Andy's Frozen Custard has built a remarkable reputation as America's largest frozen custard-only chain, serving silky-smooth frozen custard to millions of loyal fans across 15 states. Founded in 1986 by John and Carol Kuntz in Osage Beach, Missouri, Andy's has grown from a single custard stand to 192 locations as of 2026 - and the brand is still expanding. For entrepreneurs ready to join this beloved dessert franchise, understanding the Andy's Frozen Custard franchise cost and the financing options available is the critical first step toward ownership.
Opening an Andy's Frozen Custard franchise is a substantial investment. The total cost ranges from $529,000 to $1,490,500 per location, and because Andy's focuses on multi-unit development (typically requiring a commitment to open 3-5 stores), franchisees may need to secure $1.5 million or more in total financing. That's where business loan strategies become essential.
In this complete financing guide, Crestmont Capital - rated the #1 business lender in the U.S. since 2015 - breaks down every aspect of Andy's Frozen Custard franchise financing: costs, loan types, qualification requirements, and exactly how to fund your dessert empire.
In This ArticleAndy's Frozen Custard is no ordinary dessert franchise. Named after the founders' son Andy Kuntz - who now runs the company alongside his mother Carol after John Kuntz's passing in 2008 - the brand has maintained a fierce commitment to quality since day one. Every serving of frozen custard is made fresh in-house using an old-fashioned recipe that uses real egg yolks and cream, distinguishing Andy's from competitors who rely on soft-serve machines or pre-packaged products.
According to Forbes, franchise concepts that focus on premium, differentiated food products have shown stronger long-term resilience than commodity fast-food brands. Andy's sits squarely in this category, commanding loyalty in every market it enters.
The brand's growth trajectory is impressive. From roughly 100 locations in 2020 to 192 by mid-2026, Andy's has averaged nearly 15 new locations per year. This expansion has been fueled largely by multi-unit franchise agreements in high-growth markets like Texas, Oklahoma, Georgia, and Florida - all states where the brand is now aggressively recruiting new franchisees.
Understanding the full scope of Andy's Frozen Custard franchise costs is essential before approaching any lender. Here is a detailed breakdown of what you can expect to invest:
The initial franchise fee for your first Andy's Frozen Custard location is $32,000. For each additional location added under a development agreement, the fee drops to $28,000 per unit. A non-refundable deposit of $14,000 is required when signing a Development Addendum, with the remaining balance due 60 days before each store opening.
The total initial investment for a single Andy's Frozen Custard location ranges from approximately $529,000 to $1,490,500. This wide range reflects variables such as real estate costs, construction complexity, site conditions, geographic market, and the number of custard machines purchased.
These requirements make it clear that opening an Andy's Frozen Custard franchise is a serious financial undertaking. Most franchisees will need to combine personal capital with external financing - and that's where small business loans become essential tools in your funding stack.
Crestmont Capital offers franchise loans from $50,000 to $5 million with same-day approvals. Get funded fast.
Apply Now - Free, No ObligationNo single loan product covers every aspect of opening an Andy's Frozen Custard franchise. Most successful franchisees use a combination of financing products - sometimes called a "capital stack" - to cover the various components of their investment. Here are the main financing options available:
The SBA 7(a) loan program is among the most popular financing tools for franchise operators. With loan amounts up to $5 million, competitive interest rates (currently Prime + 2.25% to 4.75%), and repayment terms up to 10 years for working capital (or 25 years for real estate), SBA 7(a) loans are ideally suited to franchise investments of the size Andy's requires.
Because Andy's Frozen Custard is a franchised concept with an established track record, lenders familiar with SBA franchise lending may be more willing to approve applications. The SBA's eligibility requirements for franchise businesses focus heavily on the Franchise Disclosure Document (FDD) and the franchisor's historical performance data.
If you plan to own your building rather than lease it - a growing trend among multi-unit franchise operators - the SBA 504 loan can cover up to 40% of the commercial real estate purchase price through a Certified Development Company (CDC), while a conventional lender covers 50% and you contribute 10% down. This can be powerful for franchisees who want to build long-term equity alongside their operating business.
Long-term business loans from alternative lenders like Crestmont Capital can fund franchise investments without the lengthy SBA approval timeline. Approval in 24-48 hours, funding in as little as one business day, and flexible documentation requirements make conventional term loans attractive to franchisees who need to move quickly on a territory or development opportunity.
A business line of credit is an excellent tool for managing the ongoing cash flow demands of a new franchise location. Use it to cover initial operating expenses, seasonal inventory fluctuations, staffing costs during ramp-up, and unexpected build-out overages. Lines of credit provide flexible access to capital without requiring you to take out a lump-sum loan for every expense.
The specialized frozen custard machines that are central to Andy's operations represent a significant portion of your equipment budget. Equipment financing allows you to fund machines, refrigeration units, POS systems, and other fixed assets with the equipment itself serving as collateral - often resulting in lower rates and longer terms than unsecured loans.
If you have significant retirement savings, a ROBS arrangement allows you to use those funds to invest in a franchise without incurring early withdrawal penalties or taxes. While complex to structure properly, ROBS can provide a significant equity injection that reduces the amount you need to borrow.
SBA loans remain the gold standard for franchise financing, and for good reason. As CNBC has reported, franchisees who utilize SBA financing tend to have lower default rates than independent business borrowers, largely because the franchise model provides a proven operational blueprint.
Here's what you need to qualify for an SBA loan for your Andy's Frozen Custard franchise:
The SBA loan process for franchises typically takes 45-90 days from application to funding, so it's critical to begin discussions with lenders as early as possible in your franchise development timeline.
One of the most specialized - and significant - expenses in opening an Andy's Frozen Custard location is the frozen custard production equipment. Continuous-batch frozen custard machines can cost anywhere from $30,000 to $100,000 or more per unit, and most Andy's locations require multiple machines to handle peak demand.
Equipment financing is structured so that the equipment itself serves as collateral, which means:
Beyond custard machines, equipment financing can also cover: refrigeration display cases, POS systems, drive-through technology, signage, soft-serve and blending equipment for concrete mix-ins, and security systems. A properly structured equipment loan can cover 80-100% of these costs, conserving your cash for payroll, inventory, and marketing during the critical pre-opening period.
Qualifying for franchise financing involves demonstrating to lenders that you have the financial strength, industry knowledge, and business acumen to operate a successful multi-unit franchise. Here's what lenders typically evaluate:
Most traditional and SBA lenders require a minimum personal credit score of 650, with 680+ giving you access to better rates and terms. Alternative lenders like Crestmont Capital work with scores as low as 550 in certain situations. If your credit needs improvement, take 3-6 months to pay down revolving balances and dispute any inaccurate items before applying.
Andy's Frozen Custard requires franchisees to have at minimum $170,000 in liquid assets for a single location, and $500,000 to $3 million+ for multi-unit development. Lenders will verify these assets through bank statements, brokerage accounts, and retirement account statements. Having liquid capital well above the minimum strengthens your application significantly.
The $2 million minimum net worth requirement is substantial. This is calculated as total assets minus total liabilities and can include home equity, investment portfolios, business equity, and retirement accounts. Lenders will want to see a detailed personal financial statement.
While Andy's does not require prior restaurant experience, lenders place significant value on multi-unit management experience, hospitality industry background, or franchise operations history. If you lack direct industry experience, consider partnering with an operating partner who brings operational expertise.
SBA loans require that you pledge all available business assets as collateral. If those assets don't cover the loan amount, lenders may also require a personal guarantee and potentially a lien on personal real estate. Ensure you understand the collateral requirements before signing any loan agreement.
Crestmont Capital's lending specialists work with franchisees at every stage. We'll review your financial profile and identify the best loan products for your Andy's Frozen Custard investment - at no cost or obligation.
Get a Free Funding AssessmentSources: Franchise Disclosure Document, eatandys.com, franchisehelp.com
Since 2015, Crestmont Capital has been rated the #1 business lender in the United States, helping thousands of franchise owners secure the capital they need to open, expand, and thrive. Here's what sets us apart when it comes to Andy's Frozen Custard franchise financing:
Traditional banks can take 60-90 days to process a franchise loan application. Crestmont Capital offers same-day approvals and funding in as little as one business day for qualified borrowers. When you're racing against a territory option deadline, speed matters enormously.
Not every franchisee has perfect credit or a spotless financial history. Our team specializes in structuring loans that work for your specific situation - whether you need a bad credit business loan option, a bridge loan to cover pre-opening costs, or a line of credit to supplement your SBA financing.
Our lending specialists understand the unique financial structure of franchise agreements, including FDD requirements, multi-unit development schedules, and the cash flow dynamics of growing a franchise portfolio. We speak fluent "franchise" - so you don't have to translate.
We offer competitive rates on term loans, lines of credit, equipment financing, and SBA loan assistance. Our SBA loan partners include preferred lenders who can often expedite the approval process.
From $50,000 to $5 million, our loan products scale with your franchise development ambitions. Whether you're funding your first Andy's location or building out a 5-store territory, we have products that fit.
Applying for franchise financing with Crestmont Capital is straightforward. Here's what to expect:
Complete our free online application at offers.crestmontcapital.com/apply-now. Our system evaluates your basic financial profile and identifies which loan products you're most likely to qualify for - typically within minutes.
Your dedicated loan specialist will provide a tailored document list. For franchise loans, this typically includes: personal financial statements, 3 months of bank statements, personal and business tax returns (2-3 years), signed franchise agreement or letter of intent, and a business plan with financial projections.
Our underwriting team reviews your complete application. For SBA loans, this step involves more thorough review of the FDD and franchise system data. For conventional loans, our decision can come in as little as 24 hours.
Upon approval, you'll receive a term sheet detailing loan amount, interest rate, repayment schedule, and any conditions. Review everything carefully and ask questions before signing.
Once you accept the terms and complete any final conditions, funds are disbursed - often the same business day for conventional loans, or within a few days for SBA closings.
Using a fast business loan from Crestmont Capital, many franchisees can secure initial funding well ahead of their Andy's grand opening date, giving them time to handle build-out and pre-opening marketing without cash flow stress.
The total investment to open a single Andy's Frozen Custard location ranges from approximately $529,000 to $1,490,500. This includes the $32,000 initial franchise fee, real estate, construction, equipment, training, and working capital. Because Andy's focuses on multi-unit development requiring 3-5 stores, total development costs for a full territory can range from $1.5 million to $7.5 million or more.
2. Can I get an SBA loan for an Andy's Frozen Custard franchise?Yes. Andy's Frozen Custard is a legitimate franchise concept that qualifies for SBA 7(a) and SBA 504 loan programs. SBA 7(a) loans offer up to $5 million and can be used for franchise fees, construction, equipment, and working capital. The approval process typically takes 45-90 days. Crestmont Capital works with preferred SBA lenders to expedite this process for qualified applicants.
3. What credit score do I need to finance an Andy's franchise?Most SBA lenders require a minimum personal credit score of 650-680. Conventional business lenders like Crestmont Capital may work with scores as low as 550 depending on other financial factors. To secure the best rates and terms, aim for a credit score of 700 or higher before applying. Improving your score by paying down revolving debt can have a significant impact within 3-6 months.
4. Does Andy's Frozen Custard offer in-house financing?Andy's Frozen Custard does not currently offer direct in-house financing to franchisees. Franchisees are responsible for securing their own financing through SBA lenders, banks, or alternative lenders like Crestmont Capital. Andy's corporate team may be able to provide referrals to preferred lending partners they have worked with in the past.
5. What is the royalty fee for Andy's Frozen Custard?Andy's Frozen Custard charges a royalty fee that starts at 6% of monthly gross sales. This fee is tiered and can decrease to as low as 4% based on the number of stores you have open under your development agreement. In addition, franchisees contribute 1% to the National Advertising Fund and are required to spend a minimum of 3% of monthly sales on local advertising.
6. Can I use equipment financing for frozen custard machines?Absolutely. Equipment financing is one of the most effective ways to fund the specialized frozen custard production machines that Andy's locations require. These machines can cost $30,000 to $100,000+ each, and equipment loans typically cover 80-100% of the purchase price with the equipment itself serving as collateral. Terms of 3-7 years are common, and you may also qualify for Section 179 tax deductions on financed equipment.
7. How long does it take to get a franchise loan approved?Approval timelines vary significantly by loan type. SBA loans typically require 45-90 days from application to funding. Conventional term loans from alternative lenders like Crestmont Capital can be approved in 24 hours and funded within 1-3 business days. For franchise buyers working against territory option deadlines, starting the financing process early - ideally before signing the franchise agreement - is strongly recommended.
8. What financial documents do I need for an Andy's franchise loan?Lenders typically require: personal financial statements (assets and liabilities), personal and business tax returns for 2-3 years, 3-6 months of bank statements, a signed or near-signed franchise agreement or letter of intent, a detailed business plan with financial projections, and documentation of your liquid assets and net worth. Some lenders will also request your personal credit authorization and a resume demonstrating business or industry experience.
9. Is Andy's Frozen Custard a profitable franchise?Andy's Frozen Custard has built a strong reputation for profitability among its franchisees, though actual unit economics vary by location, market size, and operational management. The brand's rapid expansion - from about 100 locations in 2020 to 192 by 2026 - suggests strong franchisee satisfaction and performance. For specific financial performance data, review Item 19 of Andy's current Franchise Disclosure Document (FDD).
10. Can I use a business line of credit to fund my Andy's franchise?A business line of credit is an excellent supplemental financing tool for franchise owners. While it may not cover the full investment cost, a line of credit provides flexible access to cash for managing pre-opening expenses, covering payroll during the ramp-up period, handling unexpected construction costs, and maintaining working capital through slow seasons. Many Andy's franchise owners use a combination of an SBA term loan plus a line of credit for maximum financial flexibility.
11. What happens if I need financing for multiple Andy's locations?Since Andy's typically requires a commitment to open 3-5 locations, multi-unit financing planning is essential from day one. Many franchisees use a phased approach: secure financing for the first 2 locations upfront, then refinance or add new facilities as the first locations become cash-flow positive. Crestmont Capital specializes in multi-unit franchise financing and can help structure a development-stage loan strategy that covers your full territory commitment.
12. Are there grants available for franchise businesses?While there are no grants specifically for Andy's Frozen Custard franchises, certain franchisees may qualify for small business grants based on personal characteristics (veteran-owned, women-owned, minority-owned) or geographic location (rural development grants, opportunity zone incentives). The SBA website maintains a comprehensive database of grant programs. Most franchise owners, however, rely on loans rather than grants as their primary funding source.
13. What is the minimum down payment for an Andy's franchise loan?Down payment requirements depend on the loan type. SBA 7(a) loans typically require 10-20% of the total project cost as a down payment, though for established franchise brands like Andy's, some lenders accept lower down payments with strong financial profiles. Conventional loans from alternative lenders may require 20-30% down. In all cases, having a larger down payment reduces your monthly payments and interest costs, and demonstrates stronger commitment to lenders.
14. Can I refinance my Andy's franchise loan later?Yes. As your Andy's locations generate revenue and build a track record, you may be able to refinance existing loans to lower interest rates, extend repayment terms, or access additional capital for expansion. Refinancing is especially valuable if you initially secured high-rate financing due to limited business history or credit challenges. Crestmont Capital offers refinancing options for existing franchise operators.
15. How does Crestmont Capital help franchise owners specifically?Crestmont Capital has been the #1 rated business lender in the U.S. since 2015, with deep expertise in franchise financing. We offer same-day approvals, funding in as little as one business day, and loan products ranging from $50,000 to $5 million. Our franchise lending specialists understand FDD requirements, multi-unit development financing, and the unique cash flow dynamics of the food service industry. We work with franchisees at all stages - from pre-opening to multi-location expansion.
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Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.