2016

Kona Ice is different from every other franchise out there. It's mobile, so you set your own hours, and you just can't beat our quick and easy startup process. Minimal investment with high profitability - that's what we're about. The mobility, flexibility and profitability (not to mention the fun!) we bring to the table, allows us to be the most involved business in each of our communities across the country. So if you're looking to control your own destiny and live life on your own terms, Kona Ice is the business for you. Contact us today to see what it would be like to be a Kona Ice franchisee.

Year	Franchised	Change	Company-Owned	Change	Total	Change
2014	554	32.85%	21	40.0%	575	33.1%
2013	417	40.4%	15	0.0%	432	38.46%
2012	297	--	15	--	312	--

Investment Required

The initial fee to purchase a Kona Ice franchise is $15,000. Kona Ice provides the following range of investment items required to purchase your initial franchise. The range assumes that all items are paid for in cash. If you choose to finance any of these expense items, your front-end investment could be substantially reduced.

Item	Established Low Range	Established High Range
Initial Franchise Fee	$15,000	$15,000
Truck and Installed Equipment	$89,650	$89,650
Expenses Whil Training	$200	$500
Truck Delivery	$500	$3,000
Truck Insurance for 3 Months	$450	$1,200
Tax, Title, and Licensing of Truck	$2,000	$6,000
Initial Inventory	$4,875	$4,875
Optional Inventory	$0	$500
Permits and Licenses	$250	$1,500
Real Estate or Truck Storage	$0	$1,200
Computer System and Software	$200	$1,000
Additional Funds (3 months)	$1,000	$5,000
Total Initial Investment	$114,125	$129,425

Ongoing Expenses

Franchisees are required to pay ongoing royalty fees of $3,000 annually for the first 5 years, $3,500 for the next 2 years, and $4,000 for the remaining 3 years of the franchise agreement. Other fees include a marketing fund contribution of $500 per year and an additional equipment royalty fee, if applicable.

What You Get: Training and Support

Franchisees will be enrolled in an initial training program that consists of two to three days of on-the-job training at corporate headquarters in Florence, KY. Topics covered during training include truck and equipment operation and maintenance, as well as field sales and customer service. Kona Ice will continue to provide ongoing advice and assistance concerning the daily operations of the business and additional training courses when deemed necessary.

Territory

Kona Ice grants exclusive territories with a population of approximately 100,000 people.

Note: The tables and information regarding the number of operating units, investment required, ongoing expenses, training and territory grants were taken from the company's 2015 FDD.