Kona Ice Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$15,000
Investment required
$167,000 - $212,000
Royalty fee
$3,000 to $4,000 per year

Kona Ice: Revolutionizing the Mobile-Shaved Ice Industry

Kona Ice, founded by Tony Lamb in 2007, is a dynamic and rapidly expanding franchise known for its mobile Hawaiian-style shaved ice trucks. Headquartered in Florence, Kentucky, the company began franchising in 2008. Since then, Kona Ice has grown significantly across the United States, offering a unique twist on the traditional ice cream truck with its shaved ice and a wide array of flavors delivered through the patented Flavorwave® system.

Kona Ice offers a quick and straightforward startup process, enabling aspiring entrepreneurs to swiftly realize their business ambitions. The franchise is deeply committed to community engagement, allowing franchisees to make meaningful contributions to their local areas through various giveback programs. This community focus not only enhances the brand’s appeal but also fosters widespread recognition and respect in the communities it serves.

What sets Kona Ice apart in the franchise industry is its innovative approach to mobile food service, low initial investment requirements, and robust support and training for franchisees. The company's dedication to creating a fun and engaging customer experience, along with its commitment to community involvement, makes Kona Ice a unique and attractive opportunity for those looking to own and operate their own business while making a positive impact.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $15,000
KEV and Installed Equipment $139,250 - $148,250
Training Expenses $140 - $950
KEV Delivery $0 - $10,000
KEV Compliance Fee $1,000 - $5,000
KEV Insurance for 3 Months $500 - $1,500
Tax, Title, and Licensing of KEV $1,000 - $8,000
Initial Inventory $9,975
Optional Inventory $0 - $225
Permits and Licenses $250 - $1,500
Real Estate or KEV Storage $0 - $1,200
Computer System and Software $0 - $1,000
Additional Funds – 3 Months $0 - $9,500
Total Estimated Initial Investment $167,115 - $212,100

Get

more

information

about

Kona Ice

Interested in becoming a franchisee? Get matched with a franchise consultant to discuss your options. For free
Get a free consultation

Number of units

2023
Franchised units

1,279

1,359

1,442

Company-owned units

19

26

26

Total units

1,298

1,385

1,468

Franchise Disclosure Document

Training 

The franchisor provides a variety of training programs for Kona Ice franchisees, ensuring both initial and ongoing education to support the successful operation of the franchise. Here’s an overview of the training provided:

Initial Training Kona Kollege: Before opening a Kona Ice franchise, the Managing Owner and any designated manager or representative required by the franchisor must complete this comprehensive training program. Kona Kollege covers all essential aspects of operating a Kona Ice franchise, including the use and maintenance of the Kona Entertainment Vehicle (KEV) and its equipment, sales techniques, customer service, and operational protocols. The initial training is provided at no cost for one attendee, with hotel and airfare covered for one attendee. Additional participants can attend for a fee.

Training Program: This initial training consists of both classroom instruction and hands-on training at the franchisor's corporate office. Key topics include KEV & Equipment Operation and Maintenance, Field Sales, and Customer Service.

Ongoing Training The franchisor may periodically require franchisees, their managers, and other employees to attend refresher or additional training courses, which may be optional or mandatory. This includes training for newly-hired personnel on the Kona Ice brand and System Standards through the learning management system, as well as courses on new operational procedures, products, or services. Additional fees may apply for this training.

Additional Training Franchisees can request further training for their employees, for which the franchisor may charge tuition fees. This may include on-site training at the franchisee's location, with the franchisee responsible for covering the travel and living expenses of the trainers.

Territory Protection

The franchisor provides territory protection to Kona Ice franchisees by granting them a "Protected Territory," defined by one or more adjacent zip codes. Franchisees are permitted to directly advertise and solicit clients only within their Protected Territory unless they receive approval from the franchisor.

During the term of the Franchise Agreement, and as long as the franchisee is not in default, the franchisor and its affiliates will not operate or grant a franchise for a similar or competitive business within the Protected Territory. The franchisee has the exclusive right to operate the Kona Ice business within their Protected Territory under the terms of the Franchise Agreement, while the franchisor and its affiliates reserve all other rights.

Franchisees are not allowed to operate, solicit, or accept orders outside their Protected Territory without obtaining permission from the franchisor, which is at the franchisor's sole discretion. The franchisor reserves all rights not explicitly granted in the Franchise Agreement, including allowing affiliate franchisees to operate within the franchisee's Protected Territory.

Similar franchises

Wing Zone Franchise FDD, Costs & Fees (2024)

Wing Zone

Investment required
$109,000 - $751,000
McAlister’s Deli Franchise FDD, Costs & Fees (2024)

McAlister’s Deli

Investment required
$1,054,000 - $2,489,000
Pizza Ranch Franchise FDD, Costs & Fees (2024)

Pizza Ranch

Investment required
$985,000 - $3,996,000
Cousins Maine Lobster Franchise FDD, Costs & Fees (2024)

Cousins Maine Lobster

Investment required
$224,000 - $898,000