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Pelican's SnoBalls Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
What Are the Initial Costs to Open a Pelican's SnoBalls Franchise?
To open a Pelican's SnoBalls franchise, you will need to prepare for an initial investment ranging from $81,750 to $230,800. This includes a franchise fee of $25,000. Additionally, you should have cash on hand between $70,750 and $209,800, along with a net worth requirement of $100,000 to $500,000. Understanding these financial commitments is crucial for aspiring franchisees as they navigate the startup phase of their business.
What Are the Ongoing Fees for Pelican's SnoBalls Franchisees?
Franchisees of Pelican's SnoBalls are subject to ongoing fees that include a royalty fee of 8% on gross sales and a marketing fee of 1%. These fees are essential for maintaining brand presence and operational support. It's important for potential franchisees to factor these costs into their financial planning to ensure sustainable profitability in the long run.
What Is the Average Revenue Potential for Pelican's SnoBalls Units?
The average annual revenue per unit for Pelican's SnoBalls is approximately $148,484, with a median annual revenue of $125,900. This revenue potential can vary significantly, with the lowest annual revenue reported at $48,520 and the highest at $414,941. Understanding these figures can help franchisees set realistic financial goals and assess the viability of their investment.
How Quickly Can You Expect to Break Even with a Pelican's SnoBalls Franchise?
Franchisees can anticipate breaking even within about 10 months of operation. The investment payback period is estimated at 13 months, making it a relatively quick return on investment compared to many other franchise opportunities. This timeline can be an attractive feature for potential franchisees looking to recoup their initial costs efficiently.
Pelican's SnoBalls Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Pelican's SnoBalls Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 191 | 213 | 219 |
| Net Change YoY | 22 | 6 | |
| Franchised Units | 191 | 213 | 219 |
| Net Change YoY | 22 | 6 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Pelican's SnoBalls franchise offers a low initial investment range of $81,750 to $230,800, with a franchise fee of $25,000. Potential franchisees should be prepared for a cash requirement between $70,750 and $209,800. This structure makes it accessible for aspiring entrepreneurs looking to enter the franchise market.
Financial Performance
Franchisees can expect an average annual revenue of $148,484, with a median of $125,900. The revenue potential varies, with the lowest at $48,520 and the highest reaching $414,941. This variability allows for different operational strategies and market approaches to maximize profitability.
Royalties and Fees
Pelican's SnoBalls charges an 8% royalty fee on gross sales, alongside a 1% marketing fee. These ongoing fees support the brand's marketing efforts and operational support, ensuring franchisees benefit from national advertising and brand recognition.
Breakeven and Payback
Franchisees typically reach breakeven within 10 months of operation, with an investment payback period of approximately 13 months. This quick turnaround can be appealing for those looking to recover their initial investment swiftly and start generating profits.
Unit Growth
The Pelican's SnoBalls franchise has shown consistent growth, expanding from 191 franchised units in 2021 to 219 in 2023. This steady increase indicates a strong market presence and the brand's ability to attract new franchisees, reflecting confidence in its business model.
Corporate Structure
Pelican's SnoBalls operates as a franchise system without any corporate-owned units, focusing entirely on franchised locations. This model allows franchisees to have autonomy while benefiting from the support and resources provided by the corporate team, emphasizing a collaborative approach to business success.
Frequently Asked Questions
The initial investment for a Pelican's SnoBalls franchise ranges from $81,750 to $230,800, which includes the franchise fee and other startup costs.