Bahama Buck’sFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Bahama Buck’s franchise requires a total initial investment of $528K – $1.2M, including a $35K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $559K[2]. SBA 7(a) loans show a 20.3% charge-off rate across 134 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $528K – $1.2M
- 39th pct Retail
- Avg gross sales
- $559K
- 5th pct Retail
- Royalty
- 6.0%
- 17th pct Retail
- Units
- 115
- 28th pct Retail
- SBA default
- 20.3%
- system-wide median varies by category
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.6x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
20.3% of SBA loans charged off across 134 loans, above the 16% franchise average.
Franchising since 1993. Systems this mature have refined operations and brand recognition.
Franchised units fell from 112 to 104 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $528K – $1.2M including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $559K/year (median $576K), with an estimated 14% cash-on-cash return (based on EBITDA).
- Verdict B (Above Average) with a risk score of 55/100. SBA loan charge-off rate of 20.3% across 134 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Bahama Buck's Franchise Corporation
- CEO title
- Director, Chief Executive Officer and President
- Ryan Blake Buchanan
- CEO experience
- 32 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- AZ
- HQ
- 5741 50th Street, Lubbock, TX 79424
- Auditor
- Carr, Riggs & Ingram, LLC
- Audited financials
- Franchisor revenue
- $7.1M
- vs $7.6M prior year
Affiliated brands
- Our affiliate
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Bahama Buck's franchisees operate frozen beverage and shaved ice retail kiosks or stand-alone locations, serving branded smoothies, slushes, and frozen drinks. Day-to-day operations include product preparation, customer service, inventory management, and seasonal staffing adjustments typical of QSR-adjacent beverage concepts.
- CEO
- Ryan Blake Buchanan
- Headquarters
- TX
- Founded
- 1992
- FDD year
- 2025
- States available
- 13
FDD Item 7 · 2025 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Travelnot refundable | $0 | $2K | |
| Living Expenses While Trainingnot refundable | $0 | $2K | |
| Rent | $5K | $14K | |
| Build-out of existing leased space or Costs for a Free-standing buildingnot refundable | $270K | $800K | |
| Provisional Architect Review Feenot refundable | $5K | $5K | |
| Signage & Decornot refundable | $35K | $60K | |
| Cash registers and related equipmentnot refundable | $7K | $16K | |
| Equipmentnot refundable | $117K | $145K | |
| Inventorynot refundable | $19K | $22K | |
| Supplies (including BB Logoed apparel and products)not refundable | $50 | $50 | |
| Utility Deposits | $500 | $1K | |
| Insurancenot refundable | $2K | $5K | |
| Professional Servicesnot refundable | $13K | $75K | |
| Licenses & Permitsnot refundable | $500 | $1K | |
| Advertisingnot refundable | $500 | $2K | |
| Additional Operating Funds for 3 Monthsnot refundable | $20K | $40K | |
| Multi-Store Amendment (MSA) Development Fee (2nd location)not refundable | $0 | $17K | |
| Multi-Store Amendment (MSA) Development Fee (3rd location)not refundable | $0 | $17K | |
| Total initial investment | $528K | $1.3M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$39K
7.0% margin
Unlevered ROIC
4%
EBITDA / total invested capital
Payback
23.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $528K – $1.2M
- Better than avg vs category
- Liquid capital req'd
- $20K – $40K
- Better than avg vs category
- Franchise fee
- $35K – $35K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 7.2 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $500 |
| Training fee | $300 |
| Transfer fee | $8K |
| Renewal fee | $8K |
| Inventory (initial) | $19K – $22K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $559K
- Per unit, per year
- Median gross sales
- $576K
- Avg ebitda
- $122K
- Reported as EBITDA in FDD Item 19
- Cash-on-cash
- 13.9%
- Based on EBITDA / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 103 units
- vs category median 49 · large
- Range (low → high)
- $173K→$900K
- Cohort dispersion (min → max)
- Quartile band
- $636K→$774K
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2023
- Fiscal year the figures cover
- Transparency
- 9 / 5
- vs category median 2 / 5 · above
Compared against 304 Retail brands
Revenue is only 0.6x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Retail averages
How Bahama Buck’s Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 115
- Opened
- 7
- Last reporting year
- Closed
- 3
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.6%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (yr3)
- +2.8%
- Net unit change last year
- 3-yr CAGR
- +7.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 3
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 16
- Transfer rate
- 13.9%
- Owners selling to other franchisees
- Termination rate
- 3.5%
- Franchisor-initiated terminations
- Ceased ops
- 2.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Maryland
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 134
- Loan volume
- $67.2M
- Median loan
- $502K
- average
- Charge-off rate
- 20.3%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- 16.7%
- Loans approved 2021+
- Active lenders
- 41
- Defaults
- 15
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Bahama Buck’s's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 12-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 20.3% charge-off rate means roughly 1 in 5 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Bahama Buck's presents moderate-to-cautious risk: a stagnant franchise system with undocumented financials, high capital requirements relative to returns, and limited growth trajectory despite protected territories.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Largest disclosed settlement: $190,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Carr, Riggs & Ingram, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 55 / 100 rating
- 01MINORAnemic unit growth of 2.8% YoY suggests market saturation or franchisee dissatisfaction in a mature 115-unit system
- 02MEDNo Item 19 (Financial Performance Representation) disclosed — cannot independently verify claimed $559k revenue or $122k net income figures
- 03MINORHigh investment range ($528k-$1.2M) paired with modest average net income ($122k) yields 4.3-8.6 year payback period with significant capital risk
- 04MINOR6% royalty on gross sales is standard but provides minimal franchisor margin for support in a slow-growth system
- 05MINORSeasonal beverage business model creates cash flow volatility not addressed in provided data
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Population |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 25,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Lubbock County, Texas |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 20 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- joint
- Franchisor financing
- Offered
- Item 10
- POS system
- Revel POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel POS
Item 20 · call current owners
Franchisee Contacts
77 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Bahama Buck’s · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Bahama Buck’s franchise?
The total investment to open a Bahama Buck’s franchise ranges from $528K – $1.2M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Bahama Buck’s franchise owners earn?
According to Item 19 of the Bahama Buck’s FDD, the average gross sales per unit is $559K. The median is $576K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Bahama Buck’s's franchise failure rate?
Based on SBA 7(a) loan data, Bahama Buck’s has a charge-off rate of 20.3% across 134 loans, meaning 20.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Bahama Buck’s franchise locations are there?
As of their most recent FDD filing, Bahama Buck’s has 115 total units in the United States, including 112 franchised units and 3 company-owned units. 7 new units were opened in the latest reporting year.
Is Bahama Buck’s a good franchise to buy?
FranchiseVerdict rates Bahama Buck’s as a B-grade franchise with a risk score of 55 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.