Updated August 12, 2019.
Detailed Estimates of Planet Smoothie Franchise Costs Based on Item 7 (Estimated Initial Investment) of Planet Smoothie’s 2019 Franchise Disclosure Document
Traditional Planet Smoothie Restaurant (Located Within a Shopping Mall, Strip Center, or Similar Venue)
1. Initial Franchise Fee: $12,000 to $25,000
- The Initial Franchise Fee includes the training fee for two individuals.
2. Lease Review Fee: $0 to $2,500
3. Rent/Security Deposit (for three months): $6,000 to $30,000
- If you do not own a suitable premises approved by Planet Smoothie, you must lease or purchase the premises for your Planet Smoothie restaurant.
- If you decide to lease the premises, the landlord will generally require a security deposit, the amount of which generally ranges from one month of monthly rent to six months of monthly rent. The amount of your security deposit will vary according to your area, the type of location (enclosed mall, strip center, or free-standing building), and various other factors.
- A lease security deposit may be non-refundable and is paid directly to the landlord of the premises.
- If you decide to purchase land and construct your own building or buy an existing building, you can expect to add the cost of the real estate to the total investment. Real estate costs vary considerably depending on fair market values in your area; size, condition, and location of the premises; and municipal requirements.
4. Travel and Living Expenses (3 persons) While Training, Not Including Salaries, If Any, for You and Your Employees: $3,750 to $7,500
5. Architect Fees: $5,000 to $10,000
- You must, at your own cost and expense, use Planet Smoothie’s designated and approved third party design architect to prepare the initial design drawings for your Franchised Business. Planet Smoothie covers the cost of the drawing up to two revisions.
6. Leasehold Improvements: $50,000 to $152,000
- The landlord may provide some leasehold improvements, but if not, they will be at your expense.
- The total amount of leasehold improvements for your Planet Smoothie restaurant will vary greatly, depending on the type of premises for your restaurant (pad site with drive-thru on the high end, versus modular kiosk or retrofitted existing restaurant on the low end), condition of the premises, and what improvements you require.
- Construction costs also vary considerably depending on fair market values in your area; size, condition, and location of the premises; labor costs (union versus non-union); and equipment requirements.
- The minimum square footage needed to establish your Planet Smoothie restaurant is approximately 200-350 square feet.
- There is a wide range of probable locations that a Planet Smoothie restaurant could be in, and therefore, a wide range for the approximate size of the property and building. The probable locations for a Planet Smoothie restaurant are college shopping malls, airports, sports arenas, and college campuses, with sizes of the property and building the Planet Smoothie restaurant could be located in ranging from 1,000 square feet for a stand-alone location to over one million square feet for a large regional shopping mall.
7. Restaurant Equipment, Furniture, Small Wares, Interior Signage, and Menu Panels: $12,000 to $30,000
- This amount includes estimated costs of furniture, furnishings, installations, equipment, trade fixtures, and certain other items on the restaurant premises, the amount and specific items of which will vary depending upon the location, size, and condition of a particular restaurant.
- You must purchase restaurant equipment for your Planet Smoothie restaurant from approved vendors and according to Planet Smoothie’s specifications.
- A list of approved distributors for Planet Smoothie’s approved vendors is maintained by its purchasing department and will be provided to you during the pre-opening and/or construction phase for your Franchised Business.
- Updates will be provided to you as changes are made (i.e., additions and deletions) to the list of approved distributors for Planet Smoothie’s approved vendors.
8. Exterior Signage: $9,000 to $12,000
9. Computer Hardware, Software (POS System): $1,000 to $5,000
10. PCI Compliance Costs: $150 to $1,300
11. Opening Inventory (food and paper): $2,500 to $5,000
- As with any retail business, you will purchase inventory continuously as long as you operate your Planet Smoothie restaurant.
12. Business Insurance: $1,000 to $5,000
- Initial premiums for commercial general liability insurance are subject to change due to market forces beyond Planet Smoothie’s or your control.
- The cost of other coverages, including workers’ compensation and employer liability coverage and your discretionary purchases, varies widely.
13. Miscellaneous Opening Costs: $4,750 to $17,200
- The breakdown of the miscellaneous opening costs is as follows:
- Pre-opening Employee Training Payroll: $1,000 to $3,000
- Utility Deposits (e.g., gas, water): $1,000 to $3,500
- Petty Cash (including cash register “opening banks”): $250 to $700
- Licenses and Permits (including any required deposits): $500 to $3,000
- Miscellaneous Expenses (e.g., food safety manager certification training fees, uniforms, menus, security system, interior/exterior landscaping, sound system, business telephone deposit (phone additional), banking pre-opening costs, accountants, lawyers): $2,000 to $7,000
- Estimated Total: $4,750 to $17,200
- The telephone and utility deposits will generally be refundable in accordance with the terms fixed by the telephone company and the utility companies, respectively.
14. Grand Opening Marketing: $7,000
- You are required to pay a Grand Opening Marketing fee of $7,000 for a traditional store or $3,500 for a non-traditional store payable to Planet Smoothie on the earlier of (i) prior to you executing a lease for the premises where the Franchised Business will be located; or (ii) prior to construction commencing at the premises where the Franchised Business will be located.
- Planet Smoothie or its designated affiliate will create a marketing plan for (i) a grand opening event at your Franchised Business, and (ii) the initial advertising of your Franchised Business, and will work with you to obtain your input on the marketing plan.
- Planet Smoothie or its designated affiliate will use the Grand Opening Marketing fee to pay for the grand opening and initial advertising, but may, in its sole discretion, reimburse you for some local store marketing expenses that you pay if you received Planet Smoothie’s prior approval.
- The Grand Opening Marketing fee should be used within 6 months of the opening of your Franchised Business to the public. However, if a portion of the Grand Opening Marketing fee is not used within those 6 months, Planet Smoothie may, in its discretion, spend the remaining portion of the Grand Opening Marketing fee after 6 months from the opening of your Franchised Business to the public.
15. Depository Account: $3,000
- At the time you sign the Franchise Agreement, you will set up a depository account of $3,000 with your local banking institution. You are required to maintain a balance of $3,000 in this account at all times.
16. Additional Funds for 3 Months: $5,000 to $15,000
- The range shown estimates your expenses during the first three months of operation. These expenses include payroll costs (excluding any wage or salary paid to you), other miscellaneous expenses, and working capital.
- Planet Smoothie cannot guarantee you will not have additional expenses starting the business.
17. Total: $122,150 to $327,550
- These estimated ranges are based on Planet Smoothie’s experience, and information provided by franchisees.
Non-Traditional Planet Smoothie Restaurant (All Other Non-Traditional Locations)
- The total estimated initial investment necessary to begin operation of a non-traditional Planet Smoothie restaurant ranges from $77,650 to $267,000.