Rita’s Italian Ice – 2nd Career?
http://www.ritasice.com
After 24 years with a single employer, I found myself frantically searching for a career change a few years ago given the rampant downsizing we were experiencing. It was not an easy time to start looking for a job…the economy was tanking, Michigan was in a near depression (unemployment was 20%+ and housing values had plummeted ~50%), and I was still recovering from a severe accident that was likely to leave me with some disability. I started evaluating dozens of franchises that were within my capital investment range that could give me the return I needed and were within my capabilities.
Although I am happy I wasn’t forced into a career decision during the last few years, it has forced me to seriously consider what my options will be for a second career (after Ford) and to get busy planning for how I might structure my own business ventures in the next phase of my life (whenever that happens).
There are several franchise opportunities that made the A-List. I analyzed UFOC’s (franchise disclosures), did hours of market research and looked at a number of industry/product types. It was fun.
The one that ranks the highest for me was the Ritas Italian Ice franchise. They aren’t in Michigan yet, but that is actually a plus. I would prefer to be on the leading edge of the franchise even though it will require a longer start-up. It is a perfect second career for hundreds of people like myself that may be forced to “retire” much earlier than planned.
- The product is OUTSTANDING. It tastes great, it’s lighter than ice cream so regular customers think nothing of returning 3-4 times a week. Many are fruit based and moms feel this treat is more acceptable than others. It’s a relatively inexpensive dessert that has a cult like following in Pennsylvania (and growing).
- A Seasonal franchise that opens the 3rd week of March and closes in late Sept/Oct is perfect for northern folks who would love to head south for the winter.
- By the way, the opening day in March is huge…every store gives away (free) italian ice that day and people line up!
- It is a simple concept and they have a tremendous support network built up and it looks like adequate training, etc.
- The margins are incredible.
- A very low labor requirement (high school kids, etc) means you can keep costs down.
- 800-1200 square feet is all you need, so you can keep rent commitment down…ideally you can build/own depending on the location.
- The franchise is a perfect candidate to structure something similar to a “Dealer Development Program” which I am intimately acquainted with. There are likely dozens of friends in similar situations that would gladly put up 20-30% of the capitalization (limited risk) and use the profit to buy out the remaining shares over time (from me). We could structure a win-win for everyone. I’m not sure I would trust much debt load, but I would certainly consider something that provided an opportunity to build a network of stores over time.
I’ve been sharing this franchise detail with dozens of friends even though Rita’s isn’t yet in Michigan. It seems like a perfect fit for our owner/operator plan but I am eager to have additional sets of eyes do their own due diligence and see if I’m missing something.
Tags: 2nd Careers, Brainstorming, Franchises, Ritas Water Ice
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