About Smoothie King’s Franchise Business
The healthy eating trend continues to gain popularity, and Smoothie King caters well to this niche. The product line at Smoothie King includes; smoothies, healthy snacks, minerals, vitamin supplements, and sports nutrition products.
Smoothie King was founded in 1973 by Steve Kuhnau, who experienced better health due to eating fresh foods and fruits. The company began franchising in 1988. Smoothie King has 1,349 stores, including 971 U.S. franchises, 318 international franchises, and 60 directly-owned stores. It is currently number 13 on Entrepreneur Magazine’s Franchise 500 list and has been the top smoothie franchise in the U.S. for 16 years.
How To Buy a Smoothie King Franchise
Getting approval for a Smoothie King franchise requires a franchisee to have some marketing and business experience and a particular interest in the QSR industry. Smoothie King offers two types of franchises, including inline locations and freestanding drive-thru locations. Your choice of franchise type may depend on the following:
- The amount of liquid capital you have available.
- The scale of business you wish to run.
- The available land area in the chosen business location.
You will be required to apply with a list of required documentation, including your business experience, preferred location, and credit score. To facilitate buying any franchise, it’s helpful to enlist the services of professionals like Fransmart, the leading franchise development company for emerging brands. With their years of experience and multiple franchise portfolios, including Ike’s, Rise, and SlapFish, Fransmart’s team can help you assess if a Smoothie King franchise is the best investment for you.
Smoothie King Franchise Cost
According to the Smoothie King website, the investment for a franchise ranges from $268,900 to $858,900. An initial franchise fee of $30,000 is included in that estimate. Franchisees are also required to have $100,000 in cash and a net worth of $300,000. The differences between the lower and higher investments depend on location, build-out costs, store size, and expenses.
Here is a breakdown of the investment required for opening a Smoothie King franchise in the United States:
- Endcap or inline location: $268,900 – $555,965
- Freestanding Drive-thru location: $589,300 – $858,900
- Minimum Net Worth (1 Store): $300,000
- Minimum Liquidity (1 Store): $100,000
- Minimum Credit Score: 700
The agreement term for the franchise is 10 years, which is renewable for up to 3 additional terms of 10 years each. Renewal approval is dependent on whether your franchise has met existing operational guidelines during its initial franchise agreement.
Smoothie King’s Franchise Training and Support System
You must attend the franchisor’s orientation and training program ahead of a store opening. The training is either at Smoothie King’s HQ in Dallas, Texas or at a designated location by the franchisor. In rare cases like the pandemic, Smoothie King may run training virtually.
The initial training course takes up to two weeks or (15 days) with an average of eight hours dedicated to training, excluding take-home assignments. Furthermore, Smoothie King sends a representative to provide on-site training and assistance when the store opens. The franchisor’s representative’s services come at no extra cost to the franchisee and will last up to a week.
Further training can be scheduled by the franchisor when it is deemed necessary during the franchise agreement term. Smoothie King has relationships with third-party sources that can franchisees acquire financing.
Advantages and Disadvantages of Buying a Smoothie King Franchise
Advantages of a Smoothie King franchise:
- Well Positioned in Market
Smoothie King provides a great alternative to fast-food similar to fast-casual dining restaurants such as The Halal Guys, Taffer’s Tavern, and Savannah Seafood Shack. The market for healthy eating is continuously expanding, which plays to Smoothie King’s niche.
- Ongoing Support
With the extensive training provided by Smoothie King and its representatives, franchisees are well trained to operate a location.
Disadvantages of a Smoothie King franchise:
- High Investment Capital
Several other fully established franchises such as Duff’s Cake Mix, PayMore, and Jar’s require a lower investment and offer higher profit margins.
- Restrictions and Obligations
Smoothie King imposes a mandatory training program on both the franchisee and its managers. All managerial staff at a Smoothie King store is expected to be fully qualified to work in the store via the initial management training program. The training program can further extend the time when the store is opened.
- Mature Brand
Smoothie King is a mature brand so finding a strong territory and having the time to generate great wealth will be difficult for new franchisees.
Conclusion
For an investor looking to build wealth through franchising, there are other brands that could return a stronger ROI than Smoothie King.
Fransmart has a portfolio of emerging brands with lower start-up costs, easier operations and the opportunity for better ROI including:
- RISE SOUTHERN BISCUITS & RIGHTEOUS CHICKEN
- BROOKLYN DUMPLING SHOP
- CURRY UP NOW
- IKE’S LOVE & SANDWICHES
- JARS BY FABIO VIVIANI
- PAYMORE
- SLAPFISH
- THE HALAL GUYS
- TAFFER’S TAVERN
- SAVANNAH SEAFOOD SHACK
- DUFFS CAKE MIX
If you’re ready to explore all your franchise options, contact Fransmart today for help choosing the ideal franchise for your goals.