Bahama Buck’s is a frozen treat business that serves shaved ice, snow cones, frozen coffees, and more. They’ve been in business since 1990 and have expanded to 114 locations in the United States.

How much does it cost to open Bahama Buck’s? To franchise this shaved ice dessert chain, you’ll need a liquid capital of $100,000 and a net worth of $950,000. The investment range is $303,700 to $957,838 and the franchise fee is $34,500.

But is Bahama Buck’s worth the investment? Let’s find out as we go through the financial expenses, franchise facts, and everything there is you need to know about Bahama Buck’s. Take this 7-minute franchise quiz to find the best business opportunity option for you. 

Financial Requirements and Fees

These are the financial requirements that Bahama Buck’s needs:

In addition to these requirements and expenses, Bahama Buck’s requires a royalty fee of 6% and an ad royalty fee of 2%. The term of the agreement to run a Bahama Buck’s is 10 years and the franchise term is renewable.

Average Sales / Revenue per Year

According to reports, Bahama Buck’s revenue reached sales of $55,671,000 for the year 2022. Bahama Buck’s says on their official franchising website that the average unit sales volume is $768,763 annually with an average net profit of 20.89%. Based on these financial metrics, you could anticipate an annual profit of $160,594 after all the expenses.

In general, a profit margin of 10% is considered to be good for a restaurant chain. So, a profit of $160,594 at over 20% is appealing from an ownership perspective. However, keep in mind if you need to take on a significant amount of debt then the profit margin will not be as robust. In today’s higher interest rate environment, it’s another factor to consider before investing.

Bahama Buck’s.

Bahama Buck’s Franchise Facts

Bahama Buck’s started in 1990 by Blake Buchanan in Lubbock, Texas. According to Bahama Buck’s website, Buchanan wanted a different job than just flipping burgers or mowing lawns. So with one ice shaver, he started out selling shaved ice treats. The business was successful and Buchanan grew Bahama Buck’s to what it is today.

There are approximately around 114 Bahama Buck’s in the United States with most of them being in Texas. 65 more locations are coming soon according to the information found on their website.

The menu at Bahama Buck’s includes shaved ice or what they call Sno, smoothies, Red Bull infusions, frozen coffee, Bahama sodas, and acai bowls. Examples of flavors for their shaved ice are

• Mangonada Extreme (Mango flavor with Chamoy, Mangos, Chili Salt, & a Tamarindo Straw on top)
• Lemonberry Warheads (Lemonberry Warheads flavor with Warheads® Sour Spray)
• Poppin’ Piña Colada (Piña Colada flavor with Piña Colada Sno Pops™ popping candy)

A Mangonada Extreme Sno drink.

To franchise a Bahama Buck’s, make sure you meet their financial requirements before completing the inquiry form here. Once received, a company spokesperson will contact you and answer any additional questions you might have about the franchise and the process.

Once both parties are mutually in agreement with each other, you’ll get a copy of their Franchise Disclosure Document. You’ll also get to attend their Discovery Day which will allow you to meet their team. Once everything is final, you get to sign the Franchise Agreement and finally prepare for your Bahama Buck’s franchise and opening day.

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The franchise training is called Bahama Buck’s University. Training is one week long and it’s a hands-on training program done before the first shop opens. A team will also train franchisees to help them through their opening week. Bahama Buck’s calls them their Avalanche Crew Members. Training continues for managers and franchisees even after opening day.

Bahama Buck’s is featured on Franchise Business Review Top 200 in 2023. They’re currently owned and run by father and son Paul and Blake Buchanan and their family friend Eric Lee. Their headquarters is located in Lubbock, Texas.

How Much Does Bahama Buck’s Make in Profit?

You could anticipate an annual profit of 20.89% and $160,594 after expenses if you generate the average annual revenue of $768,763 annually.

Advantages of a Bahama Buck’s Franchise

There are many advantages to look forward to when you franchise a Bahama Buck’s. Here are the following you can expect:

Low Product Cost: The costs of a snow cone are relatively low, which is why it is such a popular item to sell from a business perspective and a core reason Bahama Buck’s has an average profit of more than 20%. The main costs are for the ice, syrup, and toppings.

• Ice: The cost of ice is very low, especially if you buy it in bulk. You can typically get a bag of ice for a few dollars.
• Syrup: The cost of syrup also varies depending on the brand and flavor. You can typically get a bottle of syrup for a few dollars.
• Toppings: The cost of toppings is also low. You can get a variety of toppings, such as sprinkles, whipped cream, and cherries.

In addition to the cost of ingredients, there are also some other costs associated with selling snow cones, such as the cost of cups, cones, and napkins. However, these costs are typically very low.

While we don’t know the exact cost to make a snow cone at Bahama Buck’s it’s not unreasonable to expect a cost of $0.50 to $0.75. However, you can easily sell a snow cone for more than $4.00 or $5.00. This means you make significant profit on each cup you sell.

Continued Growth: The chain has 114 locations with another 65 locations in development according to the company website. This is a good indicator the company is continuing to grow, expand and thrive.

Fine Ice: Fine soft ice is a big preference in a shaved ice treat or a snow cone and Bahama Buck’s take pride in perfecting this. That’s where their tagline “The Greatest Sno on Earth” comes from. They describe them as “light and airy” and it’s what makes them a crowd favorite.

Mentally, we’re here.

Menu Variety

Bahama Buck’s doesn’t just serve shaved ice. They also serve snow cones, frozen drinks, and smoothies. They also have acai bowls for those looking for a healthier option.

Fresh Designs and Concept

Bahama Buck’s design is that of a tropical island paradise. Their colors are vibrant and the menu is refreshing. It makes one feel like stepping inside a Bahama Buck’s means you’re going on a vacation.

Challenges of a Bahama Buck’s Franchise

Not all businesses are a breeze. Here are some of the challenges you can expect when franchising a Bahama Buck’s:

Competition: Though Bahama Buck’s prides itself in being the “Nation’s number 1 tropical-themed dessert” they also face some cool competition. There’s Rita’s Italian Ice chain with over 500 locations in the United States. There’s also Pelican SnoBalls with 200 locations. There’s also Kona Ice with over 800 units.

The competition is fierce in the shaved ice category and Bahama Buck’s would need to constantly look for new marketing ways to reel in customers.

Seasonality: The demand for shaved ice and frozen desserts is seasonal, and Bahama Buck’s sales are likely to be lower in the winter months. Snow cone businesses are typically busiest during the summer months when the weather is hot and people are looking for a refreshing treat. Sales typically peak in July and August, and then decline in the fall and winter.

A study by the National Snow Cone Association found that snow cone sales in the United States peak in July. Another study found that snow cone sales decline by about 20% in the winter months.

The region you decide to operate in will also play a role in the revenue of the business. If you live in the Southern part of the United States, you can expect more warm weather throughout the year that can help support sales all 12 months of the year.

Is the Bahama Buck’s Franchise Right For You?

Bahama Buck’s is a fun and fresh frozen treat concept that also has an affordable franchise rate. So if this fits your budget, you can try out Bahama Buck’s and bring their fine shaved ice treats to a location near you.

Bahama Buck’s location is now open in San Antonio.

What is an alternative Bahama Buck’s franchise?

One other frozen treat franchise you can look into is Pelican SnoBalls. They’ve been around since 2001 and it was a 13-year old girl that started the business in North Carolina. To date, they have over 200 locations in the United States.

To franchise Pelican SnoBalls, the investment starts at $61,150 to $195,300 with a franchise fee of $20,000. You can check out our Pelican SnoBalls franchise guide here.

Add a frozen treat business in your neighborhood with Bahama Buck’s. They’re open to franchising in most states and are also open to multiple unit franchises. But if not, we have more franchise guides available to help you decide your new business venture so check them out as well.