A Kona Ice franchise costs $114,730 to $228,601 to open under the April 20, 2026 disclosure document, and the truck is most of that: $87,365 to $125,781 used or $151,491 to $157,491 new.
Key takeaways
- The Kona Ice Franchise Disclosure Document, issued April 20, 2026 puts the total initial investment at $114,730 to $228,601 (Item 7); $108,840 to $188,291 of it is paid to Kona Ice, Inc. or its affiliates (cover page).
- The truck sets the range: Item 5 prices a used Kona Entertainment Vehicle (KEV) with installed equipment at $87,365 to $125,781 and a new KEV at $151,491 to $157,491, so a new-truck buyer starts at $178,856 by our arithmetic on Item 7.
- The royalty is a flat dollar amount, not a share of sales: $3,000 a year in years 1 and 2, $4,000 in years 3 to 6 and $5,000 in years 7 to 10 (Item 6, Note 3).
- Four lenders named in Item 10 finance the truck at disclosed rates from 7.99% (Auxilior, FICO 750+) to 10.99% (Eagle Financial Services), and two of them set $100 off-season payments.
- State licensing differs: Florida charges a $347 mobile food dispensing vehicle license plus a $50 application fee under Rule 61C-1.008; Texas charges a Type II vendor $618 plus a $400 inspection under the DSHS Mobile Food Vendor Guide.
- Item 19 contains no financial performance representation, and Item 20 counts 1,929 franchised outlets at the end of 2025, up from 1,816.
Is Kona Ice a franchise, and what comes with the truck?
Yes. Kona Ice, Inc., a Kentucky corporation based in Florence, Kentucky, has offered franchises since March 2008 and sells one thing to every new owner: a Kona Entertainment Vehicle bought from the franchisor. Item 1 says no other truck or vehicle may be used, Item 5 prices the truck, and each Franchise Agreement covers one KEV in one Protected Territory.
The KEV is a shaved ice truck fitted with an ice shaving machine, a proprietary music system and the FlavorWave Self-Service System, a flavor station customers use themselves, patented as U.S. Patent Number 8,157,136 (Item 1). New KEVs can carry the Smoothie Blended Package at no added charge, which triggers a $1,000 yearly Smoothie Royalty (Item 6 and Item 7, Note 1).
| What Item 5 sells you | Price in the April 2026 FDD | When paid | Source |
|---|---|---|---|
| Used KEV and installed equipment | $87,365 to $125,781 | At delivery | Item 5 |
| New KEV | $151,491 to $157,491 | $5,000 deposit at signing, balance at delivery | Items 5 and 7 |
| KEV 2.0 Truck (smaller, no freezer), for additional franchises | $141,650 to $150,560 | Per truck | Items 1 and 5 |
| KEV Compliance Fee for health department changes | $0 to $7,000 | If required | Item 5 |
| Initial inventory (cups, flavorings, graphics package, welcome box) | $6,475 | Before opening | Item 5 |
| Smoothie initial inventory, if the package is installed | $1,760 | Before opening | Item 5 |
Kona Ice, Inc. is the only approved supplier of the KEV and of the Additional Equipment, and Item 8 estimates that about 90% of purchases needed to open come from the franchisor or approved suppliers. In fiscal 2025 the franchisor reported $32,207,009 from these required purchases, 57.22% of its total revenues of $56,285,417 (Item 8), which shows how much of the system’s economics runs through the truck sale. Our study of supplier rebates disclosed in Item 8 compares that share with other brands.
How much cash leaves before the first event?
Item 7 lists 13 lines that add up to $114,730 to $228,601 for one Kona Ice franchise, and the KEV line alone is $87,365 to $157,491. The low total assumes a used truck. Items that a storefront franchise would carry, such as a lease, build-out and furniture, are absent because Item 7, Note 9 assumes most owners run the business from home.
| Item 7 line | Low | High | Paid to |
|---|---|---|---|
| Initial Franchise Fee | $15,000 | $15,000 | Kona Ice, Inc. |
| KEV and Installed Equipment | $87,365 | $157,491 | Kona Ice, Inc. |
| Training Expenses | $140 | $950 | Travel and lodging providers |
| KEV Delivery | $0 | $10,000 | Third party |
| KEV Compliance Fee | $0 | $7,000 | Kona Ice, Inc. or affiliate |
| KEV Insurance for 3 Months | $1,000 | $2,100 | Affiliate or insurers |
| Tax, Title, and Licensing of KEV | $1,000 | $8,000 | Government agencies |
| Initial Inventory | $9,975 | $11,735 | Kona Ice, Inc., third parties |
| Optional Inventory | $0 | $225 | Kona Ice, Inc., suppliers |
| Permits and Licenses | $250 | $1,500 | Government agencies |
| Real Estate or KEV Storage | $0 | $4,000 | Third parties |
| Computer System and Software | $0 | $1,000 | Suppliers |
| Additional Funds, 3 Months | $0 | $9,600 | Kona Ice, Inc., third parties |
| Total | $114,730 | $228,601 | Item 7 total |
Three notes move the total. The tax line assumes a 6% sales or use tax on the KEV price (Note 5), so a state with a higher rate raises it. The inventory line includes $3,500 for three months of ice and sugar from any supplier (Note 6). The $9,600 cushion covers three months only and includes $3,000 of royalty, $500 of Brand Fund and $600 of Technology Fee; staff wages are excluded (Note 10).
| Worked arithmetic (inputs from Items 5 and 7) | Amount |
|---|---|
| Item 7 low total, which assumes a used KEV | $114,730 |
| Less the used KEV low price | minus $87,365 |
| Plus the new KEV low price (Item 7, Note 1) | plus $151,491 |
| Low total with a new KEV | $178,856 |
| Cash due at signing for a new KEV: franchise fee plus deposit | $15,000 + $5,000 = $20,000 |
| Balance due at truck delivery (Item 7) | $146,491 to $152,491 |
All payments to the franchisor and its affiliates are nonrefundable once paid, and Item 5 adds that KEV payments are nonrefundable “even if you do not open a Kona Ice Franchise.” Insurance must be bound before pickup in Florence, Kentucky: Item 8 requires physical damage cover of at least $87,365 with a deductible no higher than $5,000, plus $1,000,000 of general liability and $1,000,000 of vehicle liability.
Why is the Kona Ice royalty a flat dollar figure instead of a percentage?
Kona Ice charges its royalty as a fixed yearly sum that rises with contract age, not as a share of sales: $3,000 in years 1 and 2, $4,000 in years 3 to 6 and $5,000 in years 7 to 10 (Item 6, Note 3). Over a 10-year term that totals $42,000 before any CPI adjustment. Sales volume does not change the bill, so a slow season costs the same royalty as a busy one.
Kona Ice royalty by contract year: $3,000 (years 1 and 2), $4,000 (3 to 6), $5,000 (7 to 11), $5,500 (12 to 15), $6,000 (16 to 20). Kona Ice FDD issued April 20, 2026, Item 6, Note 3; accessed November 3, 2026.
| Contract years | Annual royalty | Contract | Source |
|---|---|---|---|
| 1 to 2 | $3,000 | Initial term | Item 6, Note 3 |
| 3 to 6 | $4,000 | Initial term | Item 6, Note 3 |
| 7 to 10 | $5,000 | Initial term | Item 6, Note 3 |
| 11 | $5,000 | Successor term (current terms) | Item 6, Note 3 |
| 12 to 15 | $5,500 | Successor term (current terms) | Item 6, Note 3 |
| 16 to 20 | $6,000 | Successor term (current terms) | Item 6, Note 3 |
The royalty is one of several fixed charges. Adding the required yearly fees at their current Item 6 amounts gives the floor a first-year owner pays the franchisor, before flavor, cup and fuel purchases. Note 1 of Item 6 allows CPI adjustments to fixed-dollar fees once per calendar year with 60 days’ notice, and the Brand Fund may rise up to 10% a year.
| Fixed yearly fee (Item 6) | Year 1 amount |
|---|---|
| Royalty, years 1 and 2 | $3,000 |
| Brand Fund, per KEV | $1,000 |
| Technology Fee | $600 |
| KonaOS software, $35 per month x 12 | $420 |
| Monitor content software, one monitor | $240 |
| Kona email address, one required | $216 |
| Required fixed fees, year 1 | $5,476 |
| Same fees in years 3 to 6 (royalty $4,000) | $6,476 |
| Same fees in years 7 to 10 (royalty $5,000) | $7,476 |
| Optional or conditional: Smoothie Royalty, Google Voice ($192), KonaOS AI Premium ($100 per month) | Added if used |
Two charges do scale with activity. The KEV Monitor Advertising Program takes 15% of the advertising revenue an owner sells on the truck’s exterior screen, and a $3,000 Branded Cup Audit Fee applies if branded cup purchases fall below 30% of gross sales (Item 6). Our research on franchise royalty rates shows how rare flat-dollar royalties are among Minnesota filings.
Several cost summaries in circulation describe a different fee structure than the 2026 filing.
| Claim in circulation | What the April 2026 FDD says | Item |
|---|---|---|
| A lender’s cost guide updated October 2026: franchise fee of $20,000 to $25,000 | Initial Franchise Fee of $15,000 | Item 5 |
| Same guide: royalty of 6% of gross revenue or a $3,000 yearly minimum | Flat $3,000, $4,000 or $5,000 by contract year; no percentage royalty | Item 6 |
| Same guide: truck at $90,000 to $120,000 | Used KEV $87,365 to $125,781; new KEV $151,491 to $157,491 | Item 5 |
| A franchise media deep dive from August 2025: total investment of $178,856 to $226,841 | $114,730 to $228,601; $178,856 is now the new-KEV low end | Item 7 |
| Same deep dive: Brand Fund of $500 a year | Currently $1,000 a year per KEV, plus $200 per piece of Additional Equipment | Item 6 |
Which four lenders finance a KEV, and at what rates?
Kona Ice, Inc. does not lend. Item 10 names four outside lenders that may finance the KEV, the KEV 2.0 Truck and the $6,475 inventory pack: Eagle Financial Services, a combined Ally Financial and Eagle loan, Auxilior Capital Partners and Osgood Bank. Each requires a personal guarantee from every owner and a waiver of jury trial, so the truck loan follows the owner, not only the business.
| Lender (Item 10) | Term | Disclosed rate | Prepayment penalty | Payment to Kona Ice |
|---|---|---|---|---|
| Eagle Financial Services | 36 months | 10.99% APR | None | None, per Item 10 |
| Ally Financial and Eagle | 60 months | Ally by credit (best approvals at 10%); Eagle 10.99% | None | None, per Item 10 |
| Auxilior Capital Partners | 36 to 66 months, up to 6 months deferred | 7.99% (FICO 750+), 8.5% (700 to 749), 8.75% or 8.99% (B credit) | 1% per remaining year | Trade show support 0.0% to 0.5%; sponsorship 0.5% to 1% of new loans |
| Osgood Bank | 60 to 72 months | WSJ Prime + 2.75%, currently 8% (750+); Prime + 3.50%, currently 9% (680 to 750) | 2% if repaid in the first two years | None, per Item 10 |
Ally lends up to $70,000 of the KEV on the chassis and hard components, with Eagle financing the rest at 10.99% (Item 10, Ally-Eagle Note 1). Eagle carries a governance link: one of the franchisor’s directors is an officer of Eagle Financial Services, and Eagle’s owner holds an indirect small minority interest in Kona Ice, Inc. (Items 8 and 10).
The personal guarantee clauses follow the pattern in our review of franchise personal guarantees. For an SBA route, Kona Ice is listed on the SBA Franchise Directory under code S0957 in the file dated September 29, 2026, as recorded in our SBA Franchise Directory dataset. Our franchise loan interest rate report tracks what SBA franchise loans priced at in 2026, a benchmark to set beside the Item 10 rates.
Florida and Texas licenses for a shaved ice truck: what do they cost?
Item 7 budgets $250 to $1,500 for permits and licenses and Item 1 warns that hawker, peddler and food handler licenses may apply. In Texas and Florida, the largest and third-largest Kona Ice states by Item 20 count, the state now sets the main mobile food license: Florida preempts local licensing under section 509.102, and Texas moved every mobile food vendor to one Department of State Health Services license on July 1, 2026.
Item 20 counts 245 franchised Kona Ice outlets in Texas and 188 in Florida at the end of 2025, so these two regimes cover more than one in five trucks in the system. Florida’s section 509.102, Florida Statutes treats a mobile food dispensing vehicle as a public food service establishment and bars local governments from requiring a separate license or charging fees beyond section 509.251, whose subsection (2) caps the aggregate yearly fee at $400.
| Requirement | Florida (DBPR, Division of Hotels and Restaurants) | Texas (DSHS, from July 1, 2026) |
|---|---|---|
| License | Mobile food dispensing vehicle license, statewide; local licenses preempted (s. 509.102(2)(a)) | Mobile food vendor license, “valid everywhere in Texas”; one per food vending vehicle (DSHS release, June 4, 2026) |
| Fee at application | $347 license ($185 basic, $135 service type, $17 epidemiological, $10 HEP) plus $50 application fee (Rule 61C-1.008(1) and (4)) | Type I $309; Type II $618 plus $400 pre-licensing inspection; Type III $876 plus $500 |
| Later inspection fees | $50 delinquency fee on a late renewal (Rule 61C-1.008(5)) | Routine inspection $400 (Type II) or $500 (Type III) |
| Partial year | Half the license fee if the application comes 6 months or less before the renewal period (Rule 61C-1.008(2)) | License runs one year from the passed pre-licensing inspection |
| Which type fits a shaved ice truck | One classification for all vehicles | The guide lists “snow cone trailers” as a Type II example and prepackaged ice cream vendors as Type I; DSHS assigns the type |
Fees due at application: Florida MFDV $397 ($347 license plus $50), Texas Type I $309, Type II $1,018, Type III $1,376, against the Item 7 permit line of $250 to $1,500. Rule 61C-1.008; DSHS guide, May 2026; accessed November 3, 2026.
Texas local rules still matter for where a truck parks and services. The Houston Health Department page, last reviewed June 18, 2026, says City of Houston medallions stop being valid after June 2026 but that units must report to an approved Central Preparation Servicing Area and keep a restroom letter from a business within 500 meters. A Texas owner whose KEV is classed Type II would pay $1,018 at application, inside the Item 7 permit range; ask DSHS before applying whether the smoothie package changes the classification. This is general information, not legal, financial or investment advice.
How seasonal is Kona Ice, and who books the truck?
Item 1 says sales “are seasonal with more business activity in the warm months and little to no sales in colder months.” The FDD builds that into payments: the royalty falls due between April and December under every installment option, and two Item 10 lenders accept $100 monthly contact payments in off-season months during the first two loan years.
The demand side is event booking rather than street vending. Item 1 lists the bookings customers make: fundraising events, sports leagues, school events or sports, festivals and fairs, birthday parties, corporate events, picnics, church events, block parties, daycares and preschools. The truck may sell only authorized products, and Item 12 limits direct advertising and solicitation to the owner’s own Protected Territory unless Kona Ice approves otherwise.
| Installment option (Item 6, Note 3) | Due dates | Years 1 and 2 payment |
|---|---|---|
| 3 installments | June 30, July 31, August 31 | $1,000 each |
| 6 installments | May 31 to October 31 | $500 each |
| 9 installments | April 30 to December 31 | $333 or $334 each |
The schedule is chosen each year before the annual convention; if the owner does not choose, Kona Ice elects one. The Brand Fund, Technology Fee and other fixed fees use the same due dates. Owners comparing this with storefront dessert concepts can read our ice cream franchise comparison of scoop shop filings, which covers winter closures for fixed locations.
What does the truck cost after year one?
For a KEV bought on or after January 1, 2026, Item 6 and Item 8 set a lifecycle: a wrap update every five years, a full upfit every 10 years, a choice at 20 years between a second upfit and keeping the truck as an ancillary KEV beside a new one, and retirement at 30 years of age. Remodel, upgrade or KEV 2.0 spending averaged $41,048 in 2025 (Item 6).
The wrap, tint and upfit must come from Kona Ice’s approved supplier (Item 8). Remodels fall due at renewal, at transfer, or whenever a truck falls out of standard, so a used KEV that has missed its updates can carry that cost into a resale. A Franchise Agreement runs ten years with two successive ten-year terms available, and each renewal carries a $10,000 fee (Items 6 and 17).
| Additional Equipment (Item 6, Note 4) | Price | Added yearly royalty |
|---|---|---|
| Kona Entertainment Trailer | $44,500 to $53,500 plus shipping | $1,500 |
| Kona Entertainment Kiosk | $35,000 to $42,500 plus shipping | $1,500 |
| Kona Mini Truck | $28,860 to $33,860 plus shipping | $1,500 |
| KEV 2.0 Truck | $141,650 to $150,560 plus shipping | $2,500 |
| KEV-A (supplemental KEV) | $37,688 to $39,632 | $1,500 |
| Smoothie Blended Upfit Package | $11,000 to $15,000 plus shipping | $1,000 Smoothie Royalty |
Additional Equipment can only be bought once the first KEV is operating, adds $200 a year to the Brand Fund per unit, and stays inside the owner’s Protected Territory (Items 1 and 6).
Territory, transfers and resale: buying a Kona Ice that already runs
A Kona Ice territory is built from adjacent zip codes and generally covers a population of up to 100,000, measured with zip-codes.com data (Item 12). If that population grows by more than 25%, Kona Ice may cut the territory back to 100,000 people unless the owner buys another KEV. Affiliate franchisees, Travelin’ Tom’s Coffee Truck and Beverly Ann’s Cookie Truck, may operate inside it.
Resale is common. Item 20 reports 59 transfers in 2023, 94 in 2024 and 99 in 2025, against 140 new franchised openings in 2025. A transfer carries a Transfer Fee of $10,000 (to an existing Kona Ice franchisee) or $15,000, plus $1,000 per piece of Additional Equipment, and a $15,000 Lead Procurement Fee if the buyer came from a Kona Ice lead (Item 6).
| Item 20 measure | 2023 | 2024 | 2025 |
|---|---|---|---|
| Franchised outlets at year end | 1,670 | 1,816 | 1,929 |
| Franchised outlets opened | 209 | 182 | 140 |
| Ceased operations, other reasons | 4 | 36 | 27 |
| Terminations and non-renewals | 0 | 0 | 0 |
| Transfers to new owners | 59 | 94 | 99 |
| Company-owned outlets at year end | 0 | 4 | 4 |
Item 20 also notes that some current and former franchisees signed confidentiality provisions in the last three fiscal years, so not every owner on the Exhibit F list can talk freely. Our guide to buying a franchise for sale lists what to request from a seller, and our franchise transfer fee research sets the $10,000 and $15,000 figures against other systems.
What drives Kona Ice owner income when Item 19 is blank?
Kona Ice makes no financial performance representation: Item 19 states that the franchisor does not make “any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets.” Any earnings figure a buyer hears outside the FDD should be reported to the franchisor, the FTC and state regulators, as Item 19 directs.
The drivers can still be read from the filing. Fixed costs are high and front-loaded: a truck loan sized from $87,365 to $157,491, a royalty that does not shrink in a weak season, and $5,476 of required yearly fees in year one. Variable costs are mostly cups, flavorings, ice and sugar, with about 15% of operating purchases tied to Kona Ice or approved suppliers (Item 8). Revenue depends on how many events the territory books in warm months.
Labor is the other lever. Item 15 requires the Managing Owner, holding at least 51% of the entity, to run the truck personally for at least the first 60 days, and spouses sign the Franchise Owner Agreement. The 2 to 12 weeks from signing to opening (Item 11) leave little time to build a booking calendar first. Our Item 19 research explains what disclosure looks like in systems that publish it.
Used KEV, new KEV or an existing route: a decision table
The choice comes down to cash at signing, the age of the truck and the state license. The thresholds below come from Items 5, 6, 7 and 10 and the Florida and Texas fee schedules; each row names the trigger and the step it points to.
| If | Then | Source |
|---|---|---|
| You have less than $178,856 for the full Item 7 budget | Price a used KEV ($87,365 to $125,781) or an existing route; a new KEV cannot fit the low end | Items 5 and 7 |
| A used KEV was bought before January 1, 2026 | Ask Kona Ice for its scheduled wrap and upfit dates in writing; those trucks follow the Brand Manual, not the fixed 5, 10, 20 and 30 year rule | Items 6 and 8 |
| Your FICO score is 750 or higher | Compare Auxilior at 7.99% and Osgood Bank at Prime + 2.75% with Eagle at 10.99% | Item 10 |
| You will operate in Texas | Budget $1,018 for a Type II application and inspection, and confirm the type with DSHS | DSHS guide, May 2026 |
| You will operate in Florida | Budget $397 ($347 license plus $50 application) and expect no separate city license | s. 509.102; Rule 61C-1.008 |
| You are buying from a current owner | Confirm who pays the $10,000 or $15,000 Transfer Fee and whether a $41,048-scale remodel is due at transfer | Item 6 |
| You cannot drive and staff events yourself for 60 days | Treat the concept as owner-operated; a Designated Manager is allowed only after the first 60 days | Item 15 |
Owners who want to run the business from a home office can compare other models in our home-based franchise guide.
How we compiled this
We read the full Kona Ice Franchise Disclosure Document, issued April 20, 2026 (330 PDF pages, Minnesota CARDS document 36084-202604-07), Florida Statutes sections 509.102 and 509.251, Florida Administrative Code Rule 61C-1.008, the Texas DSHS Mobile Food Vendor Guide and June 4, 2026 release, and the Houston Health Department mobile food page, accessed November 2026. The SBA directory code comes from our own dataset built from the SBA file. We excluded every earnings, sales and profit figure, and we did not survey or interview franchisees.
Frequently asked questions
Is Kona Ice a franchise?
Yes. Kona Ice, Inc. of Florence, Kentucky has sold franchises since March 2008, and Item 20 of its April 2026 disclosure document counts 1,929 franchised outlets and 4 company-owned outlets at the end of 2025. Each franchise operates one Kona Entertainment Vehicle in a Protected Territory of up to about 100,000 people.
How much is a Kona Ice truck?
Item 5 of the April 20, 2026 FDD prices a used Kona Entertainment Vehicle with installed equipment at $87,365 to $125,781 and a new one at $151,491 to $157,491. A new truck needs a nonrefundable $5,000 deposit at signing. The truck must be bought from Kona Ice, Inc.; no other vehicle may be used.
What is the Kona Ice franchise fee?
The initial franchise fee is $15,000, due in full when the Franchise Agreement is signed and nonrefundable (Item 5). After opening, the royalty is a flat $3,000 a year in years 1 and 2, rising to $4,000 and then $5,000, with a $1,000 Brand Fund and a $600 Technology Fee on top (Item 6).
How much does a Kona Ice franchise owner make?
The FDD does not say. Item 19 of the April 2026 filing contains no financial performance representation, so there are no franchisor figures on sales or profit. The drivers to test with current owners are event bookings in warm months, the size of the truck loan, the flat royalty and fixed fees, and the cost of cups, flavorings, ice and sugar.
Can I buy an existing Kona Ice franchise for sale?
Yes. Item 20 records 99 transfers to new owners in 2025 and 94 in 2024. Transfers need Kona Ice approval, carry a $10,000 or $15,000 Transfer Fee plus $1,000 per piece of Additional Equipment, and can trigger required truck updates; remodel and upgrade spending averaged $41,048 in 2025 (Item 6).
Does Kona Ice charge a percentage royalty on sales?
No percentage royalty applies to shaved ice sales in the April 2026 FDD. Item 6 sets a fixed yearly royalty of $3,000, $4,000 or $5,000 by contract year. The only percentage charges are 15% of advertising sales from the truck monitor program and payment service fees of up to 4% on card payments to Kona Ice.
Sources
- Kona Ice Franchise Disclosure Document, issued April 20, 2026, Items 1 to 12, 15, 17, 19 and 20, Kona Ice, Inc., Minnesota CARDS document 36084-202604-07 (accessed November 3, 2026).
- Florida Statutes s. 509.102, Mobile food dispensing vehicles; preemption (2026), Florida Legislature (accessed November 3, 2026).
- Florida Statutes s. 509.251, License fees (2026), Florida Legislature (accessed November 3, 2026).
- Florida Administrative Code Rule 61C-1.008, License Fees (effective August 24, 2023), Florida Department of State (accessed November 3, 2026).
- Texas Department of State Health Services, Mobile Food Vendor Guide (updated May 2026) (accessed November 3, 2026).
- Texas DSHS, DSHS Now Accepting Applications for Statewide Food Truck License, June 4, 2026 (accessed November 3, 2026).
- Houston Health Department, Mobile Food Units (last reviewed June 18, 2026) (accessed November 3, 2026).
- U.S. Small Business Administration, Franchise Directory file dated September 29, 2026, as coded in our SBA Franchise Directory dataset (accessed October 5, 2026).