How to Finance a Zeppe’s Franchise: Italian Ice and Custard Shops
By Anthony Cornella
A Zeppe’s franchise loan usually funds a neighborhood dessert shop that serves East Coast-style Italian ice, rich frozen custard and the brand’s signature “gelata,” a layered cup of custard and Italian ice. Owners typically borrow for the franchise fee, the store build-out, batch freezers and custard machines, freezer and dipping cabinets, signage, opening inventory and the cash needed to get through the first seasons.
Zeppe’s Italian Ice & Frozen Custard grew up in northern Utah and has expanded through independently owned franchise locations across the state and into Idaho. This article explains how a Zeppe’s shop is financed, what the brand’s SBA Franchise Directory listing means, how seasonality shapes a loan request and which Franchise Disclosure Document (FDD) items to study before you borrow.
US Professional Funding is not affiliated with, sponsored by or endorsed by Zeppe’s Italian Ice & Frozen Custard; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice, so review the current FDD and franchise agreement with a qualified franchise attorney and accountant.
Zeppe’s Franchise Loan at a Glance
- Concept: a frozen dessert shop built around Italian ice, frozen custard and the layered gelata, with shakes and other treats.
- Home market: a Utah-based chain whose franchised shops stretch along the Wasatch Front and into southern Utah and Idaho.
- Ownership model: shops are run by independent franchise owners, while the franchisor manages the brand and corporate operations.
- Formats: storefront shops in retail centers, freestanding buildings and some locations with a drive-thru window and patio seating.
- Fees and total investment: not published by the franchisor; confirm the franchise fee, royalty, marketing contribution and Item 7 range in the current FDD.
- SBA Franchise Directory: listed as Zeppe’s Italian Ice and Frozen Custard under code S6017, with no additional directory note.
What Is Zeppe’s Italian Ice & Frozen Custard?
Zeppe’s traces its roots to a single shop in Harrisville, Utah, built on Italian ice recipes brought west from the East Coast, where the treat has long been a summer staple. The brand’s own trademark filings describe Italian ice, frozen custard, gelato, ice cream and cookies, along with restaurant and catering services built around those desserts.
The menu centers on three things, alongside shakes and concretes. Italian ice is a smooth, fruit-forward frozen treat that is dairy free. Frozen custard is a dense, creamy dessert made with egg yolk and churned with little air. The gelata combines the two, with custard on the bottom, Italian ice in the middle and custard on top.
Shop formats. Zeppe’s locations range from inline units in shopping centers and malls to freestanding buildings with indoor seating, patios and drive-thru lanes.
Why lenders view it the way they do. Lenders see a focused menu, a simple production process and lower food costs than many full-service concepts. They also see a regional brand with limited public franchise data and a business that is highly seasonal in a cold-winter climate. A Zeppe’s franchise loan is therefore underwritten heavily on the site, the owner’s liquidity and a realistic month-by-month sales plan. Our article on financing an emerging franchise explains why smaller systems get extra scrutiny.
Zeppe’s Franchise Costs
Because the franchisor does not post fees or an investment range publicly, tie every cost in your loan request to the current FDD and real quotes.
Initial franchise fee. Item 5 states the fee, when it is due, whether any portion is refundable and whether additional shops are priced differently.
Real estate and build-out. An inline unit needs plumbing for dipping wells and hand sinks, dedicated electrical circuits for freezers and custard machines, a service counter, flooring, lighting, restrooms and a customer seating area. A freestanding building with a drive-thru adds site work, a pickup window and traffic flow, and can add real estate if you buy the property.
Equipment. Frozen custard and Italian ice are made on site in batch freezers and continuous custard machines, then held in dipping cabinets and storage freezers. Expect walk-in or reach-in freezers, refrigeration for dairy, blenders and shake mixers, prep tables, a three-compartment sink and a point-of-sale system.
Opening costs and working capital. Plan for opening inventory of custard mix, fruit and flavorings, cups and spoons, training travel, permits, deposits, insurance, signage and grand-opening promotion, plus reserves to cover slower months.
Total investment. The Item 7 table in the FDD breaks the estimated initial investment into categories such as these:
- Initial franchise fee
- Leasehold improvements or construction
- Batch freezers, custard machines and dipping cabinets
- Freezers, refrigeration and smallwares
- Furniture, fixtures, décor and patio seating
- Interior and exterior signage, including drive-thru menu boards
- Point-of-sale and technology
- Opening inventory and packaging
- Training and travel
- Deposits, licenses, permits and insurance
- Grand-opening marketing
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists recurring fees. Look for the royalty and how gross sales are defined, any brand or marketing fund contribution, required local advertising, technology or software fees, required purchases of proprietary mixes or flavorings, transfer and renewal fees, and any obligation to remodel or refresh the shop.
How lenders factor these costs in. Royalties and fund contributions come off the top of sales before rent, payroll and loan payments. For a seasonal dessert shop, a lender will look at whether the summer months generate enough cash to carry fixed costs and debt service through winter.
Franchisor Requirements for New Owners
Zeppe’s does not publish minimum net worth or liquidity thresholds on public pages. Ask the franchisor for its current criteria and confirm them against the FDD before you apply for financing.
Expect an application, a financial and background review, an FDD review period, talks with the corporate team and site approval before construction.
Ways to Own a Zeppe’s
Opening a new shop. Most growth comes from new locations in fresh trade areas. Lenders underwrite a new shop on projections, the site and your personal strength. See our page on franchise start-up financing.
Buying an existing shop. When an owner sells, a buyer can use the shop’s sales history and tax returns to support the loan. The franchisor must approve the transfer under Item 17, and the buyer usually signs the current form of franchise agreement. Our article on buying a franchise resale walks through the steps.
Financing Options for a Zeppe’s Franchise
SBA 7(a) loans. Because the brand appears on the SBA Franchise Directory, an SBA 7(a) loan can finance the franchise fee, build-out, equipment, opening inventory and working capital, or the purchase of an existing shop.
SBA 504 loans. If you buy a freestanding building or pad site for a drive-thru shop, an SBA 504 loan can finance the land, building and long-lived equipment.
Conventional term loans. Owners with strong financials or an existing shop may qualify for a conventional business loan, particularly for a second or third location.
Equipment financing. Batch freezers, custard machines, dipping cabinets, walk-in freezers and point-of-sale systems can be financed or leased separately, preserving cash for the build-out. Learn more about restaurant equipment financing and leasing.
Working capital and lines of credit. Seasonality is the defining cash flow issue for this concept. A line of credit can cover rent, payroll and inventory in winter and fund the spring ramp-up before peak season. See our restaurant working capital options.
Seller financing on resales. A seller may agree to carry part of the price on an existing shop. Seller notes are typically subordinate to the senior loan, and SBA programs may limit their terms.
SBA Loans for Zeppe’s Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility. SBA lenders generally require a brand to be listed before they can make an SBA-guaranteed loan to one of its franchisees. A listing does not approve any borrower; it clears the franchise relationship for review.
Zeppe’s is listed. The directory shows Zeppe’s Italian Ice and Frozen Custard under code S6017, with no additional note, so no brand-specific directory condition applies beyond the standard review.
Program limits. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
SBA application tips. Bring the FDD and franchise agreement, a signed or proposed lease, contractor bids, equipment quotes, a personal financial statement, tax returns, a résumé and monthly projections that show the seasonal curve. The SBA loan calculator can help with early payment estimates for planning only.
How Lenders Evaluate a Zeppe’s Deal
Personal credit and financial history. Lenders review credit reports, tax returns and existing debt, and typically require a personal guarantee from each significant owner.
Net worth and liquidity. Beyond your cash injection, lenders want reserves left after closing. For a seasonal shop, those reserves need to cover at least one slow season.
Industry and management experience. Food service, retail or management experience helps, as does a plan for a largely part-time workforce.
Business plan and projections. Build projections around the concept: average ticket per cup or shake, the share of sales from the drive-thru, peak summer evenings and weekends, the winter dip, event and catering sales, dairy and fruit costs, and labor for long summer hours.
The FDD and franchise agreement. Lenders read the term, renewal, transfer and purchase provisions. Review Items 3 and 4 with your attorney as well. Our guide to how lenders read a Franchise Disclosure Document covers the items that matter most.
Site and lease or real estate. For a leased site, the lease term should generally cover the loan term. For an owned site, expect an appraisal and environmental review.
Historical financials for resales. Provide several years of monthly sales reports, profit and loss statements and tax returns for the shop you are buying, so the lender can see the full seasonal pattern.
Seasonality and Equipment: The Heart of a Zeppe’s Loan
Dessert shops in cold-winter markets earn much of their revenue from late spring to early fall, and that pattern shapes the loan.
Opening date. Opening in spring lets a new shop ramp up into peak season. Opening in late fall means carrying payroll, rent and loan payments for months before strong sales arrive, so you need more working capital.
Equipment care. Batch freezers and custard machines are the core production assets, and a summer breakdown is costly, so budget for service contracts and a repair reserve.
Multi-Unit Growth and Development Agreements
Regional dessert brands often expand through owners who open several shops in one area over time. If the franchisor offers a development agreement, it will set the number of shops and an opening schedule. Lenders usually finance each shop separately and look for the first location to reach stable performance before funding the next. Read our article on area development agreement financing before you commit to a schedule.
Real-World Scenarios
A first-time owner in a growing suburb. A former retail manager leases an end-cap unit near a high school and opens in spring with an SBA 7(a) loan that covers build-out, freezers, custard machines and a working capital reserve for the first winter.
A family building a drive-thru shop. A couple buys a small pad site in a new market and builds a drive-thru shop, using an SBA 504 loan for the real estate and a 7(a) loan for the fee, equipment and working capital.
A buyer taking over an established shop. A buyer purchases a shop from a retiring owner, using the seller’s monthly sales history to show the seasonal curve, with part of the price on a subordinate seller note.
Common Mistakes to Avoid
- Building projections from an annual average instead of a month-by-month seasonal curve
- Opening late in the year without enough working capital to reach the next summer
- Underestimating electrical and plumbing work for freezers and custard machines
- Signing a lease with a term shorter than the loan
For more pitfalls, read about the restaurant loan mistakes owners make most often.
Next Steps to Finance Your Zeppe’s Franchise
Step 1: Request the FDD. Review Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 2: Secure a site. Work through the franchisor’s site approval and negotiate a lease, or a purchase if you plan a freestanding drive-thru.
Step 3: Build your budget. Gather build-out bids and equipment quotes and match them to the Item 7 categories.
Step 4: Prepare monthly projections. Show the seasonal curve, your winter plan and your reserves.
Step 5: Compare financing options. Talk with a financing specialist about SBA 7(a), SBA 504, conventional and equipment financing.
Step 6: Apply, close and open. Submit your package, coordinate with the franchisor and landlord, and time your opening for the season.
Zeppe’s Franchise Loan FAQs
How much does a Zeppe’s franchise cost?
The franchisor does not publish an investment range. Item 7 of the current FDD gives the estimated initial investment, which depends on whether you lease an inline unit or build a freestanding shop with a drive-thru.
What is the Zeppe’s franchise fee?
Item 5 of the FDD states the fee and any multi-unit pricing. Request the current document before you size a loan.
What royalty does Zeppe’s charge?
Item 6 lists the royalty, any marketing contribution and other recurring fees. Build each into your monthly projections.
Can I get an SBA loan for a Zeppe’s?
Yes, the brand is listed on the SBA Franchise Directory under code S6017 with no additional note. Each borrower must still qualify.
How much liquid capital do I need?
The franchisor does not post a minimum. Ask for its current requirements and plan for an equity injection plus reserves that can carry the shop through a slow season.
Can I finance the freezers and custard machines separately?
Yes. Equipment loans or leases can cover batch freezers, custard machines, dipping cabinets, walk-in freezers and point-of-sale systems.
Can a first-time business owner get a Zeppe’s franchise loan?
Yes, if the franchisor approves you and you meet lender requirements. Management experience, solid reserves and a realistic seasonal plan strengthen the request.
Does Zeppe’s offer financing?
Review Item 10 of the FDD, which discloses any financing the franchisor offers or arranges.
How long is the Zeppe’s franchise term?
Item 17 sets out the term, renewal rights and transfer conditions. Lenders like the remaining term to cover the loan.
Does the FDD include financial performance information?
Check Item 19 to see whether it includes financial performance representations, and speak with current franchise owners about their experience.
Final Thoughts
Zeppe’s offers a focused dessert concept with a growing regional footprint and an SBA Franchise Directory listing that opens the door to SBA financing. The keys to a strong Zeppe’s franchise loan are a well-chosen site, a careful equipment budget, honest seasonal projections and enough working capital to carry the shop from one summer to the next.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
