|
Hokulia Shave Ice Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
What Are the Initial Investment Requirements for a Hokulia Shave Ice Franchise?
To open a Hokulia Shave Ice franchise, you can expect a low initial investment starting at $70,700, while the high end can reach up to $786,000. The initial franchise fee is set at $15,000. Additionally, you’ll need to budget for a cash requirement between $70,700 and $153,000, along with a net worth requirement ranging from $100,000 to $250,000. These figures are crucial for potential franchisees to understand their financial commitment before diving into the business.
What Are the Ongoing Fees and Financial Metrics for Hokulia Shave Ice Franchisees?
Franchisees of Hokulia Shave Ice are subject to ongoing fees, including a royalty fee of 6% on gross sales and a marketing fee of 2%. Understanding these fees is essential for maintaining profitability. The average annual revenue per unit is around $150,000, with a median revenue of $180,000. The breakeven time is approximately 12 months, indicating that franchisees can expect to start seeing returns on their investment relatively quickly.
What Are the Expected Revenues and Profitability of a Hokulia Shave Ice Franchise?
Franchisees can anticipate varying annual revenues, with figures ranging from a low of $24,000 to a high of $250,000 per unit. The average gross profit margin stands at 70%, allowing for significant earnings potential. After accounting for operating expenses, the EBITDA is approximately $45,000, which is about 30% of revenue. These metrics highlight the financial viability of a Hokulia Shave Ice franchise for those looking to enter the food service industry.
How Has the Hokulia Shave Ice Franchise Grown Over Recent Years?
The Hokulia Shave Ice franchise has shown a dynamic growth pattern over the past few years. In 2018, there were 63 franchised units, which declined to 48 in 2019. However, in 2020, the number of franchised units remained steady at 45, while the company opened 3 corporate units. This trend indicates that while the franchise faced challenges, it also has the potential for growth and expansion in new markets, making it an interesting opportunity for prospective franchisees.
Hokulia Shave Ice 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:
Hokulia Shave Ice Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2018 | 2019 | 2020 |
|---|---|---|---|
| Total Units | 63 | 48 | 48 |
| Net Change YoY | -15 | 0 | |
| Franchised Units | 63 | 48 | 45 |
| Net Change YoY | -15 | -3 | |
| Corporate Units | 0 | 0 | 3 |
| Net Change YoY | 0 | 3 |
Investment Overview
The Hokulia Shave Ice franchise offers a low initial investment range of $70,700 to $786,000, making it accessible for aspiring entrepreneurs. The initial franchise fee is set at $15,000, with ongoing royalty and marketing fees of 6% and 2%, respectively. To get started, potential franchisees should have a cash reserve between $70,700 and $153,000, along with a net worth requirement of $100,000 to $250,000.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $150,000 per unit, with revenue ranging from $24,000 to $250,000. This variance presents opportunities for franchisees to maximize their earnings based on location, management, and marketing strategies. The franchise boasts a median annual revenue of $180,000, indicating a strong potential for profitability.
Breakeven and Payback
Hokulia Shave Ice franchises typically achieve breakeven within 12 months. This rapid payback period reflects the brand's strong market demand and operational efficiency. Franchisees can anticipate recovering their initial investment in a similar timeframe, making it an attractive option for those looking to enter the franchise landscape.
Franchise Growth
The franchise has shown a consistent presence in the market, with 63 franchised units in 2018, which decreased to 45 in 2020. Notably, Hokulia opened its first corporate units in 2020, indicating a strategic shift in growth and operations. This evolution highlights the brand's adaptability and commitment to expanding its footprint.
Operational Costs
Initial operational costs for franchisees include a variety of expenses, such as mobile kiosks and kitchen equipment ranging from $47,500 to $75,500. Other costs include travel and living expenses during training, signage, and marketing, contributing to a comprehensive initial investment that can total between $70,700 and $153,000.
Brand Mission
Hokulia Shave Ice aims to provide a refreshing and delightful experience through its unique Hawaiian-style shave ice offerings. The brand is dedicated to quality, community engagement, and creating memorable moments for customers, positioning itself as a leader in the dessert franchise sector while promoting the vibrant culture of Hawaii.
Frequently Asked Questions
The initial investment for a Hokulia Shave Ice franchise ranges from $70,700 to $786,000. This includes the initial franchise fee, equipment, and other startup costs.