Looking for a business to franchise? Why don’t you try Smoothie King? This company offers the first ever freshly blended, nutritional fruit smoothies. Smoothie King also offers healthy sports beverages, healthy snacks, energy bars, herbs, minerals, vitamin supplements, and other sport nutrition products. This type of business will surely immediately become a hit since people nowadays are getting conscious about their health. Another thing that you should also consider is that Smoothie King is already known to people around the world. But first of all, how much does Smoothie King Franchise Cost?
Average Smoothie King Franchise Startup Cost
Franchising Smoothie King will allow you to retain a business that sells smoothies and nutritious drinks. And not just drinks, Smoothie King also offers nutritional products in general. You will be given a chance to sell their original smoothies that consist of natural and real fruits blended together, pure fruit juice, and pure vegetable and fruit purees. These natural ingredients will be combined with nutritional supplements and any other meal replacement that is customized personal order. Smoothie King also sells nutritional retail merchandise such as minerals and vitamins, herbs, healthy snacks, and much more.
So how much does Smoothie King Franchise Cost? Before you can franchise one, you are required to qualify the criteria set by the company. For Smoothie King, their financial requirements are:
- You should have at least $300,000 net worth to open 1 Smoothie King store and,
- You should have at least $100,000 liquid asset to open 1 Smoothie King store.
If you qualify all of the given criteria, the next thing you will need is the initial investment. According to Smoothie King itself, the total Smoothie King franchise cost will run around $188,000 up to $414,000. And as usual, the total cost depends on many factors. Here is the breakdown of the total cost:
- All of the factors in the list will have to types – the lower end and the higher end. This is because of the different factors that can affect it such as labor, store location, the size of the store, build out expenses, and your management experience in developing your business.
- Initial Fee – This is the first cost factor that you will have to consider. Smoothie King franchise startup cost is around $20,000 up to $30,000. If it is your first time to franchise Smoothie King, the company will charge you $30,000 for each unit. You can have at least 3 units. The cost will be at least $25,000 each unit if you have already 3 units still operating and you want to add more. The cost will be $20,000 if you already have 6 units and still want to purchase more.
- Rental or Real Estate – Smoothie King stores are typically located at shopping centers that are placed within crowded shopping areas. The typical situation of this is that you will have to rent a location in a shopping center and renovate it up to the current design of typical Smoothie King stores. The size should be at least 800 square feet up to 1,600 square feet. And the typical rental rate for this size runs around $2,000 on the lower end and up to $5,000 per month on the higher end.
- Operational Systems – This includes the cost of installing internal data lines and telephone, music system installation, computer equipment, computer hardware and software, installation of P.O.S systems, and other technology equipment setup. Expect to spend around $10,000 on the lower end and $13,000 on the higher end.
- Training – As soon as you sign the Franchise Agreement, you will be required to attend their orientation and training program. This is mandatory and can’t be avoided. The training will be held at their headquarters which is in Metairie, Louisiana. The training program usually takes up to 11 days with an average of 8 hours per day. The training normally includes blending training, hiring of personnel training, inventory management, consultation, reporting management, and much more. Expect to spend around $2,700 on the lower end and $4,200 on the higher end. And the price includes meals, travel, and lodging expenses.
- Insurance – Before you can operate your business, you will be required to have property, liability, and other insurance. This is required by the law and in your franchise agreement. The cost of a 1-year premium insurance runs around $1,500 on the lower end and $5,000 on the higher end.
- Utility and Additional Expenses – The cost for utility deposits such as telephone line plus licenses and health permits can run around $1,000 on the lower end and $2,500 on the higher end.
- Initial Inventory and Supplies – You will also be required to purchase the startup supplies and inventory for the opening of your business. This includes the ingredients of the smoothies, paper products, supplies for cleaning, and much more. Expect to spend around $16,000 on the lower end and $22,000 on the higher end.
- Fixtures and Furniture – Internal building design such as furniture and fixtures will cost you around $58,000 on the lower end and $90,000 on the higher end.
- Leasehold Improvements – This is probably the biggest cost you will have to spend. Leasehold improvements include any alterations and specifications needed for the building specifications and it typically involves building permits, carpentry, painting, tile, ceilings, plumbing, electrical, HVAC, and much more. Expect to spend around $45,000 on the higher end and $137,000 on the lower end.
- Operational Fund (worth 3 months) – $15,000 up to $25,000
After paying the Smoothie King franchise startup fee, you will have to pay the additional expenses during your business operation. This includes the royalty fee which is equivalent to 4 percent up to 6 percent of your Gross sales. You will also be required to pay their National Marketing fee which is equivalent to 2 percent of your gross sales.
Another cost that is not included in the breakdown list is the Drive-Thru. If you want to include a Drive-Thru in your store, expect to spend around $26,000.