Pelican's SnoBalls Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$71,000

-

$210,000

LOCATIONS

199

Emily

Updated

May 2, 2024

Is

Pelican's SnoBalls

a franchise?

Yes,
Pelican's SnoBalls
currently
accepts
franchise
applications

Pelican's SnoBalls is a franchise that has redefined the concept of shaved ice with its unique approach and expansive flavor selection. The journey of Pelican's SnoBalls began in 2001 in Garner, North Carolina, when the 13-year-old founder, Ansley Johnson, inspired by her summers in Louisiana, decided to share the delightful experience of SnoBalls - a softer, fluffier version of the traditional snow cone. 

The name "Pelican's" pays homage to the state bird of Louisiana, reflecting the brand's roots and inspiration. Unlike the typical snow cone, Pelican's SnoBalls focuses on creating a "SnoBall" that is known for its soft, fluffy ice, combined with bold and varied flavors, distinguishing it from the crunchy snow cones usually found at fairs.

Over the years, the brand has witnessed significant growth, evolving from a small local shop to a nationally recognized franchise. The original ethos of the brand, centered around delivering the "World's Best SnoBall" coupled with exceptional customer service, remains the cornerstone of Pelican's operations. The franchise prides itself on being an affordable, high-quality treat, especially appealing during economic downturns, as evidenced by its resilience during the 2008 recession and the 2020 pandemic.

Pelican's SnoBalls differentiates itself not only through its product but also through its community-focused approach. Each franchise location is independently owned and operated, fostering a sense of community and local engagement. The franchise offers comprehensive support to its franchisees, ensuring they are not alone in their business journey, which is a testament to the brand's commitment to both its product and its people.

How many

Pelican's SnoBalls

franchises

are there?

In 2022, there were
199
outlets in
the United
States, of which
199
are franchises, and
0
are corporate-owned.

What are the

Pelican's SnoBalls

franchise

fees?

Advertising fee

1.00%

Initial Franchise Fee

The initial franchise fee for Pelican's SnoBalls is $20,000.

Royalty Fee

The royalty fee for Pelican's SnoBalls is set at 8% of the franchisees' sales, adjusted for sales tax and discounts. This fee is recognized under the franchise agreements, which can have terms ranging from fifteen to thirty years, excluding renewal options.

Technology Fee

Franchisees must pay a technology fee each month in an amount up to $150 for the costs and expenses incurred in connection with system-wide technology initiatives

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Pelican's SnoBalls

franchise?

It costs between
$71,000
and
$210,000
to start a
Pelican's SnoBalls
franchise.
Type of Expenditure Amount
Initial franchise fee $20,000
Lease/rent $1,500 to $18,000
Plans and Construction $8,000 to $80,000
Concept Building Drawing $0 to $3,000
Equipment $20,000 to $40,000
POS $2,100 to $3,000
Inventory $10,000 to $20,000
Signs $1,500 to $7,000
Advertising $100 to $2,000
Insurance $3,000 to $6,400
Training Expenses $1,000 to $4,000
Business Licenses $50 to $200
Professional Fees $500 to $3,000
Additional Funds (3 Months) $0 to $3,000
Security Deposits $0 to $200
Total $70,750 to $209,800

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Pelican's SnoBalls

provide

training

to its

franchisees?

Yes,
Pelican's SnoBalls
provides
training

The franchisor has a comprehensive training program designed to equip its franchisees with the best practices on how to operate a Pelican's SnoBalls restaurant successfully.

Initial Training Program

Pelican's SnoBalls provides an initial training program for franchisees, which is a crucial part of the franchising process. This program is designed to ensure that franchisees are well-prepared to operate their store according to the brand's standards.

Continuing Training

In addition to the initial training, Pelican's SnoBalls may offer ongoing training programs as deemed appropriate. These programs are aimed at keeping franchisees updated on new developments, enhancing their skills, and ensuring the consistent quality and performance of each franchise location.

Additional Training

Franchisees may request additional training for their employees, which Pelican's SnoBalls can provide based on availability and appropriateness. This could include further in-depth sessions on specific aspects of store operation, customer service, product knowledge, and more.

Training for Specialized Management Employees

If a franchisee or a specially trained management employee ceases employment at the store, the franchisee is required to enroll a qualified replacement in Pelican's SnoBalls' training program within a specified period. This ensures that the store continues to operate under the guidance of personnel who have completed the brand's training program and meet its standards.

Does

Pelican's SnoBalls

provides

territory

protection?

The franchisor, Pelican's SnoBalls, offers territorial protection to its franchisees. During the term of the Agreement, and except as otherwise provided within the Agreement, the franchisor agrees not to establish or license any other person to establish another Store within the franchisee's "Protected Territory."

The "Protected Territory" is specified in Exhibit A of the franchise agreement, subject to all the conditions mentioned, including corporate and commercial food service operations and other sales channels. This territorial protection is designed to give franchisees a certain level of exclusivity in their operating area, preventing the franchisor from setting up competing stores directly within the defined territory.

However, the franchisor retains the right to sell products through various channels outside of the traditional store framework, which might include catalogs, mail orders, internet sales, and other electronic means collectively termed as "Other Sales."

Can a

Pelican's SnoBalls

franchise

be run as

a passive

investment?

The Pelican's SnoBalls franchise requires significant franchisee involvement in the day-to-day operations. The franchisee, or a designated Operating Principal with at least a 10% equity interest in the franchisee's business entity, must directly supervise the franchised business on-premises to ensure adherence to the franchisor's operational standards and procedures.

The Operating Principal is required to successfully complete the franchisor's initial training program, which is designed to equip them with the necessary skills and knowledge for effectively managing the day-to-day operations of the franchise.

The franchise agreement emphasizes that the Operating Principal should devote their full-time efforts to the management and operation of the franchised business, highlighting the expectation for hands-on leadership and active involvement in daily activities.

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