Bahama Bucks
Bahama Bucks Original Shaved Ice Company offers gourmet shaved ice products, island specialties, and frozen dessert confections. Known for tropical flavors and casual beachside ambiance, this franchise operates in the frozen dessert and snack shop industry.
About Bahama Bucks
Bahama Buck's is a privately held franchise in the USA specializing in shaved ice and other frozen non-alcoholic beverages. The company is headquartered in Lubbock, Texas.
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Bahama Bucks franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Bahama Buck's franchised business ranges from $528,050 to $1,223,050. This includes $185,000 to $284,000 that must be paid to the franchisee or its affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee is $34,500. This amount was increased from $29,500 after May 31, 2021 [p.199]. If you plan to open more than one store, additional initial fees apply [p.18].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of gross sales [p.93], while the advertising fee is 2% of gross sales [p.94]. These fees are payable into the "Advertising Fund" in the same manner as Royalty Fees [p.94].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement term is ten years, as indicated by the mention of a ten-year renewal fee through May 31, 2021 [p.199]. After this period, whether you can renew depends on signing the then-current form of franchise agreement, which may include changes like reduced territory size but waives the initial franchise fee [p.111].
Can I sell or transfer my franchise, and what does that require?
According to [p.68], you can generally sell or transfer your franchise unless there is good cause for refusal by Bahama Buck's, which includes if the proposed transferee fails to meet current qualifications, is a competitor of Bahama Buck's, refuses to comply with obligations, or fails to pay outstanding amounts owed. Good cause must be demonstrated for Bahama Buck's to refuse such transfers.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on good cause, such as if you fail to comply with any lawful provision of the franchise agreement and do not cure the failure within a reasonable time [p.67]. Additionally, the franchisor may terminate the development rights if you fail to meet the development schedule set forth in the agreement [p.162].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
You do not receive an exclusive territory [p.34, p.35]. However, Bahama Buck's will not establish another BAHAMA BUCK'S franchise in your specific site location within your territory during the term of your agreement, except for certain national accounts [p.35]. Your territory is protected to have an approximate population of 25,000 to 50,000 people surrounding the site you select and approve [p.87].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program consisting of approximately five continuous days that covers operating a BAHAMA BUCK'S retail business, including methods for recruiting, screening, and selecting employees, as well as administrative procedures [p.99]. Additionally, the franchisor requires franchisees to have at least one manager who must successfully complete initial training and any other seminars or refresher courses required by the franchisor [p.40]. This training is a part of the initial franchise fee, but additional designated representatives may incur fees for future training sessions [p.33, p.99].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor can provide financial performance information if there is a reasonable basis for it [p.45]. However, the franchisor does not make representations about future financial performance other than as stated in Item 19 of the FDD [p.50], and any such information must be accurate according to generally accepted accounting principles but has not been audited by an independent firm [p.45].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those gourmet shaved ice products, island specialties, coffee products, frozen dessert confections, and select items with the BAHAMA BUCK'S logo goods and services that the franchisor has authorized. Additionally, you must offer all goods and services that the franchisor designates as required in the Manuals. As for supplies, while you may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate [p.3], at your option, you can purchase supplements, equipment, tools, logo apparel, and other logo products from TWD [p.28].