Kona Ice Inc was founded in 2008 and began offering Kona Ice franchises that same year. To this day, the company has kept its original name and it is based in Kentucky.

The ice cream industry has a lot of demand, and because of this, there are countless companies that focus on selling ice cream. Over the years more and more ice cream franchises have opened and one of them is Kona Ice, which sells ice cream and related products in a mobile environment.

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00:00 Introduction
00:41 Locations & Competition
01:31 Investment Amount, Franchise fee & Royalty
02:42 Failure Rate & Franchise For Sale Rate
04:07 Financials
04:42 Conclusion

#KonaIceFranchiseCostWorthItIn2022 #VettedBiz

There are currently 1304 Kona Ice franchises in the United States and that number is growing every year.

Tony Lamb is the founder and CEO of Kona Ice. Tony took inspiration from a bad experience with a “creepy ice cream truck” to start the biggest mobile ice cream franchise in the country.

Kona Ice serves a market with a lot of strong competitors like Häagen-Dazs or Baskin-Robbins. However, it delivers the product in a way that most good ice cream shops do not.

We will analyze if the potential returns are worth the initial investment for 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.

The estimated initial investment for beginning operations for a Kona Ice franchise is between $150,400 and $174,150.

Royalty: $3,000 for the first two years, then $3,500 for years three through six, $4,000 for years 7 through 10.

Technology Fee: $10 to $159.99 per month.

Kona Ice is continuously looking for passionate individuals that love children and want to open a Kona Ice franchise.

Kona Ice requires you to have a net worth of at least $50,000 and a liquid capital of at least $30,000. The application process is similar to most franchises, you just fill out an application and someone will be in touch with you.

2015 Kona Ice’s Average Profit: $94,868

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. It would take you less than 3 years to recoup your investment.

After a few years in the business, when you go to sell your franchise based on the median multiple of .84 and gross profit of 2015 of $94,868 it would sell for about $79,689. This is 50% of the midpoint initial investment.

However, since the initial investment is so low, it is not uncommon for someone to open multiple Kona Ice trucks which improve profit dramatically. It is needless to say that the key to making great profits with Kona Ice is to operate multiple trucks.

Kona Ice is continuously looking for passionate individuals that love children and want to open a Kona Ice franchise.

Kona Ice requires you to have a net worth of at least $50,000 and a liquid capital of at least $30,000. The application process is similar to most franchises, you just fill out an application and someone will be in touch with you.

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.

2015 Kona Ice’s Average Profit: $94,868

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. It would take you less than 3 years to recoup your investment.

After a few years in the business, when you go to sell your franchise based on the median multiple of .84 and gross profit of 2015 of $94,868 it would sell for about $79,689. This is 50% of the midpoint initial investment.

However, since the initial investment is so low, it is not uncommon for someone to open multiple Kona Ice trucks which improve profit dramatically. It is needless to say that the key to making great profits with Kona Ice is to operate multiple trucks.

Kona Ice is continuously looking for passionate individuals that love children and want to open a Kona Ice franchise.

Read here to learn more: [ Ссылка ]

Want to speak with a franchise specialist about Kona Ice or another franchise? Click here: [ Ссылка ]

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