Complete investment analysis based on official FDD data
Total Investment
$81,750 – $230,800
Franchise Fee
$25,000
Royalty Rate
8.0%
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
$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.
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.
| 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. |
Category
Dessert
Franchise Score
out of 100
Median Revenue
$125,900
per year, per location
Mean Revenue
$148,484
per year, per location
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.
Avg. Annual Closure Rate
0.0%
Low risk — below industry average
Net Unit Growth
+27 units
From 2021 to 2023
| Year | Start | Opened | Closed | Transfers | End |
|---|---|---|---|---|---|
| 2021 | 175 | +5 | — | — | 180 |
| 2022 | 180 | +13 | — | — | 193 |
| 2023 | 193 | +9 | — | — | 202 |
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.
Get the full Pelican's SnoBalls franchise intelligence report with risk analysis, deal-breaker alerts, and detailed financial projections.
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