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 labor, location of the store, varying store sizes, build out costs and expenses, and your experience and management of the development of the store.

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

  • Investment Range: $188,200 to $414,050 (includes $30,000 franchise fee)
  • Minimum Net Worth (1 Store): $300,000
  • Minimum Liquidity (1 Store): $100,000
  • Royalty Fee: 6% of monthly gross sales ($500 minimum per month)
  • National Marketing Fee: Currently 2% of monthly gross sales



Type of Expenditures Low High
Initial Franchise Fee $20,000 $30,000
Three Months' Rental & Deposit $6,000 $18,000
Technology Systems $10,000 $13,500
Grand Opening Marketing $5,000 $5,000
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 $16,000 $22,000
Furniture, Fixtures & Equipment, Millwork and Graphics $58,000 $90,000
Architectural & Engineering Professional Services $3,500 $14,500
Signage $3,000 $12,000
Leasehold Improvements $45,000 $137,350
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 $188,200 $414,050

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. Please refer to the Smoothie King FDD with an issuance date of April 29, 2016; as amended May 11, 2016 for additional information

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