If you are looking towards opening an Iceborn Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.

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Iceborn was founded in 2003 and they began franchising in 2012, about 18 years ago. The current CEO is Troy Doom and they have their corporate head office at 13901 Sutton Park Dr. S., Bldg. A, #100 Jacksonville, FL 32224, USA an. As of 2018, the company owns and operates 76 franchises in the United States. Based on 2016 FDD data, IceBorn has franchise locations in 11 states. The largest region is the West with 47 franchise locations.

Although IceBorn began franchising in 2012, but the parent company Ice House America has been manufacturing and operating automated ice and water vending machines since 2003. The machines are available in a variety of sizes, and franchisees typically place them in retail center parking lots. The company’s SmartIce app allows franchisees to monitor their machines remotely from a smartphone or compute.

IceBorn franchise system offers franchisee the opportunity to operate a vending unit that manufactures, stores, bags and sells chipped or cubed ice and water on demand to the public.

Here are areas where you are expected to spend money and the cost associated with it;

  1. Initial Investment Range

    $111,550 – $242,845

  2. Initial Franchise Fee

    $1,000 to $7,000

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

  1. Royalty Fee

    6 percent of Gross Sales and the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.

Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.

  1. 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.

Please note that the franchisor anticipates that you will rent the Machine’s location.

  1. 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.

Please note that 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.

  1. IceBorn Machine

    $18,995 to $130,000

Please note that 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.

  1. Annual Business Licenses and Permits

    $200 to $4,000

Please note that these amounts represent the costs of acquiring business licenses and permits necessary to operate the Machine.

  1. Initial Training Costs

    $200 to $4,000

Please note that 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.

  1. Initial Inventory and Supplies: $100 to $3,000

Please note that inventory and supplies include bags for ice dispensed at the Machine and products and materials related to the operation of the Machine.

  1. Professional Services

    $0 to $5,000

Please note that these costs include fees paid to professionals for zoning of the location at which to operate your Machine.

  1. Opening Promotion: $0 to $1,000

Please note that these expenses relate to general opening advertising and promotion of the Machine during your start-up period.

  1. Annual Insurance Premium: $500 to $1,500
  2. 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.

Please note that the franchisor relied on IHA’s experience owning and operating ice vending units over the last 10 years to compile this additional funds estimate.

  1. Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.

Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.

Centers owned by Iceborn and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative.

If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.

  1. Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
  2. Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
  3. Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.

Please note that you must reimburse Iceborn if it is held liable for claims arising out of your franchise operations.

  1. Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date:  Due on receipt of invoice.)

Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.

  1. POS Hardware and Software: Depends upon vendor and products purchased. (Due Date:  Depends upon vendor and products purchased.)
  2. Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date:  As incurred.)

Payable to Iceborn if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Iceborn is required to defend your unsuccessful claim against it.

  1. Veteran Incentives: 50% off franchise fee, first-year royalties waived
  2. Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
  3. Financial Assistance: Iceborn has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.

In Summary,

  • Initial investments: $111,550 – $242,845
  • Net-worth Requirement: $50,000 – $200,000
  • Liquid Cash Requirement: $25,000 – $75,000
  • Ongoing Initial Franchise Fee: $7,000
  • Ongoing Royalty Fee: to 6%
  • Ad Royalty Fee: to 1%
Ajaero Tony Martins