About Ululani's Hawaiian Shave Ice Franchise
Ululani's Hawaiian Shave Ice is a specialty dessert franchise offering premium shave ice and related products inspired by authentic Hawaiian traditions.
The brand has been franchising since 2016 under UHSI International, LLC, bringing the taste and spirit of the islands to communities across the mainland with finely shaved ice topped with a variety of tropical flavors, fresh fruit, and creative specialty combinations.
The franchise fee for an Ululani's Hawaiian Shave Ice location is $48,000.
Ululani's Hawaiian Shave Ice Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $48,000 | One-time payment upon signing |
| Royalty Fee | 5% during your first year of operations and 6% thereafter of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 0.5% during your first year of operations and 1% thereafter | National brand fund |
| Total Investment Range | $245,800 – $526,300 | Includes build-out, inventory, working capital |
The investment range of $246K–$526K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% during your first year of operations and 6% thereafter) and marketing fee (0.5% during your first year of operations and 1% thereafter) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $48,000 | $48,000 |
| Rent and Security Deposit | $12,000 | $20,000 |
| Construction, Remodeling and Leasehold Improvements | $60,000 | $250,000 |
| Utility Deposits and Fees | $1,800 | $5,500 |
| Computer Hardware and Software | $2,500 | $4,500 |
| Fixtures and Furnishings | $5,000 | $15,000 |
| Equipment and Supplies | $35,000 | $55,000 |
| Opening Inventory | $30,000 | $30,000 |
| Signage | $5,000 | $10,000 |
| Payroll – 3 months | $24,500 | $42,000 |
| Out-of-Pocket Expenses During Training | $5,500 | $7,500 |
| Initial Advertising | $5,000 | $15,000 |
| Licenses and Permits | $500 | $3,000 |
| Professional Fees | $3,500 | $5,000 |
| Insurance | $1,000 | $2,000 |
| Bank Fees (Automatic Payment Processing) | $500 | $800 |
| Miscellaneous Opening Costs | $1,000 | $3,000 |
| Additional Funds – 3 months | $5,000 | $10,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Currently $5,000 |
| Renewal Fee | Reimbursement for reasonable out-of-pocket costs related to the renewal (minimum of $1,000) |
| Technology Fee | Currently $75 per month |
| Audit Fee | Reasonable costs for the audit if you understate revenue by more than 2% or fail to deliver required reports on time |
| Additional Training at Franchisee’s Request | Then-current rates, currently $990 per day, plus reimbursement for out-of-pocket costs (travel, accommodations, etc.) |
| Additional Training Required by Franchisor Based on Franchisee Default or Sales Performance | Then-current rates, currently $990 per day, plus reimbursement for out-of-pocket costs (travel, accommodations, etc.) |
| Additional Training or Conventions Required or Recommended by Franchisor | No training fee unless required due to default or sales performance; franchisee responsible for travel, meals, lodging, and employee wages |
| Relocation | Reimbursement for reasonable out-of-pocket costs related to the relocation |
| Interim Management Fees | As incurred |
| Late Charge | 1.5% per month (18% per annum), 10% per annum in California |
| Late Payment Penalty | 5% of the amount due |
| Proposed Source Testing Costs | As incurred |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately seven to ten days |
| Classroom Training | 32 |
| On-the-Job Training | 58 |
| Training Location | Typically Our Affiliate’s Headquarters (currently in Kahului, Hawaii) |
| Additional Training | Franchisor may provide refresher training programs or seminars, which may be required for franchisees or managers to attend and complete to franchisor's satisfaction. These programs are held at designated locations, provided without charge (excluding travel, lodging, expenses, and compensation). Participation will not exceed 40 hours per calendar year. Additional training at then-current fees may be required if the franchisee fails to comply with material requirements or based on sales performance. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Approximately three miles radius for suburban areas and approximately 0.5 mile radius for urban areas from the Franchise Premises. |
| Description | The Franchise Territory is based on a mileage radius from your Franchise Premises. Its size and dimensions vary based on factors like population density, demographics (local vs. tourist), growth trends, traffic flow, affluence, topography, and geography. While not exclusive, the franchisor will not establish or allow others to establish an Ululani’s Hawaiian Shave Ice shop within your Franchise Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years from the effective date of your Franchise Agreement |
| Renewal Term | successive single 10-year periods |
| Renewal Fee | Reimbursement for reasonable out-of-pocket costs related to the renewal (with a minimum of $1,000) |
| Renewal Conditions | Give notice 3-6 months before expiration; faithfully perform under initial agreement; refurbish franchise and replace obsolete equipment; sign general release; sign a new agreement with potentially different terms; reimburse franchisor for renewal costs (minimum $1,000); complete retraining (if needed). Franchise Territory may be modified. |
| Transfer Fee | Currently $5,000 |
| Transfer Conditions | Transferee must qualify as a franchisee, assume obligations, successfully complete mandatory training, not be in default, release franchisor, and pay the Transfer Fee. Franchisor has right of first refusal. |
| Termination for Cause | Franchisor can terminate if franchisee defaults on any material provision of the agreement and fails to cure within 30 days. Non-curable defaults include bankruptcy/insolvency, abandonment, repeated defaults, misrepresentations, levy of execution, criminal conviction, noncompliance with laws, non-payment of fees, repeated under-reporting of sales, disclosure of confidential information, and other specified defaults. |
| Non-Compete Period | 3 years |
| Non-Compete Details | During the term of the franchise and for 3 years after termination, expiration, or transfer, franchisee and owners may not disclose confidential information or directly/indirectly participate in a competing shave ice business within the Franchise Territory, a 50-mile radius of the Territory, and a 50-mile radius of any location where the franchisor or other franchisees operate. If legally unenforceable, scope may be reduced to 2 years/35-mile radius or 1 year/25-mile radius. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | We strongly recommend that you (or one of your owners if you are a corporation or partnership) participate fully in the actual day-to-day operation of the franchise business for at least the first 30 days of operations. However, you may designate a manager to assume responsibility for day-to-day operations, provided the manager successfully completes the mandatory training program. The manager is not required to have an equity interest. All owners must sign the Franchise Agreement directly or a Confidentiality and Non-Competition Agreement and a Personal Guaranty. |
| Required Suppliers | Proprietary shave ice syrups, certain branded items (t-shirts, hats), branded dry goods (spoons, cups), point of sale system hardware and software, financial accounting software, merchant processing software, database management software, inventory tracking software, reporting software, merchant account provider(s), certain food items (purees, sugar), certain small wares (spoons, straws, cups), and certain equipment (ice production machines, ice shaving machines) must be purchased from exclusively designated suppliers (which may include the franchisor or its affiliates). All other products and services must be from approved suppliers. |
| Supply Restrictions | The franchisor or its affiliates are currently the only designated and approved suppliers for proprietary shave ice syrups and certain branded items (t-shirts, hats). Franchisees must purchase branded merchandise, POS system hardware/software, financial accounting/reporting/inventory management software, and merchant account provider services from exclusively designated suppliers. Certain food items, small wares, and equipment must also be from exclusively designated suppliers. All other products and services must be from approved suppliers. |
| Franchisor Revenue from Suppliers | $63,368.51 (69% of total revenue) during fiscal year ended December 31, 2022. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not provide direct or indirect financing and do not assist in providing financing for you. We do not guarantee any notes or financial obligations you may incur in setting up and operating your franchise. |
Ululani's Hawaiian Shave Ice Franchise Earnings — Item 19
Ululani's Hawaiian Shave Ice does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Ululani's Hawaiian Shave Ice Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Ululani's Hawaiian Shave Ice System Growth
Ululani's Hawaiian Shave Ice currently operates 2 franchised locations and 7 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 1 |
| 2021 | 0 | 0 | 1 |
| 2022 | 1 | 0 | 2 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Audited by KEZOS & DUNLAVY Certified Public Accountants & Business Advisors for year ending December 31.
Ululani's Hawaiian Shave Ice Franchise — FAQ
Similar Food & Beverage Franchises
Interested in Ululani's Hawaiian Shave Ice?
Get free info on this franchise. We will send you a detailed FDD report by email.