Kona Ice is a mobile shaved ice and ice cream business offering flavored treats to the public. The franchise provides a fun, mobile experience for customers.
Key Insights
- Kona Ice began with a vision to bring a unique, refreshing experience to communities, growing from a singular idea into a widespread franchise network known for its vibrant, customizable treats and engaging customer interactions.
- The franchise operates through a mobile business model, deploying colorful, eye-catching trucks to various locations like schools, parks, and special events, offering a diverse menu of frozen beverages alongside a commitment to community engagement and fundraising.
- The shaved ice industry is a dynamic segment of the broader food and beverage market, characterized by seasonal demand, a focus on unique flavors, and an increasing consumer interest in portable and experiential food options.
Franchise Fee and Costs to Open
Exploring the financial picture of Kona Ice gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $178,856 - $226,841, along with a franchise fee of $15,000 - $15,000.
Financial Performance and Revenue
Yearly gross sales of $142,959 and estimated earnings of $17,156 - $21,444 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 11.0-13.0 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
Kona Ice provides new franchisees with comprehensive training. This initial program, lasting two weeks, takes place at Kona Ice headquarters. Franchisees receive extensive operational guidance and marketing support. Resources cover product preparation, equipment maintenance, and customer engagement strategies. Kona Ice offers ongoing assistance and a network of experienced franchisees.
Legal Considerations
Legal considerations for a Kona Ice franchisee are defined by the Franchise Disclosure Document (FDD) and the Franchise Agreement. This franchise does not disclose lawsuits or bankruptcy information in its FDD, but prospective franchisees should still review all terms thoroughly. Consultation with a qualified attorney is essential before making commitments.
Challenges and Risks
Operating a Kona Ice franchise presents several considerations. Local market competition from other mobile food vendors and established ice cream parlors requires strategic positioning. The operational complexity of managing inventory, vehicle maintenance, and event scheduling demands efficient workflow. Additionally, reliance on specific suppliers for flavoring syrups and ice can influence product availability and cost.
Franchise Datasheet
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