The Original Rainbow Cone
Food & Beverage · Ice Cream & Frozen Desserts
- Active units
- 6
- Royalty
- 6.0%
Franchised, year-end 2025
of weekly Net Sales
About The Original Rainbow Cone
The Original Rainbow Cone is a Chicago institution that has been serving up the best ice cream in the city for over 95 years. With a unique twist, they offer five delicious scoops of flavor all in one cone! Originating from the vibrant culture of Chicago in 1926, they have recently expanded to Bradenton, Florida, bringing their famous ice cream to a new audience. Whether you're looking to satisfy your ice cream cravings through their online order and delivery service, visit their local shops in Chicago or Lombard, or find their ice cream truck for a fun experience, The Original Rainbow Cone has you covered. They also offer catering services for events and have a range of treats including mini donuts and tiered cakes with their signature five-layered flavors. With a 96-year legacy, they continue to delight customers with their iconic rainbow cone flavors and bring smiles to faces everywhere.
Key terms
- Area Development discounted unit fee
Under an Area Development Agreement, additional franchises after the first are $32,000 (20% discount), subject to meeting schedule.
- Brand fund
2.0% of Net Sales
- Local advertising
2.0% of Net Sales
- Area Development Fee
$0
- Veteran discount
Not offered
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2024, 2025, 2026.
Growth
- Total locations6
Franchised units open at year-end
- New openings3
Gross new units opened during the calendar year
- 1-year unit growth rate0.0%
Net unit growth versus prior year
- 3-year unit CAGR73.2%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio1.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$2.6M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open—
Midpoint of average time from agreement to opening
- Royalty rate6.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.