Kona Ice Franchise Cost, Revenue & Review 2026
- Investment
- $179K – $227K
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 33 loans
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. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above 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 scored3 of 3 headline figures on this page cite a page of the filing.
Overview
- Investment
- $179K – $227K
- 17th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- Flat fee
- Units
- 1,820
- 94th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants 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 $179K – $227K including a $15K franchise fee.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 69/100 (higher is better).
- GROWTHPositive: net +146 franchised outlets in the latest year (182 opened, 36 closed) (Item 20).
- 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
- FDD Item 1, page 8 of the 2025 FDD
- Ultimate parent
- Kona Ice TopCo, LLC
- FDD Item 1, page 8 of the 2025 FDD
- 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 $55.7M 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).
Same owner · FDD Item 1, page 8
1 other brand on this site name Kona Ice TopCo, LLC as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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 58% 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Kona Ice 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 annual revenue, royalty rate, ad fund rate, 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.
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 financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Kona Ice Compares
Category median of published Quick-Service Restaurants 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
- 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
Last fiscal year · Item 20 exits and transfers
- 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.
Where the owners are · Item 20 owner list
728 current owners across 47 states.
- FL 84
- TX 79
- CA 78
- GA 32
- NC 28
- AZ 25
- OH 24
- MD 23
- MI 21
- SC 20
- IL 19
- IN 19
- +35 more states
Counts only, from the list the franchisor prints in Item 20. 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
- 33
- Loan volume
- $5.1M
- Median loan
- $137K
- 50th percentile
- Charge-off rate
- Limited · 33 loans
- Limited SBA coverage: 33 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 33 loans
- 5-yr charge-off
- Limited · 33 loans
- Loans approved 2021+
- Active lenders
- 25
- Defaults
- 0
- Typical loan rate
- 7.4%
- avg rate to borrowers
- Franchised industry avg
- 8.9%
- n=160 loans
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Kona Ice from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 71%
- Avg interest rate
- 7.40%
- Lender concentration
- 12.1%
- Job velocity
- 4.3 per $100K
- Startup risk premium
- 0.0pp
- NAICS benchmark
- 3.6%
- NAICS 722330
- Jobs supported
- 222
Top SBA lendersTop lender holds 12% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 4 | $211K | 0.0% |
| 2 | Hawthorn Bank | 2 | $178K | 0.0% |
| 3 | Grow America Fund, Incorporated | 2 | $242K | 0.0% |
| 4 | Newtek Small Business Finance, Inc. | 2 | $205K | 0.0% |
| 5 | Cadence Bank | 2 | $420K | 0.0% |
| 6 | Ballston Spa National Bank | 2 | $200K | 0.0% |
| 7 | TD Bank, National Association | 1 | $50K | 0.0% |
| 8 | First United Bank and Trust Company | 1 | $150K | N/A |
| 9 | Enterprise Bank & Trust | 1 | $454K | 0.0% |
| 10 | PNC Bank, National Association | 1 | $35K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 5 | 0 | 0.0% |
| OHOhio | 5 | 0 | 0.0% |
| KYKentucky | 3 | 0 | 0.0% |
| AZArizona | 2 | 0 | 0.0% |
| FLFlorida | 2 | 0 | -- |
| MOMissouri | 2 | 0 | 0.0% |
| NYNew York | 2 | 0 | 0.0% |
| VAVirginia | 2 | 0 | 0.0% |
| COColorado | 1 | 0 | -- |
| INIndiana | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation is required to be disclosed in this Item (Item 3).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Barnes Dennig
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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.
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 69 / 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 territory |
| 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
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Kona Ice?
Kona Ice is franchised by Kona Ice, Inc.. Its parent company is Kona Ice Holdings, LLC. The ultimate parent named in the FDD is Kona Ice TopCo, LLC. Source: FDD Item 1, 2025 filing.
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?
SBA 7(a) loan charge-off data is not available for Kona Ice (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
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 B-grade franchise with a verdict score of 69 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.