Margarita Man Rents Beverage Machines

The Margarita Man
Owner: April Lee
Address: 3065 N. College Ave., No. 54, Fayetteville 72703
Phone/Fax: (479) 442-4555/No fax
Hours: 8 a.m.-10 p.m. Monday-Saturday, by appointment
Startup date: October 2001

April Lee rents frozen-beverage machines for all sorts of events, including school functions. She offers only flavor concentrates, leaving the alcohol up to the customer. An admitted beer drinker, Lee has developed an appreciation for frozen margaritas since buying a Margarita Man franchise a year ago.

“Everybody” is a potential customer, Lee said, explaining her machines are rented for corporate parties, tailgate parties, private events and school functions.

Lee said she has carved out a niche in the market by offering something unique that will save her customers time and energy when planning an event. She provides free delivery, setup and pickup of the rental machines throughout Northwest Arkansas including Fort Smith and Eureka Springs.

Lee has five single-serve frozen drink machines that she said will “freeze up” in about 30 minutes. She also offers 13 concentrated flavors. The machines rent for $125 to $150, which includes enough concentrate for 70 8-ounce drinks. Lee hopes to buy a dual-dispensing machine soon to provide two types of frozen drinks from the same machine.

Lee runs the mobile business by herself from her SUV but calls in help when she has to deal with stairs during delivery. Each drink machine weighs 185 pounds. Lee has them bolted to wheeled carts for easier handling. Attached to a cart, the machines stand about five feet tall.

Lee paid $20,000 for the franchise, and that included the five machines, use of franchise name, letterhead, envelopes, etc. She took out a business loan for the up-front cost and said she’s managing to make the payments and support herself, estimating the business will make $30,000 its first year.

She’s also trying to get a side business started offering the drink concentrates at local liquor stores.