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 Franchise Fee||$20,000||$30,000|
|Three Month's Rental Deposit||$6,000||$18,000|
|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|
|Legal, Accounting & Organizational Costs||$500||$4,000|
|Additional Funds- 3 Months||$15,000||$25,000|
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.
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.