Full Answer
How much profit does a Kona Ice truck make?
Kona Ice operation costs are relatively low. While the average franchise overhead is 32%, Kona Ice's overhead is only 6%. This allows for profit margins of up to 50%. Based on the average profits claimed by 534 Kona Ice owners, we can estimate that given a midpoint investment of $162,275.
What is the total investment needed for Kona Ice?
To buy a franchise with Kona-Ice, you'll need to have at least $30,000 in liquid capital and a minimum net worth of $50,000. Franchisees can expect to make a total investment of at least $99,800.
Who owns Kona Ice?
Tony Lamb - FounderTony Lamb - Founder and CEO - Kona Ice | LinkedIn.
What are the royalty fees associated with Kona Ice?
Royalty fees are as follows: $3,000 per year for the first five years; $3,500 per year for years six and seven; and $4,000 per year for years eight and up.
What is the most profitable franchise?
Top 14 Most Profitable FranchisesMcDonald's. Units in operation: 39,360. ... Dunkin Donuts. Units in operation: 12,800. ... Taco Bell. Units in operation 12,800. ... Subway Franchise. Offers Financing: Yes. ... Anytime Fitness Franchise. Units in operation: 4,904. ... Sonic. Royalty: 2.5% - 5.0% ... Planet Fitness. Royalty 7.0% ... Orangetheory Fitness.More items...
How much can a snow cone business make?
How Much Money Do Snow Cone Stands Make? It's reported that snow cone booths and shaved ice businesses have the potential to earn $100 to $2,000 in sales a day. This is a wide range because the location of your shaved ice business and the selling season play a large role in profitability.
Is Kona Ice a chain?
Kona Ice began franchising in 2008. In October 2012, the company launched the Kona Mini, a smaller replica of the Kona Ice truck, to sell shaved ice indoors during winter months. Kona Ice was recognized on Entrepreneur magazine's Franchise 500 list in 2013.
How many locations does Kona Ice have?
Are you looking for a Kona truck? Well, you've come to the right place. With over 1,000 trucks in 48 states, you're bound to find one!
How long has Kona Ice been in business?
Kona Ice was started in Northern Kentucky in 2007. Our boss thought, “Hey, people don't sell shaved ice off of trucks. Also, ice cream trucks are creepy.
Does Kona Ice truck take credit cards?
konaiceofdowney We accept all major credit cards, google, Apple Pay, Cash and Venmo! ...
How do you make Kona Ice?
0:422:07How To Make A Kona Ice - YouTubeYouTubeStart of suggested clipEnd of suggested clipJust a little just a little. Okay now what else do we do now. I would go with some great gravy greatMoreJust a little just a little. Okay now what else do we do now. I would go with some great gravy great okay so we're gonna do goofy grape on the outside we're gonna get a little bit messy. We.
How many locations does Kona Ice have?
Are you looking for a Kona truck? Well, you've come to the right place. With over 1,000 trucks in 48 states, you're bound to find one!
Where was Kona Ice founded?
2007KONA ICE / FoundedKona Ice was started in Northern Kentucky in 2007. Our boss thought, “Hey, people don't sell shaved ice off of trucks. Also, ice cream trucks are creepy.
Does Kona Ice take Apple pay?
konaiceofdowney We accept all major credit cards, google, Apple Pay, Cash and Venmo! ...
Where is Kona Ice located?
Kona Ice is a mobile, Hawaiian-style shaved ice truck franchise based in Florence, Kentucky. The company was founded by Tony Lamb in 2007. Lamb is Kona Ice's CEO. It was named one of the fastest growing franchises in the United States. As of March 2015, the company had more than 600 franchise locations in 43 states.
Does Kona Ice have a flavor dispenser?
Customers can customize their shaved ice with the Flavorwave , a patented flavor dispenser built into the side of the truck. Kona Ice shaved ice contains 60 percent less sugar than regular sugar water snow cones and can be made of 100 percent fruit juice in participating locations.
What does a Kona Ice Franchise Cost?
The total investment to open a Kona Ice franchise is $140,350. Kona Ice splits the initial investment into three different categories: the franchise fee ($15,000), inventory pack ($5,500) and the truck ($119,850). With the franchisee fee, you’ll receive corporate support and access to marketing materials. A onetime deposit of $20,000 is required. It covers your franchise fee and a $5,000 deposit on your truck.
How much does it cost to open a Kona Ice franchise?
The total investment to open a Kona Ice franchise is $140,350. Kona Ice splits the initial investment into three different categories: the franchise fee ($15,000), inventory pack ($5,500) and the truck ($119,850). With the franchisee fee, you’ll receive corporate support and access to marketing materials. A onetime deposit of $20,000 is required. It covers your franchise fee and a $5,000 deposit on your truck.
What is the best thing about Kona Ice?
One of the best things about Kona Ice is that the business model is simple. The brand works for you, not the other way around. Our goal at corporate is to make your Kona Ice experience as enjoyable and stress-free as eating a cup of shaved ice!
What is a Kona mini?
The Kona Mini: The most popular ancillary unit is a smaller, more agile version of the KEV. It’s designed for indoor events and smaller outdoor venues. It’s a low-risk, high-reward investment that can truly make your business last all year.
How long does it take to graduate from Kona?
You’ll graduate from Kona Kollege with a 30 day plan that will have you primed and ready for success. On top of your startup plan, you will be set up for multiple follow up calls throughout your first year to ensure a smooth and successful start to your business!
Is Kona Ice a new franchise?
Here at Kona Ice, we know why we’ve succeeded and reached these ranks of the #1 New Franchise (Entrepreneur Magazine 2013), top in Franchisee Satisfaction (Franchise Business Review and Franchise Update), #1 in Category (Dessert Franchise in Entrepreneur Magazine) and made the Fastest Growing List for the past five years. We don’t think it’s luck at all. It’s the combination of a fresh concept, strong corporate support with a vision, and a desire to make the world a better place.
Is the Kona Kiosk the same as a truck?
Perfect for semi-permanent venues or large events, the Kona Kiosk can serve the same amount of people as the truck. It’s smaller than a truck, but it has the same visibility and could be the perfect supplement to your Kona business.
How much is a Kona Ice Franchise?
The initial fee for a Kona Ice franchise is $30,000. The upfront fee must be paid before opening the restaurant. A fee of $10,000 must be paid for any additional franchise.
Kona Ice Franchise Costs
The estimated initial investment for beginning operations for a Kona Ice franchise is between $150,400 and $174,150.
How much do Kona Ice Franchise owners make?
Kona Ice does not disclose the financial information of its franchisees. According to a study made in 2015, the average Kona Ice truck draws in $94,868 but keep in mind that it is not an official figure.
System-wide Outlet Summary
Over the last three years, the company has seen rapid growth. Since 2018 the company has been growing at a rate of more than 100 units per year. This could be an indicator that franchisees are doing really well and the business model is a success.
Kona Ice Franchises Have a High Churn Rate
It turns out that the number of transfers (when someone buys an existing franchise) is especially high with Kona Ice franchises. In 2020, for example, 75 units were transferred.
Conclusion
Kona Ice is a different approach to franchising. The fact that you do not need to own or lease any real estate brings the initial investment down significantly which makes it an ice cream franchise worth looking into. However, it is a business that probably will not give you huge earnings all year round unless you are located in a warm region.
Franchise Financing and Structuring Methods for 2022
Interview with Larry Carnell, VP of Development at Benetrends, talking about how you should best plan about starting a business.
How much does it cost to start a Kona Ice franchise?
Kona Ice breaks down the start up costs to allow the candidate to see exactly where their money is going. The franchise license will cost $15,000 and is necessary to do business with Kona Ice. The truck will be the biggest expense, coming in at a price of $95,750. Kona Ice also requires the franchisees to purchase their initial inventory pack, which will contain everything the franchisee will need to make the product. This pack costs $4,875 and has the potential to produce around $50,000 in revenue.
How many Kona Ice locations are there?
In the last eight years, Kona Ice has gone from having 120 franchised locations around the country, to over 800 locations. During this time they also saw themselves expand into the international market by opening their first location in Canada.
What is Kona Ice passionate about?
Kona Ice is passionate about seeing their franchisees succeed and they structure their franchise system to give them the best possible chance.
What is the turnover rate of Kona trucks?
Throughout all of this massive growth, they have been able to maintain a very healthy turnover rate of 4.43 percent. Franchisees are loving their Kona trucks and are not letting go of them.
Why should franchisees do their own research?
Potential franchisees should still take the time to do their own research about owning a franchise, because the actual process of running a location may not be what they are looking for. Because this is a mobile unit, the day-to-day operation will be vastly different from having a brick and mortar store. Understanding the structure of what that entails is crucial before signing any paperwork.
Where is Kona Ice located?
So, he founded Kona Ice in Boone County, Kentucky and designed five prototype trucks to try out his creations.
When did Kona Mini come out?
In October of 2012, they introduced the Kona Mini, which is a small replica of the trucks that can be set up indoors to serve the shaved ice during the winter months. This allowed the brand to open up their market and continue to bring in revenue all through the year, instead of only being limited to warm-weather periods.
What are the benefits of Kona Ice Truck?
A benefit to having a Kona Ice truck is that you will receive large, protected territories for your business. Territories are assigned based on zip code and give you the chance to operate your business without nearby competitors. There is no forced expansion of your business, which is ideal for entrepreneurs who wish to keep their time and effort focused on only one franchise.
Is Kona Ice good?
The good news is that there are many benefits and advantages to owning a Kona Ice franchise. Not only do you have the freedom to drive around your territory, but your truck comes fully supplied with everything you need: equipment, self-serve shaved ice, patented flavorwave, and customizable ancillary equipment. Here are some more reasons why the franchise ranks high in business owner satisfaction:
Quick & Easy Startup
We pride ourselves on our franchising process. When you decide you want to start your own business, you don't want to wait years to make that dream become a reality. With Kona, you’re in a for a fun ride.
Minimal Investment
When you’re deciding to go into business for yourself, wouldn't it be nice to not have to mortgage your house just to have a shot at profitability? When we started this company, we wanted the franchise to be affordable. We're all about the experience, and we want your experience to be just as great as your customer's.
Patented Flavorwave
We’re not some random ice cream truck. We’ve put a lot of thought and research into the KEV (Kona Entertainment Vehicle). It’s your best selling tool and it also houses our patented Flavorwave. This is what truly separates us from every other shaved ice franchise.
Mobile
We're not like most franchises - no brick and mortar in our simple business model. It keeps your overhead extremely low and gives you the opportunity to bring the party to your customers. And on top of that, it also means you don't have to be open all the time. You want to take a Monday off? You can with Kona Ice.
Community Involvement
Because of our high profitability, we're able to give back in BIG ways to our local communities. And not just from a distance. You'll be making a difference in the lives of the people you see on a day to day basis. The fact that we're a mobile franchise allows you to see the money you give back in action.