What are the
Initial franchise fee
Initial Franchise Fee ($30,000 - $15,000)
The initial franchise fee for a Smoothie King franchise is $30,000 for the first unit. However, if you already have one unit open and operating, and wish to purchase more units under new franchise agreements, the initial franchise fee is reduced to $25,000 for the second and all subsequent units, provided you are in good standing and meet the qualifications. For non-traditional locations, the initial franchise fee is set at $15,000.
Royalty Fee (6% of Monthly Gross Sales or $500)
Upon the opening of your unit, and no later than 12 months from the effective date of the franchise agreement, you must pay an Operating Fee equal to the greater of $500 each calendar month or 6% of monthly Gross Sales.
- National Marketing Fee: Up to 5% of Gross Sales.
- Regional Marketing Fund Fee: Up to 2% of Gross Sales.
- Local Marketing Fee: A minimum of 2% of Gross Sales.
- Grand Opening Amount: $15,000 for new traditional units, $7,500 for non-traditional units.
- Design Fees: Up to $2,500 for design fees for your unit premises.
- Training Fees: If more than two people attend the initial training program, a fee of up to $1,500 per person is charged.
- Transfer Fee: $7,500 (Transfer to Existing Franchisee or Manager) or $12,500 (Transfer to a third party).
- Relocation Fee: $2,500.
How much does
to start a
Starting a Smoothie King franchise requires a substantial investment, with the total estimated initial investment ranging from $311,601 to $1,379,150.
This investment can vary based on a multitude of factors including the location, size, and the specific type of the franchise unit.
The following table provides a detailed breakdown of the estimated initial investment costs associated with starting a free-standing drive-thruSmoothie King franchise, offering a clear insight into the financial commitment required:
Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.
Smoothie King emphasizes a comprehensive training approach to ensure its franchisees are well-prepared to operate their franchises effectively.
Before commencing operations, franchisees, especially those opening their first, second, or third unit, are required to attend and satisfactorily complete the initial franchise management training program.
This program is offered either at a designated site by Smoothie King or, at the company's discretion, virtually.
For those opening their first unit or if the unit is among the first 3 operated by the franchisee or a related entity, all designated managers or other employees actively involved in managing the franchised business must attend and complete this initial training.
Franchisees are granted the limited right to operate a Smoothie King Restaurant within a specific geographic area termed the "Territory" as outlined in the Area Development Agreement. Within this Territory, they are obligated to develop Franchised Restaurants. The boundaries of the Protected Territory are defined by identifiable factors such as population criteria, street or walk-by traffic patterns, and natural geographic features. However, this Territory does not guarantee exclusivity.
Furthermore, if franchisees operate 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. It's also important to note that franchisees may face competition from other franchisees, outlets Smoothie King owns, or other channels of distribution or competitive brands controlled by Smoothie King.
be run as
While a franchisee does not have to conduct on-premises supervision or personally participate in the direct operation of the Unit, it is recommended that they are actively involved in the operation of the Smoothie King franchise as personal participation may enhance the likelihood of operating successfully.
The franchise must at all times be under the direct, full-time, on-location supervision of either the franchisee or a trained and competent employee acting as a full-time manager.
If a franchisee (or their affiliates) operates 4 or more Units, they must also have a district manager that oversees the operation of the Units. If the franchisee is a business entity, Smoothie King does not require that the manager(s) have an ownership interest in the business entity.