In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Robeks franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Robeks franchise, based on Item 7 of the company’s 2018 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Robeks franchise, based on Items 5 and 6 of the company’s 2018 FDD

• Section IV – Number of franchised and company-owned Robeks outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD

• Section V – Presentation and analysis of Robeks’ financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:

• 2017 average, median, high, and low net sales for the first quintile, second quintile, third quintile, fourth quintile, fifth quintile, and all 67 Robeks traditional stores in the U.S. that were in operation for the entire 53 weeks ended December 31, 2017

Section I – Background Information

16 Things You Need to Know About the Robeks Fresh Juices and Smoothies Franchise

Introduces New Menu

1.  One of the biggest factors driving the recent growth and success of Robeks Fresh Juices and Smoothies is its updated menu, which launched in the summer of 2017. The updated menu incorporates a new line of products with Robeks’ long-standing customer favorites. Robeks’ new menu is the product of in-depth data analysis, market trend analysis, customer feedback, and thorough vetting process with current Robeks franchisees.

2.  Matt Furman, director of marketing for Robeks, said, “We felt that with a change in the industry, especially as consumers are becoming more educated on various health attributes, we wanted to make sure that our product mix fit exactly what consumers were coming in our stores looking for.”

3.  This latest menu iteration at Robeks features a few new categories of products, one being a superfood-powered smoothie category with ingredients such as spirulina, flax seed, and turmeric that come together in tasty, unique recipes. They are also 100% dairy-free and 100% vegan.

4.  Furman added, “Customer feedback is very important to us, and we listened very closely when our fans started to request menu options that are dairy-free and vegan friendly. We found that over 70% of customers felt smoothies with superfoods were appealing and over 70% indicated a likelihood to purchase one. We responded to that input with innovative and delicious recipes to help satisfy the demand.”

5.  Other alterations to the menu include brand new bowl offerings, which are larger and “easier to eat.” David Rawnsley, president of Robeks, said, “We’ve seen tremendous growth in the bowl segment and worked to make sure our bowls met our customer’s demands. We paid close attention to every aspect of the bowl – from the recipe of the base to the design of the toppings. That attention to detail has resulted in a mouth-watering product when you look at it.”

6.  Rawnsley also believes the new menu, concentrated on innovation and a diverse mix of offerings, will help increase sales. A 10-store test conducted across 6 different markets yielded positive sales results for the test locations when compared to the rest of the stores in their trade area.

Launches Online Ordering

7.  At the beginning of February 2018, Robeks Fresh Juices and Smoothies launched a new online ordering program allowing customers to place an order from their desktop or mobile devices. The cornerstone of the program is a new mobile app that is now available to the public. After completing a smaller pilot program that was launched towards the end of 2017 at select locations, the restaurant chain was ready to launch its latest digital initiative nationwide.

8.  David Rawnsley, president of Robeks, said, “This is a big step for us and a great convenience for our customers. Our mobile ordering initiative follows two other recent initiatives aimed at improving our customer experience. We launched a new menu this past summer with the introduction of our Superfood smoothies and a completely revamped and expanded Acai Bowl offering. In addition, our remodel program is gaining momentum and we expect roughly half our stores will operate in our latest generation design by the end of 2018.”

9.  In addition to online ordering, the Robeks Rewards loyalty program was fully integrated into the online initiative. The loyalty program is points-based with 12 points equaling one “rewards dollar” that can be put toward any in-store purchase and now online purchases as well. Loyalty members also receive a free small classic smoothie on their birthday.

10.  John Schattinger, director of technology for Robeks, said, “Beyond just making online ordering available, we wanted to ensure our current and new loyalty customers were still being rewarded for shopping with us. We’re excited about all the new features we’re going to be bringing to them with our online ordering program.”

Primed for Growth in 2018

11.  During the first quarter of 2018, Robeks Fresh Juices and Smoothies announced that it expects to open 12 new locations across the country this year and anticipates having 100 locations by 2019. To help spur the company’s growth, Robeks introduced a new menu in 2017, which brought with it an average sales increase of 10% to stores that embraced the change. Robeks also recently launched a new online ordering program and made changes to its executive team.

12.  Some of Robeks’ new locations are planned for the following cities: Encino, Calif.; Van Nuys, Calif.; Shelton, Calif.; Downtown Los Angeles; Downtown Cleveland, Ohio; and Phoenix, Ariz.

13.  David Rawnsley, president of Robeks, said, “Robeks is built on a solid foundation of franchisees dedicated to providing fresh juices and smoothies to customers, so we feel the time is right to expand on that foundation and grow the brand. We used 2017 as an opportunity to assess the brand, identify areas for evolution and begin expansion, and now that 2018 is here we’re full steam ahead.”

Company History

14.  Robeks Fresh Juices and Smoothies was founded in 1996 by David Robertson, a former investment banker, in Los Angeles, California. Robertson was looking for healthier fast food options and wanted to find a smoothie that was healthful, nutritious, and tasted good. He started making smoothies at home using fresh, high-quality ingredients and felt that other people were seeking the same kind of smoothies. Robertson established Robeks to provide customers with access to his healthy and delicious smoothies.

15.  Within a few years, Robertson opened a few more Robeks locations, and franchising started in 2001. The first franchised location, owned by Peter Bickford and his wife Katrina, opened in New England. At the company’s peak in the mid-2000s, there were nearly 200 Robeks locations in the U.S. In the years that followed, Robeks closed numerous stores but is on track to have over 100 locations by 2019.

Entrepreneur’s Franchise 500

16.  Robeks Fresh Juices and Smoothies did not rank on Entrepreneur’s 2018 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Robeks franchise costs, based on Item 7 of the company’s 2018 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Robeks’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

• Outlets at the Start of the Year:  103
• Outlets at the End of the Year:  95
• Net Change:  -8

2016

• Outlets at the Start of the Year:  95
• Outlets at the End of the Year:  87
• Net Change:  -8

2017

• Outlets at the Start of the Year:  87
• Outlets at the End of the Year:  82
• Net Change:  -5

Company-Owned

2015

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2016

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2017

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

• As of December 31, 2017, Robeks had 82 stores open in the U.S. These 82 stores were composed of 68 “traditional” stores (in-line or free-standing, open 7 days per week) and 14 “non-traditional” stores (downtown, college campus, mall, or other location open less than 7 days per week).

• Of the 68 traditional stores, 67 were operational for the full year. The charts below cover only the 67 traditional stores that were in operation for the entire year.

• The information in the charts below was prepared from sales information provided to Robeks by franchisees. The franchisees’ sales information is not audited.

• You should consider that this information gives no weight to specific locations, types of operators, investment cost, or market conditions. You must make your own investigation into the likely sales and costs in your specific location and region.

• A prospective franchisee who is purchasing the assets of an existing store should review the actual financial results of the store(s) being purchased.

• Prospective franchisees for non-traditional stores should not rely on the figures below, as that type of store may experience different results.

• The financial performance representation figures do not reflect all costs and expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

Data for Franchisee-Owned Stores for the 53 Weeks Ending December 31, 2017

• The “Group” column divides the reporting “traditional” Robeks stores into five groups based on the relative Net Sales performance of the stores in 2017. For example, the “First Quintile” group refers to a group of the top 20% performing Robeks stores based on Net Sales achieved in 2017, the “Second Quintile” group refers to a group of the next 20% performing stores based on 2017 net sales, and so on.

• The “Number of Stores in Group” represents the number of “traditional” Robeks stores open for the full fiscal year ending December 31, 2017 and included in the particular Group based on 2017 Net Sales.

• The “Number of Reporting Stores” represents the number of “traditional” Robeks stores open for the full 2017 fiscal year that submitted period profit and loss statements to Robeks for the year ending December 31, 2017 and that were included into the applicable Group based on 2017 Net Sales. Not all stores reported profit and loss statements to Robeks for all twelve periods during the year.

First Quintile