Pelican’s Snoball Franchise: Costs, Profits, and More

Pelican’s Snoballs does not have any company-owned stores, so the majority of their revenue will come from franchise royalties, fees and merchandise sales. In fact, according to their latest income statement, the vast majority of their revenue comes from franchise royalties, almost 80%. Pelican’s Snoball, at 8%, has a slightly higher royalty fee than the franchise average of 6%. However, their royalty fee, like most royalties, are taken as a percentage of gross sales. Therefore, another implication is that the relative success of Pelican’s Snoball franchisees has correspondingly generated revenue for the broader corporation through franchise royalties. 

The total revenues of Pelican’s Snoballs comes out to a little over $2 million. Compared to other giants in the Food and Beverage industry, this number might seem small, but it is important to keep in mind the scale of Pelican’s Snoballs. After all, it is a relatively new company that was started in the early 2000s , and their products are very niche, making rapid development and expansion somewhat difficult. 

A good point of comparison would be the Crumbl franchise, another smaller but very strong contender in the dessert industry. In 2019, Crumbl Cookies made over $4 million in initial revenue, basically double of what Pelican’s Snoballs made. Interestingly enough, however, the net income for Crumbl franchise is $259,925, almost half of Pelican’s Snoballs $404,776 net income that same year. Therefore, even though Crumbl Cookies may generate more in terms of gross revenue, Pelican’s Snoballs remains a more profitable franchise. 

Conclusion

As a whole, Pelican’s Snoballs is a relatively profitable business in the dessert industry. Furthermore, their estimated total investment cost is relatively low compared to other businesses in the broader Food and Beverage industry. Vetted Biz calculated the investment averages for every one of our franchise industries, and Food & Beverage remained one of the highest, ranging from $439,675 to $1,444,928. However, Pelican’s Snoballs total estimated initial investment is significantly lower than this number, as their estimated total investment cost ranges from $61,150 to $195,300.

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Furthermore, despite being on the smaller end of franchises, Pelican’s Snoballs appears to be a relatively profitable franchise, for both the franchisee and franchisor end. In fact, compared to another contender in the dessert industry, the corporation of Pelican’s Snoballs fares significantly better in terms of net profit.

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Think Pelican’s Snoballs is the franchise for you, are you interested in exploring other franchises in the dessert industry or Food and Beverage industry? Make sure to check out the thousands of franchises on the listings page of our website to find the right franchise for you!