Complete investment analysis based on official FDD data
Total Investment
$178,856 – $226,841
Franchise Fee
$15,000
Royalty Rate
N/A
The total initial investment to open a Kona Ice franchise ranges from $178,856 to $226,841, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $15,000.
Midpoint estimate: $202,848
$15,000
One-time initial fee
The Kona Ice 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 Kona Ice brand and is included in the total initial investment range above.
Royalty Fee
N/A
Ad/Marketing Fund
N/A
| Fee Type | Rate | Type | Notes |
|---|---|---|---|
| Royalty | 3000.0 | VARIABLE | $3,000 for years 1-2, $4,000 for years 3-6, $5,000 for years 7-10. Paid in equal installments (3, 6, or 9) during summer/fall months. Allows use of Marks and intellectual property. Additional royalties may apply for Additional Equipment. |
| Additional Equipment Royalty | 1000.0 | VARIABLE | Currently $1,000 to $2,500 per year depending on type of Additional Equipment. Optional - not required to purchase Additional Equipment. |
| Brand Fund Contribution | 500.0 | FIXED | Currently $500 per year for KEVs and KEV 2.0 Trucks, and an additional $200 per year for each piece of Additional Equipment. Can be raised annually by up to 10% and/or increased for marketing projects upon Ad Council approval. Paid same schedule as Royalty. |
| Technology Fee | 600.0 | FIXED | Currently $600 per year. May increase with third-party price increases, upgrades, modifications or additional software. Can be increased upon 30 days' written notice. Paid same schedule as Royalty. |
| KonaOS Business Management Software Fee | 35.0 | FIXED | Currently $35 per month per KEV; $20 per month for every ancillary unit. Paid directly to Kona Software Affiliate. Franchisee responsible for increases from upgrades, modifications or third-party provider increases. Paid same schedule as Royalty. |
| Kona Email Address Fee | 216.0 | FIXED | $216 per email address per year or $18 per email address per month. Each franchisee entity required to have at least one Kona Ice email address. Can be increased upon 30 days' written notice. Paid same schedule as Royalty. |
| Google Voice Fee | 192.0 | FIXED | $192 per Google Voice number per year or $16 per Google Voice number per month. Recommended (not required) that each franchisee entity have at least one. Can be increased upon 30 days' written notice. Paid same schedule as Royalty. |
| Renewal Franchise Fee | 7500.0 | FIXED | Payable at the time you sign the successor franchise agreement if you qualify to renew and choose to enter into a successor franchise agreement. |
| Additional Franchise Reservation Fee | 10000.0 | FIXED | Allows existing franchisees to reserve territories in addition to Protected Territory. Applied to Initial Franchise Fee if purchasing additional Franchise with new KEV. Not applied if purchasing second-hand KEV. |
| Territory Infringement Fee | 1000.0 | VARIABLE | $1,000 plus amount of products/services invoiced for first violation; $5,000 plus amount invoiced for second and subsequent violations. Charged when infringing on another franchisee's Protected Territory without permission. |
| Initial Territory Adjustment Fee | 1000.0 | VARIABLE | $1,000 during first 30 days of operation, $2,500 beginning on 31st day. Only available during first 90 days of operation. No revisions granted after 90 days of KEV delivery. |
| Territory Relocation Fee | 2500.0 | FIXED | Payable if franchisor approves the relocation of Protected Territory. |
| Unauthorized Advertising Fee | 500.0 | FIXED | Payable to the Brand Fund if using unauthorized advertising in violation of the Franchise Agreement. |
| Additional Training | N/A | VARIABLE | Currently no charge, but franchisor may charge for training newly-hired personnel, refresher training, advanced training, and special assistance. Must reimburse costs and expenses incurred in providing training. |
| Insurance | N/A | VARIABLE | If franchisee fails to obtain insurance, franchisor may obtain it and charge franchisee the cost (currently $500 per month) plus 20% administrative fee. |
| Customer Satisfaction Reimbursement | N/A | VARIABLE | Franchisor may remedy customer issues at sole discretion, including full reimbursement of fees paid. Franchisee must reimburse franchisor for such costs. |
| Misappropriated Brand Manual Fee | N/A | VARIABLE | Liquidated damages if franchisee loses, gives away, makes unauthorized copies, fails to return or misappropriates Brand Manual. |
| Non-Compliance Fee | 1000.0 | VARIABLE | $1,000 for first violation; $5,000 if not corrected within 30 days; $5,000 for second violation. Assessed for failing to follow System Standards, approved suppliers/products, Franchise Agreement provisions, or Brand Manual. Three or more violations in a year may result in termination. |
| Payment Service Fees | 4.0 | PCT | Up to 4% of total charge if payment made by credit card or debit card for any fee required. |
| Late Fees | 25.0 | VARIABLE | Payable if any payment not made by due date. Interest accrues from original due date until payment received in full. |
| Returned Check or Insufficient Funds Fee | 100.0 | FIXED | Payable if check or electronic funds transfer unsuccessful due to insufficient funds, stop payment, or similar event. |
| Indemnification | N/A | VARIABLE | Franchisee must indemnify and reimburse franchisor for any expenses or losses incurred related to franchisee's Kona Ice Business or Franchise. |
| Professional Fees and Expenses | N/A | VARIABLE | Franchisee must reimburse legal or accounting fees resulting from breach or termination of Franchise Agreement, expenses in enforcing rights, and professional fees for certain transfers. |
Category
Dessert
Franchise Score
out of 100
Kona Ice operates a mobile and stationary shaved ice franchise serving frozen treats with colorful syrups and toppings. The brand focuses on fun, refreshing desserts and community engagement through mobile cart locations.
Avg. Annual Closure Rate
0.0%
Low risk — below industry average
Net Unit Growth
+453 units
From 2022 to 2024
| Year | Start | Opened | Closed | Transfers | End |
|---|---|---|---|---|---|
| 2022 | 1363 | +141 | — | — | 1484 |
| 2023 | 1476 | +209 | — | — | 1670 |
| 2024 | 1670 | +182 | — | — | 1816 |
Based on the FDD data, here is a data-driven snapshot of the Kona Ice franchise opportunity:
Overall Score
70/100
Strong opportunity
Est. Payback Period
N/A
Insufficient data
Risk Level
Low
0.0% annual closure rate
Kona Ice scores well across our evaluation criteria, indicating a strong franchise system. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.
Get the full Kona Ice franchise intelligence report with risk analysis, deal-breaker alerts, and detailed financial projections.
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