Planet Smoothie Franchise Costs, Fees & Owner Salary (2023)

Planet Smoothie, established in 1995 in Atlanta, Georgia, has grown to become a significant player in the health and wellness industry, particularly in the smoothie market. This brand has consistently differentiated itself by focusing on great-tasting smoothies made from real fruit and high-quality ingredients, coupled with enthusiastic customer service.

In 2015, Planet Smoothie became part of the Kahala Brands™ family, which provided an even stronger support system aimed at product innovation and franchise expansion. The brand's mission is centered around enhancing the day of every guest with great-tasting products that celebrate health and happiness. Planet Smoothie's vision is to be the leading provider of great-tasting, good-for-you products served in an energized and enthusiastic environment.

Each Planet Smoothie store is independently owned and operated by a team of entrepreneurs, supported by Kahala Brands™, ensuring a standard of excellence across all locations. The franchise model offers a simple, easy-to-operate business that doesn't require prior food experience, making it an attractive option for individuals looking to enter the smoothie industry, which continues to show strong growth and consumer demand​​​​.

Initial Franchise Fee

The fee is $25,000, which is due upon execution of the franchise agreement.

Royalty Fee

A royalty fee of 5% of total Gross Sales is payable biweekly.

Advertising Fees

The advertising fees can go up to 5% of weekly Gross Sales. Additionally, 2% of Gross Sales are deposited into the national Advertising Fund. If a cooperative advertising association exists, an additional 1% of Gross Sales are deposited into the regional Advertising Fund.

Transfer Franchise Fee

A fee of $7,500 is payable when a franchisee wishes to complete a full transfer of the franchise agreement.

Renewal Franchise Fee

This fee is 50% of the then-current initial franchise fee, payable when renewing the franchise agreement.

Document Administration Fee

A fee of $500 is payable when an amendment to franchise documents must be prepared.

Grand Opening Marketing

An amount of $10,000 is payable prior to executing a lease for the premises or the start of the franchise business.

The franchisor has a comprehensive training program for franchisees and their staff which includes:

Training Program Overview

The training program at Planet Smoothie consists of In-Store Training and New Owner Training. The total training includes approximately 64 hours, comprising 24 hours of In-Store Training and 40 hours of New Owner Training. This program is designed to equip franchisees and their employees with the necessary skills and knowledge to operate their Planet Smoothie franchise successfully.

In-Store Training

This segment of the training is conducted at a designated training store and focuses on the practical aspects of running a Planet Smoothie franchise, including daily operations, customer service, and product preparation.

New Owner Training

The New Owner Training is more comprehensive, covering a range of topics necessary for franchise management. This training can be conducted online or in-person, depending on the franchisor's discretion. If held in-person, it takes place at the franchisor's training and education center in Scottsdale, Arizona, or another location specified by the franchisor.

Additional Training and Support

Planet Smoothie may offer additional training programs, refresher courses, and annual conferences to introduce new products, discuss sales and marketing techniques, and cover other relevant topics. Franchisees may be charged a nominal fee for these programs and are responsible for their transportation, food, lodging, and other expenses.

The Planet Smoothie franchise agreement does not grant franchisees any exclusive or protected territory for their restaurant.

Moreover, the franchisor retains the right to locate franchised or corporate-owned locations of food concepts similar to Planet Smoothie in the immediate vicinity of a franchisee's restaurant, including areas where similar food concepts owned by affiliates of the franchisor may already be open and operating.

This means that the franchisor may have the right to compete with franchisees within what would traditionally be considered their territory, indicating a lack of territory protection for franchisees​​.

The Planet Smoothie franchise agreement does not specifically require franchisees or their principals to personally participate in the direct operation of the franchise. However, the franchisor intends to select franchisees who plan to actively participate in the direct operation and daily affairs of the Planet Smoothie restaurant. 

The franchise must be personally managed with on-premises supervision and directly operated by the franchisee or another partner, shareholder, or member of the franchisee's business organization, or a manager who has successfully completed the Training Program. 

This indicates that while there may be some flexibility, the expectation is for franchisees to be actively involved in the management and operation of their franchise to some extent​​.