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Description
Investment Icon

What is the Initial Investment for a Smoothie King Franchise?

To open a Smoothie King franchise, you will need to prepare for a significant initial investment, which ranges from $320,600 to $1,266,650. This includes a franchise fee of $30,000, along with other startup costs. Additionally, potential franchisees should have cash reserves between $320,600 and $648,465, and meet a net worth requirement of $1,000,000 to $5,000,000 to ensure financial stability as they begin their business journey.

Fees Icon

What are the Ongoing Fees Associated with a Smoothie King Franchise?

Smoothie King franchisees must be aware of ongoing fees that contribute to the brand's operational structure. A royalty fee of 6% is applied to gross sales, along with a marketing fee of 3%. These fees are essential for maintaining brand presence and support, allowing franchisees to benefit from collective advertising efforts and operational guidance.

Revenue Icon

What are the Expected Financial Returns for Smoothie King Franchisees?

On average, Smoothie King franchise units generate significant revenue, with an average annual revenue of approximately $661,316. The median revenue is slightly lower at $633,218, while the highest-performing units can reach up to $1,658,160 annually. This financial potential, combined with a breakeven timeframe of around 12 months and an investment payback period of 24 months, makes it an attractive option for aspiring entrepreneurs.

Breakeven Icon

How Many Smoothie King Franchises Are Currently Operating?

As of 2023, Smoothie King has seen steady growth in its franchise operations, with a total of 1,107 units across the United States. Of these, 1,048 are franchised units, while 59 are corporate-owned. This growth trajectory indicates a strong market presence and ongoing demand for the brand's offerings, providing a solid foundation for new franchisees looking to enter the industry.

Smoothie King Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$1,000,000 - $5,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

24 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$30,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

6%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

3%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$320,600 - $1,266,650
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$320,600 - $648,465
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$661,316
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$633,218
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,658,160
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$169,008
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Restaurant Franchises
Category icon A more specific division within the broader industry.

i Category:

Quick-Service Restaurants
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Wan Kim
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

9797 Rombauer Rd., #150, Dallas, Texas 75019
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

1997
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Smoothie King Franchises Inc.

Smoothie King Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

1107
The number of locations owned by independent franchisees.

Franchised Units i

1048
The number of locations owned and run by the franchisor.

Corporate Units i

59
Units 2021 2022 2023
Total Units 1024 1050 1107
Net Change YoY 26 57
Franchised Units 968 995 1048
Net Change YoY 27 53
Corporate Units 56 55 59
Net Change YoY -1 4
Investment About

Initial Investment

The Smoothie King franchise requires a significant financial commitment, with initial investment costs ranging from $320,600 to $1,266,650. This includes a franchise fee of $30,000, ensuring that franchisees are well-equipped to launch their business with brand support and resources.

Potential About

Financial Performance

Smoothie King units boast an average annual revenue of approximately $661,316, with a median revenue of $633,218. This strong financial performance indicates a lucrative opportunity for franchisees, who can expect a breakeven point within 12 months and an investment payback period of about 24 months.

Metrics About

Royalty and Marketing Fees

Franchisees are required to pay a royalty fee of 6% of gross sales, along with a marketing fee of 3%. These fees contribute to the overall brand strength and marketing efforts that drive customer traffic to each location, helping franchisees maintain competitiveness in the market.

Fees About

Franchise Growth

The Smoothie King franchise has shown consistent growth, with franchised units increasing from 968 in 2021 to 1,048 in 2023. This upward trend reflects the brand's popularity and expanding market presence, making it an appealing choice for aspiring franchisees.

Breakeven About

Operational Structure

Smoothie King operates a mix of franchised and corporate-owned units, with 59 corporate locations in 2023. This structure allows for a blend of franchisee autonomy and corporate support, ensuring that franchisees benefit from established operational practices while having the freedom to run their businesses.

Units About

Average Expenses

Franchisees can expect average annual operating expenses of around $70,532, which includes costs such as general and administrative expenses, insurance, and marketing. Understanding these expenses is crucial for managing profitability and ensuring the financial health of the franchise unit.

Frequently Asked Questions

The initial investment for a Smoothie King franchise ranges from $320,600 to $1,266,650, which includes the franchise fee, equipment, and other startup costs.