Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
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Franchise Costs: Detailed Estimates of IceBorn Franchise Costs (2016 FDD)

by Franchise Chatter on September 4, 2016

in Franchise Costs, Vending Franchise



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Ice Born

Detailed Estimates of IceBorn Franchise Costs Based on Item 7 (Estimated Initial Investment) of IceBorn’s 2016 Franchise Disclosure Document

1.  Initial Franchise Fee:  $1,000 to $5,000

  • The initial franchise fee for an IceBorn House or IceBorn Kiosk is $5,000, and the initial franchise fee for an IceBorn Express is $1,000.

2.  First Month’s Rent and Security Deposit:  $100 to $5,000

  • This estimate represents the first month’s rent and security deposit (equal to approximately 1 month’s rent) for the site of your Machine. The rent and security deposit depend on the size, condition, and geographic location of the site, and the demand for the site among prospective lessees.
  • The typical location for an IceBorn Machine is a hotel/motel, large apartment complex, commercial business center, campground, marina, fairground, recreational attraction, or convenience store. A landlord might require you to pay a security deposit that is more than 1 month’s rent.
  • The franchisor anticipates that you will rent the Machine’s location.

3.  Leasehold Improvements, Freight, and Setup:  $3,000 to $50,000

  • These amounts represent the costs for improvements at your site necessary to install and operate the Machine. Leasehold improvement costs — which could include electrical, water, and similar utility work — depend on the site’s condition, location, and size, and the site’s previous use.
  • You are responsible for the costs IHA incurs to ship your Machine. The cost depends on current packing and shipping costs and the distance of your location from IHA’s manufacturing facility.

4.  IceBorn Machine:  $18,995 to $130,000



  • Your costs will depend upon whether you purchase the IceBorn House, IceBorn Kiosk, or IceBorn Express, as well as the products and options you select for the Machine.

5.  Annual Business Licenses and Permits:  $200 to $4,000

  • These amounts represent the costs of acquiring business licenses and permits necessary to operate the Machine.

6.  Initial Training Costs:  $200 to $4,000

  • This is an estimated average cost of travel and living expenses for you to attend the franchisor’s initial training program held in Moultrie, Georgia and/or Jacksonville, Florida. This figures also includes an amount for on-site training at the location of your Machine.

7.  Initial Inventory/Supplies:  $100 to $3,000

  • Inventory and supplies include bags for ice dispensed at the Machine and products and materials related to the operation of the Machine.

8.  Professional Services:  $0 to $5,000

  • These costs include fees paid to professionals for zoning of the location at which to operate your Machine.

9.  Opening Promotion:  $0 to $1,000

  • These expenses relate to general opening advertising and promotion of the Machine during your start-up period.

10.  Annual Insurance Premium:  $500 to $1,500

11.  Additional Funds:  $3,000 to $5,000

  • This item estimates your initial start-up expenses (other than the items identified separately in the table). These amounts do not include any estimates for debt service.
  • The franchisor relied on IHA’s experience owning and operating ice vending units over the last 10 years to compile this additional funds estimate.

12.  Total Estimated Initial Investment:  $27,095 to $213,500



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