Risk Score
Pending analysis
Investment Range
$528,050 - $1,223,050
Franchise Fee
$34,500
Min Cash Required
$10,000
Total US Locations
115
Business Summary
Bahama Buck's Original Shaved Ice Company operates refreshment stores that prepare and sell gourmet shaved ice products, island specialties, and frozen dessert confections. Franchisees also have the option to offer coffee products, catering to customers with in-store, walk-up, and drive-up sales.
Corporate History
Bahama Buck's Franchise Corporation was incorporated on June 8, 1992, in Arizona, with its principal place of business in Lubbock, Texas. Before the corporation was formed, one of its principals, Ryan Blake Buchanan, operated the first Bahama Buck's location in Lubbock, Texas, starting in 1990. This original location was later transferred to Bahama Buck's Franchise Corporation in June 1992. The company began offering Bahama Buck's franchises in January 1993, focusing solely on its gourmet shaved ice, island specialties, and frozen dessert confections business.
Financial Overview
Investment Range
$528,050 - $1,223,050
Franchise Fee (Low)
$34,500
Franchise Fee (High)
$34,500
Minimum Cash Required
$10,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$428,500
Equipment Costs (High)
$1,020,500
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Franchise Disclosure Document highlights a special risk regarding Bahama Buck's financial condition, stating that it "calls into question the Franchisor's financial ability to provide services and support to you." While the independent auditor's report for the fiscal years ending December 31, 2023, 2022, and 2021 provides an unqualified opinion, indicating the financial statements present fairly, the FDD itself draws attention to the company's financial capacity as a potential concern for prospective franchisees.
Financing Details
Bahama Buck's states that it does not offer any direct or indirect financing to franchisees. Furthermore, the company does not guarantee any notes, leases, or other obligations that a franchisee might incur.
Performance Metrics
Total US Locations
115
Franchised Units
112
Corporate Units
3
Avg Square Footage
1,375
Franchising Since
1993
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Bahama Buck's Original Shaved Ice Company reports no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document. This means Bahama Buck's has not been involved in any material lawsuits, arbitration, or other legal proceedings that would need to be reported.
Bankruptcy History
Bahama Buck's Franchise Corporation states that there is no bankruptcy history required to be disclosed in Item 4 of its Franchise Disclosure Document. This means neither the franchisor nor its key personnel have filed for bankruptcy.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Bahama Buck's franchisees must be in good standing and provide notice between two and six months before the current term expires. They are required to pay a renewal fee of $7,500 and must upgrade or renovate their business to conform to Bahama Buck's then-current standards. Additionally, franchisees must sign a general release. They will also be asked to sign a new franchise agreement which may contain different terms, though the initial franchise fee will be waived.
Training & Support Program
Franchisor Assistance
Before opening, Bahama Buck's assists franchisees with defining their temporary reserved area, evaluating potential store locations, and providing general comments on their business plan. They review architectural plans, inspect the business for conformity, and provide written guidelines for site design, appearance, equipment, and supplies. Initial training is provided in Lubbock, Texas, for the franchisee and one additional person as part of the initial fee. Promotional materials are also provided one month before opening. During operation, Bahama Buck's offers reasonable support via email and a telephone helpline during business hours. They process gift card orders, administer the Advertising Fund, and conduct periodic store visits to inspect mobile units. Franchisees receive updates to the Bahama Buck's Manuals online and assistance with evaluating potential sites for additional stores. They are also given a right of first refusal for certain specialty locations and national account businesses in their area, and Bahama Buck's indemnifies franchisees against trademark infringement claims for authorized use of the marks. Advertising materials are reviewed and approved by Bahama Buck's. Optional on-site assistance may be provided for a fee, and refresher training programs may be offered.
Initial Training Hours
40
Training Location
Lubbock, TX
Ongoing Support
Bahama Buck's provides ongoing support to franchisees through reasonable email and telephone assistance via a help line available during business hours. They process gift card orders, manage the Advertising Fund, and conduct periodic visits to inspect franchisee stores and any mobile units used for sales. Franchisees also receive updates to the Bahama Buck's Manuals through the internet and assistance in evaluating locations for additional stores. The franchisor offers a right of first refusal for certain specialty and national account businesses in a franchisee's area and will review and approve advertising materials. Optional on-site assistance and refresher training programs are available, though they may incur additional fees.
Franchise Requirements
Ideal Candidate Profile
Bahama Buck's believes that successful franchisees are individuals who are personally and continuously involved in the operation, supervision, and attention to their business. If the franchisee is a legal entity, a designated representative must be appointed, approved by Bahama Buck's, and actively participate at least 20 hours per week in the business. This designated representative must devote their full-time best efforts to promoting the growth and success of the Bahama Buck's store. Bahama Buck's also recommends having at least one on-premises manager in addition to the designated representative, and any managers must successfully complete the required initial training and any other mandated programs.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Protected
Staff Count
15
Territory Size Requirements
Bahama Buck's defines franchisee territories as a geographic area surrounding the approved site, with an approximate population of 25,000 to 50,000 people, based on age and demographics.
Staffing Notes
Bahama Buck's estimates that a typical franchised business will require 12 to 18 part-time employees. While the franchisor recommends having at least one manager as an on-premises supervisor in addition to the designated representative, franchisees are not explicitly required to place a salaried manager in position. Instead, Bahama Buck's provides guidance on utilizing part-time labor to distribute management responsibilities. Any manager appointed must successfully complete initial and any required refresher training programs. The designated representative must actively participate at least 20 hours per week and dedicate full-time best efforts to promote the business's success. Corporate locations operate with three part-time managers, and estimated salaries for these are included in expenses, but not for the franchisee or a manager in the working capital estimates for franchisees.