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Food & Beverage

Bahama Buck's Original Shaved Ice Company Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$528,050 – $1,223,050

Franchise Fee

$34,500

Royalty Rate

6.0%

Initial Investment Range

Low: $528,050 High: $1,223,050

The total initial investment to open a Bahama Buck's Original Shaved Ice Company franchise ranges from $528,050 to $1,223,050, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $34,500.

Midpoint estimate: $875,550

Franchise Fee

$34,500

One-time initial fee

The Bahama Buck's Original Shaved Ice Company franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Bahama Buck's Original Shaved Ice Company brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

6.0%

of gross revenue

Ad/Marketing Fund

2.0%

of gross revenue

Total Ongoing Fee Burden: 8.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Royalty Fee 6.0 PCT Currently collected monthly on or before the 15th of the month for Gross Sales in the prior month, although franchisor has the right to collect weekly on Wednesday for the previous week. Gross Sales means gross revenues from sale of all items less applicable sales taxes, coupon credits and discounts. Payment by electronic funds transfer.
Advertising Fee 2.0 PCT Same collection schedule as Royalty Fee. See Item 11 for additional details.
Development Extension Amendment Fee 3000.0 FIXED 6 months extension for $3,000 or 12 months for $5,000. Payable upon execution of amendment if franchisee has not fulfilled opening obligations due to difficulty locating and acquiring an acceptable location.
Provisional Architect Review Fee 5000.0 FIXED Payable upon submission of selected Architect's Plan. Payable to Bahama Buck's.
Product Rush Fee 25.0 VARIABLE Greater of either $25 fee or 10% of order's total value for rush service. Applies if franchisee needs a product immediately and provides less than 24 hours notice. Payable upon current product payment terms.
Renewal Fee 7500.0 FIXED Payable at time of renewal. Franchisee must communicate intent to renew as early as 6 months prior but not later than 2 months prior to conclusion of current agreement.
Transfer and Assignment Fee 7500.0 FIXED Payable at time of transfer. Waived if the transfer is for a single store and to a legal entity franchisee controls.
Point of Sale Software Fees 6500.0 VARIABLE Range of $6,500 to $15,500. Fees payable to third party vendor on demand. Includes fees for licensing software and purchasing the POS system. See Items 9 and 11.
Initial Training 300.0 FIXED Current fee estimated at $300 per person per day plus Bahama Buck's expenses. Bahama Buck's provides initial training for two people for five days at no charge. Fee is charged for any additional people. Payable upon execution of Franchise Agreement. See Item 11.
Retraining 300.0 FIXED Current fee estimated at $300 per person per day plus Bahama Buck's expenses. Payable at time of training. Required if franchisee is in default and Bahama Buck's requires attendance at training course to cure default.
Continuing Training 300.0 FIXED Current fees for optional programs estimated at $300 per person per day. Mandatory continuing training programs provided at no additional charge. Bahama Buck's may charge a training fee for optional training programs. Payable at time of training.
Annual National or Regional Meetings 200.0 FIXED Current registration fee estimated at $200 per person per day. Payable prior to or at meetings. Franchisee also responsible for costs to attend meetings (travel, lodging, etc.).
Social Media Fees N/A VARIABLE Fees not currently being charged but estimated to range from $0 to $100 per month. Payable on 1st day of each month. Franchisor reserves right to own social media accounts and require franchisee to pay provider directly or pay franchisor for provider fees. Franchisor may also manage accounts and charge a fee for services.
Delinquent Interest 18.0 PCT Interest at maximum rate permitted by law, not to exceed 18% per annum. Beginning on date of delinquency, paid in same manner as royalty payments. Payable on any delinquent amounts and delinquent reports.
Late Payment Fee 25.0 FIXED Currently $25 per late payment. Beginning on date of delinquency, paid in same manner as royalty payments.
Late Report Fee N/A VARIABLE Progressive fee structure: Notice 1: $0 (Warning), Notice 2: $100, Notice 3: $250, Notice 4: $500 (and likely Termination). For each late report, return, or financial statement.
Violation Fees N/A VARIABLE Progressive fee structure: Notice 1: $0 (Warning), Notice 2: $100, Notice 3: $250, Notice 4+: $500. Payable if franchisee violates terms of franchise agreement or manual.
Approval of Suppliers 150.0 FIXED Current review fee estimated at $150 per hour and actual costs. Payable on demand. Required if franchisee wishes to purchase from non-approved vendors. Suppliers must also pay franchisor's then-current licensing fee if using franchisor's trademarks.
Lost, Destroyed or Stolen Manual 500.0 FIXED Current replacement cost estimated at $500 per manual. Payable on demand.
Proprietary Products N/A VARIABLE Franchisee must purchase proprietary flavor concentrates, pre-made desserts, iced coffee or regular coffee products from TWD or Bahama Buck's on continuing basis and maintain 30-day inventory. May also purchase supplements for ice products, equipment, advertising materials and logo apparel. Empty/loadable gift cards currently available without charge. Payable as needed. See Item 8.
Audits N/A VARIABLE Franchisee pays Bahama Buck's costs for examining records. Payable on demand if franchisee under-reports amounts owed by 2% or more.
Restocking Fee 20.0 PCT 20% of cost of products returned to Bahama Buck's in original condition. Payable on demand. Bahama Buck's provides merchandise credit for full wholesale purchase price less 20% restocking fee upon return of ice and dessert products or equipment.
Indemnification N/A VARIABLE Covers claims and liabilities incurred by Bahama Buck's relating to franchisee's business. Payable as incurred.
Insurance N/A VARIABLE Franchisee must reimburse Bahama Buck's if franchisee fails to maintain required insurance and Bahama Buck's at its option purchases insurance for franchisee. Payable upon receipt of Bahama Buck's invoice. See Item 8.
Attorneys' Fees N/A VARIABLE Attorneys' fees and costs for indemnification or enforcing Franchise Agreement. Payable as incurred.

What You Get

Category

Food & Beverage

Franchise Score

77

out of 100

Bahama Buck's Original Shaved Ice Company franchise provides premium shaved ice treats with tropical flavors and frozen beverages. The brand offers a fun, casual experience with high-quality ice products and custom flavor combinations.

Financial Performance (Item 19)

Median Revenue

$575,683

per year, per location

Profitability Estimate

Estimated Owner Profit

$115,079

per year

Profit Margin

20.0%

of revenue

Estimation method: disclosed

Estimated ROI (Simple Payback): 7.6 years

Based on midpoint investment of $875,550 and estimated annual owner profit of $115,079.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

1.9%

Low risk — below industry average

Net Unit Growth

+10 units

From 2021 to 2023

Unit Activity History

Year Start Opened Closed Transfers End
2021 102 +3 104
2022 104 +8 -3 109
2023 109 +7 -3 112

Is a Bahama Buck's Original Shaved Ice Company Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Bahama Buck's Original Shaved Ice Company franchise opportunity:

Overall Score

77/100

Strong opportunity

Est. Payback Period

7.6 yrs

Longer payback

Risk Level

Low

1.9% annual closure rate

Bahama Buck's Original Shaved Ice Company scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $575,683 and a combined fee burden of 8.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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