Kona Ice Franchise Cost Truck Owner Profit

Kona Ice is a popular franchise specializing in mobile shaved ice trucks and kiosks. The Kona Ice offers a fun and unique experience for customers by providing refreshing Hawaiian-style shaved ice in various flavors and a customizable “Flavorwave” that allows customers to add their own flavors to their shaved ice. Kona Ice also emphasizes giving back to the community through its “Giveback Program,” which allows franchisees to donate some of their profits to local schools and non-profit organizations.

Kona Ice Franchising also emphasizes giving back to the community through its Giveback Program. Franchisees are encouraged to partner with local schools, sports teams, and non-profit organizations to help raise funds for their causes. Kona Ice has donated over $70 million to these organizations since the program’s

inception.

Overall, Kona Ice offers customers a unique and refreshing experience while promoting community involvement and giving back. Kona Ice is very popular with social media platforms like Reddit, facebook, Twitter, Instagram, and many more.

As per IBISWorld, the US market for ice cream and gelato stores is worth $5.7 billion in 2023. US market size growth in 2023 will be 0.8%, and annual market size growth from 2018 to 2023 will be 1.2%. 

 

The total cost required to start a Kona Ice cream truck franchise ranges from $127,750 to $151,050. This includes the franchise fee of $20,000 and the cost of the truck or kiosk, equipment, supplies, and initial inventory. As per franchises’ reviews, the Kona ice truck franchise cost may vary depending on the type of unit, location, and other factors.

How much does it cost to franchise a Kona Ice Truck in the United States?

The total investment required to franchise a Kona Icecream in the United States ranges from $127,750 to $151,050, which includes the franchise fee, equipment, supplies, initial inventory, and other expenses. But, be assured that these fees might differ according to location, size of the franchise, and other operational expenses.

Kona Ice Franchise Price and Costs
Kona Ice Franchise Fee	$20,000
Kona Ice Franchise Cost	$127,750 – $151,050
Royalty Fee	$3,000 to $4,000 annual
Advertising Fee	$500/yr.
Term of Agreement	10 Years
Is franchise term renewable?	Yes
Renewable Franchise Fees	$7,500

How much do Kona Ice franchise owners make?

According to Kona Ice’s Franchise Disclosure Document (FDD), the average gross sales for a Kona Ice franchise unit in 2020 was $146,882, with a median gross sales figure of $119,677. However, it is important to note that these figures do not guarantee future performance and do not reflect any expenses, fees, or other costs associated with operating a Kona Ice franchise.

Kona Ice Franchise Truck Owner Salary

The financial information of Kona Ice’s franchisees is treated with confidentiality. The typical Kona Ice truck makes $94,868 per year, according to a 2015 survey, although keep in mind that this is an estimate.

What is Kona Ice franchise profit?

The average franchise overhead is 32%, and Kona Ice’s overhead is only 6%. This allows for profit margins of up to 50%.

I will estimate the Kona Ice franchise owner salary or profit and years to recoup the investment (ROI) with a conservative margin of 12.5% to 18%.

AUV	Estimated Annual Profit (12.5%)	Estimated Annual Profit (15%)	Estimated Annual Profit (18%)
$ 94,868	$ 11,858.5	$ 14,230.2	$ 17,076.24
Recoup mid-point$ 139,400	11.75  years	9.79 years	8.16 years

The estimated Kona Ice franchise profit is in the range of $11858.5 to $17,076.24  and it will take 8.16 to 11.75 years to recoup the investment. 

According to industry standards, getting a return on the franchise investment will not take a very long time.

 

Shaved Ice Franchise Cost

Favored by children and adults alike, shaved ice is a favorite treat for the entire family. It doesn’t take any special ability or talent to generate it because it’s also extremely easy to create.

Franchise ice manufacturers typically pay a fee to join the brand and pay sales royalties to continue working with the parent company Certain restaurant sales shaved ice operates from trucks, and frozen meals are prepared for every customer behind the scenes. Other shaved ice businesses operate out of traditional stores or even formal locations.

Building an ice shaving business can cost anywhere from $10,000 to more than $100,000, with costs varying widely by brand. These variables depend on whether the initial investment includes equipment such as trucks, snow plows, and whether the company charges franchise fees

The shaved ice franchise could be very successful. Snowmakers, ice cream makers and even shaved ice are usually made with inexpensive materials and materials at a fraction of what consumers spend for them, especially for concessionaires a their services do not incur additional royalties and cheaper debt yields higher profits.

 

What is Kona Ice?

Kona Ice is a mobile shaved ice cream truck that has gained popularity across the United States due to its unique features. One of the most distinctive aspects of Kona Ice is its “Flavorwave,” a self-serve station where customers can mix and match different syrup flavors to create their ideal shaved ice. This customization option sets Kona Ice apart from other frozen treat providers and has helped Kona Ice develop a loyal following. Beyond its product offerings, Kona Ice is also committed to giving back to local communities. 

The Kona Ice partners with schools, sports teams, and other organizations to help raise funds for various causes. Kona Ice has donated over $70 million to charitable organizations since its inception in 2007. This dedication to philanthropy has helped Kona Ice develop a reputation as a socially responsible Kona Ice that truly cares about positively impacting the world. Overall, Kona Ice is more than just a tasty treat – it’s a Kona Ice that offers a unique experience while also giving back to the communities it serves.

 

Is Kona Ice a Franchise Opportunity?

Yes, Kona Icecream is a franchising opportunity. The company offers a turnkey business model that includes a mobile shaved ice truck or kiosk, training, support, and marketing materials. Moreover, Franchisees are granted the right to use the Kona Ice name and are provided with exclusive territories for their business. In return, franchisees pay the company a franchise fee and ongoing royalties. Kona Icecream has been ranked as one of the top franchise opportunities in the food and beverage industry and has received numerous awards for its franchise system and business model.

Facts That Nobody Told You About Kona Ice

• It was discovered in 2007 to give competition to Ice cream trucks. 
• It is highly customizable as per your desire. 
• It was made to be health-conscious. 
• Their franchises wish to work for society. 
• They expanded with sophisticated labor in 2017.

 

Kona Ice Truck cost

The prices can vary based on many factors, including model, features, customization options, and location. It is a franchise-based business, so the cost of owning a Kona Ice truck will usually require a franchise fee in addition to the truck itself

Franchise fees for Kona Ice can range from about $15,000 to $30,000, depending on the specific policies and procedures that the franchisor has in place. This fee typically includes initial training, marketing support, and access to the Kona Ice brand and business model.

As for trucks, Kona Ice offers a variety of models and sizes to choose from, ranging from small pickup trucks to large trucks. Kona ice trucks can range in price from $50,000 to $100,000 or more, depending on size, features and customization. It is important to note that these figures are estimates and actual costs may vary.

In addition to the initial investment, you will also need to consider ongoing costs such as materials, equipment, permits, licenses, insurance and administrative costs as well

 

What are Kona Ice franchise reviews?

The franchisee community of Kona is made up of the best people. Not just good business people, but genuinely NICE people, who care about each other.

Steve, Single Unit Owner, Large Market (250,000-499,999 population)

Tony [Lamb] lives the values he talks about. I trust him completely. If there was something the Kona Ice could do to improve my ROI as a franchisee it would be to partner with national PTA organizations to get greater exposure with schools. Also, partner with national companies (Walmart, etc) to provide more opportunities for our trucks to be allowed to park in their lots and set up fixed locations.

Russell, Multi-Unit Owner, Small Market (50,000-99,999) and Medium Market (100,000 – 249,000)

I think senior manegement is wonderful. They know the struggles of the business, because most of them are running their own franchises. I love this idea! When they speak, I shut up and listen. Because they know what they are talking about.

Frances, Multi-Unit Owner, (50,000-99,999)

 

Kona Ice Franchise Requirements 

Financial Requirements: Kona Ice requires a minimum net worth of $150,000 and liquid assets of $20,000 to $30,000 per unit.

Business experience: Kona Ice looks for franchisees with experience in sales, marketing, or general business management.

Passion for the Kona Ice: Kona Ice is seeking individuals passionate about the Kona Ice, its values, and its mission of community involvement and giving back.

Willingness to learn: Kona Ice provides extensive training and support to franchisees, but franchisees must be willing to learn and follow the established Kona Ice business model.

Territory availability: Kona Ice offers franchise opportunities in available territories across the United States and internationally

ROYALTY FEE : $3k-$4k/year

TERM OF AGREEMENT: 10 YEARS

Kona Ice Franchise Territories Available

Yes, their franchise territories are exclusively available for potential employees or candidates. 

 

Kona Ice Training to Franchises

1. Equipment operation and maintenance
2. Inventory management
3. Food safety and handling
4. Customer service
5. Marketing and advertising
6. Accounting and financial management

 

Kona Ice Operations to Franchises

1. Marketing and Advertising: Kona Ice provides its franchisees with a range of marketing and advertising materials, including customizable flyers, social media content, and email templates, to help them promote their business.
2. Technology: Kona Ice has developed a proprietary technology platform that helps franchisees manage inventory, track sales, and analyze customer data.
3. Supply Chain Management: Kona Ice has established relationships with leading suppliers and manufacturers to ensure franchisees can access high-quality products and supplies at competitive prices.
4. Ongoing Support: Kona Ice provides its franchisees with ongoing support through regular check-ins, training sessions, and networking opportunities. 

 

How is Kona Ice Territory Granted to Franchises

Kona Ice typically grants its franchisees an exclusive territory, a defined geographic area in which the franchisee has the exclusive right to operate their Kona Ice business. Several factors, including the area’s population density, the number of potential customers, and the level of competition in the area, determine the specific size and boundaries of the territory. When a franchisee signs the agreement with Kona Ice, the terms of the exclusive territory are outlined in the agreement. The franchisee is typically required to operate their business within the designated territory and may not open additional Kona Ice locations outside of that territory without obtaining permission from Kona Ice.

 

What is the Franchise Term of Agreement and Renewal?

The initial term of the franchise is 10 years, However, if franchises meet all the requirements and are in good standing, they can apply for two successive terms of 10 years

 

Does Kona Ice provide Financial Assistance to Franchises?

Kona Ice typically grants its franchisees an exclusive territory, a defined geographic area in which the franchisee has the exclusive right to operate their Kona Ice business. Several factors, including the area’s population density, the number of potential customers, and the level of competition in the area, determine the specific size and boundaries of the territory.

When a franchisee signs the agreement with Kona Ice, the terms of the exclusive territory are outlined in the agreement. The franchisee is typically required to operate their business within the designated territory and may not open additional Kona Ice locations outside of that territory without obtaining permission from Kona Ice.

Pros & Cons of Buying a Kona Ice Franchise

Pros of buying a Kona IceCream Truck Franchise 

1. Established Kona Ice: Kona Ice is a well-known and popular Kona Ice that can help attract customers and build loyalty.
2. Flexible schedule: As a franchisee, you can set your schedule and choose when to operate your Kona Ice truck.
3. Low overhead costs: Compared to other franchise opportunities, Kona has relatively low startup costs, making it an attractive option for those with limited capital.
4. Support from the franchisor: Kona Ice provides its franchisees with extensive training and support, including marketing, operations, and product development.
5. Community involvement: Kona Ice emphasizes community involvement and charitable giving, which can help build goodwill and positive customer relationships.

Cons of Owning a Kona Ice Truck

1. Limited revenue opportunities: The Kona Ice business model is heavily dependent on warm weather and outdoor events, which can limit revenue opportunities during certain times of the year or in areas with colder climates.
2. High competition: There may be many other shaved ice or dessert truck vendors in your area, which could make it challenging to differentiate your business and attract customers.
3. Seasonal business: As a mobile business, Kona Ice is highly dependent on weather conditions and outdoor events, making it difficult to maintain consistent revenue streams throughout the year.
4. Equipment maintenance: The Kona truck and equipment require regular maintenance and upkeep, which can add to the overall cost of owning a franchise.
5. Franchise fees: As with any franchise opportunity, some ongoing fees and royalties must be paid to the franchisor, which can impact profitability.

 

Kona Ice Franchise Rankings

• #91 in 2014, 87 in 2015, and 77 under Franchise 500 Ranking in 2016
• Further, franchising,comhas said, “Kona announced today that it has been named to Entrepreneur magazine’s Fastest-Growing Franchise list for the nineth year in a row. This year, Kona Ice ranked as No. 16 in the U.S. and Canada and No. 22 Worldwide.”

 

Franchise Deck Analysis and Overview

Kona Ice uses a distinctive method of franchising. It’s an ice cream business worth considering because the initial investment is greatly reduced because you don’t need to buy or rent any real estate. Yet unless you live in a warm area, this is a business that probably won’t bring in significant profits all year long.

You can anticipate recouping your investment in a Kona Ice business in roughly 3 years. This is far superior to the majority of franchises in existence. If you only run one unit, your franchise will probably not recoup your initial investment when you want to sell it.

Potential Risks to consider before investing in a Kona Ice

Before buying a Kona Ice franchise, it’s important to consider the potential risks associated with this type of business opportunity. Some potential risks to consider include

1. Seasonal business: The Kona Ice business model is highly dependent on warm weather and outdoor events. This can make it difficult to maintain consistent revenue streams throughout the year and can lead to financial instability during slow periods.
2. High competition: There may be many other shaved ice or dessert truck vendors in your area, which could make it challenging to differentiate your business and attract customers. This can impact profitability and long-term success.
3. Operating costs: While the startup costs for Kona Ice are relatively low compared to other franchising opportunities, there are ongoing costs associated with operating the business. These can include truck maintenance and repair, product inventory, and marketing expenses.
4. Franchise fees: As with any franchise opportunity, there are ongoing fees and royalties that must be paid to the franchisor. This can impact profitability and may be a significant expense for some franchisees.
5. Legal and regulatory issues: Operating a food truck business involves complying with a variety of regulations and requirements related to food safety, health inspections, and permits. Failure to comply with these requirements can lead to fines, legal disputes, and damage to the Kona Ice.
6. Business model limitations: The Kona Ice business model is based on a mobile food truck. While this can offer flexibility and the ability to reach a variety of locations, it may not be a suitable model for all markets or franchisees. 

 

Kona Ice Franchise Success and Failure Rate

The below table will highlight the Kona Ice success and failure rate for the last 3 years. This will supplement your decision-making process.

Year	Format	Start	End	Change
2018	Franchise Owned	931	1061	+130
Company Owned	16	22	+6
2019	Franchise Owned	1061	1181	+120
Company Owned	22	14	-8
2020	Franchise Owned	1181	1304	+123
Company Owned	14	29	+15

 

Competition Analysis of Kona Ice Franchises

Franchises	Cost To Franchise	Franchisee Fees	Royalty + Adv Fee	Expected Profit	Recoup Of Capital	FD Rating
Kona Ice	$127,750-$151,050	$20,000	$3k-$4k+ $500	$11,858.5-$17,076.24	8.16-11.75y	4.4/5
SomiSomi Franchise	$250,000-$500,000	$30,000	–	–	–	4/5
Cold stone creamery Franchise	$53,200-$580,650	$8,000-$27,000	6% + 3%	15%	7.75y	4.3/5
Yogen fruz Franchise	₹123,179 – ₹459,679	₹25,000	6% + 2%	–	–	2/5
Carvel Franchise	$247,474 To $388,724	$30,000	$2.64+$2.34	$132.4 Million	2-4 Years	4.3/5
Baskin Robbins Franchise	$93,550	$25,000	5.9% + 5%	15-18%	2-3 Years	4.8/5
Dairy queen Franchise	$382,000 To $1.8 Million	$25,000 To $35,000	4-5% + 2%	10%	16 Years	3.5/5
Jeremiah’s Italian ice Franchise	$324,567 – $659,500	$30,000	6% + 4.5%	40%	–	4.5/5
Brusters Real Ice Cream Franchise	$318,000 – $2,236,500	$35,000	5%+3%	–	11-16 Years	2.8/5
Moge Tee Franchise	$158,700 – $269,300	$40,000	3%+2%	–	–	3.4/5
Twistee Treat Franchise	$251,700 to $380,600	$30,000	4%	–	–	3.3/5

The Franchise Deck rating for the Kona Truck franchise is 4.4/5.0.

 

Conclusion: Should You Buy Kona Ice Truck Franchise for Sale?

Mobile Kona Ice Trucks are experts in providing high-quality, low-sugar shaved ice in a range of flavors. 99% of Kona Ice truck franchise owners said they would suggest it to others. These facts would motivate your decision of buying the Kona Ice Franchise for sale in the United States.

• 98% of franchisees who were asked if they respected their franchisor gave the answer “agree” or “very agree.”

• 99% of franchise owners say they would be likely to reinvest in Kona Ice and suggest the business to others. 98% of franchise owners say they like being a part of the company and running their businesses.

Entrepreneurs who want to open a franchise in this Ice cream franchises can look at 

1. SomiSomi Franchise
2. Cold stone creamery Franchise
3. Yogen fruz Franchise
4. Carvel Franchise
5. Baskin Robbins Franchise
6. Dairy queen Franchise
7. Jeremiah’s Italian ice Franchise
8. Brusters Real Ice Cream Franchise
9. Moge Tee Franchise
10. Twistee Treat Franchise

 

Frequently Asked Questions (FAQs)

1. Is the Kona Ice franchise profitable?

The profitability of a Kona Ice franchises can vary depending on factors such as location, competition, and operating costs. However, Kona Ice has a proven business model and a strong reputation for quality products and community involvement, which can contribute to financial success.

2. Can you make money owning a Kona Ice?

The profitability of Kona franchises will depend on a variety of factors, such as location, competition, and operational costs, but many franchisees have found financial success with Kona Ice.

3. Is Kona Ice a franchise?

Yes, Kona Ice is a franchising that allows entrepreneurs to own and operate their mobile shaved ice business. As a franchise, Kona provides training, support, and a proven business model to help franchisees succeed.

4. How much is a Kona Ice franchise?

Kona franchise cost ranges from $127,750 to $151,050

5. How do Kona Ice franchises make money?

Kona Ice franchisees make money by selling shaved ice delights as well as other associated items and services. With many flavors and combinations of shaved ice, as well as a proprietary Flavorwave that allows clients to customize their own shaved ice with as many flavors as they desire, the Kona Ice provides a unique and enjoyable experience. Franchisees often earn money by exhibiting their Kona Ice truck or trailer at various events such as fairs, festivals, schools, and athletic events and selling their products to customers. They may also provide snacks for festivals and other occasions.