Kona Ice Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Kona Ice is a mobile shaved-ice franchise known for its brightly wrapped trucks serving flavored frozen treats at schools, events, and neighborhoods. Franchisees operate one or more trucks, with revenue driven by warm-weather foot traffic and community bookings.
FranchiseVerdict summary · 2026
A Kona Ice franchise requires a total initial investment of $179K – $227K, including a $15K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 33 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $179K – $227K
- 19th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 1,820
- 94th pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · 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 $179K – $227K including a $15K franchise fee.
- RETURNSNo audited financial statements present in this image folder. Pages p182-p188 contain only Exhibit D signature page, Exhibit E Brand Manual table of contents, and Exhibit F list of current/former franchisees (Kona Ice, Inc. 2025 FDD). No Item 21 balance sheet, income statement, or Independent Auditor's Report appears, so all financial figures are null.
- RISKVerdict A (Strongest tier), verdict score 79/100 (higher is better). SBA loan charge-off rate of 0.0% across 33 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHSystem growing at 22.4% CAGR over 3 years with 1820 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Kona Ice, Inc.
- Parent company
- Kona Ice Holdings, LLC
- Ultimate parent
- Kona Ice TopCo, LLC
- Predecessor
- None
- Prior franchisor entity
- CEO title
- Chief Executive Officer, President, Secretary and Board Member
- Tony Lamb
- Incorporated in
- KY
- HQ
- 5945 Centennial Circle, Florence, Kentucky 41042
- Auditor
- Barnes Dennig
- Audited financials
- Franchisor revenue
- $53.7M
- vs $53.7M prior year
Affiliated brands
- shares our pr
- KonaOS Holdings
- Mobile Cookie Company
- Franchisor shares our pr
- TMJ Insurance
- Kreations Flavoring
- Mobile Coffee Company
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Tony Lamb
- Headquarters
- KY
- Founded
- 2008
- FDD year
- 2025
- States available
- 47
Can you afford it, and what does the money buy?
Entry cost runs 69% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $15K | $15K |
| Working capital (3–6 mo) | $0 | $10K |
| Equipment, build-out, other | $164K | $202K |
| Total initial investment | $179K | $227K |
Source: Kona Ice 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $179K – $227K
- Top 40% of category vs category
- Liquid capital req'd
- $0 – $10K
- Top 40% of category vs category
- Franchise fee
- $15K – $15K
- Top 40% of category vs category
- Royalty
- $3,000 for years one and two, $4,000 for years three thro…
- Ad fund
- Currently $500 per year per KEV/KEV 2.0 Truck (Brand Fund…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $600 |
| Transfer fee | $8K |
| Renewal fee | $8K |
| Inventory (initial) | $10K – $10K |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Kona Ice did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Kona Ice unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
47%
Within the 30–60% "attractive franchise" band
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
No audited financial statements present in this image folder. Pages p182-p188 contain only Exhibit D signature page, Exhibit E Brand Manual table of contents, and Exhibit F list of current/former franchisees (Kona Ice, Inc. 2025 FDD). No Item 21 balance sheet, income statement, or Independent Auditor's Report appears, so all financial figures are null.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System expanding at 22.4% CAGR over 3 years across 1,820 units — operators are staying and new ones are joining.
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 Quick-Service Restaurants averages
How Kona Ice Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,820
- Opened
- 182
- Last reporting year
- Closed
- 36
- Turnover rate
- 2.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +22.4%
- Net unit change over 3 years
- 3-yr CAGR
- +22.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 182
- Closed (3yr)
- 36
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 94
- Reacquired (3yr)
- 0
- Franchisor bought back
- Ceased ops
- 1.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 47 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 33
- Loan volume
- $5.1M
- Median loan
- $137K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 25
- Defaults
- 0
- Typical loan rate
- 7.4%
- avg rate to borrowers
- Franchised industry avg
- 8.9%
- brand beats franchise avg ↓
- Jobs supported
- 222
- 4.3 per loan
- Lender concentration
- 12%
- top lender's share
Borrower mix: 40% went to startups / new businesses, 60% to established operators
Franchise vs independent — in mobile food services, franchised businesses charge off at 8.9% vs 13.0% for independents — franchising is associated with 32% lower SBA default risk in this category.
Vintage analysis
Kona Ice charge-off rate by loan vintage
Top lenders financing Kona Ice franchisees
Showing 3 of 25 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.
Premium insight
SBA Lending Report
Deep-dive into Kona Ice's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 10-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 33 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower 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
Kona Ice presents moderate-to-cautious risk: thin financial transparency, modest growth trajectory, and heavy reliance on seasonal demand without disclosed unit economics.
Litigation (Item 3)
No litigation is required to be disclosed in this Item (Item 3).
Largest disclosed settlement: $157,491
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Barnes Dennig
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 79 / 100 verdict
- 01MEDNo Item 19 (Average Revenue/Net Income) disclosed — impossible to validate ROI claims or profitability benchmarks
- 02MINORModest unit growth of 8.7% YoY suggests market saturation or franchisee struggles in a seasonal business model
- 03MINORFlat/low royalty structure ($3,000–$5,000/year) may indicate franchisor dependency on franchise fees rather than system health
- 04MEDHigh initial investment ($178k–$227k) relative to disclosed information creates unquantified risk exposure
- 05MINORSeasonal revenue model (frozen treats) creates cash flow vulnerability; no disclosure of off-season survival strategies
- 06MED10-year term is relatively long; redemption/exit clauses not disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
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 |
| Allowed renewalsℹ | 2 |
| Territory type | exclusive |
| Protected territory | Yes |
| Territory population | 100,000 |
| Online sales rights | Restricted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Florence, Kentucky (principal city closest to franchisor's principal place of business) |
| Jury trial waiver | Yes |
| Governing law | KY |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item (Item 3).
Items 10, 11
Training & Operations
- Classroom training
- 14 hrs
- On-the-job training
- 10 hrs
- Training location
- Corporate office, Florence, Kentucky
- Ongoing training
- Required
- Franchisor financing
- Offered
- Item 10
- POS system
- Square
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square
Item 20 · call current owners
Franchisee Contacts
728 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Kona Ice · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Kona Ice franchise?
The total investment to open a Kona Ice franchise ranges from $179K – $227K, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Kona Ice franchise owners earn?
Kona Ice does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Kona Ice 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 Kona Ice FDD and qualifies whose outlets they describe.
What is Kona Ice's franchise failure rate?
Based on SBA 7(a) loan data, Kona Ice has a charge-off rate of 0.0% across 33 loans, meaning 0.0% 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 Kona Ice franchise locations are there?
As of their most recent FDD filing, Kona Ice has 1,820 total units in the United States, including 1,816 franchised units and 4 company-owned units. 182 new units were opened in the latest reporting year.
Is Kona Ice a good franchise to buy?
FranchiseVerdict rates Kona Ice as a A-grade franchise with a verdict score of 79 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent Kona Ice, you can request corrections or provide updated information.
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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.