All About the Franchise Smoothie King
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This article will show you everything you need to know to open your new business. We will talk specifically about Smoothie King Franchise cost. The Smoothie franchise is a chain of stores selling healthy food and beverage. This includes smoothies, bars, sports beverages, healthy snacks, vitamin supplements, and minerals, among other sports nutrition products.
Smoothie King has franchises in the United States, Korea, Cayman, and the Singaporean market. Popular Smoothie franchises are an excellent option if you are considering starting a business focusing on health and active lifestyles. Due to its proven track record of success, it has a variety of foods for your wellness.
But first, it is essential to know more about the history, initial cost, additional costs, earning potential, franchise location, business model, operating expenses, and franchise fees, so let’s look below.
Smoothie King Franchises Inc.
Smoothie is a privately owned franchise company that provides consumers with a wide variety of smoothies made instantly, i.e., on the spot with fresh fruit, organic fruits, and nutritional boosters that will help achieve different fitness goals.
The food franchise was established in 1973 in Kenner, Louisiana, by Cindy and Steven Kuhnau. Today, the franchise has more than 1,300 stores throughout the United States and worldwide. Smoothies are trendy in the summer and all seasons; people often substitute them for a meal.
The franchise aims to create each smoothie with a purpose, making it enjoyable and simple so that consumers can achieve their individual goals healthily.
A blender can offer juice, natural fruit, dairy products, and yogurts. But Smoothie King makes a specialized product that is much more than a mix of “kurtas in a blender,” they offer a quality product and inspire their customer base to lead a more active and healthy lifestyle.
Why Is Smoothie King a Good Choice?
Because it is a brand of smoothies that focuses on health and wellness. In that respect, they have resources and experience that can help you grow and thrive in the smoothies industry.
The franchise has had incredible store sales growth over the past five years. The franchise doesn’t just want you to open your business. It wants to help you grow year after year.
It has more than 1300 franchised units. With this recognition, growth of the network, and business opportunity, you will be able to direct even more customers to your store so that you can get more output of products daily and a level of sales.
It has a simple operating system with a low entry cost. They simplify the business management process and offer a low cost of entry. There is a lot of commitment to get your business off to a good start.
Smoothie King Franchise Cost
You will need minimum liquidity of $300,000 and a net worth of at least $100,000 to meet this smoothie chain’s requirements. The franchise charges a flat fee is around $25,000 to $30,000. This all depends on the store model you choose, as the franchise can range in value from $269,550 to $845,985.
The new potential franchisees will undergo franchise training before opening their stores to be prepared for all service delivery, unit performance, marketing plan, management of products, market conditions, technology systems, customer service, and operations aspects. And if all requirements are met, a deal can be closed, and cooperation can begin.
- Initial investments: from $ 269,550 to $ 845,985
- Net cash: $ 100,000
- Net equity: $ 300,000
- Ongoing fees: 6%.
- Royalty fees for advertisements: 3%
It is good to remember that the initial investment amount will vary depending on the location you choose. It can be non-traditional locations with free-standing drive-thru locations. Thus, you can opt for a secure place and an area with an independent drive-thru.
Inline Location or End-Cap Locations
End-caps are located at the ends of a mall or Strip center, whereas inline spaces are not end-caps. Starbucks or restaurants usually get crowded, while Subways, beauty salons, and Domino’s are retail stores that use inline stores.
Generally speaking, an online location or an end-cap are cheaper alternatives because they are smaller locations, thus requiring less staff to operate and less equipment. These total costs are around $269,550 to $545,035.
Drive-Thru windows provide convenience and have suitable locations for an enclosure. Consumers can order their drinks, pay for them, and pick them up without leaving their vehicles. The only problem with this option is the upfront cost.
Because they do not have a larger space and that space is not part of a building, this drive-thru window costs a bit more, and the building rent. Stand-alone drive-thru locations have more square footage, so they have more expensive property values and significant investments. The total final values can be anywhere from $577,100 to $845,985.
The data above is from the Smoothie King Franchise Disclosure Document (FDD) 2020 – 2021. This data indicates an estimated value for opening a new franchise’s first three months.
Smoothie King Average Sales per Year
The franchise does not share data on its revenue per location. Still, we could make calculations based on an average revenue per store. The company generated $415.7 million in the year 2020 and has over 1,300 franchises around the world.
Doing our calculations, the resulting annual data averages over $300,000 per location. But remember that this is just an average, not the exact number.
Smoothies were voted number one in Entrepreneur’s annual Franchise 500 list. This shows that many people see the franchise as a great opportunity. For it features primary product offerings and an economical POS system for sales. What’s more, franchises help suppliers keep supply costs competitive.
Smoothie King was founded in 1973 by Steven Kuhnau. He wanted to find a way to alleviate his food allergies and also improve his overall health. So, Kuhnau started making his own blend of supplements, fresh fruits, and nutrients after investigating how he could alleviate his illness. When he changed his diet, Kuhnau’s health improved significantly. He wanted to invent his nutrient-rich drinks and offer them to the general public.
After the acquisition, the CEO of the franchise in Korea, Wan Kim, who shares Kuhnau’s passion for health, took over as CEO and business owner of the franchise too. Kuhnau remains the brand ambassador and consultant.
Smoothie King’s values are expensive because the smoothies are healthy and have delicious ingredients. So that’s one of the reasons why the price is higher. They include vitamins, ginseng, green tea, protein, and more products, such as energy bars with good nutritional values.
Support and Training
The franchise claims to offer an exceptional level of support for its franchisees. So when a new franchisee signs the contract, the company wants that franchisee to feel like a family member.
As they report on the official Smoothie King website, “Our processes, team members, and resources are aligned to provide the motivation, education, customer service, leasehold improvements, franchise business review, marketing efforts, and support to help you successfully open your new franchise, an authentic initial training programs.
Franchise Profit Per Year
According to Glassdoor, a Smoothie King franchise owner in 2020 earned an average salary of around $42,337 to $46,085. This is an estimated figure, so you may have different wages.
There is another speculation that says an owner’s average salary is around $100,000, much more than Glassdoor reported.
When becoming a Smoothie King franchisee, you must consider that several factors define profitability. These are labor costs, food costs, the demand for local products, miscellaneous fees, engineering services, cost of equipment, marketing spend, cost of products, rental expenses (which may vary by location), franchise agreement, and how well you manage the operations. In addition, the scope and value of the investment will significantly impact profits.
Therefore, getting a Smoothie King franchise has risks and advantages, just like any business. Consequently, evaluating all the possibilities to make the right choices is necessary. Smoothie King has its differential and is constantly testing new products and launching new ones to leverage its franchisees’ sales traffic, have team meetings, improve the menu, and meet all consumer needs.
With this article, we hope to have helped you in some way, to have informed you more about the franchise opportunity, and that your doubts may have been cleared up. So, if you want to get your new business, do an analysis and realize that Smoothie King is an excellent opportunity in the franchise business, be a visionary and embrace this opportunity, and remember that it is essential to be committed to the network and give your best as an owner.
Paul Martinez is the founder of EcomSidekick.com. He is an expert in the areas of finance, real estate, eCommerce, traffic and conversion.
Join him on EcomSidekick.com to learn how to improve your financial life and excel in these areas. Before starting this media site, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.