Bahama Buck’s Franchise FDD, Profits & Costs (2025)

Bahama Buck’s is a tropical-themed dessert franchise that has made a name for itself with its signature shaved ice, smoothies, and other refreshing treats.

Founded in 1990 by Blake Buchanan in Lubbock, Texas, the concept was born out of a simple idea to create a summer job that was more enjoyable than typical student gigs.

Headquartered in Lubbock, Texas, Bahama Buck’s began franchising in the mid-1990s and has since expanded its reach significantly, with over 100 locations across the United States.

The franchise differentiates itself through its commitment to providing a “mini-vacation” experience with every visit, creating an atmosphere that is both fun and relaxing.

Initial Investment

How much does it cost to start a Bahama Buck’s franchise? It costs on average between $528,000 – $1,223,000 to start a Bahama Buck’s franchised restaurant.

This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount varies based on factors such as the type of Bahama Buck’s store, the chosen location, and whether the franchisee opts to lease or purchase the property.

Type of ExpenditureAmount
Initial Franchise Fee$34,500
Travel$0 – $2,000
Living Expenses While Training$0 – $1,500
Rent$5,000 – $14,000
Build-out of Existing Leased Space$270,000 – $800,000
Provisional Architect Review Fee$5,000
Signage & Decor$35,000 – $60,000
Cash Registers and Related Equipment$6,500 – $15,500
Equipment$117,000 – $145,000
Inventory$19,000 – $22,000
Supplies (including BB Logoed Apparel)$50
Utility Deposits$500 – $1,000
Insurance$2,000 – $5,000
Professional Services$12,500 – $75,000
Licenses & Permits$500 – $1,000
Advertising$500 – $1,500
Additional Operating Funds for 3 Months$20,000 – $40,000
TOTALS$528,050 – $1,223,050

Average Revenue (AUV)

How much revenue can you make with a Bahama Buck’s franchise? A Bahama Buck’s franchised restaurant makes on average $576,000 in revenue (AUV) per year.

Here is the extract from the Franchise Disclosure Document:

Bahama Buck's Fdd item 19 extract

This compares to 524,000 yearly revenue for similar ice cream franchises. Below are a few Bahama Buck’s competitors as a comparison:

Bahama Buck's Franchise competitors

Bahama Buck’s Franchise Disclosure Document

Frequently Asked Questions

How many Bahama Buck’s locations are there?

As of the latest data, Bahama Buck’s operates 120 locations across the United States. The majority of these are franchise-owned, with 102 franchised units and 4 company-owned units.

What is the total investment required to open a Bahama Buck’s franchise?

The total investment required to open a Bahama Buck’s franchise ranges from $528,000 to $1,223,000.

What are the ongoing fees for a Bahama Buck’s franchise?

Bahama Buck’s franchisees are required to pay an ongoing royalty fee of 6% of gross sales, which provides access to the brand’s trademarks, operational systems, and support services.

Additionally, franchisees contribute 2% of their gross sales toward marketing efforts, which fund national and regional advertising campaigns to promote brand visibility and customer engagement.

What are the financial requirements to become a Bahama Buck’s franchisee?

To become a Bahama Buck’s franchisee, you need a minimum net worth of $950,000 and at least $100,000 in liquid capital. These financial prerequisites ensure that potential franchisees have the necessary resources to establish and operate a Bahama Buck’s location successfully.

How much can a Bahama Buck’s franchise owner expect to earn?

The average gross sales for a Bahama Buck’s franchise are approximately $0.53 million per location. Assuming a 15% operating profit margin, $0.53 million yearly revenue can result in $80,000 EBITDA annually.

Who owns Bahama Buck’s?

Bahama Buck’s Franchise Corporation is owned and operated by father and son, Paul and Blake Buchanan, along with their long-time friend, Eric Lee.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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