Smoothie King has been franchising since 1988, and it’s constantly expanding and looking for new investors to franchise the brand.
For investors, franchising is better than starting a new business because it’s a proven business model, a well-known brand, and a lower risk.
It’s easy to see why you’re considering a Smoothie King franchise.
It’s the world’s largest smoothie brand with over 1,350 locations. Not to mention, it’s been around since the ‘70s, so it already has an established name and a familiar logo.
Besides, lenders will be more willing to fund a franchise, and the franchisors will help with setup and operations, so it’s a joint effort.
Image source: Google
But how much does it cost to open a Smoothie King Franchise? Here’s everything you need to know:
Smoothie King Franchise Cost
To own a Smoothie King franchise, you have to meet the brand’s requirements first.
For starters, you need to have a net worth of at least $350,000 and liquid assets of at least $150,000. You should also have a minimum credit score of 700.
If you fulfill these requirements, you can open one Smoothie King store after paying $30,000 in franchise fees.
For an inline location or an end cap, you’ll have to pay an investment amount ranging from $311,601 to $638,465. Meanwhile, if you intend to open a drive-thru Smoothie King, you’ll pay a bit more in investment, going for a range of $762,400 to $1,379,150.
Your investment amount will typically vary according to the store size, location, labor cost in your area, and build-out expenses.
Your investment will include all these expenses:
- Franchise fee ($30,000 only paid once before opening)
- Furniture, equipment, and fixtures ($100,000–$130,000)
- Start-up supplies and inventory ($12,000—$16,000)
- Marketing campaigns for the grand opening
- First year’s premium for insurance ($3500—$7500)
- Technology systems ($9000–$12,000)
- Leasehold improvements ($120,000–$240,000)
- Three months’ rent
- Any additional funds for at least three months from the opening
Image source: Google
Aside from the investment expenses and the franchise fees, you’ll have some ongoing fees to pay.
Smoothie King Franchisees should pay an operating fee that makes up 6% of their gross sales, with a minimum of $500 per month. On top of that, they have to allocate at least 2% of their gross sales for marketing and ad campaigns.
Why Own a Smoothie King Franchise
Smoothie King is a well-established brand with locations all over the United States and the world. If you decide to own a franchise, you’ll have access to the brand name and reputation, which can take decades to build.
You’ll also get the support you need from the franchisor, including marketing, training, and operational support. You can’t get the same kind of support if you start an entirely new business.
On top of that, Smoothie King has a tried and true business model, so you won’t have to fuss over the supply chain, product offerings, or operating system.
Aside from the business management part, you’ll get access to products exclusive to Smoothie King, including special items and proprietary mixes. Because of that, you don’t have to create new products.
Image source: Google
Lastly, Smoothie King will help franchisees with training and expansion, so they can remain competitive and maintain their profits.
Should You Open a Smoothie King Franchise?
Opening a Smoothie King comes with a high initial investment, so it’s understandable why some business owners are afraid to venture into it. Depending on the location type, you’ll have to pay an investment fee anywhere from $300,000 to more than $1 million, and that’s aside from the ongoing fees you’ll have to pay later on.
Not to mention, Smoothie King has some strict requirements for franchisees like a minimum net worth and credit score.
Despite that, Smoothie King is in a pretty profitable business, and its established name will help you make profits fast after opening.
If the finances make sense to you, it wouldn’t hurt to seriously consider the franchise. It has a higher success rate than starting an entirely new business.
Featured image source: Google
