Initial Investment
Requirements

The following costs are excerpted from Smoothie King's Franchise Disclosure Document (FDD) and are estimated. Each Smoothie King franchisee has the right to initially develop one store for the franchise fee of $30,000. The difference between low and high investment levels exists due to varying store sizes, build out costs and expenses.

The financial requirement to open a Smoothie King in the United States:

  • Investment Range: $144,400 to $336,200 (includes $30,000 franchise fee)
  • Minimum Net Worth: $284,000 per location
  • Minimum Liquidity: $95,000 per location
  • Royalty Fee: 6% of monthly gross sales
  • National Marketing Fee: 2% of monthly gross sales



Initial Investment Low High
Initial Franchise Fee $20,000 $30,000
Three Month's Rental Deposit $6,000 $18,000
Technology Systems $11,500 $23,750
Grand Opening Marketing $2,500 $2,500
Travel and Training Expenses $2,700 $4,200
Insurance (First Year's Premium) $1,500 $5,000
Other Prepaid Expenses $1,000 $2,500
Start-up supplies, inventory $7,000 $14,000
Equipment, Millwork, Fixtures/Signage and Graphics $57,350 $112,850
Leasehold Improvements $50,250 $130,750
Legal, Accounting & Organizational Costs $500 $4,000
Miscellaneous Costs $1,000 $5,000
Drive-thru $0 $26,000
Additional Funds- 3 Months $15,000 $25,000
Total $176,300 $403,550

Note:
The above costs are estimates only and will vary by location. Additional development costs may be incurred if you are engaged in developing multiple locations at the same time. Prepaid expenses include grand opening expenses, travel/training, legal/accounting, insurance, permits and deposits.

Earning Potential

It's not our policy to make statements about how much any new Franchisee may earn. Obviously there are just way too many variables to make any sort of claim like that, However, we can point out that smoothie business is a growing $2 billion industry. We can also tell you that our average unit volume is over $360K, with 4 years of Single Store Sales growth! Plus, the average revenue of top 25% of stores is over $542K!

So, you can see there's great potential for you, if you really put your heart into your Smoothie King franchise.



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