How to Finance a Dogs & Cream Franchise: Midwest Startup Costs
By Marc Cornella
A Dogs & Cream franchise loan pays for a quick-service restaurant that pairs hot dogs with ice cream: the site and build-out, a hot food line alongside frozen dessert equipment, freezers, signage, opening inventory and the working capital to get through the first seasons. Because the concept blends a year-round savory menu with a dessert category that swings with the weather, the cash flow plan deserves as much attention as the equipment list.
This article covers what the company publishes about itself, what to confirm in its Franchise Disclosure Document (FDD), what the brand’s SBA Franchise Directory note means and which loan structures fit. US Professional Funding is not affiliated with, sponsored by or endorsed by Dogs & Cream; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary and every loan is subject to approval. Nothing here is legal, tax or investment advice.
Dogs & Cream Franchise Loan at a Glance
- Concept: quick-service hot dogs and ice cream, named for the founders’ two favorite foods, according to the company
- Operating since: 2018, per the company’s franchising page
- Current restaurants: Racine and Elkhorn, Wisconsin, as listed on the company’s website
- Franchise territory focus: the company says it is franchising in the Midwest
- Fees and investment: not posted on the website; the company provides its FDD, which covers investment and financial performance information, after a prospect completes its survey
- SBA Franchise Directory: listed under code S9016, with a note about the Rider to Franchise Premises Lease Agreement
What Is Dogs & Cream?
Dogs & Cream is a Wisconsin quick-service brand built around a simple pairing: hot dogs and ice cream. The company explains that its founders named it after their two favorite foods, and its franchising page says it has been redefining quick-service dining since 2018. The website lists two restaurants, one on Douglas Avenue in Racine and one on Highway 11 in Elkhorn.
The brand also leans into community. Its website says it donates a percentage of sales to approved organizations and causes through a fundraising program, a local marketing tool that new owners can use to build traffic.
How lenders view a young regional brand. With a small number of restaurants and a regional footprint, Dogs & Cream is an emerging franchise system. Lenders evaluating a Dogs & Cream franchise loan will weigh your experience, liquidity and site more heavily than the brand’s history. Our article on financing an emerging franchise explains what that means in practice.
Dogs & Cream Franchise Costs
Dogs & Cream does not publish its fees or investment range on its website, so build your budget from the FDD. These are the categories to examine.
Initial franchise fee. Item 5 states the fee and when it is due. Paying it from your own cash at signing can count toward the equity you bring to the loan.
Real estate and build-out. A hot dog and ice cream restaurant needs a cook line with ventilation suited to the menu, a dessert station, freezer and cooler space, plumbing for handwashing and dish areas, a counter and seating. Whether the site is an inline space, an endcap or a freestanding building with a drive-up window will change the budget significantly.
Equipment. Expect grills or rollers and steam equipment for hot dogs, fryers if the menu calls for them, ice cream dipping cabinets or soft-serve machines, reach-in and walk-in freezers, refrigeration, point-of-sale technology and smallwares. Ask the franchisor which items are specified and from which approved sources.
Opening costs and working capital. Opening food and paper inventory, staff hiring and training, grand opening marketing, insurance, utility deposits and a reserve for slower months all belong in the plan.
Total investment. Item 7 of the FDD adds these together. Compare each line with your own bids:
- Initial franchise fee
- Lease deposits and rent before opening
- Leasehold improvements and construction
- Hot food cooking and holding equipment
- Ice cream freezers, dipping cabinets or soft-serve machines
- Furniture, fixtures, signage and menu boards
- Point-of-sale system and technology
- Opening inventory and supplies
- Training costs and travel
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Item 6 discloses royalties, any marketing or brand fund contribution, technology fees and charges for transfers, renewals and additional training. Percentage-based fees come off gross sales, so they reduce the cash available for loan payments in every month, including slow ones.
Lenders subtract all recurring franchise fees before measuring debt service coverage. For a concept with a seasonal dessert component, they will also want to see that the business can cover its payments in the colder months, not just on an average basis. Build monthly projections, not just an annual total.
Franchisor Requirements for New Owners
The company does not publish net worth or liquid capital minimums on its website. Its franchising page outlines a step-by-step path: a prospect completes a survey, receives the FDD, has a qualification call, attends a Discovery Day to review the systems and training tools and speaks with existing franchise owners in a peer review before any agreement is signed.
Use the qualification call to ask about financial minimums, whether owners must work in the restaurant, how sites are approved and how many units the franchisor expects you to open.
Ways to Own a Dogs & Cream
A new restaurant. Most buyers in a young system build new units. Lenders finance the build-out, equipment and pre-opening costs based on your plan. See our restaurant start-up loans page.
Buying an existing location. If a franchised restaurant is ever offered for sale, the price is supported by its tax returns and financial statements, and the franchisor must approve the transfer. Our franchise restaurant acquisition page covers that path.
Multiple units. Ask whether multi-unit development rights are available in your market and how the opening schedule would work.
Financing Options for a Dogs & Cream Franchise
SBA 7(a) loans. A 7(a) loan can bundle leasehold improvements, equipment, the franchise fee and working capital into one package with a longer repayment period. Visit our SBA 7(a) loans page.
SBA 504 loans. For a buyer purchasing a freestanding building with a drive-up window or patio, an SBA 504 loan can finance the property and long-lived equipment.
Conventional term loans. Well-capitalized operators may use a conventional business loan, which can also help refinance or expand later.
Equipment financing. Freezers, soft-serve machines and cooking equipment can be financed separately so more cash stays available for the build-out. See our restaurant equipment financing page.
Working capital and lines of credit. Ice cream sales often peak in warm months, while winter traffic in the Midwest can lean on the hot food side. A restaurant working capital line can carry payroll and inventory through the swing.
Seller financing on resales. A selling owner may carry part of the price. Seller notes usually sit behind the senior lender, and SBA rules may limit their terms.
SBA Loans for Dogs & Cream Franchisees
Dogs & Cream is listed on the SBA Franchise Directory under code S9016. A listing means the SBA has reviewed the brand’s franchise documents for eligibility, which streamlines an SBA-backed Dogs & Cream franchise loan.
The directory adds a note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Rider to Franchise Premises Lease Agreement may not be executed. A lease rider is an add-on to your lease that protects the franchisor, often giving it rights to step in or take over the space if the franchise ends. If you own the building and pledge it as collateral, there is no landlord lease for the rider to attach to, so it should not be signed. Tell your attorney early if you plan to buy your site.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. Prepare the FDD, a lease or letter of intent, contractor and equipment bids, monthly projections and personal financial documents. Our article on how lenders use the FDD explains what gets reviewed, and the SBA loan calculator lets you test payment levels.
How Lenders Evaluate a Dogs & Cream Deal
Personal credit and financial history. Lenders review your credit and any past issues closely.
Net worth and liquidity. Cash for the equity injection plus reserves for a seasonal business is essential.
Industry and management experience. Restaurant or retail management experience strengthens the file. If you lack it, plan to hire an experienced manager.
Business plan and projections. Show month-by-month sales for both hot food and ice cream, staffing that flexes with the season, food and paper costs, rent and every Item 6 fee. Explain the basis for each assumption.
The FDD and franchise agreement. Lenders review the term and renewal rights, transfer rules, Item 10 franchisor financing, if any, and whether Item 19 includes financial performance representations. The company’s franchising page indicates its FDD contains financial performance information.
Site and lease. Visibility, parking, summer foot traffic and patio potential all matter. The lease should cover the loan term or include renewals.
Historical financials on a resale. For an existing restaurant, monthly sales history shows lenders how the seasonal swing actually plays out.
Seasonality: Planning for Two Menus and Four Seasons
The pairing of hot dogs and ice cream is partly a hedge: savory food can carry traffic when dessert demand cools. Still, Midwestern winters affect foot traffic, so lenders will look for a plan that covers fixed costs and debt payments through the slow months. Build a reserve during peak months, size staffing to the season and consider a line of credit before you need it.
Multi-Unit Growth and Development Agreements
Owners who want more than one restaurant should ask about development agreements and schedules. Lenders typically finance later units once the first has a year or more of results. Our article on multi-unit franchise financing covers how growth is underwritten.
Real-World Scenarios
The Wisconsin local. A buyer near the brand’s home market leases an inline space and uses an SBA 7(a) loan for the build-out, freezers and working capital.
The property buyer. An owner purchases a small freestanding building with a walk-up window, finances it with an SBA 504 loan and works with counsel so the lease rider is handled as the directory note requires.
The first-time owner. A buyer with management experience outside food service hires a seasoned shift lead and keeps a larger reserve for the first winter.
Common Mistakes to Avoid
- Projecting annual sales without month-by-month seasonality
- Underfunding working capital for the first winter
- Choosing a site that lacks ventilation or freezer capacity
- Signing lease documents that conflict with the SBA directory note
- Building a budget before receiving the FDD’s actual fees
See our list of restaurant loan mistakes to avoid.
Next Steps to Finance Your Dogs & Cream Franchise
Step 1: Complete the franchise survey. This starts the process and gets you the FDD.
Step 2: Review the FDD. Have a franchise attorney and accountant review Items 5, 6, 7, 10, 17, 19 and 20.
Step 3: Attend Discovery Day and talk to owners. Ask about seasonality, staffing and real build-out costs.
Step 4: Know your numbers. Confirm your liquid capital and net worth.
Step 5: Secure a site. Make sure it can support both hot food and frozen dessert equipment.
Step 6: Build monthly projections. Include every fee and seasonal swing.
Step 7: Apply for financing. Submit a complete package.
Dogs & Cream Franchise Loan FAQs
How much does a Dogs & Cream franchise cost?
The company provides investment information in its FDD, not on its website. Item 7 lists the estimated initial investment.
What is the Dogs & Cream franchise fee?
Item 5 of the FDD discloses the fee.
What royalty does Dogs & Cream charge?
Item 6 lists the royalty and any marketing fund contribution.
How much liquid capital do I need?
The franchisor does not publish a minimum. Ask during the qualification call.
Is Dogs & Cream SBA eligible?
Yes. It is on the SBA Franchise Directory under code S9016, though each loan remains subject to approval.
Where is Dogs & Cream franchising?
The company says it is franchising in the Midwest.
Can I finance the freezers separately?
Yes. Equipment financing can cover freezers, soft-serve machines and cooking equipment.
Does Dogs & Cream offer financing?
Item 10 of the FDD discloses whether any franchisor financing is offered.
Does the FDD include financial performance information?
The company’s franchising page says the FDD includes detailed financial performance information. Review Item 19 carefully.
How long is the franchise term?
Item 17 lists the term and renewal rights.
Final Thoughts
A Dogs & Cream franchise loan works best when the plan accounts for both halves of the menu and all four seasons. Get the FDD, build monthly projections and keep a solid reserve.
US Professional Funding helps buyers finance franchise start-ups and acquisitions through our franchise financing programs and restaurant financing solutions.
