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Q: Average profit of Dippin Dots franchise ( No Answer,   1 Comment )
Question  
Subject: Average profit of Dippin Dots franchise
Category: Business and Money > Economics
Asked by: challenger74-ga
List Price: $25.00
Posted: 01 Nov 2002 07:40 PST
Expires: 01 Dec 2002 07:40 PST
Question ID: 95385
What is the average profit of a Dippin Dots franchise? And how many survive?
Answer  
There is no answer at this time.

Comments  
Subject: Re: Average profit of Dippin Dots franchise
From: companswerguru-ga on 01 Nov 2002 10:42 PST
 
I did a search for the information you requested but unfortunately not
many links were available.

here is a quote from the franchise section of the dippin dot's home
page
located here, http://www.dippindots.com/franchise/index.asp

Dippin' Dots Franchising, Inc. does not furnish any oral or written
information concerning actual or potential sales, costs, income or
profits with respect to a franchised business. Actual results will
vary from franchise to franchise, and DDF cannot estimate the results
of any franchise.

The only way your question could be answered then is if an independent
party decided to do a comparative study on several active franchises.
So far I have been unable to find such a resource available publicly
on the Internet.

here is an interesting link that gives some data on minorities that
own the franchise, http://www.minorityfranchising.com/profiles/Dippin.htm
but it does not give estimated profit figures.


Another link here, http://www.franchise.org/news/newsbriefs/05162002.asp#story16
talks about profits as a gross whole for all the franchises across the
US

Dippin' Dots has teamed up with McDonalds's to roll out its small
frozen balls of ice cream, yogurt, and sherbet in about 250
restaurants in the San Francisco area by May 16. Dippin' Dots began
franchising in 1999, which increased sales to approximately $7 million
last year, and the firm expects to reach $30 million this year.
According to owner Curt Jones, marketing has greatly improved since
franchise operators were permitted to contribute a half-percent of
their gross incomes to an advertising fund. The total number of
franchisees rose from 525 to 569 last year, almost doubling income
from $891,000 in 2000 to about $1.5 million in 2001. Depending on the
size of the franchise, an initial investment can range between $45,600
to nearly $190,000.

So we could take this data and do an estimate of the gross average
profits for each store.

7 million, divided by 569 stores = approximately $123,000 per store.

This is only an average, and I'm sure some stores have dome
considerably more profit then the average calculated, but of course
several stores will have done less.
Also this is only a Gross Profit figure and certainly does not take
into account the other cost involved in running a business such as the
franchise fees, rent, employee costs etc...

One last interesting note here,
http://cmte.chem-eng.utoronto.ca/library/lecturenotes/che457/franchis11.PDF

Dippin Dots is cited in this document as Number 1. in a list of Top 10
New Franchises

I hope this information help you in your search.

search terms used

"Dippin Dots" franchise profit
://www.google.ca/search?q=%22Dippin+Dots%22+franchise+profit&hl=en&lr=&ie=UTF-8&oe=UTF-8&start=10&sa=N

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