When Does a Great Business Become a Good Franchise?

By Sean Goldsmith

Clementine's makes premium ice cream, but opening a franchise could cost over $1 million. Will the profits justify the investment?

There's something appealing about an independent ice cream shop that takes its flavours seriously. You might pay a little more than you would elsewhere, but you're getting something different, and when it's particularly good, you tend to go back.

Clementine's Ice Cream has spent more than a decade building that sort of following. Founded by Tamara Keefe in St. Louis in 2015, the business has become known for its rich, small-batch ice cream, unusual flavours and attractive parlours.

On 1 October 2026, Clementine's announced that it was opening the business to franchise investors. It also confirmed plans for two additional parlours in the Kansas City area.

The company reports revenue growth of 48% over three years and five consecutive appearances on the Inc. 5000 list. That's encouraging, but investors buying a franchise will be interested in a different figure: how much money is left after running one of these shops.

Lovely Ice Cream. Serious Investment.

Clementine's isn't offering a cheap route into business ownership. Its franchise information lists a $40,000 initial fee, while its 2026 franchise disclosure figures put the estimated total opening investment at approximately $641,500 to $1.05 million.

That's a substantial amount to spend on an ice cream parlour, however good the product might be.

The company also charges a 5% royalty and a 2% brand fund contribution. Franchisees therefore have to account for payments equivalent to 7% of sales before considering local advertising requirements, ingredients, wages, rent and other operating expenses.

Those charges aren't necessarily unreasonable. A recognised brand, reliable products and proper operational support can justify franchise fees. But the higher the initial investment, the more important it becomes to establish whether an individual shop can generate sufficient cash to repay that investment.

A busy Saturday afternoon may look impressive. The financial test comes when sales are quieter and the bills remain unchanged.

Who Controls the Ice Cream?

Clementine's has three product ranges: Nice, its premium dairy ice cream; Non-Dairy, for customers avoiding dairy; and Naughty, which includes alcohol-infused flavours.

The unusual menu is one of its attractions, although it creates responsibilities that go beyond selling ordinary scoops of ice cream.

The company produces its products centrally at a facility called the Milkhouse. That gives Clementine's control over recipes and production standards, reducing the risk of different franchisees making noticeably different versions of the same flavour.

It's a sensible arrangement for a brand whose reputation depends so heavily on the product. The franchisee, however, must rely on the central business for supply, pricing and distribution.

If delivery costs increase or stock arrives late, the local operator still has customers to serve and overheads to meet. Alcohol-infused flavours may also be subject to different licensing requirements depending on the market.

Prospective franchisees need to understand how those arrangements affect their margins before committing to a lease.

Tamara Keefe Can't Run Every Shop

Keefe has spent years developing Clementine's products and customer experience. Franchising means trusting independent business owners to maintain those standards.

The ice cream may arrive from a central production facility, but the service doesn't. A poorly trained employee, an untidy parlour or consistently slow service can disappoint customers regardless of how good the flavours are.

Clementine's says it wants franchise partners who will lead teams, remain involved in their communities and follow its operating systems. That sounds reasonable, particularly for a premium food business where the experience is part of what customers are buying.

The franchisor will also need enough staff to train operators, monitor standards and provide ongoing support as locations spread further from St. Louis. Franchisees will expect that support in return for their fees.

Can the Numbers Work Beyond St. Louis?

Clementine's already has a presence in the Kansas City area through its Prairie Village parlour. Additional locations were announced for Lenexa, Kansas, and Kansas City, Missouri.

The expansion will give the company more experience serving customers outside its original market. But prospective franchisees should distinguish the performance of established company-operated shops from results achieved by independent franchise owners.

The available 2026 franchise disclosure information provides historical financial data from company-operated parlours. That is useful material for an investor to examine, although it cannot establish what a new franchisee will earn after financing costs, franchise payments and their own operating expenses.

Anyone considering the opportunity should pay particular attention to seasonal sales, occupancy costs and the time required to build regular trade.

A Good Ice Cream Shop Could Make a Very Good Franchise

Clementine's has several things working in its favour. It has spent years developing its products, has an established customer following and already operates a central production facility capable of supporting consistent quality.

Franchising could help the company reach new markets without funding every shop itself. Local owners would bring investment, knowledge of their communities and a personal interest in building successful businesses.

The opportunity deserves serious consideration, provided the financial case is as carefully prepared as the ice cream. A premium brand can command higher prices, but those prices must support both the franchisor and the people paying to operate its shops.

If Clementine's gets that balance right, franchising could give more customers access to its ice cream while creating worthwhile businesses for the people serving it.

What We Can Learn From This

Independent food brands considering franchising should establish how they will maintain product quality and what that will cost franchisees. Central production can provide consistency, but investors must account for supply costs, royalties, local advertising and seasonal demand. Before committing capital, prospective operators should examine comparable outlet results and calculate how long it may take to recover their investment. Clementine's has the product and operating experience to make franchising a promising next step; the results achieved by independent owners will determine how successful that step becomes.

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