If you have been dreaming about owning a Jeremiah's Italian Ice franchise, you are not alone. This fast-growing frozen dessert brand has captured the hearts of customers across the United States with its vibrant flavors, welcoming atmosphere, and strong community ties. But turning that dream into a reality requires capital, and understanding your franchise financing options is one of the most important steps you can take as an aspiring franchise owner.
In this guide, we walk you through everything you need to know about securing a Jeremiah's Italian Ice franchise loan, from understanding the total investment required to exploring every financing option available. Whether you are a first-time business owner or an experienced operator looking to expand your portfolio, this guide will help you navigate the lending landscape with confidence.
Ready to Finance Your Franchise?
Get fast, flexible financing from the #1 business lender in the U.S. No obligation - apply in minutes.
Apply Now →In This Article
Jeremiah's Italian Ice was founded in 1996 in Orlando, Florida, by Jeremy Litwack. What started as a single neighborhood shop has grown into one of the most recognized Italian ice brands in the country. The chain is known for its signature "Gelati" product, which layers Italian ice with soft-serve cream, and its wide variety of bold, refreshing flavors.
The brand began franchising aggressively around 2019, and since then it has expanded to hundreds of locations across the United States. According to its SBA franchise resources, the frozen dessert sector has shown consistent resilience even during economic downturns, partly because consumers often trade down from expensive sit-down restaurants to affordable treats during tighter times.
Jeremiah's Italian Ice has established a devoted customer base. Its bright colors, friendly service culture, and commitment to community events have helped it build brand loyalty that rivals much larger dessert chains. The business also benefits from a simple operational model with relatively low labor costs, which makes it an attractive option for new franchise owners.
Before you can secure financing, you need to understand what you are actually paying for. The total investment to open a Jeremiah's Italian Ice franchise depends on several factors including location, buildout requirements, and whether you are opening a standalone shop, a kiosk, or an in-line retail space.
Based on the brand's Franchise Disclosure Document (FDD), the estimated total initial investment to open a Jeremiah's Italian Ice franchise is typically in the range of $145,000 to $490,000. This broad range reflects different store formats and market conditions. Here is a breakdown of the major cost categories:
These estimates are approximations and the actual figures will depend on your specific market, real estate terms, and negotiations with contractors. Always review the most current FDD and speak directly with the franchisor before finalizing your financial projections.
In addition to the upfront investment, Jeremiah's Italian Ice franchise owners pay ongoing fees:
Understanding these fees is essential when building your revenue projections and loan repayment plan.
Most franchise brands require that prospective franchisees demonstrate a minimum level of liquid capital and net worth. For Jeremiah's Italian Ice, you should generally expect to need at least $75,000 to $100,000 in liquid capital and a net worth of $250,000 or more. These requirements help ensure that new franchisees have the financial cushion to sustain operations during the early months.
If you do not meet these requirements entirely on your own, co-investors or business partners with shared equity can help bridge the gap in some cases.
Most Jeremiah's Italian Ice franchise owners do not pay the full cost of their investment out of pocket. Instead, they use a combination of personal savings, loans, and potentially investor contributions. Here is an overview of the primary financing avenues available to you.
Key Insight
According to the International Franchise Association, the vast majority of franchise owners use some form of outside financing. Knowing which product fits your situation can save you tens of thousands of dollars in interest over the life of your loan.
The simplest financing method is using your own savings. Many lenders will require you to inject at least 10% to 30% of the total project cost from your own funds as "skin in the game." Using retirement funds through a ROBS (Rollover for Business Startups) arrangement is another option some franchisees explore, though it comes with its own tax and legal complexity.
Traditional bank term loans can fund franchise purchases, but they tend to require strong personal credit, existing business history, and significant collateral. Banks are generally more conservative lenders, and approval timelines can stretch for weeks or months. However, if you qualify, rates are often competitive.
The U.S. Small Business Administration does not lend money directly, but it guarantees loans made by SBA-approved lenders. This guarantee reduces risk for lenders and makes it easier for small business owners to qualify. SBA loans are among the most popular financing tools for franchise owners, and we cover them in detail in the next section.
Online business lenders and fast business loan providers can offer approval and funding within days, which is useful if you need to move quickly or if you do not yet qualify for an SBA loan. These lenders typically accept a wider range of credit profiles but charge higher rates to compensate for the additional risk.
Some franchisors offer in-house financing programs or have partnerships with preferred lenders. Jeremiah's Italian Ice may maintain relationships with lenders who specialize in their brand. Ask your franchise development representative about any preferred lender programs during your discovery process.
You can often separate the cost of equipment from your main loan, which can reduce the size of your primary financing need. Equipment financing is secured by the equipment itself, so approval is often easier even if your credit is not perfect.
Ready to Finance Your Franchise?
Get fast, flexible financing from the #1 business lender in the U.S. No obligation - apply in minutes.
Apply Now →For most Jeremiah's Italian Ice franchise owners, SBA loans are the gold standard of financing. They offer lower down payments, longer repayment terms, and competitive interest rates compared to conventional business loans. Here is what you need to know.
The SBA 7(a) is the most common loan for franchise financing. It can be used for:
Loan amounts through the SBA 7(a) program can go up to $5 million, which is more than sufficient for a Jeremiah's Italian Ice location. The maximum repayment term for real estate is 25 years; for equipment and working capital it is typically 10 to 12 years. Interest rates are variable and tied to the prime rate, with the SBA setting maximum rate allowances.
The SBA 504 program is designed primarily for larger capital expenditures like real estate or long-lived equipment. If you plan to purchase the building where your franchise will operate, a 504 loan might make sense. These loans feature a fixed interest rate portion, which can help you manage long-term costs more predictably.
To qualify for an SBA loan for your Jeremiah's Italian Ice franchise, you will typically need:
One important advantage: the SBA maintains a Franchise Registry, and Jeremiah's Italian Ice is listed on it, which streamlines the approval process at many SBA-approved lenders. When a franchise is on the registry, the lender does not need to independently review the franchise agreement, saving time and paperwork.
SBA loans typically take 45 to 90 days from application to funding. This timeline can be shorter at preferred SBA lenders (PLP lenders) who have the authority to approve loans in-house without going back to the SBA for every decision.
Not every franchise candidate will qualify for an SBA loan on their first attempt, and some need capital faster than the SBA process allows. In these situations, alternative lenders can fill the gap.
Online term loans from lenders like Crestmont Capital offer a faster path to funding. Unlike traditional banks that may require 60 to 90 days, many online lenders can approve and fund a loan within a few business days. While rates are generally higher than SBA loans, these products are often used as bridge financing or for borrowers who need more flexible underwriting criteria.
For a Jeremiah's Italian Ice franchise, an online term loan might cover:
A business line of credit gives you flexible access to funds up to a set limit. You only pay interest on what you use. For a franchise owner, this is an excellent tool for managing seasonal cash flow fluctuations, covering payroll during slow periods, or funding marketing campaigns without taking out a new loan each time.
Pro Tip
Frozen dessert businesses often experience strong seasonal variation, with peak sales in spring and summer and slower periods in fall and winter. A line of credit can help you bridge the gap between seasons without taking on unnecessary long-term debt.
A merchant cash advance (MCA) provides a lump sum of capital in exchange for a percentage of future credit card sales. MCAs are fast and accessible even with lower credit scores, but they are also among the most expensive forms of business financing. Use them sparingly and only when you have a clear plan for repayment.
A significant portion of your startup costs will go toward specialized equipment. Jeremiah's Italian Ice stores require soft-serve machines, Italian ice storage and display units, refrigeration, POS systems, and more. Financing this equipment separately from your main loan has several advantages.
With equipment financing, the equipment itself serves as collateral. This means the lender takes on less risk, which often translates to easier approval standards and competitive rates. Approval can sometimes happen within 24 to 48 hours for straightforward equipment loans.
By financing $50,000 to $80,000 in equipment separately, you can reduce the size of your primary business loan and improve your loan-to-cost ratio, which may make it easier to qualify for your main financing at better terms.
Source: Franchise Disclosure Document estimates. Actual costs vary by location and market conditions.
Understanding what lenders look for can dramatically improve your chances of approval and help you secure better terms. Here is a detailed breakdown of the key qualifying factors.
Your personal credit score is one of the most important factors in franchise lending decisions. Here is a general guide:
According to data from the U.S. Census Bureau, small business formation remains strong, with hundreds of thousands of new businesses launched each year. But credit quality continues to be the top differentiating factor in loan approvals.
Every lender will want to see a business plan. For a franchise, this is somewhat easier to put together because the franchisor often provides templates and financial benchmarks from existing franchisees. Your plan should include:
Most business loans, especially larger ones, require some form of collateral. For franchise loans, collateral may include:
SBA loans under $25,000 generally do not require collateral. For larger amounts, the SBA requires lenders to take available collateral but does not decline a loan solely because collateral is insufficient if the borrower is otherwise creditworthy.
Lenders want to know that your business will generate enough income to cover loan payments. The standard benchmark is a Debt Service Coverage Ratio (DSCR) of at least 1.25, meaning your business generates $1.25 for every $1.00 of debt service. For a startup franchise, projections are used instead of historical data, so your financial model needs to be realistic and well-supported.
Important Note
Never inflate your revenue projections to look more attractive to a lender. Lenders are experienced at identifying unrealistic numbers, and submitting inflated projections can lead to loan denial or, in some cases, fraud allegations. Base your projections on real data from the franchisor and comparable stores.
Applying for a franchise business loan does not have to be intimidating. Breaking it down into steps makes it manageable.
Before you approach any lender, collect these documents:
Pull your credit reports from all three bureaus (Equifax, Experian, TransUnion) and review them carefully. Dispute any errors you find, as inaccuracies can drag down your score unnecessarily. If your score needs improvement, focus on paying down revolving balances and avoiding new credit applications for 90 to 120 days before applying for your franchise loan.
Match your situation to the right lender type:
Most lenders now accept applications online. Be thorough and accurate. Incomplete applications are a common cause of delays. If you are applying for an SBA loan, your lender will guide you through the additional SBA-specific forms.
After submission, lenders will often request additional documents or clarifications. Respond quickly. Delays in this phase are one of the top reasons franchise financing takes longer than expected.
Once approved, you will receive a loan commitment letter outlining the terms. Read it carefully and ask questions before signing anything. Pay attention to prepayment penalties, balloon payment provisions, and covenant requirements.
After signing, the lender will finalize the closing documents and disburse funds. For SBA loans, this typically happens within 5 to 10 business days of final approval. For alternative lenders, funding can sometimes occur the same day.
Ready to Finance Your Franchise?
Get fast, flexible financing from the #1 business lender in the U.S. No obligation - apply in minutes.
Apply Now →Beyond the standard requirements, there are several strategic steps you can take to strengthen your franchise loan application.
The more you can put down, the less risky you appear to lenders. Even if you qualify for a loan with only 10% down, putting 20% or more down can unlock significantly better rates and terms. It also reduces your monthly debt service obligation, giving your business more breathing room in the early months.
Lenders feel more confident when borrowers have experience in the relevant industry. If you have worked in the food service, retail, or hospitality sectors, highlight that experience in your business plan and in conversations with your lender. Even customer-facing management experience in other industries can be relevant.
Do not wait until you have signed the franchise agreement to start talking to lenders. Begin your conversations 90 to 120 days before you need the money. This gives you time to address any underwriting concerns and ensures you will have financing in place when you are ready to move forward with your franchise.
Lenders who specialize in franchise financing understand the industry model better than general business lenders. They are familiar with the Jeremiah's Italian Ice brand, its FDD, and the typical financial performance of similar franchise systems. This familiarity can speed up underwriting and increase approval odds.
Do not put all your eggs in one basket. Apply to two or three lenders simultaneously. If one declines or offers unfavorable terms, you have backup options. Just be aware that multiple hard credit pulls within a short window (typically 14 to 45 days for business loans) are often treated as a single inquiry on your personal credit report.
The total estimated investment ranges from approximately $145,000 to $490,000, depending on store format, location, and buildout requirements. This includes the franchise fee, construction, equipment, initial inventory, and working capital.
What is the franchise fee for Jeremiah's Italian Ice?The initial franchise fee is typically between $25,000 and $35,000. This is a one-time fee paid to the franchisor and grants you the right to operate under the Jeremiah's Italian Ice brand in a defined territory.
Can I get an SBA loan for a Jeremiah's Italian Ice franchise?Yes. Jeremiah's Italian Ice is listed on the SBA Franchise Registry, which streamlines the SBA loan process. SBA 7(a) loans are commonly used to finance the franchise fee, buildout costs, equipment, and working capital for new franchise locations.
What credit score do I need to get a franchise loan?Most SBA-approved lenders prefer a personal credit score of 650 or higher, though many prefer 680 or above. Alternative lenders may work with scores as low as 580 to 620, but at higher interest rates. A stronger credit score gives you access to better terms and lower rates.
How long does it take to get approved for a franchise loan?SBA loan approval typically takes 45 to 90 days from application to funding. SBA Preferred Lenders (PLPs) can sometimes process loans faster. Alternative business lenders can often approve and fund within a few business days, but at higher rates.
How much do I need for a down payment on a franchise loan?SBA loans typically require a 10% to 20% equity injection (down payment) from the borrower. For a Jeremiah's Italian Ice franchise with a total cost of $300,000, that would mean $30,000 to $60,000 of your own capital. A larger down payment can improve your rates and approval odds.
Can I finance a Jeremiah's Italian Ice franchise with bad credit?It is more challenging, but not impossible. If your credit score is below 620, focus on credit repair, adding a creditworthy co-applicant or guarantor, and increasing your down payment percentage. Some alternative lenders specialize in working with borrowers who have imperfect credit, though rates will be higher.
What documents do I need to apply for a franchise loan?Standard documents include personal tax returns (2-3 years), personal financial statement, bank statements, business plan with financial projections, the Franchise Disclosure Document, your signed or draft franchise agreement, and government-issued ID. Some lenders may request additional items.
Does Jeremiah's Italian Ice offer financing to franchise owners?Jeremiah's Italian Ice may have relationships with preferred lenders who understand the brand's franchise system. Ask your franchise development representative about any financing programs or partnerships during your discovery process. Third-party SBA lenders and alternative lenders also frequently work with Jeremiah's franchisees.
What ongoing fees do Jeremiah's Italian Ice franchise owners pay?Franchise owners pay an ongoing royalty of approximately 6% of gross sales plus a marketing fund contribution of approximately 2%. These fees must be factored into your financial projections and loan repayment planning.
Can I use a business line of credit for my franchise?Yes. A business line of credit is an excellent supplemental financing tool for franchise owners. It gives you flexible access to working capital for seasonal fluctuations, marketing campaigns, unexpected expenses, or inventory purchases without requiring you to take out a new loan each time.
How does equipment financing work for a franchise?Equipment financing allows you to borrow money specifically to purchase business equipment, using the equipment as collateral. For a Jeremiah's Italian Ice franchise, this might cover soft-serve machines, freezers, refrigeration, and POS systems. Approval is often faster and easier than general business loans because the collateral is clearly defined.
Is Jeremiah's Italian Ice a profitable franchise?Jeremiah's Italian Ice locations have shown strong customer loyalty and revenue growth in many markets. Profitability depends on location, management quality, local competition, and operational efficiency. Review the FDD's Item 19 (financial performance representations) and speak with existing franchisees to get a realistic picture of revenue potential before committing.
What is the royalty rate for Jeremiah's Italian Ice?The ongoing royalty rate is approximately 6% of gross sales. This fee is paid periodically (usually weekly or monthly) to the franchisor in exchange for the right to use the brand, proprietary recipes, operating systems, and ongoing corporate support.
How do I start the process of applying for a Jeremiah's Italian Ice franchise loan?Start by reviewing the Jeremiah's Italian Ice FDD to understand all costs involved. Check your credit score, gather your financial documents, and prepare a business plan. Then connect with a franchise-specialized lender like Crestmont Capital to discuss your financing options and start your application. The sooner you begin, the sooner you can open your doors.
Opening a Jeremiah's Italian Ice franchise is an exciting opportunity to enter the fast-growing frozen dessert market with the backing of an established brand and a passionate customer base. But like any business investment, it requires careful financial planning and the right funding strategy.
Whether you choose an SBA loan for its low rates and long terms, an alternative lender for its speed and flexibility, or a combination of both, the key is to start early, prepare thoroughly, and work with lenders who understand the franchise industry. With the right financing in place, you can focus on what matters most: building a thriving business and delighting your community with every scoop.
Crestmont Capital has helped thousands of franchise owners across the United States secure the funding they need to open, grow, and succeed. Our team understands the franchise lending landscape and works hard to match each borrower with the right product at competitive terms.
Ready to take the next step? Apply now or explore our full range of franchise business loans to find the product that fits your goals.
Disclaimer: The information provided in this article is for general educational purposes only and does not constitute financial, legal, or investment advice. Franchise investment costs, requirements, and loan terms vary and are subject to change. Always consult with a qualified financial advisor, attorney, and the franchisor's current Franchise Disclosure Document before making any investment decision. Crestmont Capital is a business lender and does not guarantee approval or specific loan terms.