The franchisor is Kona Ice, Inc. Company offers for sale the right to operate Kona Ice businesses using “Kona Ice” trademarks, trade names, service marks, and logos. Kona Ice offers flavored shaved ice, ice cream and related products to the general public in a mobile environment. Mobile environments include the franchisor’s proprietary Kona Ice truck (Kona Entertainment Vehicle (KEV) with the patented “FlavorWave Self-Service System.”
The franchisor requires that the managing owner and other managers designated by the franchisor must attend and complete the training program called “Kona Kollege” before opening. Kona Kollege is required to attend also for those franchisees who purchased existing Kona Ice franchises as a result of a transfer.
Kona Kollege is approximately 16-20 hours on-the-job training. Training held at the headquarters in Florence, Kentucky. Periodically, the franchisor will provide refresher/additional training courses, some of these courses may be optional. Franchisees and their employees designated by the franchisor may be required to attend some of these courses.
Territory Granted: Under the Franchise Agreement, the franchisor grants an exclusive, protected territory. The protected territory based on the geographic area and characteristics of the population in that area, and other relevant demographic characteristics.
In general, the franchisor grants only one franchise license for any territory with a population of up to 100,000 people. In some densely populated urban areas, the protected territory may be significantly smaller, while franchisees operating in less densely populated urban areas may have much larger areas. In those cases when the population of the protected area increases by more than 25%, and the franchisee does not purchase an additional KEV, the franchisor can reduce the size of the protected area to 100,000 people.
As long as the Franchise Agreement is in effect and the franchisee is in compliance, the franchisor and its affiliate will not operate a division owned by the company in the protected area or provide a franchise for a similar or competitive business. But there can be a few exceptions.
Obligations and Restrictions: The franchisor requires that the Kona Ice franchise must be owned by a legal entity. The Kona Ice franchise must be managed by one of the owners. The managing owner is an individual with at least a 25% ownership interest and voting power in the entity. In the franchisor’s experience, the franchisor requires the franchisee to actively own and operate the Kona Ice business at least the first time.
60 days during which they operate as a Kona Ice franchise because franchisees who have actually been owners/operators in the past have generally done better than passive owners. In some cases after the first 60 days of operation, the franchisor may allow franchisees to appoint a designated manager to the daily operation of the Kona Ice business.
The designated manager must be approved by the franchisor. only products and services approved and specified by the franchisor in its “Success Guide” (and its updates) can be offered by the franchisee.
Term of Agreement and Renewal: The initial term of the franchise is 10 years. Franchisees may apply for two successive 10 years terms if they are in good standing and meet other requirements.
Financial Assistance:Specified third-party lenders, at their sole discretion, may offer financing for the purchase of their KEV and/or kiosk, mini, or trailer for franchisees if they qualify. Unless otherwise stated, the franchisor or any agent or affiliate does not offer direct funding. The franchisor does not guarantee promissory notes, leases, or obligations of the franchisee.