Smoothie King franchise

Hassle-free business loans to start your Smoothie King franchise.

Smoothie King is the healthy juice bar chain that grew big by selling iced fruit drinks full of vitamins and supplements. They operate more than 740 franchised locations across the US and over 1,350 stores worldwide.

Smoothie King business details

Founded in 1973 and headquartered in Coppell, Texas, Smoothie King sells handcrafted smoothies made with fresh fruit and organic vegetables; plus nutritional supplements blended to order using proprietary recipes. Stores also offer vitamins, herbs, minerals, and a myriad of supplements and snack items. Smoothie King claims to be the world’s largest smoothie retailer. They have offered franchise opportunities since 1988.

Smoothie King at a glance:

US stores: Approximately 740
Required Investor net worth: $350,000
Required investor liquid cash: $150,000
Min. FICO credit score: 700
Min. investment: $300,000
Max. investment: $1,267,000
Standard franchise term: 10 years

Can I start a Smoothie King franchise?

You’ll need a minimum net worth of $350k, liquid cash of $150k and a very good credit score to qualify for a Smoothie King franchise. If you can get past these obstacles, you could then spend $1.2 million or more to get your business off the ground – a cost that may have you reaching for the vitamins and supplements instead of selling them. Note that the company prefers franchisees with proven experience in retailing and/or hospitality and if you have a background in the health and fitness industry that would also help. The good news is that franchisees are not required to participate in the daily running of the store. You could operate your Smoothie King juice bar as a passive investment.

How much does a Smoothie King franchise cost?

Start-up costs for a Smoothie King franchise vary according to the location, size and type of store you open. Ranging from $300,000 to $1,267,000, the estimated investment may suit investors seeking a modest and affordable opportunity, or those with deep pockets who are looking for a full bells and whistles store. Set-up costs for Smoothie King franchises rank as moderate to very high.

Smoothie King offers two types of franchise:

Endcap or inline location – small locations that provide carry-out and delivery services only – similar to the food/drink stores found in the food at your local mall.
Free-standing/drive-thru location – larger, purpose-built premises that often have dedicated parking facilities and provide dine-in service as well as carry-out and delivery.

The initial franchise fee ranges from $25,000 to $30,000. Military veterans may be eligible for a 20% discount off this cost.

After opening, you are required to pay an array of ongoing fees and charges. They include:

Operating fee: 6% of gross sales or minimum of $500 per month
National advertising fee: 3% to 5% of gross sales
Regional advertising fee: 2% of gross sales
Local marketing requirement: A sum equal to 1% of annual gross sales
Grand opening advertising: $15,000
Interest on late payments: Annual rate of 18% or maximum rate allowed by law
Remodel costs: $25,000 every five years
Transfer fee: $7,500 to $12,500 plus $5,000 grand re-opening advertising fee
Securities offering fee: No more than $25,000
Design documents for new and relocated store: Up to $2,500 (non-refundable)
Relocation fee: Up to $2,500
Security and software fee: $290 to $350 per month
Failure to operate minimum days and hours: $200 per day

Estimated key costs to open a Smoothie King franchise:

Key Costs Guide	Low	High
Franchise fee	$25,000	$30,000
Three months’ rent and deposit	$5,000	$30,000
Technology systems	$9,100	$14,500
Grand opening marketing ($7,500 forend cap and inline units)	$15,000	$15,000
Travel and training expenses	$1,000	$6,000
Insurance – 12 months premium	$2,500	$7,500
Property improvements/construction	$145,000	$825,000
Architect/engineering services	$3,500	$50,000
Furniture, fixtures, equipment, millwork, graphics	$80,000	$130,000
Signage	$5,000	$38,000
Start-up inventory	$22,000	$23,500
Other prepaid expenses	$30,000	$72,000
Opening inventory and supplies	$1,000	$29,400
Legal, accounting, organizational costs	$500	$4,000
Drive-thru	$0	$33,750
Miscellaneous costs	$1,000	$5,000
Additional costs – first three months	$5,000	$25,000

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Are Smoothie King franchises profitable?

Yes. According to Smoothie King, average gross revenues for the top 25% of their franchised stores was almost $960,000 as of December 2023. High competition tends to keep profit margins slim in traditional fast food businesses, but healthy offerings typically sell at a premium and margins of 20% or even 30% may be possible. Using Smoothie King’s turnover figures and allowing for a 20% margin, franchise owners could achieve net profits of $192,000 per year. This ranks as very good.

What is the failure rate for a Smoothie King franchise?

The failure rate for a Smoothie King franchise is 3% in year one, rising to 8% by year three. This ranks as low to moderate.

What are the franchise territory policies for Smoothie King?

Franchisees can only operate a Smoothie King store from a location approved by the franchisor. Smoothie King may designate a geographic area solely to limit the area within which franchisees may seek a site for the unit. Until franchisees have secured a lease and a protected territory is designated, Smoothie King may establish franchised or company-owned Smoothie King businesses at any time in the same general area. Once the franchisee has secured the lease for a traditional location, the franchisor will not establish or operate a store, nor grant a franchise to any person other than the franchisee to establish or operate a Smoothie King store in the protected territory. The protected territory will be defined by identifiable boundaries and include a business, seasonal and/or residential population of approximately 15,000 people. If franchisees operate a Smoothie King from a non-traditional location, they will not receive a protected territory and will not have any protectable rights to an area or protected territory.

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What franchise resources does Smoothie King offer?

Smoothie King support for franchisees includes:

Training: Franchisees must attend Smoothie King’s orientation and pre-opening training program as soon as reasonably possible after signing the Franchise Agreement and before beginning their site selection. This program is mandatory and is held either at Smoothie King’s home office in Coppell, Texas, another location the franchisor designates, or virtually. The initial management training course is up to 20 days, averaging 8 hours per day plus additional homework assignments. The company also sends one Smoothie King representative to the store location, at no cost to the franchisee, for on-site training and assistance when the franchisee opens their unit. The length of time the representative is on-site may vary, but it is expected to be up to 5 days. The franchisor may periodically provide franchisees with advanced training in operating their store.
Marketing support: Smoothie King provides promotional and other marketing support for their franchisees.
Third-party financing: Smoothie King provides no financial support for investors seeking franchise funding. However, you may be able to obtain economical and flexible funding solutions from the many independent funders who provide business loans to franchise operators.

Why should you start a Smoothie King franchise?

Firstly, America’s love for all things smoothie is growing at an exponential rate – with the US smoothie market projected to rise from $4.04 billion in 2023 to $9.86 billion in 2033. That’s a compound growth rate of 9.4% per year. Secondly, Smoothie King have been #1 in Entrepreneur Magazine’s juice bar chain ranking for the past 20 years. Thirdly, the business delivers solid profits and an acceptable failure rate.

Overall, there’s not much to dislike about owning a Smoothie King franchise. If you can get past the high start-up costs and you like the idea of running a business with a mission to keep customers healthy, this opportunity might be the one for you.

What is the process for starting a Smoothie King franchise?

It begins with an application. Start the process here.

Secure franchise funding with Swoop

Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new juice bar business like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across the US. Just tell us what you need and leave the rest to us.

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Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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Franchise funding: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

Profitability: https://www.smoothiekingfranchise.com/

Smoothie King franchise application: https://www.smoothiekingfranchise.com/learn-more/

Smoothie King: https://www.smoothiekingfranchise.com/our-purpose/our-story/

Failure rate: https://www.vettedbiz.com/franchises/smoothie-king/

Set-up costs: https://www.franchisedirect.com/foodfranchises/smoothie-king-franchise-07083/ufoc/

Market growth: https://www.precedenceresearch.com/smoothies-market

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