This post was updated on December 15, 2015 to reflect information from Planet Smoothie/Tasti D-Lite’s 2015 FDD (Item 7).
Detailed Estimates of Planet Smoothie/Tasti D-Lite Franchise Costs Based on Item 7 (Estimated Initial Investment) of Planet Smoothie/Tasti D-Lite’s 2015 Franchise Disclosure Document
- All cost estimates for the Traditional Planet Smoothie and the Traditional Planet-Tasti franchise design models are based upon a 1,000 square foot prototype model for a Planet Tasti Center.
- All cost estimates for the Non-Traditional Tasti-D Lite model are based upon 200 square feet of net rentable space. All cost estimates for the Non-Traditional Planet Smoothie model are based upon 350 square feet of net renatable space.
- Any deviations from the prototype, including changes to equipment, fixtures, branding materials, lease improvements, or finish specifications will result in a change order process with the franchisor and you may incur additional costs or charges that are not illustrated below.
For Traditional Planet Smoothie Model of Planet Tasti Center
1. Initial Franchise Fee: $15,000 to $25,000
- The Initial Franchise Fee is 25% less for participants in the VetFran program. If you sign a Preliminary Agreement, the franchisor will credit the Preliminary Fee (which currently equals $10,000) toward your Initial Franchise Fee due under the Franchise Agreement.
2. Grand Opening Contribution: $7,500
- You may choose to pay more than the minimum required amount for your Grand Opening Contribution.
3. Office Equipment and Supplies: $500 to $2,500
4. Computer System: $1,300 to $2,600
- The Computer System requires the Tasti D-Lite Hosted Webportal which is hosted by the franchisor or a third-party hosting company. You will obtain (currently through a third-party vendor) access to these programs on a monthly basis via the Internet.
- This range in costs depends on the number of terminals you request for your Planet Tasti Center. The current range for Traditional Planet Smoothie and Traditional Planet-Tasti franchise design models is 1 to 2 terminals and 1 terminal for the Non-Traditional Tasti D-Lite model and Non-Traditional Planet Smoothie model of Planet Tasti Center. If you request a terminal for your back-office computer, you will incur additional costs.
5. Merchant Account Equipment: $0 to $500
6. Voice and Data Circuits Setup Costs: $100 to $750
7. Radio System and Installation: $300 to $900
8. Radio Annual Subscription Fee (1 year): $0 to $480
9. Furnishings, Fixtures, and Equipment: $48,000 to $54,000
10. Furnishings, Fixtures, and Equipment Installation: $7,000 to $12,000
11. Freight: $3,000 to $7,000
12. Initial Inventory Order: $3,300 to $6,300
- The initial inventory order includes the following items (as applicable to the particular franchise design model of Planet Tasti Center you develop): the Proprietary Tasti Product; the Proprietary Planet Product; and syrups, flavors, ingredients, fruits, smoothie boosts and powders, supplements, paper and plastic goods, toppings, beverages, uniforms, ancillary products, and miscellaneous smallwares items.
13. Rent and Security Deposit: $6,500 to $18,500
- This item estimates your security deposit upon renting a location for your Planet Tasti Center plus 3 months’ rent for your location. Your rent will depend on geographic location, size, local rental rates, businesses in the area, site profile, and other factors.
- The franchisor expects that you will lease space for your Planet Tasti Center, rather than own real estate and construct a building.
- When you sign the lease, the landlord may require you to provide a full or limited personal guarantee, or a letter of credit and/or a security deposit.
14. Leasehold Improvements (Based Upon 1,000 Square Feet): $51,000 to $85,000
- A previous tenant may have installed leasehold improvements that are compatible, thereby reducing your costs, or the landlord may be required to pay for all or some leasehold improvements under your negotiated lease, or depending on prevailing commercial real estate market conditions and your personal financial circumstances, the landlord may be willing to increase your monthly rent payment to finance the leasehold improvements for which you must pay.
15. Architect and Design Fees: $5,000 to $12,000
16. Utility Deposits: $1,000 to $2,000
17. Security System and Installation: $200 to $3,200
18. Security System Annual Monitoring: $0 to $720
- A security system consisting of either monitored intrusion protection or recorded video surveillance is required for each Traditional Planet Smoothie and Traditional Planet-Tasti franchise design model. Costs will vary depending on the system and term of agreement. Equipment may be leased and monitored through a third-party.
19. Travel, Lodging, and Meals for Initial Training (Includes Up to 3 Individuals): $1,700 to $3,400
20. Professional Fees (Lawyer, Accountant, Etc.): $0 to $4,000
- While you must sign the Franchise Agreement individually, you may decide to transfer the franchise to a legal entity formed before beginning operations. Regardless of the ownership of the franchise, you may have to comply with the fictitious, assumed or trade name laws of the state in which your business is located.
21. Business Licenses, Permits, Etc. (for 1st Year): $1,000 to $4,000
22. Insurance (Premium for 1st Year): $2,000 to $5,000
23. Additional Funds (for 1st 3 Months): $10,000 to $30,000
- You may need these additional funds to operate your Planet Tasti Center during the initial months of operation, including ongoing local marketing to help continually increase sales. You may need additional funds at or near the higher estimate, particularly, if you decide to open a Planet Tasti Center that is larger than the typical unit size, or you have other or higher operational costs, issues, or problems.
24. Totals: $164,400 to $287,350
- The franchisor relied on its management team’s experience in franchising other businesses and pricing information it obtained from various suppliers to develop these estimates.
For Traditional Planet-Tasti Model of Planet Tasti Center
- Estimated initial investment range: $225,249 to $374,982
For Non-Traditional Tasti D-Lite Model of Planet Tasti Center
- Estimated initial investment range: $112,068 to $222,443
For Non-Traditional Planet Smoothie Model of Planet Tasti Center
- Estimated initial investment range: $89,600 to $216,650