Kona Franchise owner here. We truly do only pay a royalty. There is ZERO % taken from us off of sales. The transfer % you talk about doesn't account for tons of movement between us franchisees in selling equipment to each other. Most of the time, its because someone is retiring/downsizing their business and instead of having 5 trucks, maybe they want to run with just 2 instead. Doesn't mean they failed. I'm sure it happens but I've been in for almost 5 years now and I only know of two franchisees who "didn't make it" in my 5 years. As far as revenue, it of course varies depending on someone's goals and how hard they work, but I'd say 80% of franchisees are pulling in 110k+ per year per truck now. I do more than that and I'm in Michigan, so I only run 5-6 months during the year. And we sell shaved ice, not ice cream. There are some who sell ice cream in addition to shaved ice, but its an incredibly small % of those that do.
Thanks for the insights!! We're definitely due to create a new video based on your input and further findings received. It'd be good to have the content come directly from a franchisee. Would you be open to a 20 minute interview?
Hello, as a franchise owner how do you go about getting business? Is it just basically drive around and park somewhere populated or more than that? Thanks for you response.
Im an employee for an East Coast (seasonal) franchise. Started with 1 truck in 2012 now we have 4 trucks, 2 trailers, and 2 Traaveling Tom's trucks. Key to making it from my eyes are 2 key factors 1. FLEXIBILITY - end of school and hot summer days are the busiest. We hit 90% of schools in 2 counties and do many corporate contracts (serve employee in a schedule). We also do a ton of private parties and set up and sell at sporting evevnts. Bigger festivals are hit or miss and can depend on many factors outnof your controll (poor event cordination/layout, too much competition, weather) Last minuite bookings happen often, if you are flexible and commited, you can reel in upwards of $15k in one day (with multiple trucks) 2. STAFF - Dont cheap out on labor. Your staff is the business. You can have a never-ending line for hours and you need good staff who have endurance and motivational, as well maintaining friendly and exceptional customer service. Also make sure they are a safe driver. Obviously these trucks are 6 figures. Accidents happen on the road, but a Truck down can be devestating in many ways
I work for Scott Lamb the brother of the founder. (Kentucky and Florida) Keep in mind this is all hear say between employees the common number thrown around is 200,000$ a year Per truck. That does sound high but this is also one of the more successful franchises with over 8 trucks in kentucky and 4 in Florida. Along with 3 or 4 Tom’s Coffee trucks that are made by Kona Ice as well.
Patrick, excellent video on Kona Ice as with all of your reviews. One thing about transfer rate... you reference the 16% at Kona Ice as being 'high' but think about this: EVERY business (including franchises) changes ownership every 8 years on average for a variety of reasons. Some may be 2 years and some may be 40 years but the average is less than ten, which is the typical franchise agreement term. By the 8 year point, the franchisee should have certainly recovered all of their initial investment and should be selling their franchise at a price that delivers a ROI that exceeds whatever hurdle rate they had in the first place when they made the commitment to invest. Good job on your reviews. You are providing a GREAT service in terms of education to those considering a franchise investment. KEEP CHARGING!!!
@@Vettedbiz lol sorry, I read the comments after, uhhhh what if I told you I was about to create my own franchise selling trailers with my own invention and logo design, nothing to do with my you tube channel, your video gave me a ton of insight. Thank you
@@johndamato5912 I can review the latest Mister Softee FDD, or better yet, interview you if you're interested. Would love to hear about your experience. I can be reached at PatrickATvettedbiz.ocm
Your video would have a lot more value if you knew what product you were talking about. Although some franchises add ice cream as a topping most do not carry it at all. Do your homework before you try to make a buck talking uninformed nonsense.
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Kona Franchise owner here. We truly do only pay a royalty. There is ZERO % taken from us off of sales. The transfer % you talk about doesn't account for tons of movement between us franchisees in selling equipment to each other. Most of the time, its because someone is retiring/downsizing their business and instead of having 5 trucks, maybe they want to run with just 2 instead. Doesn't mean they failed. I'm sure it happens but I've been in for almost 5 years now and I only know of two franchisees who "didn't make it" in my 5 years. As far as revenue, it of course varies depending on someone's goals and how hard they work, but I'd say 80% of franchisees are pulling in 110k+ per year per truck now. I do more than that and I'm in Michigan, so I only run 5-6 months during the year. And we sell shaved ice, not ice cream. There are some who sell ice cream in addition to shaved ice, but its an incredibly small % of those that do.
Thanks for the insights!!
We're definitely due to create a new video based on your input and further findings received.
It'd be good to have the content come directly from a franchisee.
Would you be open to a 20 minute interview?
Hello, as a franchise owner how do you go about getting business? Is it just basically drive around and park somewhere populated or more than that? Thanks for you response.
@@dcarreira4913 No, this is an event catering truck primarily. it is RARE to sit and sell somewhere...
Another franchisee here. I agree with everything that Skylar has said. Great experience 8 years in. I have three trucks.
Very insightful and helpful. Thank you very much.
Kona ice employee here, I don’t know how much but it brings in a lot of money if you do it right. Keyword do it right
Any tips for properly managing a Kona Ice?
Im an employee for an East Coast (seasonal) franchise. Started with 1 truck in 2012 now we have 4 trucks, 2 trailers, and 2 Traaveling Tom's trucks. Key to making it from my eyes are 2 key factors
1. FLEXIBILITY - end of school and hot summer days are the busiest. We hit 90% of schools in 2 counties and do many corporate contracts (serve employee in a schedule). We also do a ton of private parties and set up and sell at sporting evevnts. Bigger festivals are hit or miss and can depend on many factors outnof your controll (poor event cordination/layout, too much competition, weather)
Last minuite bookings happen often, if you are flexible and commited, you can reel in upwards of $15k in one day (with multiple trucks)
2. STAFF - Dont cheap out on labor. Your staff is the business. You can have a never-ending line for hours and you need good staff who have endurance and motivational, as well maintaining friendly and exceptional customer service.
Also make sure they are a safe driver. Obviously these trucks are 6 figures. Accidents happen on the road, but a Truck down can be devestating in many ways
I work for Scott Lamb the brother of the founder. (Kentucky and Florida) Keep in mind this is all hear say between employees the common number thrown around is 200,000$ a year Per truck. That does sound high but this is also one of the more successful franchises with over 8 trucks in kentucky and 4 in Florida. Along with 3 or 4 Tom’s Coffee trucks that are made by Kona Ice as well.
Thanks for the input!
Patrick, excellent video on Kona Ice as with all of your reviews. One thing about transfer rate... you reference the 16% at Kona Ice as being 'high' but think about this: EVERY business (including franchises) changes ownership every 8 years on average for a variety of reasons. Some may be 2 years and some may be 40 years but the average is less than ten, which is the typical franchise agreement term. By the 8 year point, the franchisee should have certainly recovered all of their initial investment and should be selling their franchise at a price that delivers a ROI that exceeds whatever hurdle rate they had in the first place when they made the commitment to invest.
Good job on your reviews. You are providing a GREAT service in terms of education to those considering a franchise investment. KEEP CHARGING!!!
You're right Curt! Much more important is the failure rate. We'll have to research further the price ex franchisees of Kona Ice have sold for.
Does a food truck company in Florida manufacture the trucks for Kona ??
Is it possible to buy an already existing franchise?
Yes but for Kona Ice most of the resales happen between existing franchisees from what we understand
Ice cream? Ya sure about that? Hahaha. Shave ice maybe.
You're right! Shaved ice, a frozen dessert
How much does it cost to have a franchise?
Hi Collete, for Kona Ice you can review how it costs and more information here: www.vettedbiz.com/franchises/kona-ice/
It's not ice cream, it's snow cones (shaved ice), thanks for the information.
I know :( my bad
@@Vettedbiz lol sorry, I read the comments after, uhhhh what if I told you I was about to create my own franchise selling trailers with my own invention and logo design, nothing to do with my you tube channel, your video gave me a ton of insight.
Thank you
Sorry it’s not an ice cream truck, and what about Mister Softee??
We'll have a look!
PS, you know they do not sell ice cream but yet you keep on mentioning it in your video I guess some people just don’t know the difference
You're right! Noted and will update for next video.
Are you a franchisee of Kona Ice?
I’m a Mister Softee , we have been around since 1956 we offer a fresh made product made on truck.
@@johndamato5912 I can review the latest Mister Softee FDD, or better yet, interview you if you're interested. Would love to hear about your experience. I can be reached at PatrickATvettedbiz.ocm
You might want to do your research. This is NOT an ICE CREAM business. We sell shaved ice. How many times can mention ICE CREAM???
Noted in prior comments. Sorry!!
Your video would have a lot more value if you knew what product you were talking about. Although some franchises add ice cream as a topping most do not carry it at all. Do your homework before you try to make a buck talking uninformed nonsense.
You're right. I said ice cream and should have said shaved ice. Anything else that should have been corrected?
Yes 99% of the trucks sell shave ice
How does one contact existing truck owners?