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Dessert

Pelican's SnoBalls Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$81,750 – $230,800

Franchise Fee

$25,000

Royalty Rate

8.0%

Initial Investment Range

Low: $81,750 High: $230,800

The total initial investment to open a Pelican's SnoBalls franchise ranges from $81,750 to $230,800, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $25,000.

Midpoint estimate: $156,275

Franchise Fee

$25,000

One-time initial fee

The Pelican's SnoBalls 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 Pelican's SnoBalls brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

8.0%

of gross revenue

Ad/Marketing Fund

1.0%

of gross revenue

Total Ongoing Fee Burden: 9.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Royalty 8.0 PCT Monthly, on the 15th day of each month. We reserve the right to require you to pay Royalty Fees as frequently as on a weekly basis.
Transfer 10000.0 USD The costs and expenses we incur in connection with the transfer, which include, among other things, our legal, accounting, training, and other expenses. Only due if you want to engage in a transfer.
Technology Fee 300.0 USD Monthly, on the 15th day of each Month, or paid annually, in advance. This fee is for System-wide technology-related costs and expenses.
Regional Fund Contribution 1.0 PCT If established, 1-2% of Gross Sales. Monthly, on the 15th day of each Month. If a regional marketing fund is established, you must become a member and contribute.
Audit by us N/A USD Only due if we audit your records and find that you understated amounts, or if you fail to submit the required monthly sales report then among other things, we may require you to reimburse us for the costs of our audit (such as auditors' fees).
Interest on Overdue Payments 1.5 PCT But not more than rate permitted by law, if a maximum applies. Only due if you do not timely pay your royalties and other fees.
Securities Offering 7500.0 USD Or such greater amount as is necessary to reimburse us for our costs and expenses (including legal and accounting fees) for reviewing the proposed offering. Only due if you propose to offer securities.
Relocation Fee 3500.0 USD Or more if needed to reimburse us for the costs (including our attorneys’ fees) incurred in connection with reviewing, approving, and documenting the proposed relocation, any related lease matters, and any necessary amendments to the Franchise Agreement. Only due if you propose to relocate your business.
Costs and Attorneys' Fees N/A USD Only due if you default under the Franchise Agreement, you must reimburse us for the expenses we incur (such as attorneys' fees) in enforcing or terminating the agreement.
Cost of Defense N/A USD Only due if we determine that you have not used the Proprietary Marks according to the Franchise Agreement, you must bear the cost of our defense of you against any third-party claim, suit, or claim arising out of your use of the Proprietary Marks, including the cost of any judgment or settlement.
Inspection and product testing charge N/A USD Actual cost. We estimate that the charge associated with our approval of a typical proposed supplier will range from $0 to $150.
Indemnity N/A USD Only due if we are sued, or held liable for claims, that arise from your operation of the Franchised Business, for all actions caused by your failure to comply with the Americans With Disabilities Act, for any offer of your securities, and for costs we incur in defending claims that you used the Proprietary Marks in an unauthorized manner.
Renewal fee 20000.0 USD You must reimburse us for our costs and expenses for the renewal, not to exceed $20,000. Only due if and when you renew the Franchise Agreement.
Additional and Replacement Specially Trained Management Employee Training 1000.0 USD There is no cost for the first two people to attend training; for each additional person who will attend training, the fee is up to $1,000.
Lost Future Royalties N/A USD The average of the monthly Royalty Fees due for the previous 12 months, multiplied by the lesser of 8 or the number of months remaining in the then-current term of the Franchise Agreement. Only due if we terminate the Franchise Agreement as a result of your default or if you abandon the Store.
Site Selection Extension Request 5000.0 USD If you have made diligent efforts to locate a site and are unable to do so within 270 days, you may request a 90 day extension to locate the site. We reserve the right to approve or deny this request at our discretion and charge this fee.

What You Get

Category

Dessert

Franchise Score

77

out of 100

Financial Performance (Item 19)

Median Revenue

$125,900

per year, per location

Mean Revenue

$148,484

per year, per location

Profitability Estimate

Estimated Owner Profit

$13,849

per year

Profit Margin

11.0%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 11.3 years

Based on midpoint investment of $156,275 and estimated annual owner profit of $13,849.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.0%

Low risk — below industry average

Net Unit Growth

+27 units

From 2021 to 2023

Unit Activity History

Year Start Opened Closed Transfers End
2021 175 +5 180
2022 180 +13 193
2023 193 +9 202

Is a Pelican's SnoBalls Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Pelican's SnoBalls franchise opportunity:

Overall Score

77/100

Strong opportunity

Est. Payback Period

11.3 yrs

Longer payback

Risk Level

Low

0.0% annual closure rate

Pelican's SnoBalls scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $125,900 and a combined fee burden of 9.0% 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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