Pelicans SnoBalls
Pelican's SnoBalls franchises offer flavored ice treats and other items in a casual setting. Known for their refreshing sno-balls, this franchise operates in the quick-serve food industry.
Pelicans SnoBalls franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a 'Pelican's SnoBalls' franchise ranges from $81,750 to $230,800. This includes an initial franchise fee of $25,000 and other expenses that vary within this range [p.1, p.9].
What is the initial franchise fee?
The initial franchise fee is $25,000 [p.9, p.55], which must be paid in full upon signing the Franchise Agreement [p.55]. It is non-refundable and covers administrative, legal, and other expenses incurred by the franchisor [p.55].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is not specified in these excerpts. Regarding advertising fees, they fall under "Local Advertising and Promotion," which includes direct costs such as purchasing and producing marketing materials, media space or time, postage, shipping, telephone, and photocopying costs [p.26, p.77].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you generally cannot transfer your franchise to a third party who will operate a similar business without the franchisor's consent [p.89]. However, Minnesota law provides franchisees with certain transfer rights under specific conditions [p.192]. For details on other state regulations regarding transfers, you should check if your state has a registration requirement and contact your state agency as outlined in the FDD [p.3].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law, as stated on [p.183].
What financial requirements — net worth and liquid capital — do I need to qualify?
The FDD does not specify exact net worth or liquid capital requirements for franchisees. However, it states that new Principals must have adequate financial resources and capital to operate the Licensed Location [p.87]. This is based on their credit rating, business experience, and other factors.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You will have a protected territory but may face competition from other franchisees, outlets owned by the company, or other competitive brands controlled by them [p.30].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training that includes web-based training, one day of classroom training, four days of on-the-job training at their headquarters or another location they choose, and up to two additional days of support. For the first two stores only, instructors and materials are provided free of charge; however, expenses like transportation, lodging, meals, and wages are the franchisee's responsibility. Ongoing refresher courses, seminars, and other training programs may be required periodically at the franchisor’s discretion [p.29].
How many franchised outlets are there, and how many have closed or been terminated?
According to the FDD, there were 202 franchised PSB Stores that operated in the Pelican's SnoBalls franchise system during the 2023 fiscal year. However, this number does not specify how many outlets have closed or been terminated. [p.39]
Does the franchisor share any financial performance or earnings information?
The franchisor is permitted to disclose actual or potential financial performance of its outlets if there is a reasonable basis for the information and it is included in the disclosure document [p.39]. However, other than the financial performance representation specified in Item 19, the franchisor does not make any financial performance representations either orally or in writing [p.40].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only through the franchise system and cannot engage in "Other Sales" as defined [p.51]. You must buy all Products only from suppliers approved by the franchisor [p.18] and cannot purchase from unapproved suppliers without prior written consent [p.62].