Rita's Franchise Company

What Rita's Franchise Company does

Rita's Franchise Company, LLC is a Pennsylvania-domiciled franchisor of the Rita's Italian Ice & Frozen Custard brand, founded in 1984 by Bob Tumolo and headquartered in Trevose. The company licenses third-party franchisees to operate retail shops built around two signature base products—Italian Ice (made fresh daily in-shop with real fruit) and Frozen Custard (richer and creamier than traditional ice cream)—which combine into a broader menu including Gelati, Blendini, Frozen Coffee, Sundaes, Concretes, Frozen Lemonade, and Sugar-Free variants. As of September 30, 2025 the system comprised 578 outlets (569 franchised plus 9 company-owned) across the United States, with shop formats spanning Standard, Drive-Thru, Express, satellite, and mobile units. The brand was acquired by Argosy Private Equity in December 2016 and exited in December 2024 after the franchisor more than doubled EBITDA; current ownership is not publicly disclosed.

The franchise model requires minimum financial qualifications of $150,000 cash and $400,000 net worth. Total initial investments range from $199,005 for an Express Shop to $915,536 for a Standard Shop with Drive-Thru. Rita's earns revenue through a continuing royalty fee of 6.5% of gross sales, a 3% national advertising contribution on gross sales, and one-time initial franchise fees of $15,000-$35,000 depending on format and whether the agreement is a multi-unit development deal. Franchisee support infrastructure includes the Cool University initial training program (online, classroom, and in-shop), the TOPS operational performance framework, and dedicated Franchise Consultant pairing for each operator. Digital touchpoints include a proprietary mobile app, loyalty program, and third-party delivery integrations; Rita's also supports catering and mobile unit activity at the franchisee level.

Average-performing drive-thru shops generate roughly $508,897 in gross sales versus $366,957 for standard shops (about 39% higher), while the top third of units averaged $558K in 2025, up 72% since 2018. The category context is a U.S. frozen dessert industry estimated at $37 billion with an expected 10.6% CAGR through 2033. Rita's was ranked No. 260 on the 2024 Franchise Times Top 400 list (up 17 spots year over year) and recognized in 2025 as one of the nation's top-performing restaurant brands.

Name

Rita's Franchise Company

Legal name

Rita's Franchise Company, LLC

Website

https://ownaritasfranchise.com/

Company type

Private

Founded year

1984

Operating status

Operating

Headcount range

101–250 employees

Short description

Rita's Franchise Company, LLC operates a franchise system of approximately 578 Italian Ice and Frozen Custard shops across the United States. Founded in 1984, the company licenses franchisees to operate retail locations under the Rita's brand, generating revenue through royalties, advertising contributions, and initial franchise fees.

Ownership category

akta.pro rank

Product category

Frozen Dessert Franchise

NAICS

Ice Cream and Frozen Dessert Manufacturing (31152)

SIC

Ice Cream & Frozen Desserts (2024), Dairy Products (2020)

akta.pro primary industry

Soft-Serve & Custard Stands (THAFAGAC)

akta.pro secondary industries

Ice Cream & Refrigerated Desserts (CRADACAE), Frozen & Refrigerated Snack Foods (Ice Cream Novelties, Snack Bites) (CRADABAL)

Keywords

• Italian ice franchise
• Frozen custard
• Frozen desserts
• Franchise restaurant
• Quick service desserts

Headquarters

HQ city

Feasterville Trevose

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Supply Chain, Marketing or Sales, Personnel, Technology or R&D, Others

Revenue model

1. Franchise Royalties: Continuing royalty fee of 6.5% of gross sales from franchised locations
2. Initial Franchise Fees: One-time franchise fees ranging from $15,000 to $35,000 depending on shop format and multi-unit development agreements
3. National Advertising Contribution: 3% of gross sales contributed to national advertising programs
4. Franchise Sales: Revenue from selling new franchises for shop development across available territories

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels7 records

Core offering

Rita's Franchise Company, LLC franchises the Rita's Italian Ice & Frozen Custard brand and operating system to entrepreneurs and multi-unit developers. Franchisees operate quick-service retail shops that sell Italian Ice, frozen custard, Gelati, Blendini, Concrete, sundaes, frozen coffee, and frozen lemonade. The company also operates a small number of company-owned locations and supports the network through training, supply chain, marketing, and digital ordering tools.

Product overview

Rita's Franchise Company operates a franchise system built around two signature base products—Italian Ice (freshly made daily with real fruit) and Frozen Custard (richer and creamier than traditional ice cream)—which combine to create the full menu of frozen treats. The menu includes signature items like the Gelati (layers of custard and Italian Ice), Blendini, Sundaes, Concretes, Frozen Coffee, Frozen Lemonade, and Sugar-Free options. Rita's offers multiple franchise shop formats: Standard shops (with and without drive-thru) and Express shops. The company also provides digital products including a proprietary mobile app and loyalty program, along with comprehensive franchisee support through programs like Cool University and the TOPS (Total Operational Performance Success) program. The system includes over 80 flavors and seasonal LTOs, with approximately 578 total outlets as of September 30, 2025 (569 franchised locations and 9 company-owned shops).

Differentiator

Problem solved

Functional benefit

Products and services

• Italian Ice

Quantifiable outcome

• Top third performing shops averaged $558K in sales in 2025, up 72% since 2018
• +3 more outcomes

Named customers8 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Scale indicators7 records

Recent moves6 records

Expansion highlights4 records

Emerging players

• Graeter's Ice Cream: Graeter's is a smaller, premium franchise ice cream brand with regional Midwestern roots and growing retail/grocery distribution. It is comparable to Rita's as a frozen dessert franchise but with a more limited footprint and grocery-retail overlap.
• Handel's Homemade Ice Cream: Handel's is a smaller franchise chain of handmade premium ice cream shops concentrated in the Midwest and East Coast. It competes for similar guest occasions and franchisee candidates, though at meaningfully smaller scale than Rita's.

Direct peers

• Marble Slab Creamery: Marble Slab Creamery is a franchise-based premium ice cream chain offering made-to-order frozen creations on a frozen marble slab. Its franchise model, dessert-only positioning, and shop-level customization closely mirror Rita's operating concept.
• Andy's Frozen Custard: Andy's is a franchise chain specializing exclusively in frozen custard, with drive-thru-first locations across the Midwest and South. It is one of the closest single-product comparables to Rita's frozen custard offering and competes for franchisee capital and end-consumer visits.
• Bruster's Real Ice Cream: Bruster's is a franchise ice cream chain with shop-level production of premium ice cream and frozen desserts. It competes for similar franchisee profiles and end-consumer occasions in the East Coast and Southeast markets where Rita's has density.
• Freddy's Frozen Custard & Steakburgers: Freddy's is a franchise concept combining frozen custard with a broader savory menu (steakburgers, hot dogs). It overlaps with Rita's on custard and drive-thru formats while extending into QSR, making it a relevant adjacency peer.
• Dairy Queen: Dairy Queen is a franchised frozen treat and quick-service restaurant chain serving soft-serve ice cream, Blizzards, and a broader food menu through ~7,000 U.S. locations. It is the most direct competitive comparable to Rita's in the franchised frozen dessert category.
• Culver's: Culver's is a Midwestern franchise chain best known for frozen custard plus a full ButterBurger QSR menu. With ~900+ locations it is a larger but closely analogous custard-anchored franchise system competing for similar franchisees and guests.
• Cold Stone Creamery: Cold Stone Creamery is a franchise-based premium ice cream concept serving custom-mixed ice cream creations. Like Rita's, it operates as a dessert-focused franchise system with similar store formats, target customers, and product customization model.
• Baskin-Robbins: Baskin-Robbins is the world's largest chain of ice cream specialty shops, operating a global franchise system of ~2,500 U.S. locations. It directly competes with Rita's for the frozen dessert customer occasion with a similarly franchised operating model.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/@RitasItalianIce/playlists
• Facebookfacebook.com/RitasItalianIceCompany
• LinkedInlinkedin.com/company/rita's-italian-ice
• Instagraminstagram.com/ritasice/?hl=en
• Xx.com/RitasItalianIce

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Rita's Franchise Company