Pelican’s Snoballs Franchise Cost, Revenue & Review 2026
- Investment
- $82K – $231K
- Disclosed sales
- $148K
- gross sales, not profit
- SBA charge-off
- Limited · 11 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Pelican's SnoBalls is a seasonal dessert franchise serving shaved-ice snoballs in dozens of flavors from small kiosks and stands. Franchisees run warm-weather locations managing product, service, and staffing.
FranchiseVerdict summary · 2026
A PELICAN’S SNOBALLS franchise requires a total initial investment of $82K – $231K, including a $25K franchise fee and an ongoing 8.0% royalty[2]. Per the 2024 FDD, average unit revenue was $148K[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2024 filing · Data extracted: · Last cited check: · Staleness risk: high - figures are from a filing two or more years old
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
- $82K – $231K
- 6th pct Retail
- Avg gross sales
- $148K
- 0th pct Retail
- Royalty
- 8.0%
- 34th pct Retail
- Units
- 202
- 34th pct Retail
- SBA charge-off
- N/A
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 $82K – $231K including a $25K franchise fee, 8.0% ongoing royalty.
- RETURNSAverage unit revenue of $148K/year (median $126K).
- RISKVerdict A (Strongest tier), verdict score 70/100 (higher is better).
- GROWTHPositive: net +9 franchised outlets in the latest year (16 opened, 7 closed); 4 signed but not yet open (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Pelican's SnoBalls USA, LLC
- Predecessor
- Pelican's SnoBalls, LLC (NC Predecessor); Pelican's SnoBalls VA, LLC (Virginia Predecessor)
- Prior franchisor entity
- CEO title
- Co-CEO
- Gregg Fatool; Randall Wright
- Incorporated in
- NC
- HQ
- 801 East 2nd Ave., Gastonia, North Carolina 28054
- Auditor
- Smith Leonard PLLC
- Audited financials
- Franchisor revenue
- $2.5M
- vs $2.9M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- Formative Industries
- and has licensed that intellectual property to us
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Gregg Fatool; Randall Wright
- Headquarters
- NC
- Founded
- 2016
- FDD year
- 2024
- States available
- 17
Can you afford it, and what does the money buy?
Entry cost runs 53% below the typical retail franchise.
Source: FDD 2024 · Items 5–7
The filing's Item 7 TOTAL row prints $81,750 to $230,800. Its own line items add to $78,750 to $230,800. The total is shown as the franchisor printed it; the lines are listed as printed. Filing's own arithmetic: the 15 Low cells sum to $78,750 but the printed Total Low is $81,750 (every cell verified on the rendered images of pp.14-15; no cell is missing or misread).
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial franchise fee | $25K | $25K | |
| Lease/rent | $2K | $18K | |
| Plans and Construction (includes architectural and building permits) | $8K | $80K | |
| Concept Building Drawing | $0 | $3K | |
| Equipment | $26K | $56K | |
| POS | $2K | $3K | |
| Inventory | $10K | $20K | |
| Signs | $2K | $7K | |
| Advertising | $100 | $2K | |
| Insurance | $3K | $6K | |
| Training Expenses | $1K | $4K | |
| Business Licenses | $50 | $200 | |
| Professional Fees | $500 | $3K | |
| Additional Funds (3 Months) | $0 | $3K | |
| Security Deposits | $0 | $200 | |
| Total initial investment | $79K | $231K |
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
- $82K – $231K
- Top 40% of category vs category
- Liquid capital req'd
- $0 – $3K
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 8.0%
- typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Technology fee | $300 |
| Transfer fee | $10K |
| Renewal fee | $20K |
| Inventory (initial) | $10K – $20K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 82% below the retail norm.
Source: FDD 2024 · 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 PELICAN’S SNOBALLS 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
$158K
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 PELICAN’S SNOBALLS 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: 2024 FDD
Financial Performance
- Avg gross sales
- $148K
- Per unit, per year
- Median gross sales
- $126K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 193 outlets
- vs category median 46 · large
- Range (low → high)
- $49K→$415KCited, not corroborated — printed on page 39 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 4 / 10
- vs category median 3 / 10 · above
Compared against 278 Retail brands
Revenue is only 1.0x 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 $148K/year in gross sales. Median is $126K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 1.0x.
Fee burden
Total ongoing fee load of 9.0% (near the Retail median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 12.2% CAGR over 3 years across 202 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 Retail medians
How Pelican’s Snoballs 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 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 202
- Opened
- 16
- Last reporting year
- Closed
- 7
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +12.2%
- Net unit change over 3 years
- 3-yr CAGR
- +12.2%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 2
- Not renewed
- 0
- Signed, not yet open
- 4
- 0.02 per open outlet · Item 20 Table 5
- Projected new
- 10
- Franchisor's next-year forecast
- Transfer rate
- 9.9%
- Owners selling to other franchisees
- Termination rate
- 1.0%
- Franchisor-initiated terminations
- Ceased ops
- 3.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 17 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.
17
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 11
- Loan volume
- $2.1M
- Median loan
- $112K
- 50th percentile
- Charge-off rate
- Limited · 11 loans
- Limited SBA coverage: 11 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 · 11 loans
- 5-yr charge-off
- Limited · 11 loans
- Loans approved 2021+
- Active lenders
- 8
- Defaults
- 0
- Typical loan rate
- 5.8%
- avg rate to borrowers
- Franchised industry avg
- 10.6%
- n=3,755 loans
- Jobs supported
- 16
- 7.2 per loan
- Lender concentration
- 50%
- top lender's share
Franchise vs independent — in snack and nonalcoholic beverage bars, franchised businesses charge off at 10.6% vs 8.9% for independents — franchising is associated with 19% higher SBA default risk in this category.
Top lenders financing Pelican’s Snoballs franchisees
Showing 3 of 8 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 Pelican’s Snoballs from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 68%
- Avg interest rate
- 5.79%
- Lender concentration
- 50.0%
- Job velocity
- 7.2 per $100K
- NAICS benchmark
- 7.0%
- NAICS 722515
- Jobs supported
- 16
Top SBA lendersTop lender holds 50% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Business Development Corporation of South Carolina | 1 | $110K | 0.0% |
| 2 | Truist Bank | 1 | $113K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| NCNorth Carolina | 1 | 0 | -- |
| SCSouth Carolina | 1 | 0 | 0.0% |
SBA 7(a) lending trend
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
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.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
Virginia Corporation Commission v. Adrian Johnson and Pelican's SnoBalls VA LLC (Case No. SEC-2016-00056): Virginia Predecessor alleged to have offered franchises without proper registration under the Virginia Retail Franchising Act. Resolved via Consent Order (Dec 2016): no admission of fault, agreed not to violate Act in future, offered rescission to certain franchisees, paid $15,000 in penalties.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Smith Leonard PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- 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 70 / 100 verdict
- 01MEDNo Item 19 (Average Net Income) disclosed — impossible to validate ROI claims or payback period against $81,750–$230,800 investment range
- 02MINORPrior regulatory violation: Virginia predecessor sold unregistered franchises; 2016 Consent Order required rescission offers and $15,000 penalty, raising compliance and legal risk concerns
- 03MINORAnemic unit growth of 4.7% YoY with only 202 units suggests market saturation or franchisee dissatisfaction in mature system
- 04MEDHigh royalty burden (8% of gross sales) combined with undisclosed profitability means franchisees could be paying substantial fees on thin margins
- 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
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | JAMS location nearest franchisor's principal place of business (mediation only) |
| Jury trial waiver | Yes |
| Governing law | NC |
| Litigation count | 1 |
View Item 3 litigation summary
Virginia Corporation Commission v. Adrian Johnson and Pelican's SnoBalls VA LLC (Case No. SEC-2016-00056): Virginia Predecessor alleged to have offered franchises without proper registration under the Virginia Retail Franchising Act. Resolved via Consent Order (Dec 2016): no admission of fault, agreed not to violate Act in future, offered rescission to certain franchisees, paid $15,000 in penalties.
Items 10, 11
Training & Operations
- Classroom training
- 7 hrs
- On-the-job training
- 40 hrs
- Training location
- Franchisor's offices or a designated Pelican's SnoBalls store in North Carolina
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
144 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 PELICAN’S SNOBALLS franchise?
The total investment to open a PELICAN’S SNOBALLS franchise ranges from $82K – $231K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do PELICAN’S SNOBALLS franchise owners earn?
According to Item 19 of the PELICAN’S SNOBALLS FDD, the average gross sales per unit is $148K. The median is $126K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns PELICAN’S SNOBALLS?
PELICAN’S SNOBALLS is franchised by Pelican's SnoBalls USA, LLC. Source: FDD Item 1, 2024 filing.
What is Item 19 in the PELICAN’S SNOBALLS 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 PELICAN’S SNOBALLS FDD and qualifies whose outlets they describe.
What is PELICAN’S SNOBALLS's franchise failure rate?
SBA 7(a) loan charge-off data is not available for PELICAN’S SNOBALLS (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 PELICAN’S SNOBALLS franchise locations are there?
As of their most recent FDD filing, PELICAN’S SNOBALLS has 202 total units in the United States, including 202 franchised units and 0 company-owned units. 16 new units were opened in the latest reporting year.
Is PELICAN’S SNOBALLS a good franchise to buy?
FranchiseVerdict rates PELICAN’S SNOBALLS as a A-grade franchise with a verdict score of 70 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.