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How Much Does A Smoothie King Franchise Cost?
Founded in 1973, Smoothie King has become the No.1 smoothie bar in the United States that helps people live healthier lifestyles. The company started franchising opportunities in 1988. So, if you’re looking for an exciting business, learn more about the Smoothie King franchise cost and terms here.
About Smoothie King Franchising
Smoothie King Franchises, Inc. offers franchises for the operation of one of its 1,350 estimated units. Each unit sells various premium, handcrafted smoothies made with real fruits, organic vegetables, and other fresh nutrients blended using their recipes. Units also provide consumers the advantage of nutritional retail merchandise such as herbs, vitamins, minerals, various supplements, and healthy snack items.
Franchise Training Details
You need to know the following to avail of their franchise training:
- Franchisees must attend the orientation and pre-opening training program as soon as possible after signing the Franchise Agreement and beginning site selection.
- The initial management training program is compulsory for all franchisees and managers. The program is up to 20 days, an average of eight hours per day.
- The franchisor will assign one Smoothie King Representative to the unit location when the franchisee opens the unit.
- The franchisor will periodically provide franchisees with advanced training in operating the unit.
Franchise Territory
Here is the territory allowed in the franchise:
- Smoothie King franchisees can operate a Smoothie King unit only from a specified location approved by the franchisor.
- The franchisor may assign a general geographic area to limit the place where franchisees may seek a site location for the unit.
- The protected territory will be determined by identifiable boundaries and include a business, seasonal, or residential population count of approximately 15,000 people, depending on the franchisor’s site selection data available at a certain period.
- Suppose franchisees operate a unit from a non-traditional location. In that case, the franchisor will not grant a protected territory and will not have any protectable rights to an area or protected region.
Obligations and Restrictions
Below are the franchise obligations and restrictions:
- Franchisees should be actively involved in the operation of the unit.
- They must offer and sell only those goods and services approved by the franchisor.
- A franchisee must offer all goods and services at retail that the franchisor determines, including new products or services that Smoothie King will develop in the future.
Franchise Term of Agreement and Renewal
The length of the initial franchise is ten years. But It may be less for a non-traditional location at the franchisee’s election if the lease term is less than ten years. Franchisees may renew their agreement for one additional ten years, provided they satisfy the requirements.
Financial Assistance
Smoothie King Franchises, Inc. does not offer direct or indirect financing. It does not provide a franchisee’s note, lease, or obligation.
Did You Know?
Here are some Smoothie King fun facts:
- Smoothie King was a result of the desire of its founder to create dairy-free smoothies due to his extreme allergies.
- According to a Smoothie King’s Twitter post, they use more than 600,000 lbs. of organic spinach annually.
- Smoothie King is the official drink of the Dallas Cowboys. As part of the 7-year partnership, Smoothie King released a limited edition blueberry-banana smoothie at select outlets.
- The Smoothie King crown is not just a crown. Based on Smoothie King’s Our Story page, the crown’s three significant points represent three people, showing the brand’s commitment to the community.
- There is a stadium named after Smoothie King, which opened in 2014. It houses New Orleans Pelicans basketball games and hosts musical events and performances. Plus, the center has various food and drink concession stands to grab a bite from, including Smoothie King.
Smoothie King Franchise Cost
Here is the Smoothie King franchise cost.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $30,000 |
| Three Month’s Rental & Deposit | $5,001 | $30,000 |
| Technology System | $9,100 | $12,215 |
| Grand Opening Marketing | $15,000 | $15,000 |
| Travel and Training Expenses | $2,700 | $6,000 |
| Insurance (First year’s premium) | $3,500 | $7,500 |
| Other Prepaid Expenses | $1,000 | $29,400 |
| Start-up Supplies, Inventory | $12,000 | $17,000 |
| Furniture Fixtures & Equipment, Millwork and Graphics | $100,000 | $130,000 |
| Architectural & Engineering Professional Services | $3,500 | $52,000 |
| Signage | $7,000 | $38,000 |
| Leasehold improvements | $120,000 | $750,000 |
| Legal, Accounting & Organizational Costs | $500 | $4,000 |
| Miscellaneous costs | $1,000 | $5,000 |
| Drive-Thru | $0 | $33,750 |
| Additional funds—3 months | $15,000 | $25,000 |
| ESTIMATED TOTAL* | $320,301 | $1,184,865 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Operating Fee | 6% of gross sales. Subject to a monthly minimum fee of $500. |
| National Marketing Fee | Currently 3% of gross sales; the franchisor has the right to increase the fee to 5% of gross sales upon 60 days’ notice. |
| Regional Marketing Fee | If established in a region where the unit is located, the franchisor will determine the amount of the fee, not to exceed 2% of gross sales. |
| Local Marketing Requirement | Minimum of 2% of gross sales. |
| Grand Opening Advertising | Minimum of $15,000 for all new unit locations. |
| Interest on Late Payments | 18% per annum or maximum rate allowed by law, if less than 18%. Plus $50 late fee payment. |
| Training Fees | No charge for initial training programs for the first two trainees. Reasonable fee may be charged for additional trainees to attend. |
| Remodel Costs | 5 Years: $0 – $15,000 for materials. |
| Audit Fees | Audit discrepancies and reasonable actual costs of conducting audit. |
| Transfer Fees (Franchise Agreement) | $7,500 – $12,500 plus $5,000 for grand opening advertising. |
| Transfer Fees (Area Development Agreement) | 10% to 20% of then-current initial franchise fee. |
| Securities Offering Fee | Not to exceed $25,000. |
| Supplier Approval Fee | Actual costs of inspection and testing. |
| Legal Fees and Costs | Reasonable expenses associated with enforcement of agreements. |
| Design Documents for New and Relocated Stores | Up to $2,500 (non-refundable). |
| NSF Checks or Draft | $50 for first occurrence; $75 for each occurrence thereafter. |
| Product and Service Purchases | Varies. |
| Extra Operational and Marketing Support, Including Visits to Cure Operational Issues | Reimbursement of reasonable actual expenses. |
| Technology Fee | Reasonable monthly fee; currently $200 per month. |
| Software and Security Fee | Currently, $190 to $265 per month. |
| Relocation Fee | Up to $2,500 (site package and plans may be an additional charge). |
| Renewal Fee | Currently, 1/2 of the current initial franchise fee; and $775 renewal upgrade design fee (non-refundable). |
| Failure to Submit Monthly Profit and Loss Statements | $500 per month. |
If you’re ready to start your Smoothie King franchise, visit their website for more information. And for other franchise info, read more here at Franchise HOW!