FranchiseVerdict
PELICAN’S SNOBALLS logo
FV-01914·STRONGExcellent95

Pelican’s Snoballs

RetailFranchising since 2017Website
Investment
$82K – $231K
13th pct Retail
Avg revenue
$148K
3rd pct Retail
Royalty
8.0%
67th pct Retail
Units
202
78th pct Retail
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $82K – $231K including a $25K franchise fee, 8.0% ongoing royalty.
  • Average unit revenue of $148K/year (median $126K).
  • Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 10 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Pelican’s SnoBalls USA, LLC
Incorporated in
North Carolina
HQ
801 East 2nd Avenue, Gastonia, North Carolina 28054
Auditor
Smith Leonard PLLC
Audited financials
Franchisor revenue
$2.9M
vs $2.5M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one PELICAN’S SNOBALLS unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $148,484
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: retail
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $82K–$231K
Working capital
$
Item 7 didn't break this out — defaulted to ~10% of annual revenue

Unlevered ROIC · per unit

6%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$9K
EBITDA margin
6.0%
Total invested
$158K
Payback
213 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees operate seasonal or year-round shaved ice and snoball retail locations, typically small kiosks or storefronts, serving frozen desserts with flavored syrups. Day-to-day operations include customer service, inventory management, equipment maintenance, and local marketing to drive walk-in traffic in warm-weather regions.

CEO
Gregg Fatool and Randall Wright
Founded
2016
FDD year
2024
States available
17

Item 7 · what it costs

The Vitals

Total investment
$82K – $231K
All-in to open one unit
Liquid capital
$0 – $3K
Cash you must have on hand
Franchise fee
$25K
Royalty
8.0%
Percentage of Gross Sales · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
9.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$148K
Per unit, per year
Median gross sales
$126K
Item 19 type
Gross Sales
Sample size
193 units
vs category median 52 · large
Range (low → high)
$49K$415K
Cohort dispersion
Transparency
4 / 5
vs category median 3 / 5 · above
Revenue rank3th
vs Retail peers
Investment cost rank13th
Lower investment ranks lower (better)
Royalty rate rank67th
Lower royalty = lower percentile (better)
Unit count rank78th
vs Retail peers
Risk score rank16th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
202
Opened
16
Last reporting year
Closed
7
Turnover rate
3.5%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+4.7%
Net unit change last year
3-yr CAGR
+12.2%
Compounded over last 3 years
2022
202+9
Franchised units
2023
193
Franchised units
2024
180
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 12 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 12 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
10
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

46
Risk · 0-100
STRONG46 / 100

Pelican's Snowballs presents moderate-to-caution risk: regulatory history, missing profitability data, slow growth, and high royalty exposure create validation gaps that make financial projections unreliable.

Score breakdown · what drove the 46 / 100 rating

  1. 01MEDNo Item 19 (Average Net Income) disclosed — impossible to validate ROI claims or payback period against $81,750–$230,800 investment range
  2. 02MINORPrior regulatory violation: Virginia predecessor sold unregistered franchises; 2016 Consent Order required rescission offers and $15,000 penalty, raising compliance and legal risk concerns
  3. 03MINORAnemic unit growth of 4.7% YoY with only 202 units suggests market saturation or franchisee dissatisfaction in mature system
  4. 04MEDHigh royalty burden (8% of gross sales) combined with undisclosed profitability means franchisees could be paying substantial fees on thin margins
  5. 05MINORWide investment range ($81,750–$230,800) indicates high variability in startup costs; unclear what drives the $149,050 spread

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
15 years
Renewal term
15 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
North Carolina

Item 11

Training & Operations

Classroom training
7 hrs
On-the-job training
40 hrs

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

68 numbers

Locked
(828) 851-••••
NC
(863) 608-••••
FL
(704) 608-••••
NC

One-time purchase · CSV download · Validation questions included

FDD download

PELICAN’S SNOBALLS · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above