Franchising
Franchisee, Youtuber buy 16 Handles
August 24, 2022
New York City-based 16 Handles has been acquired by its largest franchisee, 27-year-old New York entrepreneur Neil Hershman, who is now CEO and hopes to grow the brand with help from his partner and investor, Danny Duncan. Duncan is a comedic YouTuber with over 1.5 billion views on the platform.
Founded by Solomon Choi in 2008, 16 Handles has over 30 locations in five states and serves 16 frozen desserts, and offers 50-plus toppings and sauces, as well as a variety of frozen novelties such as cakes, take-home pints and toppings to-go, according to a press release.
"I came to New York City in my 20s and started 16 Handles as part of my lifelong dream and passion to create my own brand and build it into something great," Choi said in the release. "Today, I see this same desire and fire in Neil as a successful franchisee who will now take over the direction of this iconic New York City dessert brand.
"I want to see 16 Handles grow and evolve, and Neil has the right mindset to set lofty goals and put the right plan together, which is exactly the type of leadership the brand needs."
Over the past three years, Hershman has built a dessert empire throughout Manhattan, including a newly constructed Times Square 16 Handles location. He owns five 16 Handles shops (Murray Hill, East Village, Chelsea, Tribeca and Times Square), last year debuted NYC's first-ever Dippin' Dots ice cream store in Flatiron District and has since opened two additional stores in Brooklyn and Times Square this year. Hershman also recently opened Captain Cookie & the Milkman, a popular cookie and ice cream company started in Washington DC, near NYU's campus.
"16 Handles is a beloved brand in the New York region and there is so much potential for it to dominate in countless other markets across the country," Hershman said in the release. "Our leadership team has experience owning and operating our store locations, which gives us unparalleled insight into our products, business model and customers.
"The soft serve and frozen yogurt market has continued to be an attractive investment for operators due to the high margin, low labor business model. 16 Handles created a brand for a broader demographic, not just kids. and continues to bring in new customers with its head-turning partnerships, ranging from Broadway Shows like Dear Evan Hansen to national food and beverage partners like Junior's Cheesecake and Oatly."
The total initial investment to open a 16 Handles franchise ranges from $228,250 to $671,000.
"It's important for me to invest in a company that has a great product, but also a company that brings people happiness," Duncan said in the release. "I recognized 16 Handles' success in New York City and knew if it could succeed there, it could succeed anywhere. I'm excited to open my own 16 Handles in my hometown of Englewood, Florida, and to help lead franchise expansion throughout the U.S."
