Bahama Buck’s Franchise Cost, Profit & Failure Rate 2024

Bahama Buck’s Franchise is an exciting opportunity for aspiring business owners looking to break into franchising. With its wide array of flavors, vibrant atmosphere, and delicious treat options, this franchise offers an excellent way for entrepreneurs to make money in their own right.

Whether you’re interested in owning your own Bahama Buck’s store or becoming a partner with existing franchises, this article will provide you with everything you need to know about franchising with Bahama Buck’s.

We will discuss the franchise fees, initial investments, profits, and return on investment associated with running a Bahama Buck’s franchise. We will also look at the different training opportunities available and any restrictions or renewal policies that come with the franchise.

With this information, you can determine if Bahama Buck’s is a good investment for your future. So read on, and let’s dive into the world of franchising with Bahama Buck’s!

Bahama Buck's Franchise


About Bahama Buck’s

Bahama Buck’s is the nation’s premier tropical dessert restaurant.

Shaved ice, frozen desserts, sodas, and smoothies are among the drinks and sweets available at Bahama Buck’s restaurants.

Shaved ice, smoothies, sodas, and lemonade items are available at all locations. Additional menu options, such as Frost lattés, açai bowls, and fresh fruit dishes, are available at some locations.

The brand’s signature product is shaved ice. It’s made of flavored syrup and fluffy Snow (thinly shaved ice).

Most tastes are fruit-based, but there are also bubble gum, root beer, and cheesecake flavors. There are also a variety of sour flavors to choose from.

The brand aspires to present customers with the “Greatest Snow on Earth” and the feeling of being on a tropical getaway.

Bahama Buck’s maintains a tropical flair in its surroundings and provides a wide variety of fruit tastes.


Bahama Buck’s Franchise Model 

Cost Or FeesAmount
Initial Investment $308,700 to $966,338
Franchise-Fee $34,500
Royalty-Fee6%
Area RequirementN/A
Total Outlets100

Bahama Buck’s Franchise Revenue & Profit

Bahama Buck’s franchise store’s revenue and profit may vary depending on their location, size, operating expenses, etc.

But on average, a Bahama Buck’s franchise makes $519,738 in sales per year, and this figure is based on the performance of 21 franchised stores in 2019.

As for the profit, with an assumed profit margin of 18%, a Bahama Buck’s franchise owner makes $93,552 in profits per year on average.

Here’s how we have calculated the profit figure:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%519738.00
Rent10.25%(53273.14)
Insurance5.13%(26636.57)
Salaries20.50%(106546.29)
Franchise Royalty Fees5.13%(26636.57)
Utilities2.05%(10654.63)
Cost of Goods Sold (COGS)25.62%(133182.86)
Labor (Variable)13.33%(69255.09)
Total (Expenses)82.00%(426185.16)
Net Profit18.00%93552.84

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Failure Rate Of Bahama Buck’s

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201795103+8
2018103107+4
2019107101-6

For the Franchised outlets:

  • In 2017, the growth rate was (8)/95×100≈8.42%
  • In 2018, the growth rate was (4)/103×100≈3.88%
  • In 2019, the failure rate was (6)/107×100≈5.61%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201734+1
2018440
2019440

For the Company-Owned outlets:

  • In 2017, the growth rate was (1)/3×100≈33.33%
  • In 2018, the failure rate was (0)/4×100≈0.00%
  • In 2019, the failure rate was (0)/4×100≈0.00%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201798107+9
2018107111+4
2019111105-6

For Total outlets:

  • In 2017, the growth rate was (9)/98×100≈9.18%
  • In 2018, the growth rate was (4)/107×100≈3.73%
  • In 2019, the failure rate was (6)/111×100≈5.40%

According to the above-mentioned data, we can see that the franchised outlets for Bahama Buck’s grew from 2017 to 2018, showing a growth rate between 8.42% and 3.88%. However, in the year 2019, the number of outlets decreased, showing a failure rate of 5.16%.

On the other hand, for company-owned outlets, the growth rate of Bahama Buck’s lying in the range of 33.33% for 2017.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Bahama Buck’s franchise has expanded in the years 2017-2018, showing a total growth rate between 9.18% and 3.73%.  The company experienced a failure rate of 5.40% in the year 2022.


Payback Period Of Bahama Buck’s

With a total investment of $966,338 and a yearly profit of $93,552, we can calculate how much time it will take to recoup the investment amount of Bahama Buck’s.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Total Investment / Yearly Profit = $966,338 / $93,552 = 10.31 years

Based on these figures, it will take approximately 11 years to pay back the initial investment for Bahama Buck’s. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Bahama Buck’s Training & Support

Bahama Buck's Training & Support

At least two weeks before opening their locations, franchisees must finish the franchisor’s training program.

The first franchise price covers the franchisee and one additional person, such as a manager, for the training program.

Training can occur in the franchise headquarters in Lubbock, Texas, or at a live Bahama Buck’s location. For a price, on-site help at a new franchise location may be given.


Financing Of Bahama Buck’s

Bahama Buck’s collaborates closely with financial companies assisting franchisees with finance.

It does not offer credit. For purchases made through Bahama Buck’s, we establish a line of credit for our franchisees.


Bahama Buck’s Supplier Restrictions

You may be required to purchase or lease things from the franchisor or a select set of suppliers designated by the franchisor.

These things may cost more than comparable items that you may buy independently.


Operating Restrictions

You may be prohibited from operating a similar business during the franchise’s life. Other restrictions are generally in place.

Controlling your location, customer access, what you sell, how you market, and your hours of operation are just a few examples.


Renewal Of Agreement

It’s a possibility that you won’t be able to renew your franchise agreement.

Even if it does, you may be required to sign a new agreement with new terms and conditions to continue operating your franchise.

Entrepreneurs considering a venture into the dessert franchise sector might explore options such as the Cheesecake Factory franchise.


Bahama Buck’s Comparison

CompanyBahama Buck’sCheesecake Factory
Founded In19901972
Initial Investment$308,700 to $966,338$150,000-$700,000
Franchise-Fee$34,500N/A
Estimated Outlets100307
Annual Revenue$3 Million $2.93 Billion 

Frequently Asked Questions

What is the location of the Bahama Buck's Franchise headquarters?

The Bahama Buck’s Franchise headquarters are located at 5741 50th St, Lubbock, Texas 79424, United States.

What is the official website of Bahama Buck's Franchise?

www.bahamabucks.com is the official website of the Bahama Buck Franchise.

Is Bahama Buck's a franchise?

Yes, Bahama Buck’s is a franchise organization.

How much does a Bahama Buck's Franchise Cost?

The estimated total investment required to begin the operation of the Bahama Buck’s Franchise ranges from $308,700 to $966,338, and also it requires a franchise fee of $34,500.

Who is the owner of Bahama Buck's?

Bahama Buck’s is owned by Blake Buchanan, a native of South Texas and an entrepreneur. He opened the first store in Lubbock, TX, in 1990 and has since grown the brand to over 100 locations across 15 states.

Where is Bahama Buck's headquarteres?

The headquarters of Bahama Buck’s is located at Lubbock, Texas.

How Many Locations Does Bahama Bucks' Has?

There are only 123 Bahama Buck’s restaurants in the United States.

Leave a Comment