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Bob Frankman's picture

Kona Bonah

First of all, everyone knows that the best Hawaiian shaved ice comes from Oahu, not Kona. What is Kona Ice? Is that like premium coffee for kids? That has as much brand recognition as shavings of sea slug.

Second, taking advantage of school kids in this promo video gives me the heeby-jeebies.

Schools, don't sell your kids $2 sugared ice to buy a projector for teachers. I also don't think their parents will appreciate seeing their children in this business promo.

Third: It's a seasonal business in which there is a small window of opportunity to make a return on your investment. Fourth: There is no compelling business story on their site.

Here is their disclosure document. There are no franchises yet in this 2009 FDD. It's new and unproven. You are buying a dream. There is no financial performance representation for the average franchise, which is the first thing you'll want to know. In fact, there's not much of anything -- other than costs. You buy your $77,000 truck, equipment and food stuff from Kona. There is a $12,500 franchise fee for ten years. Most likely you'll need a new truck before then. Salvage value life of the truck -- I'd say seven years.

Here's the franchise agreement. According to it, Kona Ice does not own the trademark yet. If it doesn't possess a trademark, there's no sense paying royalties to rent something Kona doesn't own.

Kona is a real bonah. Stay away from this.

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