On any fine summer evening in Squirrel Hill, you can find a crowd of people on Forbes Avenue near Shady, happily leaving or calmly waiting in line at Rita's Italian Ice.

	Alyssa Cwanger, Post-Gazette An employee of the Rita's shop on Forbes Avenue in Squirrel Hill scoops out Italian water ice. Click photo for larger image.

The store's popularity -- it has 23 locations in the Pittsburgh area -- is such that some observers believe the franchise, founded 21 years ago in the Philadelphia suburb of Bensalem, is developing the sort of loyal, almost cult-like following enjoyed by Krispy Kreme doughnuts.

Bill and Jim Rudolph sure hope so. The brothers -- perhaps best known locally as Wendy's franchisees -- on Tuesday bought Rita's Water Ice Franchise Corp. from the chain's founders, Bob and John Tomulo. The price was not disclosed.

"I can't even explain to you how big this is," Jim Rudolph, Rita's new president and chief executive, said of the acquisition by the brothers' Oakland-based venture capital and development firm, McKnight Capital Partners.

Rita's "is an icon in the Philadelphia market and our objective" is to make it a similar institution in the 11 states, from Connecticut to Florida, where there are Rita's, he said.

For Rudolph and his brother, a measure of the Tomulos' success in building the Rita's name is the level of interest expressed by would-be franchisees. The company receives some 3,600 calls each year from would-be franchisees.

Rudolph had the same feeling when he first encountered Rita's in 1998, in Squirrel Hill.

"I was impressed by looking in the back and seeing the professionalism of the signs and the philosophy that they were communicating to their employees," Jim Rudolph said.

Although the chain wasn't for sale then, Rudolph remained interested. "When this opportunity became available, we pursued it aggressively," he said.

Rita's was founded in Bensalem by Bob Tomulo on May 4, 1984. He and his brother, John, began franchising the stores in 1989, and the chain has experienced steady growth since then.

Sales hit $67 million last year, and Rita's 322 locations employ some 3,800 people.

"I think these guys have done a phenomenal job of marketing," Jim Rudolph said of the Tomulos. "We just want to do more."

The Tomulos are leaving Rita's on a high note, having just introduced a new product, Rita's Squeezers.

Packaged six to a box, Squeezers are being sold in Philadelphia-area supermarkets so that Rita's aficionados can enjoy their favorite treats even when the franchise stores are closed. Rudolph said that, in time, he wants to distribute the Squeezers to supermarkets wherever Rita's shops are located.

Jim Rudolph said he would spend the next several weeks meeting with all of the chain's franchisees.

"That's what makes Rita's what it is today," he said. "The Tomulos provided the concept and the leadership but the success is due to the franchisees. They're the ones who have created it."

McKnight Capital was formed by the Rudolphs' father, Leonard H. Rudolph, a leading figure on the Pittsburgh business, real estate and philanthropic stage for more than half a century.

It entered the restaurant business with its 1976 opening of the first Pittsburgh-area Wendy's, which still sits today at Routes 30 and 48 in North Versailles.

As sole franchisee for Western Pennsylvania, McKnight expanded its holdings to 47 restaurants before selling their franchises back to Wendy's in 1995.

The company has also owned Chuck E. Cheese and Baskin-Robbins outlets.

Joining McKnight in the purchase of Rita's are a phalanx of Pittsburgh investors, including the Perlow and Bernstein families, partners in past real estate deals with the Rudolphs, as well as private investment firms Birchmere Capital and Stonewood Capital. Financing on the transaction was provided by Dollar Bank.

"We tried to do everything in Pittsburgh," Rudolph said.