Kona IceFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $179K – $227K
- 25th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- N/A
- Units
- 1,820
- 95th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants 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
Only 0.0% of 33 SBA loans charged off, well below the 16% franchise average.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $179K – $227K including a $15K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 5/100. SBA loan charge-off rate of 0.0% across 33 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 22.4% CAGR over 3 years with 1820 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Kona Ice, Inc.
- Parent company
- Kona Ice Holdings, LLC
- Incorporated in
- KY
- HQ
- 5945 Centennial Circle, Florence, Kentucky 41042
- Auditor
- Barnes Dennig
- Audited financials
- Franchisor revenue
- $55.7M
- 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
Franchisees operate mobile or fixed-location shaved ice kiosks, selling flavored frozen treats primarily to consumers in warm-weather markets. Day-to-day operations involve inventory management, point-of-sale transactions, customer service, and seasonal marketing. Revenue is highly dependent on weather, foot traffic volume, and local competition.
- CEO
- Tony Lamb
- Headquarters
- KY
- Founded
- 2008
- FDD year
- 2025
- States available
- 47
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
- Better than avg vs category
- Liquid capital req'd
- $0 – $10K
- Better than avg vs category
- Franchise fee
- $15K – $15K
- Better than avg vs category
- Royalty
- $3,000 to $5,000 per year based on tenure
- Ad fund
- 500 per year
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $600 |
| Transfer fee | $10K |
| Renewal fee | $8K |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Kona Ice Compares
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 (yr3)
- +8.7%
- Net unit change last year
- 3-yr CAGR
- +22.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 146
- Closed (3yr)
- 21
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 94
- Reacquired (3yr)
- 14
- 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
Vintage analysis
Kona Ice charge-off rate by loan vintage
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
0 case reference(s): 0 pending, 0 settled.
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: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 5 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | population-based |
| Protected territory | Yes |
| Territory sizeℹ | 100,000 people |
| 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 |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Kentucky |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 14 hrs
- On-the-job training
- 10 hrs
- Training location
- On-site and corporate
- 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 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 1,484 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 risk score of 5 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.
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.