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Bahama Buck's Original Shaved Ice Company Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
What is the Initial Investment for a Bahama Buck's Franchise?
To open a Bahama Buck's Original Shaved Ice Company franchise, the total initial investment ranges from $303,700 to $957,838. This includes a franchise fee of $29,500. Additionally, prospective franchisees should be prepared for a cash requirement between $10,000 and $34,500. It's essential to have a net worth of $300,000 to $500,000 to qualify for this opportunity.
What Are the Ongoing Fees for Bahama Buck's Franchisees?
Bahama Buck's franchisees are subject to a royalty fee of 6% on gross sales, along with a marketing fee of 2%. These ongoing fees are crucial for maintaining brand standards and supporting marketing initiatives that drive customer traffic. Understanding these costs is vital for budgeting and ensuring profitability in your franchise operations.
What is the Average Revenue Potential for a Bahama Buck's Franchise?
The average annual revenue per Bahama Buck's unit is $599,535, with a median revenue of $364,027. The revenue can vary significantly, with the highest reported annual revenue reaching $848,082. This revenue potential highlights the brand's strong market presence and the demand for its unique shaved ice offerings.
How Quickly Can You Expect to Break Even with a Bahama Buck's Franchise?
Franchisees can anticipate a breakeven period of approximately 24 months, with an investment payback period of just 12 months. This swift return on investment underscores the efficiency of the business model and the brand's popularity, making it an attractive option for aspiring entrepreneurs looking to enter the franchise market.
Bahama Buck's Original Shaved Ice Company Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Bahama Buck's Original Shaved Ice Company Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|
| Total Units | 95 | 103 | 111 | 105 |
| Net Change YoY | 8 | 8 | -6 | |
| Franchised Units | 95 | 103 | 107 | 101 |
| Net Change YoY | 8 | 4 | -6 | |
| Corporate Units | 0 | 3 | 4 | 4 |
| Net Change YoY | 3 | 1 | 0 |
Investment Overview
The initial investment to open a Bahama Buck's franchise ranges from $303,700 to $957,838. This includes a franchise fee of $29,500 and a cash requirement of $10,000 to $34,500. With a net worth requirement between $300,000 and $500,000, potential franchisees should assess their financial readiness before proceeding.
Revenue Potential
Franchisees can expect an average annual revenue of $599,535, with a median revenue of $364,027. The revenue range varies significantly, with the lowest at $364,027 and the highest reaching $848,082. This potential for high earnings makes Bahama Buck's an attractive option for aspiring entrepreneurs.
Operating Costs
The average operating expenses for a Bahama Buck's franchise total approximately $239,579 annually. Key expenses include employee costs ($90,000), rent ($24,000), and royalty fees ($31,184). Understanding these costs is crucial for effective financial planning and management.
Breakeven and Payback
Franchisees can anticipate a breakeven period of about 24 months, with an investment payback period of just 12 months. This rapid return on investment highlights the efficiency of the Bahama Buck's business model, making it appealing for new franchisees.
Franchise Growth
Since its inception, Bahama Buck's has shown steady growth, with franchised units increasing from 95 in 2016 to 107 in 2018, before slightly decreasing to 101 in 2019. This trend indicates a resilient brand with a commitment to expansion and market presence.
Corporate Structure
Bahama Buck's operates under the corporate name Bahama Buck's Franchise Corporation. The company has a mix of franchised and corporate-owned units, with a few corporate locations serving as models for franchisees. This structure supports both brand consistency and operational excellence across all units.
Frequently Asked Questions
The initial investment for a Bahama Buck's franchise ranges from approximately $303,700 to $957,838. This includes the franchise fee, equipment, and other startup costs.