Del’s Lemonade is a frozen lemonade franchise that was founded in 1948 in Cranston, Rhode Island. It is known for its signature frozen lemonade, which is made with fresh lemons and sugar, and has a unique, slushy texture. Dels Lemonade has become a popular summer treat throughout Rhode Island and beyond, with over 30 franchise locations in the United States and around the world. The franchise is known for its low start-up costs and simple business model, making it an attractive option for entrepreneurs and investors looking to enter the food and beverage industry.
As such, there aren’t many industry statistics available specifically for Del’s Lemonade. However, the frozen dessert industry in the US has been growing steadily in recent years, with an estimated market size of $22.5 billion in 2020, according to IBISWorld.
What is Del’s Lemonade?
Del’s Lemonade is a small business that specializes in making and selling frozen lemonade in Rhode Island, USA. Del’s Lemonade is a frozen lemonade brand that started in Rhode Island in the 1940s. It has since expanded to other parts of the United States and internationally. Del’s Lemonade is a brand that sells a unique type of frozen lemonade. The company has been in business since 1948 and has gained popularity in Rhode Island and surrounding areas.
Is Del’s Lemonade a Franchise Opportunity?
Yes, Del’s Lemonade is currently offering franchising opportunities for individuals interested in starting their own business under Del’s Lemonade brand.
How much does a Del’s Lemonade franchise cost
The estimated cost to franchise a Del Lemonade in the United States is between $189,500 to $309,500.
|Del’s Lemonade Franchise Price and Costs|
|Del’s Lemonade Franchise Fee||$30,000|
|Del’s Lemonade Franchise Cost||$90,000 – $140,000|
|Term of Agreement||10 years|
|Is franchise term renewable?||Yes|
|Renewable Franchise Fees||
50% of the
initial franchise fee
How much do Del’s Lemonade franchise owners make?
According to the 2021 FDD, the average gross revenue for Del’s lemonade location in 2020 was $894,155, with an average cost of goods sold of $271,632.
What is Del’s Lemonade franchise profit?
Regarding Del Lemonade, since it is a relatively new franchising opportunity, there is no available information on the earnings of its franchise owners or its franchise profit. According to industry standards, getting a return on the franchise investment might not take a very long time.
Del’s Lemonade Training to Franchises
Del’s Lemonade provides an initial training program to all new franchisees at the company’s headquarters in Rhode Island. The training program covers all aspects of the business, including operations, management, marketing, and customer service. The company also provides ongoing support and training to franchisees throughout the duration of their franchise agreement.
Del’s Lemonade Operations to Franchises
Del’s Lemonade provides franchisees with a comprehensive operations manual that covers all aspects of the business. The manual includes information on product preparation, customer service, marketing, and financial management. The company also provides ongoing support to franchisees to help them operate their business successfully.
How is Del’s Lemonade Territory Granted to Franchises
Del’s Lemonade grants exclusive territories to its franchisees based on demographics, population density, and other factors. The size of the territory is determined by the number of potential customers within the area. Franchisees are given the right to operate their business within their designated territory and are protected from competition from other franchisees within Del’s Lemonade system.
What is the Franchise Term of Agreement and Renewal?
The initial term of the Del Lemonade franchise agreement is typically 10 years. Franchisees may have the option to renew their franchise agreement for an additional term, subject to the company’s approval and the terms outlined in the franchise agreement.
Does Del’s Lemonade provide Financial Assistance to Franchises?
Del’s Lemonade does not provide direct financing or financial assistance to franchisees. However, the company does have relationships with third-party lenders who may be able to provide financing to qualified franchisees.
Pros & Cons of Owning a Del Lemonade Franchise
Pros of owning a Dels Lemonade Franchise
- Established a brand with a loyal customer base
- Comprehensive training and support from the company
- Exclusive territories and protection from competition
- A simple business model with low overhead costs
- Seasonal business with potential for high profitability during peak season
Cons of Owning a Del Lemonade Franchise
- Limited product offerings may lead to a decrease in customer interest over time
- The seasonal business may lead to inconsistent revenue throughout the year
- Initial franchise fees and ongoing royalties can be a significant expense for franchisees
- Franchisees must purchase products and supplies from the company at designated prices
What is Del’s Lemonade franchise reviews
Del Lemonade is a relatively new franchise that started in 2019, there is limited information available regarding franchise reviews, rankings, and analysis. However, based on the success of the original Del Lemonade stand in Rhode Island and the brand’s expanding popularity, it seems to be a promising franchise opportunity.
Franchise Deck Analysis and Overview
Del’s is a recognisable brand appreciated for its mouthwatering beverages and distinctive taste combinations. The brand has expanded from its modest beginnings as a small stand close to Taylor’s home into a national business with booths in several states and bottles sold in shops all throughout the country. It may be a wise decision for you to open a franchise if you’re thinking about doing so.
It is a recognisable brand appreciated for its mouthwatering beverages and distinctive taste combinations. The brand has expanded from its modest beginnings as a small stand close to Taylor’s home into a national business with stands in several states and bottles sold in shops all throughout the country. It may be a wise decision for you to create a franchise if you’re considering doing so.
Potential Risks to consider before investing in a Del’s Lemonade
- Initial investment costs and ongoing expenses can be high, and it may take several years to turn a profit.
- Success is not guaranteed, and franchisees may face competition from other businesses in the same industry.
- Franchisees may be required to follow strict guidelines and procedures set by the franchisor, limiting their ability to make independent business decisions.
- Changes in the economy or industry trends could impact the profitability of the franchise.
Is Del’s Lemonade Franchise Profit Worth the Cost?
To determine if a franchise’s profit is worth its cost, potential franchisees should consider factors such as the franchise’s average unit volume (AUV), royalty fees, advertising fees, and other expenses. They should also research the franchise’s historical financial performance and speak with current franchisees to gain insights into their experiences and profitability.
It’s important to carefully review the franchise disclosure document (FDD) and seek the advice of a franchise attorney and accountant before making a decision to invest in a franchise.
Competition Analysis of Del’s Lemonade Franchises
|Cost to Franchise||Franchisee Fees||Royalty + Ad fees||Expected Profit||Recoup of Capital||FD Rating|
|Del’s Lemonade||$33,000 – $61,000||–||6% + 2%||Not disclosed||Not disclosed||3.6/5|
|Gourmet Chocolate Fountains LLC Franchise||
$39,000 – $55,000
|Dax Drinks LLC Franchise||$35,000 – $65,000||–||6%||–||–|
|Stacey HarbaughFranchise||$25,000 – $60,000||–||5%||–||–|
|Food by DesignFranchise||$10,000 – $50,000||–||–||–||–|
The Franchise Deck rating for the Del Lemonade franchise is 3.6/5.0.
Conclusion: Should You Buy Del’s Lemonade Franchise for Sale?
It ultimately depends on various factors, such as the individual’s financial situation, personal goals, and risk tolerance. It is recommended to thoroughly research and analyze all aspects of the franchise opportunity, including the franchisor’s support and training, franchise fees and royalties, competition, and potential for profit, before making a decision. When compared to other franchises with US locations, its Del’s Lemonade franchise cost is affordable. It can surely be a profitable franchise business for you given its profit and investment recovery.
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Facts That Nobody Told You About Del’s Lemonade
- Del’s Lemonade was founded in 1948 in Cranston, Rhode Island, by Angelo DeLucia.
- The company is famous for its frozen lemonade, made with fresh lemons and pure cane sugar.
- Del’s Lemonade uses a unique, patented blending and freezing process to create its signature frozen lemonade.
- Del’s Lemonade has over 20 franchised locations across the United States, with plans to expand further.
- In addition to its famous lemonade, Del’s also offers other frozen drinks, as well as hot dogs, pretzels, and other snacks.
- Del’s Lemonade has won numerous awards over the years, including “Best of Rhode Island” and “Best of Boston.”
- The company is committed to using high-quality, all-natural ingredients in all of its products.
|Del’s Lemonade Franchise Review and Information|
|Industry Type||Food Franchise Opportunities|
|Sub Category||Frozen Desserts|
|Company Name||Del’s Lemonade & Refreshments, Inc.|
|Founder/Management Head||Angelo DeLucia|
|Employees at Company H.O||–|
|Franchise Expansion Plan||Nationwide|
|Number of Units||–|
|Number of Franchise Units||–|
|Social Media Handles|
|Company Office location||Cranston, Rhode Island, United States|
Del’s Lemonade Franchise Requirements
- Net worth requirement: $500,000
- Liquid assets requirement: $150,000
- Initial franchise fee: $25,000
- Royalty fee: 6% of gross sales
- Advertising fee: 2% of gross sales
- Total investment range: $189,500 – $309,500
- Franchise term: 10 years, renewable
Frequently Asked Questions (FAQs)
- Is Del’s Lemonade franchise profitable?
There is no clear answer to this question as it depends on various factors such as location, competition, management, and more. However, according to the Del Lemonade Franchise Disclosure Document, franchise owners can expect an average gross profit margin of around 80% on sales.
- Can you make money owning a Del’s Lemonade?
Yes, you can make money owning a Del Lemonade franchise if you manage it properly and have a good location with high foot traffic. However, there is no guarantee of success and it largely depends on various factors such as competition, marketing, and management.
- Is Del’s Lemonade a franchise?
Yes, Del’s Lemonade offers franchising opportunities for individuals who are interested in opening their own Del’s Lemonade location.
- How much is a Del’s Lemonade franchises?
The initial investment for a Del’s Lemonade franchises ranges from $160,200 to $290,900. This includes the initial franchise fee of $35,000, which grants you the right to use Del’s Lemonade brand and operating system.
- How do Del’s Lemonade franchises make money?
Del’s Lemonade franchises make money by selling Del’s Lemonade products such as lemonade, soft drinks, and other refreshments. Franchise owners also have the opportunity to sell additional products such as hot dogs and pretzels to increase their revenue. The franchise owner earns revenue from the difference between the cost of goods sold and the selling price, minus any operating expenses and royalties paid to the franchisor.