Smoothies have a reputation as a healthy food, and Smoothie King has leaned hard into that image. Since being singled out for its unhealthy products in 2013 by the Center for Science in the Public Interest, the company has pushed hard to rebuild its image as a provider of health and vitality. Its clean blends initiative banishes certain additives from its products, and the company sponsors the Smoothie King Center, home to the NBA’s New Orleans Pelicans. It’s a company selling itself on health and wellness, ideal for a franchisee who shares those interests.
How much is a Smoothie King franchise?
The starting cost to set up a Smoothie King is estimated at between $268,900 and $555,965. This becomes more expensive if the outlet will be a free-standing drive-thru facility, with total costs estimated between $589,300 and $858,900 (Item 7, FDD 2021).
These costs include the initial franchise fee, rent for the location, furniture, fixtures, improvements, initial inventory, and the expenses for holding a grand opening.
How much is the Smoothie King franchise fee?
Smoothie King has two different types of franchises, each with different fees: “traditional” and “non-traditional”.
Traditional locations are usually set up in strip centers, drive-thru locations, or other commercial shopping centers, places where the general public have ready access to the site. Operators of a traditional location receive a protected territory, preventing other outlets of the franchise from setting up close by.
Non-traditional locations are those relying on one main business or organization for customers, sometimes set up within that organization’s property, and normally with limited access to the general public. This covers locations like enclosed shopping malls, convention centers, airports, movie theaters, health clubs, hospitals, college campuses, military bases, and grocery stores. It provides a captive market but doesn’t come with a protected territory (Item 1, FDD 2021).
The initial franchise fee is $30,000 for a traditional store or $15,000 for a non-traditional store. The fee for a traditional store may be discounted to $25,000 when setting up additional stores after the first (Item 5, FDD 2021).
Once the outlet is up and running, there are monthly ongoing fees. An operating fee of 6% of gross sales has to be paid to Smoothie King, as well as a national marketing fee of 3% of gross sales, and there may be a regional marketing fee of up to 2% of gross sales. The franchise agreement gives Smoothie King the right to increase the national marketing fee to 5% of gross, on 60 days’ notice (Item 6, FDD 2021).
How much does a Smoothie King franchise make?
The exact amount you make from a Smoothie King franchise will vary based on revenues and expenses. The company provides better data than some others, making it possible to get a good estimate. Average net sales for a Smoothie King outlet are $521,461 per year. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is on average 20%. These figures provide an estimated average operating income of $104,292 (Item 19, FDD 2021).
If you want to compare these figures with rival franchises or to get into more detail on Smoothie King’s finances, then you might want to invest in a Franchise Chatter subscription, to access our comparison tools and a detailed review of the franchise, exploring its details and context.
How do you franchise a Smoothie King?
The process for obtaining a Smoothie King franchise starts with an online application, in which you provide details of your experience and qualifications, why you want to run a Smoothie King, and your preferred locations.
If you pass preliminary approval then the company will put you in contact with a franchise development manager. They explain more about the company’s culture and vision, talk you through the approval process, and answer any questions.
This is followed by a second, more detailed application. Smoothie King will evaluate not only the things you’ve said but your financial statements, credit history, and background information. While they’re doing that, you can review the franchise disclosure document and talk with other franchisees to check whether Smoothie King is right for you.
Finance is critical. The minimum financial qualifications to open a Smoothie King location are $100,000 liquidity, a net worth of $300,000, and a credit score of 700. This level of finance is needed to support the new operation, and you won’t get past the initial checks without it.
Weeks of calls and document gathering end with a discovery day, in which you visit the company’s home office in Dallas, meet executive staff, and learn more about operations. It’s a final round of interviews, for Smoothie King to assess you and for you to assess Smoothie King. If it goes well, then you’ll be awarded your franchise, provided with orientation and training, and set up your store.
Is the Smoothie King franchise for you?
If you’re interested in food and healthy living, then Smoothie King could be a good choice. Current wage squeezes are creating uncertainty for the restaurant sector, but Smoothie King’s financial transparency means that you have a better idea of what you’re getting into and what your potential earnings are.
If you want to explore the franchise in more detail, or compare it with other franchises, then subscribe to Franchise Chatter to access our detailed reviews and comparison tools.