Shaved Ice Franchises

Written by Serena Berger
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A shaved ice franchise is a great investment if you don't have a lot of capital to invest and you want to see a return quickly. A typical dealer can get started for less than $20,000--even as little as $4,000, depending on circumstances. If you do $200 in sales each day, your monthly profit will be, conservatively, $2,500. If you can do $300 in sales daily, your profit will be more like $4,000 monthly. That means you would have made back your start-up investment in less than six months.

High Profits from Shaved Ice Franchises

Generally, people sell shaved ice for about 500 percent of their own cost for the materials. If you paid $20 for your materials, for example, you would sell the shaved ices made with those materials for a total of $100. Materials include ice, flavors, cups, spoons, and napkins.

Because a shaved ice business is so small, rent is usually very low. Most dealers pay in the neighborhood of $300-$500 monthly, and utilities will be even less than that. If you work at your own concession stand, you will only have to hire one other person (if any at all), which means payroll should also be quite low. Equipment maintenance costs are also very low.

If you subtract overhead expenses and the cost of employee labor, that will determine your profit margin. Obviously the more you sell, the more you make, as overhead does not increase and labor costs will increase only marginally, if at all. That means location is truly critical, because the more people see your business, the more people will patronize it.


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