SBA 7(a) loan can fund the franchise fee, equipment, build-out, working capital and, in many cases, land and building. It is flexible enough to finance an end-cap store or the purchase of an existing one.
SBA 504 loans. For a free-standing store, an SBA 504 loan fits naturally because the owner buys land and builds an owner-occupied building. Long-lived equipment can be included as well. Read more about franchise real estate financing.
Conventional term loans. An experienced operator with existing stores may finance a new location with a conventional business loan, especially when a free-standing store’s real estate provides collateral.
Equipment financing. Batch freezers, dipping cabinets, hardening freezers and refrigeration can be financed separately, which can preserve cash for the opening reserve. Learn about restaurant equipment financing and leasing.
Working capital and lines of credit. A line of credit can carry payroll and occupancy through the slow season, fund pre-season inventory and support outside sales such as catering, fundraising and mobile units. See our restaurant working capital options.
Seller financing on resales. When buying an existing store, the seller may carry part of the price. Any seller note would need to be acceptable to the senior lender and is typically subordinate to it, and SBA rules may limit how it is structured.
SBA Loans for Bruster’s Real Ice Cream Franchisees
The SBA Franchise Directory lists franchise brands whose agreements have been reviewed for SBA eligibility. SBA lenders generally require a brand to be listed before an SBA-guaranteed loan can be made to a franchisee.
Bruster’s listing. Bruster’s Real Ice Cream appears on the SBA Franchise Directory under code S0263 with no special notes. In plain terms, the franchise relationship has been reviewed, so lenders can focus on the borrower, the site and the projections. A listing does not approve any individual loan.
Program limits. The SBA 7(a) program maximum is currently $5 million, though program rules can change. A free-standing store at the upper end of its range may combine 7(a) and 504 financing or pair 504 for the real estate with separate equipment financing.
Application tips. For an SBA-backed Bruster’s Real Ice Cream franchise loan, bring a month-by-month projection that reflects seasonality, a construction budget and timeline for a free-standing store, the lease or letter of intent for an end-cap, and evidence of the liquidity Bruster’s requires. Early estimates are easy to run with our SBA loan calculator; results are for planning only and are not an offer.
How Lenders Evaluate a Bruster’s Real Ice Cream Deal
Personal credit and financial history. Expect a full review of credit, tax returns and a personal financial statement, plus a personal guarantee.
Net worth and liquidity. Bruster’s minimums are a starting point. Lenders also want liquidity left over after the equity injection to carry the store through its first off-season.
Industry and management experience. Business, financial or marketing experience lines up with what the franchisor seeks. Experience leading young, part-time teams is a plus.
Business plan and projections. Strong projections show sales by month, staffing that flexes with the season, outside sales plans and occupancy costs. For a new store, include the opening date and how the first summer fits the plan.
The FDD and franchise agreement. Lenders read Items 5, 6, 7, 17 and 19. Our article on reading an FDD for financing explains why the term, transfer and renewal provisions matter.
Site, land and construction. A free-standing deal involves an appraisal, environmental review, construction contract and permits. An end-cap deal involves a lease review, including its term relative to the loan.
Historical financials for resales. For an existing store, lenders want several years of monthly sales, profit and loss statements and tax returns to see how the seasons play out.
Equipment and the Walk-Up Store
In-store production is what sets the brand apart, and it also makes equipment a larger share of the budget than at many dessert franchises. Batch freezers, hardening freezers and dipping cabinets must be sized for peak volume. Walk-up windows, patios and a drive-thru where possible are designed to handle summer crowds.
Planning for replacement. Freezers and refrigeration work hard in peak season. Owners should plan for maintenance and eventual replacement, either from reserves or through equipment financing. Buyers of existing stores should ask about the age and condition of production equipment.
Cold-climate designs. The franchisor offers alternative designs for colder climates. Lenders reviewing a store in a northern market will want to understand how that design and the menu support sales outside summer.
Multi-Unit Growth and Development
The franchisor considers both single-unit and multi-unit operators, discounts the franchise fee for subsequent units and offers protected trade areas with hands-on site selection.
Financing a second or third store. Once the first store has a full year of results, lenders can underwrite it alongside projections for the next. Owners with free-standing stores sometimes use the equity in their real estate to support expansion. Learn more about multi-unit franchise financing.
Real-World Scenarios
A first-time owner with an end-cap. A buyer with corporate management experience meets the end-cap requirements and uses an SBA 7(a) loan for the build-out, equipment and opening reserve, timing the opening for spring.
A free-standing store with 504 financing. An owner buys land and builds a classic Bruster’s, using an SBA 504 loan for the land and building and a separate loan for equipment and working capital.
A resale with real estate. A buyer acquires an established store that includes the land and building. The lender reviews seasonal sales history and appraises the property, and the seller carries a small subordinate note.
An owner adding outside sales. An existing franchisee adds a mobile unit for events and fundraising and uses equipment financing so the store’s cash stays available for the winter months.
Common Mistakes to Avoid
- Choosing a free-standing store without budgeting for land, site work and construction delays
- Projecting annual sales without showing how the slow season affects debt service
- Opening going into winter without a larger cash reserve
- Undersizing production and refrigeration equipment for peak demand
- Signing an end-cap lease shorter than the loan term
- Buying an existing store without checking the age of its freezers
For more pitfalls, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Bruster’s Real Ice Cream Franchise
Step 1: Choose your format. Decide whether a free-standing or end-cap store fits your capital and market.
Step 2: Confirm the requirements. Make sure you meet the net worth and liquidity minimums for that format.
Step 3: Review the FDD. Study the fees, the Item 7 table and the franchise agreement with a franchise attorney and accountant.
Step 4: Talk with a financing specialist. Compare SBA 7(a), SBA 504 and conventional options for your format.
Step 5: Secure the site. Work with the franchisor on site selection and gather appraisals, construction bids or lease terms.
Step 6: Submit your loan package. Include your personal financial statement, tax returns, résumé, seasonal projections and franchise documents.
Step 7: Build, open and plan for the seasons. Time the opening carefully and keep a reserve to carry the store through its first off-season.
Bruster’s Real Ice Cream Franchise Loan FAQs
How much does a Bruster’s franchise cost?
The franchisor publishes a total investment of $1,215,120 to $2,669,060 for a free-standing store, which includes buying land and building, and $414,900 to $1,143,700 for a leased end-cap store.
What is the Bruster’s franchise fee?
The fee is disclosed in Item 5 of the FDD. The franchisor says it discounts the fee for veterans and for subsequent units.
What royalty does Bruster’s charge?
The royalty and marketing contributions are listed in Item 6 of the FDD. Build them into your projections before applying for financing.
How much net worth and liquid capital do I need?
The franchisor requires a minimum net worth of $800,000 and liquid capital of $350,000 for a free-standing store, and $500,000 net worth and $150,000 liquidity for an end-cap.
Is Bruster’s eligible for SBA loans?
Yes. Bruster’s Real Ice Cream is on the SBA Franchise Directory, so franchisees can apply for SBA 7(a) and SBA 504 financing, subject to approval.
Can I use an SBA 504 loan for a free-standing store?
Often, yes. Because a free-standing store involves buying land and building an owner-occupied building, it fits the 504 program’s purpose.
Can I finance the equipment separately?
Yes. Batch freezers, dipping cabinets and refrigeration can be financed on their own, which can preserve cash for working capital.
Can I buy an existing Bruster’s?
Yes, with franchisor approval. Resales let lenders review real seasonal sales, and some include the land and building.
Can a first-time business owner get a Bruster’s franchise loan?
Yes, if the franchisor approves the candidate and the lender is comfortable with the borrower’s experience, liquidity and projections. The end-cap format’s lower investment can make it a practical starting point.
Is there a renewal fee?
The franchisor says there are no renewal fees. Check Item 17 of the FDD for the term and renewal conditions.
Does Bruster’s offer financing?
The franchisor’s public pages do not describe direct financing. Review Item 10 of the current FDD.
How does seasonality affect my loan?
Lenders look at monthly cash flow to confirm the store can make payments in slower months. A larger reserve or a line of credit can help.
Final Thoughts
A Bruster’s Real Ice Cream franchise loan starts with one decision: own the land and building or lease an end-cap. From there, a strong plan accounts for in-store production equipment, a seasonal sales curve and the reserve needed to reach the next summer.
US Professional Funding helps franchise owners and buyers finance start-ups, real estate, acquisitions, equipment and working capital for established brands. Learn more about our franchise financing and restaurant financing solutions.
