If you have been thinking about opening a Smoothie King but are unsure how much it will cost, you may want to consider the following costs listed below.
You can expect the cost of opening a Smoothie King to cost you an investment of at least a minimum of $269,550 to $845,985 and a net worth of at least $300,000. You will also need to have at least $100,000 in liquid cash requirements. You will need an initial franchise fee of $25,000 to $30,000. You will have a 6% royalty fee and a 3% advertising fee for a 10-year term of the agreement.
- How Much Does It Cost to Open a Smoothie King?
- How To Apply for a Franchise
- What Kind of Support Does Smoothie King Provide for Franchise Owners?
- What Can You Expect to Earn from a Franchise with Smoothie King?
- Who is the Target Customer for a Smoothie King?
- Does Smoothie King Have Any Help with Financing and Finding a Location?
- What is the History of Smoothie King?
- To Conclude
- Related Guides
How Much Does It Cost to Open a Smoothie King?
A couple of options will affect how much it will cost you to open a Smoothie King. For an endcap or in-line location, it will cost between $269,550 to $545,035. If you want a site with a drive-thru location, it will cost between $577,100 to $845,985 to open.
There is a $30,000 franchise fee, and you must have at least $100,000 years in cash investments. The royalty fees will cost a 6% fee. Plus, an additional 3% fee for advertising.
IF you agree to be an Area Development Agreement, you will owe an additional fee of $12,500 for each Smoothie King you commit to open. You will have a minimum of five businesses you agree to open under the agreement. That is an additional cost of at least $50,000 if you only open your original and commit to four different Smoothie Kings. The fee for development under an Area Development Agreement is non-refundable.
60% of Smoothie King owners own more than one unit. However, some franchises have absentee ownership. About 75% of the current Smoothie Kings are owners/operators, and about 25% are absentee owners of more than 900 locations worldwide.
|Type of Expenditure||Endcap or In-line Location||Drive-Thru Location|
|Initial Franchise Fee||$25,000 to $30,000||$25,000 to $30,000|
|3 Months Rental and Deposit||$3000 to $40,000||$3,000 to $40,000|
|Technology Systems||$9,000 to $16,500||$9,000 to $16,500|
|Grand Opening Marketing||$15,000 to $15,000||$15,000 to $15,000|
|Travel and Training Expenses||$2,700 to $6,000||$2,700 to $6,000|
|Insurance (1 year)||$3,500 to $7,500||$3,500 to $7,500|
|Other prepaid Expenses||$1,000 to $2,500||$14,700 to $29,400|
|Start-Up Supplies, Inventory||$19,000 to $23,000||$16,000 to $22,000|
|Furniture, Fixtures & Equipment Millwork and Graphics||$64,350 to $96,285||$64,000 to $96,300|
|Architectural & Engineering Professional Services||$3,500 to $14,500||$42,000 to $52,000|
|Signage||$7,000 to $14,000||$28,000 to $38,000|
|Lease Improvements||$100,000 to $215,000||$312,700 to $428,535|
|Legal, Accounting& Organizational Costs||$500 to $4,000||$500 to $4,000|
|Miscellaneous Costs||$1,000 to $5,000||$1,000 to $5,000|
|Drive Thur||$0 to $30,750||$25,000 to $30,750|
|Additional Funds- 3 Funds||$15,000 to $25,000||$15,000 to $25,000|
|Total||$269,550 to $545,035||$577,100 to $845,985|
This chart represents the minimal costs to maximum costs for each type of Smoothie King. The information in this chart was compiled from the Smoothie King Franchise Disclosure Document and represented the financial ranges for approximately three months of operation and initial opening costs (source).
How To Apply for a Franchise
Before you can apply for a franchise with Smoothie King, you must have a net worth of at least $300,000. You will need a credit score of at least 700 to qualify for a franchise.
You must check the location where you want to open a Smoothie King to see what costs are specific to your area. These costs include what the building will cost. Other real estate costs, equipment costs, signs, licenses, permits, Uniforms for your staff, insurance, and all additional costs listed above might fluctuate in your area.
Think about your relevant experience that might help you successfully run a Smoothie King. What prior business experience do you have? Have you ever run a business before? It helps to have broad business experience and marketing skills.
Look at the market in your area. What competitors will you have if you open a Smoothie King? If it looks like it will succeed, then you will need to fill out an initial online application and submit it to the franchise team at Smoothie King. Connect with a Franchise Development Manager to get any questions answered. Then fill out the franchise application. Be sure to review the Franchise Disclosure Document.
You will have background checks and other requirements to complete and then have a discovery day where you meet with the team in the home office in Dallas, Texas. You will be interviewed and then watch an in-depth presentation explaining the franchise opportunity. You will meet the team, including their executives. You will be able to visit locations and see how the front-end and back-end work.
Then if everything looks good, you receive your approval to open a Smoothie King. Then you will attend a one-day orientation class where they discuss the opening and running of your Smoothie King. Then you set up a meeting with their real estate department to start the process of finding a place for your location.
Next, you will have training when it gets closer to your store opening. You will need to hire a team of 10 to 15 people to staff your business.
Then, at last, have your grand opening, and at last, you are the owner of a Smoothie King Franchise.
What Kind of Support Does Smoothie King Provide for Franchise Owners?
Smoothie King provides franchise owners a newsletter with helpful information. They have meetings where you can learn how to make the most of your franchise. They have a toll-free line so that you can call them for free. They help with your grand opening.
They help with internet, security, and safety procedures. They have field evaluations to help you make changes that might help your business. They will train you on the field operations and provide purchasing cooperatives to get your inventory for your Smoothie King.
They have several support options as far as training goes. They offer between 56 and 114 hours of classroom training. They have an additional 44 to 110 hours of on-the-job training. They provide additional training for management at their corporate office designed especially for new store managers.
What Can You Expect to Earn from a Franchise with Smoothie King?
After rebranding the Smoothie King brand in the past few years, 25% of the top franchises for Smoothie King are averaging $793,456 or above each year.
However, Smoothie King does not make any predictions about what you will make from having a franchise with Smoothie King.
Who is the Target Customer for a Smoothie King?
The ideal customer for Smoothie King are millennials between the age of 16 to 35. However, we skew about 55 percent of our marketing toward women. We are a higher-priced premium product so we need customers who can come regularly and purchase our products.
Our locations are typically in areas where household incomes are average or higher. We try to target women who just started families, baby boomers, and well-established Americans.
Does Smoothie King Have Any Help with Financing and Finding a Location?
Smoothie King does not offer any financing, but some members have gotten loans through other Small Business Association or SBA sources.
Locations are typically between 800 and 1600 square feet and located in strip malls, airports, universities, shopping malls, and other high-traffic areas. Smoothie King has a real estate team that helps locate and approve new locations for new franchises.
What is the History of Smoothie King?
Smoothie King was established originally in 1973 after the founder, Steve Kuhnau, started experimenting with mixing fresh fruit, nutrients, and proteins to make a smoothie. He noticed it had a profound impact on his health and created the first Smoothie King from that experience.
Smoothie King launched its first franchise in 1989. There are now about 950 Smoothie King franchises located throughout the United States and around the world. They sell sports beverages, energy bars, and nutritious snacks. They also sell vitamin supplements, herbs, minerals, and many other nutritional products in their locations today. They use all-natural ingredients in their smoothies and other products. With the majority of people becoming more health-conscious these days, it makes Smoothie Kings very popular.
A Smoothie King franchise may require between $269,550 to $845,985 to start depending on whether you open an endcap or in-line store or a drive-thru store. You will need a credit score of at least 700, have a net worth of at least $300,000, and have at least $100,000 in liquid assets. You will need at least a $25,000 franchise fee.
You will pay a 6 percent fee to Smoothie King and a 3 percent fee for advertising. There are other costs you can owe if you agree to start more franchise locations in the future. The minimum is five, including your original store, and you will owe a $50,000 fee that is non-refundable.