How to Finance an OddFellows Ice Cream Franchise: Scoop Shops
By Marc Cornella
An OddFellows Ice Cream franchise loan funds a scoop shop for a Brooklyn-born, small-batch ice cream brand known for inventive flavors. Like any dessert concept, the financing has to cover a retail build-out, freezers and display cases, and enough working capital to carry the shop through slower months.
This article explains what the company says about itself, what its SBA Franchise Directory listing and note mean, which loan types fit an ice cream shop and how to build a request that a lender can approve.
US Professional Funding is not affiliated with, sponsored by or endorsed by OddFellows Ice Cream; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs vary by lender and borrower, and every loan is subject to approval. Nothing in this article is legal, tax or investment advice; review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant before you sign.
OddFellows Ice Cream Franchise Loan at a Glance
- Origin: the first OddFellows shop opened in Williamsburg, Brooklyn, in 2013, according to the company.
- Product: small-batch ice cream and sorbet made from scratch, with more than 500 flavors created over the years, per the company.
- Shop menu: a rotating lineup of 30 flavors, many vegan options, soft-serve, milkshakes and floats, as the company describes its shops.
- Franchise fee, royalty and investment range: not verified from franchisor materials; see Items 5, 6 and 7 of the current FDD.
- Net worth and liquidity: ask the franchisor for its written minimums.
- SBA status: listed on the SBA Franchise Directory as OddFellows (code S8237) with a note on the Rider to Lease Agreement.
What Is OddFellows Ice Cream?
OddFellows calls itself a small-batch ice cream company with a compulsive creativity problem. The brand was started by a pastry chef and a husband-and-wife team after a craving for savory ice cream that no store carried, and the first shop opened in Williamsburg in 2013.
The company says its ice creams and sorbets are made from scratch at a farm in upstate New York, using batch freezers and on-site pasteurization. Its flavor list mixes reimagined classics with unexpected, sometimes savory combinations, and it has created more than 500 flavors. Shops rotate 30 flavors at a time and add vegan choices, soft-serve, shakes and floats.
From its Brooklyn base, the brand has expanded to other cities, including a shop on King Street in Charleston, South Carolina, and a location in Seoul. Franchised shops have opened or been announced in markets such as Florida, Texas and New Jersey.
How lenders view it. Lenders see an OddFellows shop as a limited-service dessert business: a modest footprint, a short menu and a cash-flow pattern shaped by weather and seasons. Strengths include a distinctive brand and high-margin products. Concerns include summer-heavy sales, rent in walkable retail districts and a newer franchise system with limited public data. A realistic seasonal budget is the most important part of the loan request.
OddFellows Ice Cream Franchise Costs
The current fees and investment range are disclosed in the OddFellows FDD. We could not verify them from franchisor materials, so this section explains each cost category and how lenders treat it.
Initial franchise fee. Item 5 lists the fee and any reduced fee for additional shops. Lenders treat it as an intangible cost, usually funded from your equity or included in a larger SBA 7(a) loan.
Real estate and build-out. Scoop shops typically lease storefronts on busy streets, in town centers or near parks and waterfronts. Build-out covers the service counter, dipping cabinets, plumbing for dipper wells and hand sinks, electrical capacity for freezers, flooring, lighting and the brand’s interior design.
Equipment. Dipping cabinets, walk-in or reach-in freezers, soft-serve machines, blenders for shakes, refrigeration for toppings and the point-of-sale system make up the core equipment package.
Product supply and inventory. Because the company makes its ice cream centrally, ask the franchisor whether shops receive finished product, a base or recipes, and how freight and minimum orders work. That answer affects opening inventory, freezer capacity and ongoing cost of goods.
Opening costs and working capital. Signage, smallwares, cones and packaging, training travel, grand opening marketing, permits, insurance, deposits and payroll before opening all require cash, as does the Item 7 “additional funds” line.
Item 7 checklist. Map your loan request to each line of the Item 7 table:
- Initial franchise fee
- Lease deposits and rent during build-out
- Leasehold improvements and design fees
- Dipping cabinets, freezers and soft-serve equipment
- Furniture, fixtures and signage
- Point-of-sale and technology
- Opening product inventory and packaging
- Training travel and expenses
- Grand opening marketing
- Licenses, permits and insurance
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Item 6 lists the royalty, any brand fund contribution, local marketing requirements, technology fees and transfer and renewal fees. If the franchisor supplies product, the price you pay for it acts like an additional ongoing cost, so ask how pricing is set.
The lender’s view. Lenders subtract royalties, product costs, rent and payroll from projected sales and check that the remainder covers loan payments across the whole year, not just in summer. Lenders often size payments and working capital around the slowest months.
Franchisor Requirements for New Owners
The franchisor sets its own net worth, liquidity and experience standards in its franchise materials and the FDD. Restaurant, food retail or hospitality management experience strengthens both the franchise application and an OddFellows Ice Cream franchise loan request. Expect a qualification review, receipt of the FDD, discovery conversations, site approval and training before opening.
Ways to Own an OddFellows Shop
A new shop. Most owners open a new storefront in an approved area. Lenders underwrite feasibility, projections and your equity. Learn more about restaurant start-up financing.
Buying an existing shop. If an operating franchised shop is offered for sale and the franchisor approves the transfer, the lender can review actual sales by month. See our page on franchise acquisition financing.
Multiple shops. Owners who secure rights to several shops finance each one as earlier shops stabilize, as discussed below.
Financing Options for an OddFellows Ice Cream Franchise
SBA 7(a) loans. Because OddFellows is on the SBA Franchise Directory, an SBA 7(a) loan can combine build-out, equipment, the franchise fee, opening inventory and working capital in one package.
SBA 504 loans. If you buy the building where your shop operates, an SBA 504 loan can finance the real estate and long-lived improvements. Most scoop shops lease, so this fits a smaller group of buyers.
Conventional term loans. Experienced operators with strong collateral may use conventional business loans, particularly when adding a shop to an existing food business.
Equipment financing. Dipping cabinets, freezers, soft-serve machines and blenders can be financed separately with the equipment as collateral. Explore restaurant equipment financing.
Working capital and lines of credit. Ice cream sales peak in warm months and slow in winter. A line of credit can cover rent and payroll in the off-season and pre-summer inventory and hiring. See our restaurant working capital options.
Seller financing. On a resale, a seller may carry part of the price. Seller notes are typically subordinate to the senior loan, and SBA rules may limit their terms.
SBA Loans for OddFellows Franchisees
SBA lenders confirm that a franchise brand appears on the SBA Franchise Directory and follow any notes attached to the listing.
The OddFellows listing. The brand is listed as OddFellows under code S8237. Its note says that when the real estate where the franchise business is located secures the SBA-guaranteed loan, the Rider to Lease Agreement may not be executed.
In plain English. Franchisors use a lease rider so they can step into or protect a leased location if the franchise ends. If you lease from a landlord, you generally sign the rider as the franchise documents require. If you or an affiliate own the property and pledge it as collateral, the rider is not signed, so the franchisor’s lease rights do not compete with the lender’s lien.
Program basics. The SBA 7(a) program maximum is currently $5 million, though program rules can change. A single scoop shop typically needs far less. Use our SBA loan calculator to test payments against your slowest months.
Application tips. Provide a complete Item 7 budget, contractor and equipment quotes, the lease or letter of intent, a résumé and month-by-month projections that show the seasonal curve.
How Lenders Evaluate an OddFellows Deal
Personal credit and financial history. Expect a review of credit reports, tax returns and a personal financial statement.
Net worth and liquidity. Lenders want your equity injection plus reserves to carry the shop through its first winter.
Industry and management experience. Food service or retail management experience helps. Explain who will manage seasonal hiring and day-to-day operations.
Business plan and projections. Base projections on foot traffic, weather patterns, average ticket, catering or event sales and product costs, with conservative first-year assumptions.
The FDD and franchise agreement. Lenders review the term, renewal and transfer conditions in Item 17, any franchisor financing in Item 10 and whether Item 19 includes financial performance representations. Our article on using the FDD in franchise financing explains each item.
Site and lease. Lenders want a lease term, with options, that at least matches the loan term, and they review visibility, parking and nearby traffic drivers.
For resales. Expect requests for financial statements and monthly sales history covering full seasonal cycles.
Freezers, Soft-Serve and Seasonality
Frozen dessert shops depend on equipment that runs around the clock. Dipping cabinets and storage freezers must hold product at stable temperatures, and soft-serve machines need daily cleaning and regular service. A breakdown in July can cost a week of peak sales, so budget for service contracts and keep reserves for repairs.
Seasonality also shapes the loan. Some owners schedule opening for spring so the first months are strong, and some add winter sales such as pints, pies or holiday flavors where the franchisor allows. Lenders appreciate a plan that addresses the off-season directly.
Multi-Unit Growth and Development Agreements
Ice cream operators often grow by clustering shops in one region to share managers, freezer storage and marketing. Lenders usually want the first shop to show a full year of results before financing the next, and they review combined debt across all shops. If you sign a development agreement, align its opening schedule with realistic financing timelines.
Real-World Scenarios
A restaurant manager opens a first shop. A former restaurant manager uses an SBA 7(a) loan for build-out, equipment and working capital, signing the Rider to Lease Agreement because the space is leased.
A property owner pledges the building. An investor who owns a small retail building opens a shop there and pledges the property as collateral, so the Rider to Lease Agreement is not executed.
A bakery owner adds a second concept. An established bakery owner uses a conventional loan for a new OddFellows shop and finances the freezers separately.
Common Mistakes to Avoid
- Projecting summer sales across all twelve months.
- Leaving too little working capital for the first winter.
- Not confirming how product is supplied and priced before building the budget.
- Signing a lease before the lender reviews the term and options.
- Skipping service contracts on freezers and soft-serve machines.
For more pitfalls, read our article on restaurant loan mistakes, and work through a franchise due diligence checklist before you sign.
Next Steps to Finance Your OddFellows Ice Cream Franchise
Step 1: Request the FDD. Review Items 5, 6, 7, 10, 17 and 19 with your attorney and accountant.
Step 2: Confirm requirements. Get net worth, liquidity and experience minimums in writing, and ask how product is supplied.
Step 3: Gather documents. Prepare tax returns, a personal financial statement and a résumé.
Step 4: Talk with a financing specialist. Choose between SBA, conventional and equipment financing.
Step 5: Secure the site. Have your lender review the letter of intent and lease, and decide whether the Rider to Lease Agreement applies.
Step 6: Apply, close and open. Coordinate build-out, equipment delivery, hiring and training, ideally ahead of the warm season.
OddFellows Ice Cream Franchise Loan FAQs
How much does an OddFellows Ice Cream franchise cost?
The total estimated initial investment is in Item 7 of the current FDD. Location, shop size and build-out scope drive the total.
What are the franchise fee and royalty?
They appear in Items 5 and 6 of the FDD. We could not verify current figures from franchisor materials.
How much liquid capital do I need?
The franchisor sets its own minimums. Lenders also expect an equity injection and reserves for the off-season.
Is OddFellows approved for SBA loans?
Yes. It is listed on the SBA Franchise Directory as OddFellows under code S8237, with a note on the Rider to Lease Agreement.
Can I finance freezers and soft-serve machines separately?
Yes. Equipment financing uses the equipment as collateral and can preserve cash for opening costs.
Can I buy an existing OddFellows shop?
Yes, if one is for sale and the franchisor approves the transfer. Lenders will review monthly sales across full seasons.
Can a first-time owner get an OddFellows Ice Cream franchise loan?
It is possible with good credit, sufficient equity and a solid seasonal plan. Food service experience helps.
Does OddFellows offer financing?
Item 10 of the FDD describes any franchisor financing.
How long is the franchise agreement?
The term, renewal and transfer conditions are in Item 17. Lenders prefer the remaining term to exceed the loan term.
Final Thoughts
An OddFellows Ice Cream franchise loan finances a brand built on creativity, but lenders will focus on practical details: product supply, lease terms, equipment reliability and how the shop handles winter. With the brand on the SBA Franchise Directory, SBA 7(a) financing is available to qualified buyers, and its lease rider note matters mainly if you own the property.
US Professional Funding helps franchise and restaurant owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing programs.
