Chip City

Chip City

Information based on 2022 FDD

Food & Beverage · Desserts

Investment min
$293K
Total: $293K–$526K
Avg gross revenue
$788K
Unit-level, 2022
Franchise fee
$40K
Per current disclosure
Royalty
6%
of gross revenue
Locations
9
Franchising since 2022

Description

What is Chip City?

Chip City has emerged as a rapidly growing force in the premium cookie industry, delighting customers with their artisanal, freshly-baked creations since 2017. Born in New York City, this innovative dessert concept has captured the hearts of cookie enthusiasts by elevating the classic American treat to new heights of culinary excellence.

What sets Chip City apart is their commitment to crafting each cookie with meticulous attention to detail and only the finest ingredients. Their rotating menu of unique flavors keeps customers coming back to discover new taste experiences, while classic favorites remain as staple offerings. Each location serves as both a bakery and retail space, filling the air with the irresistible aroma of freshly baked cookies throughout the day.

As a franchise opportunity, Chip City offers entrepreneurs the chance to join a brand that's revolutionizing the dessert industry with its premium product offering and strong customer loyalty. The business model combines traditional baking expertise with modern marketing strategies and efficient operations systems. Franchise owners benefit from comprehensive training programs, proven operational procedures, and ongoing support in areas such as site selection, store design, and marketing.

The brand's success is built on more than just exceptional products – it's about creating memorable experiences and becoming a beloved part of local communities. With its Instagram-worthy presentations and word-of-mouth marketing potential, Chip City has demonstrated strong appeal to millennials and dessert lovers of all ages, positioning franchise owners for success in the growing premium dessert market.
  • Superior revenue performance - 90% above dessert sub-sector average
  • Lower investment threshold than sub-sector competitors
  • Ground-floor franchise expansion opportunity with proven concept
  • Recession-resistant dessert industry positioning
  • Strong unit-level financial performance metrics
  • Emerging brand with established operational foundation since 2017

Location Analysis

Where Chip City wins

Chip City, a gourmet cookie concept established in 2017, maintains a growing portfolio of company-owned locations based on available unit data. While specific performance metrics and customer ratings are not available in current data sources, the company has focused its initial growth in select markets. The brand appears to be in early stages of development, with current operations primarily concentrated in urban areas. Note: Geographic distribution data across states is not currently available in source records.

For potential future expansion, location selection criteria should consider several key factors based on the brand's dessert category positioning. Optimal locations would likely include areas with: high daytime foot traffic, dense population centers, above-average household incomes, and complementary retail environments. Suitable site characteristics may include high-visibility storefronts in mixed-use developments, proximity to office districts, and co-location with complementary businesses such as coffee shops and casual dining establishments.

While specific performance data is not available in current records, the dessert category typically benefits from locations in areas with strong retail presence and established food delivery infrastructure. As the concept continues to develop, markets with similar demographic and economic characteristics to its existing locations may present expansion opportunities. However, prospective operators should conduct thorough local market analysis and verify current performance metrics directly with the company.
Total US locations
9
Franchise units
N/A
Corporate locations
9
Avg. sq. footage
N/A
Territory check

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Financial Analysis

The numbers behind Chip City

Avg gross revenue$787,789
Investment range$293,000 – $526,000
Investment midpoint$409,500
Brand fund2%
Royalty6%
Franchise fee$40,000
Min. net worth
Min. liquid capital
Chip City requires an investment of $293,000-$526,000, positioning it competitively within the dessert franchise sector. The investment range sits below sub-sector averages of $296,855-$591,723, offering a more accessible entry point for prospective franchisees. The brand's reported gross revenue of $787,789 substantially exceeds the sub-sector average of $414,337 by 90%, demonstrating exceptional unit-level performance potential within the dessert market.

Established in 2017 with 9 active units, Chip City represents an emerging franchise system in early expansion phase. While the limited unit count reflects the brand's recent establishment, it offers ground-floor opportunities for investors seeking to enter a proven concept with strong financial performance metrics. The dessert industry benefits from recession-resistant characteristics and consistent consumer demand.

The concept suits investors with restaurant or retail management experience looking to capitalize on the growing dessert franchise market. Multi-unit development potential exists for qualified operators in suitable markets.

Key considerations include the competitive dessert landscape with 80 franchises in the sub-sector and the brand's relatively recent establishment requiring thorough due diligence regarding operational systems and franchisor support infrastructure before investment commitment.
Did you know? Starting your own Chip City franchise - the beloved gourmet cookie destination known for its warm, made-to-order cookies and innovative flavors - requires a total investment between $293,000 and $526,000, which includes the $40,000 franchise fee along with all the equipment, buildout costs, and working capital needed to bring those irresistible cookie creations to your local community.

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$293K–$526K
Most common
$293,000
Minimum
$409,500
Midpoint
$526,000
Maximum

Per FDD Item 7, total initial investment ranges from $293,000 to $526,000. The midpoint $409,500 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

FDD Item 19

Average gross sales

$1M$800K$600K$400K$200KN/A
$788K
2020
2021
2022
Avg
$263K
YOY change (2021 -> 2022)

According to Item 19 of the Franchise Disclosure Document, Chip City has an average gross revenue of $788K. (Note: This information is based on the latest FDD in our records. Please review the Franchise Disclosure Document (FDD) and confirm this information directly with the brand. We make no claims of accuracy for the information presented.)

Growth over time

Franchise footprint

1086420
2019
2020
2021
2022
9 units open as of 2022 FDD+9 in last 12 mo

2022 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for Chip City's 2022 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2022 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a Chip City franchise typically ranges between $293,000.00 and $526,000.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2022. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

Chip City
Chip City
$788K avg revenue · 0+ US franchises

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