Pelican’s Snoballs Franchise Cost, Fees & Financials (2022)
The pelicans snoballs franchise is a great franchise opportunity for anyone desiring to start an ice dessert business. Do you wish to start a pelican snoballs franchise or do you just want to know about this franchise? Then read through as we shall discuss the pelicans snoballs franchise cost, fees, and financials.
Cost of Starting Pelicans Snoballs
We have good news: Pelican’s SnoBalls is now available for franchising. Expect to invest between $61,150 and $195,300 to own a franchise. The franchise fee for every outlet is $20,000 USD.
Fees and Financial Requirements
The following is a breakdown of Pelicans SnoBalls franchise fees:
It’s unclear how much liquid assets and net worth are needed to franchise a pelican SnoBalls.
Other fees to be conscious of are their monthly royalty fee, which is 8%, and the items you’ll be required to buy once you sign up with them. These are some examples:
- $825 for a branded tent
- SnoBuck Coins (Pelican Bucks): $525 for about 3,500 coins
- 30 branded T-shirts: $300-$360 ($10-$12 per shirt).
Please keep in mind that none of the listed items above are refundable.
Annual Sales / Revenue Average
Pelican’s SnoBalls has not disclosed its annual turnover publicly, so there is no data on how much the company earns each year.
However, we can look at sales figures from similar concepts such as Kona Ice or Bahama Buck’s to get a ballpark revenue figure.
Kona Ice trucks, for instance, earn an average of $94,868 per year. Remember, it generates this income from a mobile truck that isn’t even open seven days a week.
According to their franchise disclosure document, a Bahama Buck’s average sales revenue in 2015 was $463,387.
Bahama Buck’s employs a more traditional strategy, with a retail outlet open during regular business hours, implying higher average revenues.
There is no way the company could scale to this level with far less than $100,000 in yearly revenue for a franchise with over 500 locations in operation.
Facts About the Pelican’s SnoBalls Franchise
Ansley Johnson, a 13-year-old girl, founded Pelican’s SnoBalls. She came up with the snowball business concept after enjoying these treats while visiting her grandparents in New Orleans, Louisiana.
But because that was the only time she could get that treat, she enlisted her father’s help in establishing a snowball stand near her.
Pelicans SnoBalls was founded in North Carolina in 2001, with Ansley and her siblings working hard to keep it running.
Ansley clarified her products were snowballs, not snow cones. The distinction was that the ice surface of a snow cone was coarser and had a crunch to it, whereas their snowballs needed to be fine, soft, and fluffy.
Pelican’s SnoBalls Franchise Notes
In the end, the family could achieve the desired texture. It was also known as Pelicans SnoBalls after the state bird of Louisiana, the Pelican.
Pelican’s SnoBalls had expanded to 80 locations by 2017. The Johnsons also sold Pelicans SnoBalls to Gregg Fatool and Randall Wright that same year. The business now has over 500 locations, all of which are franchised.
Pelican’s SnoBalls offers over 100 different flavors of snowballs.
Pretty Princess (cotton candy and grape), Rainbow (pineapple, cherry, and blue raspberry), Unicorn (Skylite topped with whipped cream, sprinkled with fairy dust and pink cotton candy), and other signature flavors are available.
They come in both kid and adult sizes, and their ingredients do not contain high fructose corn syrup.
People are encouraged to franchise their stores by the chain. Pelican’s SnoBalls welcomes first-time business owners, and they guarantee that training will be provided once you qualify to become an owner.
Pelican’s SnoBalls is all about being a part of the neighborhood. They want to be a gathering place for families and friends.
They also offer other store owners the opportunity to sell their snowballs in what they call Mobile Events, though this is only available to storefront owners.
Customers who want snowballs at their events or parties can also call ahead and reserve them.
Starting a Pelican Snoballs
The installation of a Pelican’s SnoBalls takes about one three months, but the company says this depends on various factors and locations.
Certain factors affect the time to set up a snowballs outlet such as site location, funds, lease agreements, authorizations, supplies, equipment, and construction.
The franchise approval procedure is straightforward. To express interest in the franchise, a form must be submitted to Pelican’s SnoBalls.
Their team will then book for Discovery Call applicants, after which they will be subjected to a background and credit check.
Once you’ve been approved, you can begin the site selection process. This entails selecting a location to develop Pelican’s SnoBalls and then securing a lease.
A team from the company will provide help in approving the site for your future business.
After that, Pelican’s SnoBalls team will walk you through the franchise’s final layout and process.
Here is where your training will begin. Because the training is done over the internet, you can complete it from the comfort of your own home.
However, there are also four days of on-the-job training at the corporate headquarters and one day of classroom sessions. You will also receive four days of support at your store’s location.
The company’s headquarters is in Gastonia, North Carolina.
How Much Profit Does Pelican’s SnoBalls Make?
There aren’t any official figures on Pelican’s SnoBalls profits, but the Gallatin location reports serving 700 to 800 snoballs per day.
A standard-size order of Pelican’s SnoBalls costs $3.50. We estimate daily sales would range between $2,450 and $2,800 in sales income.
So, how profitable are Pelican’s SnoBalls? One benefit of selling snowballs is that they have a very high-profit margin.
A snow cone can often be sold for ten times the cost of the ingredients (ice, flavoring, cup, straw, napkin). This gives you ample room for profit.
For instance, if you sell a $3.00 snow cone to a customer, the product may cost you the operator 30 cents in ingredients. This is the attraction of the snow cone stand.
Of course, there are factors and other costs to consider. Many factors that may influence your profit include a store’s spot (rent), taxes, population, seasonal operating hours, waste, cost of labor, insurance, electricity, and competition in your location.
Despite these expenses, if you can generate enough business, you could still turn a meaningful profit.
The Benefits of Owning Pelicans SnoBalls Franchise
Pelicans SnoBalls has benefits that make it the perfect small business to franchise. Here are a few reasons you should invest in this brand.
Business with a Mission
Someone knew what they would like a snowball treat when they created Pelican’s SnoBalls. To ensure that their ice remains fine instead of coarse, proper planning and quality standards were implemented.
This can help distinguish your menu from other similar concepts in the area.
The company wants to be known as the “World’s Best Snowball,” and they’re working hard to achieve that goal. And it’s always nice to work for a company that produces high-quality goods.
The simplicity of Pelican’s SnoBalls is part of their allure. It’s a no-nonsense operation. They only serve various flavored snowballs.
The company can also easily cater to events, making it an appealing option for a treat at parties or special occasions such as fairs and live shows.
For all Ages
Pelican’s SnoBalls is suitable for everyone. They want to be a destination for friends and families for a weekend treat or on their days off. It’s a homely environment, making it a community-friendly location.
The Difficulties of Running a Pelican’s SnoBalls Franchise
Pelican’s SnoBalls franchisees face the same challenges as any other franchisee. Here are some challenges you may face.
Seasonal Operating Hours
Pelican’s SnoBalls is not open all year. They close for four months each year (November to February), which feels right because cold treats aren’t as common as hot chocolate or coffee in the winter.
However, when compared to other franchises that operate all year, this puts your revenues at a risk. What you could earn throughout those four months is no longer possible since the limited menu hampers your operations during the winter.
Depending on your lifestyle preferences, the limited number of operating hours may benefit you. Perhaps you’d like to take a long break and relax? Perhaps you’d like to travel or spend more time with your family.
Unlike other franchises that require you to be actively running the business all year, this temporary schedule allows you to take extended vacations.
Snowballs face stiff competition from ice cream shops and snow cone stands. You may have a benefit because Pelican’s SnoBalls are distinct because of their texture and branding.
Still, you’ll want to assess the competition from local competitors and advertise your brand regularly to raise customer awareness.
Is the Pelicans SnoBalls Franchise a Good Fit for You?
Pelican’s SnoBalls is a great business to start if you have the money and the right location. It’s straightforward, but it has the potential to attract both old and young customers.
It’s also a unique take on snow cones, so your customers will be in for a treat, unlike the ones they get at parks or fairs.
Is it Cheap to Start a Pelican’s SnoBalls Franchise?
.In reality, it’s probably somewhere between a low-cost and a medium-cost franchise. Small franchises have franchise fees of $20,000 or less, and Pelican’s SnoBalls fall into this category.
However, they have other fees, such as royalty fees, which can make this franchise a little more expensive, but still relatively low when compared to others available.
Frequently Asked Questions
Pelican’s Snoballs is a comparatively lucrative venture in the dessert industry. Besides that, their total estimated investment cost is relatively low when compared to other companies in the broader Food and Beverage industry, with estimates ranging from $61,150 to $195,300.