How to Finance a Sloan’s Ice Cream Franchise: Two Store Sizes
By Anthony Cornella
A Sloan’s Ice Cream franchise loan pays for a whimsical ice cream parlor that also sells bulk candy, chocolates, gifts and plush toys. Sloan’s offers two formats, a traditional store and a smaller express store, and each comes with its own liquidity and net worth requirement, so the format you choose shapes the loan from the start.
US Professional Funding is not affiliated with, sponsored by or endorsed by Sloan’s Ice Cream; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice.
Sloan’s Ice Cream Franchise Loan at a Glance
- Concept: a luxury ice cream parlor with house flavors, fresh-baked waffle cones, bulk candy, chocolates, gifts and plush toys in a playful, colorful setting.
- Origins: the first location opened in West Palm Beach, Florida, in 1999, and the company is still based there.
- Formats: traditional stores of 1,700 to 2,000 square feet and express stores of 1,000 to 1,300 square feet, according to the franchisor.
- Financial requirements: $300,000 minimum liquid capital and $1,000,000 minimum net worth for a traditional store; $180,000 liquid capital and $600,000 net worth for an express store.
- Royalty: a continuing services fee of 6% of gross sales, paid weekly.
- Marketing: a 1% marketing fund contribution, plus at least $5,000 on grand-opening advertising in the first three months.
- Term: five years, renewable for three more five-year terms.
- Initial fee and total investment: not published on the franchisor’s site; see Items 5 and 7 of the FDD.
- SBA status: listed on the SBA Franchise Directory (code S1583) with no additional notes.
What Is Sloan’s Ice Cream?
Sloan’s started with one shop in West Palm Beach in 1999. The brand calls its stores an “ice cream utopia” for kids and adults alike, and the look is part of the product: pink walls, chandeliers, moving toy trains and the smell of waffle cones, cookies and brownies baked in the store.
Founder Sloan Kamenstein still leads the company. Beyond scooped ice cream, the shops sell bulk candy, chocolates, chocolate apples, gifts and plush toys, giving each store more than one way to make a sale.
Why lenders view it the way they do. Sloan’s has a long operating history, but its footprint is small and centered in South Florida, so a lender will lean on your own finances, site and management plan more than on a national track record.
Two Formats: Traditional and Express
The franchisor says both formats sell essentially the same products and deliver the same experience. The difference is size, investment and real estate needs.
Traditional store. At 1,700 to 2,000 square feet, a traditional store has room for the full candy and gift displays and seating. It carries the higher financial requirements and will cost more to build out and stock.
Express store. At 1,000 to 1,300 square feet, an express store needs less space and carries lower liquidity and net worth requirements.
For a Sloan’s Ice Cream franchise loan, the format decision drives the lease size, build-out budget, equipment package, opening inventory and how much cash you must show.
Sloan’s Ice Cream Franchise Costs
The franchisor’s website does not publish the initial franchise fee or the total estimated investment. Those figures live in Item 5 and Item 7 of the Franchise Disclosure Document, which Sloan’s provides to qualified candidates during its approval process. Use the FDD’s Item 7 table as the starting point for your loan request.
Initial franchise fee
The franchise fee is paid when you sign the franchise agreement. Check Item 5 for the amount for each format and for any multi-unit or development fee.
Real estate and build-out
Sloan’s targets sites with strong afternoon and evening traffic, high visibility and heavy foot traffic, often near movie theaters, restaurants, entertainment venues and bars. Its architects prepare the store layout, and franchisees follow the brand’s build-out and construction process. Expect costs for leasehold improvements, décor features and signage. Our article on financing a restaurant build-out explains how lenders fund this phase.
Equipment
An ice cream and candy shop needs dipping cabinets, freezers, a waffle cone station, baking equipment, display cases, point-of-sale systems and retail fixtures for candy and gifts.
Opening costs and working capital
Opening inventory spans ice cream ingredients, candy, chocolates, gifts and plush toys, so it can be broader than at a scoop-only shop. You will also cover training travel, deposits, insurance and the required grand-opening advertising.
Total investment
When you get the FDD, look for these Item 7 categories and confirm which format the table describes:
- Initial franchise fee
- Real estate, lease deposits and rent before opening
- Leasehold improvements and construction
- Equipment, furniture and fixtures
- Signage and décor
- Opening inventory of ice cream supplies, candy and retail goods
- Training travel and expenses
- Grand-opening advertising
- Insurance, licenses and permits
- Additional funds for the initial period
Ongoing Fees and How They Affect Your Loan
Sloan’s charges a continuing services fee of 6% of gross sales, paid weekly. The franchisor says it covers use of the Sloan’s marks and system, marketing help and ongoing business support. There is also a marketing fund contribution of 1% of weekly gross sales.
Because these fees come off the top line, lenders subtract them before measuring the cash left to cover payments on a Sloan’s Ice Cream franchise loan. Build them into your projections, check Item 6 for technology, transfer, renewal or remodel costs, and keep enough cash on hand for weekly fee payments in slower weeks.
Franchisor Requirements for New Owners
According to the franchisor’s website, a traditional store requires at least $300,000 in liquid capital and a $1,000,000 net worth. An express store requires at least $180,000 in liquid capital and a $600,000 net worth.
Sloan’s also looks for passion for the brand, a family orientation, a strong work ethic and the finances to fund the store; family businesses can own stores.
The approval process. Candidates submit a confidential application, meet with a franchise development representative and visit the corporate office in West Palm Beach, where they receive the FDD and franchise agreement. Sloan’s then runs a background check and reviews your credit history before its review committee decides. After approval, you sign the agreement, pay the fee, find a site with the company’s help, build out the store, attend training in West Palm Beach and pass a final inspection at least three days before opening.
Ways to Own a Sloan’s Ice Cream
A new store. Most owners will build a new traditional or express store. Financing covers the fee, build-out, equipment, inventory and working capital, and the lender will rely on your projections because there is no history yet. Our page on restaurant start-up financing covers this path.
Buying an existing store. If a franchised store comes up for sale, the franchisor must approve you and the transfer under the franchise agreement. A lender will review the store’s actual sales and tax returns. Learn more in our article on buying a franchise resale.
Multiple units. Sloan’s offers multi-unit franchises in select markets, with a development territory protected for the term of the development schedule.
Financing Options for a Sloan’s Ice Cream Franchise
SBA 7(a) loans
The SBA 7(a) loan can fund the franchise fee, build-out, equipment, opening inventory and working capital in a single loan with a longer term than many conventional options. That makes it a natural fit for a leased ice cream shop.
SBA 504 loans
If you buy the building for a store, an SBA 504 loan can finance the real estate and long-lived equipment. Most Sloan’s stores sit in leased retail space, so the 504 program applies mainly to owner-occupied property.
Conventional term loans
Borrowers with strong credit, collateral and liquidity may qualify for conventional business loans.
Equipment financing
Dipping cabinets, hardening freezers, waffle cone irons, ovens, display cases and point-of-sale systems can be financed separately with restaurant equipment financing, which keeps more cash free for the opening.
Working capital and lines of credit
Ice cream sales can swing with the weather and the season, and the candy and gift side has its own holiday peaks. A restaurant working capital line can help with payroll, inventory buys before busy periods and weekly royalty payments.
Seller financing on resales
On a resale, the seller may agree to carry part of the price as a note. Lenders usually require that note to be subordinate to the main loan, and SBA rules may limit how it is structured.
SBA Loans for Sloan’s Ice Cream Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA lending. Sloan’s appears under code S1583 with no additional notes, which means a lender can rely on the directory listing without special document changes noted there. The franchisor itself says it is an SBA-approved franchisor.
The SBA 7(a) program maximum is currently $5 million, though program rules can change; a single Sloan’s Ice Cream franchise loan request is sized to your actual budget.
SBA application tips. Bring the FDD, your signed or pending franchise agreement, your site and lease details, a full sources-and-uses budget, a business plan with projections and your personal financial statement. Run the numbers in our SBA loan calculator before you apply.
How Lenders Evaluate a Sloan’s Ice Cream Deal
Personal credit and financial history. Lenders look at your credit report, any past problems and how you have handled debt. Sloan’s runs its own credit check too.
Net worth and liquidity. You must meet the franchisor’s minimums for your format, and the lender will also want to see cash left over for the injection and reserves.
Industry and management experience. Food service, retail or hospitality management helps. If you lack it, show who will run the store day to day and how you will learn the system.
Business plan and projections. Base your projections on the store size, local foot traffic, the season, the mix of ice cream versus candy and gifts, and the 6% royalty and 1% marketing fund. Our article on using the FDD to finance a franchise explains which items lenders read.
The FDD and franchise agreement. Lenders review the fees, the five-year term with three renewals, transfer rules and your territory. Sloan’s says its FDD includes Item 19 financial performance representations for existing stores; read them closely, but do not treat them as a promise.
Site and lease. The location is central for a treat shop. Lenders want a lease term that at least matches the loan and a site that fits Sloan’s traffic criteria.
Historical financials for resales. For an existing store, expect a review of tax returns, sales reports and a valuation.
Multi-Unit Growth and Development Agreements
Multi-unit owners get a development territory protected while they meet the development schedule. Lenders usually finance one store at a time, so a strong first store often supports the second loan.
Missing development deadlines can cost you territory, so plan each store’s build-out, equipment and opening cash in advance.
Real-World Scenarios
A family-run express store. A couple with retail experience chooses the express format to fit a smaller site near a cinema. They use an SBA 7(a) loan for the build-out and opening inventory and keep cash in reserve for the slower months.
A traditional store in a lifestyle center. An experienced restaurant manager signs a lease near restaurants and bars, finances the full candy and gift build-out through an SBA 7(a) loan and finances the freezers and display cases separately.
Buying an existing store. A buyer acquires an established store, uses its sales history to support the loan and asks the seller to carry a small subordinate note.
Common Mistakes to Avoid
- Choosing a format based on the lower liquidity requirement instead of the site and market.
- Underestimating opening inventory for candy, chocolates and gifts.
- Leaving out the 6% royalty, the 1% marketing fund and grand-opening advertising from projections.
- Ignoring seasonality in ice cream sales.
- Signing a lease shorter than the loan term.
See our list of restaurant loan mistakes for more pitfalls.
Next Steps to Finance Your Sloan’s Ice Cream Franchise
Step 1: Pick your format. Decide between a traditional or express store based on your capital and target sites.
Step 2: Apply and get the FDD. Complete Sloan’s application and review the FDD, especially Items 5, 6, 7, 17 and 19.
Step 3: Build your budget. Create a sources-and-uses budget from the Item 7 table for your format.
Step 4: Prepare your documents. Gather tax returns, a personal financial statement, a resume, a lease or letter of intent and a business plan.
Step 5: Talk to a financing specialist. Compare SBA 7(a), conventional and equipment options.
Step 6: Secure a site. Get site approval and lease terms that fit your loan.
Step 7: Close and build. Close on financing, complete the build-out and train in West Palm Beach.
Sloan’s Ice Cream Franchise Loan FAQs
How much does a Sloan’s Ice Cream franchise cost?
Sloan’s does not publish its total investment on its website. Item 7 of the FDD lists the estimated range for each format.
What is the Sloan’s franchise fee?
The fee amount appears in Item 5 of the FDD. It is paid when you sign the franchise agreement.
What is the royalty?
The continuing services fee is 6% of gross sales, paid weekly, plus a 1% marketing fund contribution.
How much liquid capital do I need?
At least $300,000 for a traditional store or $180,000 for an express store, according to the franchisor.
What net worth does Sloan’s require?
At least $1,000,000 for a traditional store or $600,000 for an express store.
Can I use an SBA loan for a Sloan’s Ice Cream franchise?
Yes. Sloan’s is listed on the SBA Franchise Directory under code S1583 with no additional notes, and the company says it is an SBA-approved franchisor. Approval still depends on you and the deal.
Can I buy an existing Sloan’s store?
Yes, with franchisor approval. The store’s history helps the lender judge the deal.
Can I open more than one store?
Yes. Sloan’s offers multi-unit franchises in select markets with a protected development territory.
Does Sloan’s offer financing?
The franchisor says it offers resources to help you find funding. Check Item 10 of the FDD for any direct financing.
How long is the franchise term?
Five years, with three successive five-year renewal terms.
Final Thoughts
A Sloan’s Ice Cream franchise loan starts with one choice: traditional or express. That choice sets your liquidity and net worth requirements, your build-out and your inventory budget. Build your projections from the FDD, the weekly royalty and seasonal sales.
US Professional Funding helps franchise owners secure SBA and conventional financing. Explore our restaurant financing options to get started.
