Bahama Buck’s Franchise Cost, Revenue & Review 2026
- Investment
- $540K – $1.2M
- Disclosed sales
- $526K
- gross sales, not profit
- SBA charge-off
- 20.3%
- on 134 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Bahama Buck's is a franchise serving gourmet shaved ice, tropical drinks, and smoothies with an island theme. Franchisees run shops with walk-up and drive-up service, managing product, staffing, and warm-weather traffic.
FranchiseVerdict summary · 2026
A Bahama Buck’s franchise requires a total initial investment of $540K – $1.2M, including a $35K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $526K[2]. SBA 7(a) loans show a 20.3% charge-off rate across 134 loans[1]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $540K – $1.2M
- 43rd pct Retail
- Avg gross sales
- $526K
- 5th pct Retail
- Royalty
- 6.0%
- 20th pct Retail
- Units
- 115
- 30th pct Retail
- SBA charge-off
- 20.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $540K – $1.2M including a $35K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $526K/year (median $534K).
- RISKVerdict D (Below average), verdict score 35/100 (higher is better). 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, 2010–2025).
- GROWTHFlat: no net change in franchised outlets in the latest year (4 opened, 4 closed) (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- 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
- Arizona
- HQ
- 5741 50th Street, Lubbock, TX 79424
- Auditor
- RBMS LLP
- Audited financials
- Franchisor revenue
- $6.9M
- vs $7.6M prior year
Affiliated brands
- Our affiliate
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Ryan Blake Buchanan
- Headquarters
- Texas
- Founded
- 1992
- FDD year
- 2025
- States available
- 16
Can you afford it, and what does the money buy?
Entry cost runs 158% above the typical retail franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $35K | $35K | |
| Travel | $0 | $2K | |
| Living Expenses While Training | $0 | $2K | |
| Rent | $5K | $14K | |
| Build-out of existing leased space or Costs for a Free-standing building | $300K | $750K | |
| Provisional Architect Review Fee | $0 | $3K | |
| Signage & Decor | $30K | $60K | |
| Cash registers and related equipment | $7K | $16K | |
| Equipment | $111K | $185K | |
| Inventory | $19K | $22K | |
| Supplies (including BB Logoed apparel and products) | $50 | $50 | |
| Utility Deposits | $500 | $1K | |
| Insurance | $2K | $5K | |
| Professional Services | $10K | $75K | |
| Licenses & Permits | $500 | $1K | |
| Advertising | $500 | $2K | |
| ADDITIONAL FUNDS FOR 3 MONTHS** | $20K | $20K | |
| Total initial investment | $540K | $1.2M |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $540K – $1.2M
- Middle of category vs category
- Liquid capital req'd
- $20K – $20K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
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 | $3K |
| Transfer fee | $8K |
| Renewal fee | $8K |
| Inventory (initial) | $19K – $22K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 35% below the retail norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Bahama Buck’s until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$885K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Bahama Buck’s unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $526K
- Per unit, per year
- Median gross sales
- $534K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical actual
- Sample size
- 103 outlets
- vs category median 46 · large
- Range (low → high)
- $173K→$878KCited, not corroborated — printed on page 46 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $407K→$636K
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 9 / 10
- vs category median 3 / 10 · above
Compared against 278 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.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $526K/year in gross sales. Revenue-to-investment ratio: 0.6x.
Fee burden
Total ongoing fee load of 8.0% (near the Retail median).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System roughly stable (+2.8% 3-year CAGR) with 115 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Retail medians
How Bahama Buck’s Compares
Category median of published Retail brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 115
- Opened
- 4
- Last reporting year
- Closed
- 4
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.5%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (3-yr)
- +2.8%
- Net unit change over 3 years
- 3-yr CAGR
- +2.8%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 13
- Reacquired
- 4
- Franchisor bought back
- 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 12 · 16 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
16
states with franchisees (per FDD Item 12)
Where the owners are · Item 20 owner list
1 current owner across 1 state.
- AZ 1
Counts only, from the list the franchisor prints in Item 20; 91 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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%
- on 134 loans · 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
- Typical loan rate
- 5.9%
- avg rate to borrowers
- vs industry
- N/A
- Jobs supported
- 2,592
- Lender concentration
- N/A
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Top lenders financing Bahama Buck’s franchisees
Showing 3 of 41 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Bahama Buck’s from SBA 7(a) FOIA data.
- Avg interest rate
- 5.92%
- Avg chargeoff amount
- $201K
- Jobs supported
- 2,592
Top SBA lenders
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Keystone Bank SSB | 28 | N/A | N/A |
| 2 | Amarillo National Bank | 21 | N/A | N/A |
| 3 | JPMorgan Chase Bank, National Association | 4 | N/A | N/A |
| 4 | U.S. Bank, National Association | 3 | N/A | N/A |
| 5 | PlainsCapital Bank | 3 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 64 | 0 | -- |
| AZArizona | 4 | 0 | -- |
| FLFlorida | 3 | 0 | -- |
| UTUtah | 3 | 0 | -- |
| ALAlabama | 2 | 0 | -- |
| CACalifornia | 2 | 0 | -- |
| OKOklahoma | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 20.3% charge-off rate means roughly 1 in 5 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 20.3% — 27% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation is required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · RBMS LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 35 / 100 verdict
- 01MINORAnemic unit growth of 2.8% YoY suggests market saturation or franchisee dissatisfaction in a mature 115-unit system
- 02MINORHigh investment range ($528k-$1.2M) paired with modest average net income ($122k) yields 4.3-8.6 year payback period with significant capital risk
- 03MINOR6% royalty on gross sales is standard but provides minimal franchisor margin for support in a slow-growth system
- 04MINORSeasonal beverage business model creates cash flow volatility not addressed in provided data
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Territory population | 37,500 |
| Online sales rightsℹ | 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 |
| Termination groundsℹ | 15 |
| Mandatory arbitration | Yes |
| Arbitration location | Lubbock County, Texas (franchisor's principal place of business) |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 20 hrs
- Training location
- Bahama Buck's corporate headquarters, Lubbock, TX (classroom) and a designated Bahama Buck's retail store in Texas (on-the-job)
- Ongoing training
- Required
- Field support
- 20 hrs/yr
- On-site visits per year
- Time to open
- 12 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not 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
92 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 $540K – $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 $526K. The median is $534K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Bahama Buck’s?
Bahama Buck’s is franchised by Bahama Buck's Franchise Corporation. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Bahama Buck’s FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Bahama Buck’s FDD and qualifies whose outlets they describe.
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. 4 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 D-grade franchise with a verdict score of 35 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.