FDD Analysis 2025 FDD

Kona Ice Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from Kona Ice's FDD, including franchise costs (Item 7), ongoing fees (Item 6), and unit growth trends (Item 20).

What the Kona Ice FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Not disclosed by this franchisor

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$178,856 - $226,841
Franchise Fee$15,000

Investment Breakdown

Initial Franchise Fee$15,000 - $15,000
KEV and Installed Equipment$151,491 - $157,491
Training Expenses$140 - $950
KEV Delivery
KEV Compliance Fee

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee15% of gross sales
Marketing/Advertising Fee15% of gross sales

Other Ongoing Fees

Additional Franchise Reservation FeeVaries
Territory Infringement FeeVaries
Initial Territory Adjustment FeeVaries
Territory Relocation FeeVaries
Brand Fund ContributionVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

No Item 19 Disclosure

Kona Ice does not provide a Financial Performance Representation in their FDD. Franchisors are not required to disclose this information.

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

1,820

Total Units

+150

Net Growth (YoY)

+9.0%

Growth Rate

Franchised Units1,816
Company-Owned Units4

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

No material litigation disclosed in Item 3.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

No Revenue Disclosure

Without Item 19 data, you'll need to conduct your own due diligence on unit economics by speaking directly with existing franchisees.

Related Resources

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