How Much Does A Franchise Owner At Smoothie King Make
Franchise Owner salaries at Smoothie King can range from $44,117-$48,416. This estimate is based upon 1 Smoothie King Franchise Owner salary report provided by employees or estimated based upon statistical methods. See all Franchise Owner salaries to learn how this stacks up in the market.
How does this pay data of $44,117 – $48,416 look to you? Your input helps Glassdoor refine our pay estimates over time.
How Much Is The Smoothie King Franchise Fee
Smoothie King has two different types of franchises, each with different fees: traditional and non-traditional.
Traditional locations are usually set up in strip centers, drive-thru locations, or other commercial shopping centers, places where the general public have ready access to the site. Operators of a traditional location receive a protected territory, preventing other outlets of the franchise from setting up close by.
Non-traditional locations are those relying on one main business or organization for customers, sometimes set up within that organizations property, and normally with limited access to the general public. This covers locations like enclosed shopping malls, convention centers, airports, movie theaters, health clubs, hospitals, college campuses, military bases, and grocery stores. It provides a captive market but doesnt come with a protected territory .
The initial franchise fee is $30,000 for a traditional store or $15,000 for a non-traditional store. The fee for a traditional store may be discounted to $25,000 when setting up additional stores after the first .
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Is It True That Smoothie King Uses Milk In Its Smoothies
Smoothie King is the only franchise in the world to provide a dairy-free milk option, and this is the first time this has happened. Recognizing the growing popularity of non-dairy milk alternatives, almond milk is not only used as an ingredient in this new smoothie, but it is also offered as an optional addition in any other smoothie the business sells.
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Average Unit Net Sales Percentage Increase
|Comparison Year||Average percentage increase||Number / Percentage of Units that Met or Exceeded Average Percentage Increase||Median Percentage Increase|
Another important metric to look at is the increase in net sales percentage increase. The following table shows how net sales numbers have increased from the previous fiscal year.
From 2019 to 2020, same-store net sales increased by 2.46%. For almost the past decade, same-store sales have increased, although there was a lag in growth in the years 2017-2018. However, growth has been revitalized since then and the increase in same store net sales has been growing steadily.
Overall, these numbers show that Smoothie King is a financially stable and significantly profitableWhen the earnings in a given period of time is more than the expenses in a business. franchise concept.
Smoothie King Franchise Disclosure Document
Carefully read the Smoothie King Franchise DisclosureDocument . They can be intimidating.
As you are reviewing Smoothie Kings Franchise Disclosure Document you will have a number of calls with Smoothie Kings franchise team before you will be allowed to call Smoothie King franchisees.
When you are allowed to call Smoothie King franchisees make sure you speak to at least five to eight franchisees. You will find that most Smoothie King franchisees will be honest and unbiased about Smoothie King. If you would like more information on how to dissect a Smoothie King FDD consider the following resources:
- The Educated Franchisee Chapter 8 ‘ Dissecting the Franchise Disclosure Document’ –
- The FDD Exchange – Franchise Disclosure Document Checklist’ –
- PodCast with Franchise Attorney Nancy Lanard ‘What to look for in a Franchise Disclosure Document’ –
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How Much Do Smoothie King Franchisees Make
The following chart shows the average net sales of Smoothie King Units from the latest fiscal year .
The vast majority of Smoothie King franchisees, or the top 75% made $593,329 in net sales over one year.
Given the estimated initial investmentThe amount of funds necessary to begin operations of a business or franchise including the first three months of operation. of a Smoothie King franchise can be as high as $858,000, it is important to invest less money to start a location. If you invest $500,000+ to start a Smoothie King location, it could take you 5+ years to recuperate your initial investment.
The least amount of expected sales that a Smoothie King franchise owner could make, according to the bottom 10% of units, is $247,246.
How To Buy A Smoothie King Franchise In The United States
A Smoothie King franchise offers several advantages to new business owners, including a successful business model and national branding as a company that sells healthy products. Additionally, they sell the products and supplies to franchisees without any mark-up. This helps you to increase profits. If you are interested in investing, below are steps to follow:
Blend your enjoyment of delicious smoothies with your business savvy and consider buying a Smoothie King franchise. The company has been in business since 1973, starting as a vitamin shop, and currently ranks as one of the top franchises in the country.
When franchisees invest in Smoothie King, theyre not only investing in themselves and the business, theyre helping each guest invest in their well being. Anyone can toss fruit, vegetables, yogurt and dairy into a blender. But the Smoothie brand creates specialized smoothies expertly blended for guests specific needs, purpose and goals which has been the companies purpose from the very start.
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Top Smoothie Franchises: Is The Investment Worth The Costs
If you are an entrepreneur with an appetite for success, jumping into the health and wellness food industry may feed that hunger. The industry is experiencing tremendous growth and is currently valued at more than $800 billion. The trends indicate that healthy bowls and smoothies are thriving.
If youd like to be a part of this burgeoning industry, partnering with an established franchise is the less risky venture as a business owner. Your investment will allow you to set up your smoothie shop by partnering with a brand with a proven business model, giving you the necessary training to succeed. In addition, you have the advantage of working with a familiar brand, with name recognition to help build your customer base.
What to Look for Before Deciding on a Franchise
Before you invest, compare prices and determine the best brand that fits your lifestyle and your budget. While you may feel certain smoothie franchise costs appear expensive, the determining factor is your ROI. In other words, is your overall investment worth the cost. You should also determine what those costs are actually purchasing. Find out if the franchise fully equips franchisees with the know-how to operate a successful shop. Look at the franchise training and on-going support.
If you are interested in partnering with a big named smoothie franchise like Smoothie King, Tropical Smoothie Café or Robeks, you may learn that a smaller, growing, healthy food franchise like SoBol is a better buy.
Smoothie King Franchise Cost Profit And More
Smoothie King primarily sells custom blend smoothies and other related nutritional products in order to propel active and healthy lifestyles. The franchiseA franchise is when a business allows a party to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business model, brand and rights to sell its products and services. The franchisee signs a contract with the franchisor to acquire the franchise and generally has a territory granted to operate. What is a Franchise?More concept was founded in 1973 by Stephen C. Kuhnau under the name Smoothies with a Purpose. Its first juice bar franchise opened in 1989 in New Orleans, Louisiana. Smoothie King Co. is currently headquartered in Dallas, Texas. The current CEO of Smoothie King is Sung-Wan Kim. He was formerly the President and Chief Executive Officer of Smoothie King Holdings Inc.
Smoothie King FranchiseA franchise is when a business allows a party to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business model, brand and rights to sell its products and services. The franchisee signs a contract with the franchisor to acquire the franchise and generally has a territory granted to operate. What is a Franchise?More Cost
End-Cap or In-Line Location
The initial franchise fee ranges from $25,000 to $30,000. The fee is $15,000 for a non-traditional location.
Free Standing Drive-thru Location
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Is Owning A Franchise A Good Investment
The franchise concept could be a good choice for someone who wants to start a business, but does not have an idea to build from scratch, and has the resources to make it work. The franchise costs should be your main concern, as well as whether you will receive support from the corporate headquarters.
Smoothie King Franchise Facts
Fitness & Gyms
Smoothie King was started in 1973 by Steve Kuhnau, who was looking for ways to alleviate his food allergies and enhance his general health. Kuhnau turned to blend his own mix of supplements, nutrients, and fresh fruit after exploring many approaches to alleviate his ailment. After changing his diet, Kuhnaus health improved significantly and was inspired to promote nutrient-rich drinks to the general public.
In 1989, Kuhnau opened the first Smoothie King shop in Kenner, Louisiana, and franchising officially began. Kuhnau swiftly and successfully extended the company throughout the United States, driven by his enthusiasm for sharing healthy eating.
In 2003, to commemorate Smoothie Kings 30th anniversary, the company opened their first foreign outlet in South Korea. Almost a decade later, Kuhnau sold Smoothie King to SK USA, Inc., the same firm that established the first Smoothie King outlet in South Korea in 2003.
After the acquisition, Smoothies Korea CEO Wan Kim who shares Kuhnaus passion for spreading excellent health, took over as CEO of Smoothie King. Steve Kuhnau remains with the Smoothie King company as a consultant and brand ambassador, spreading his love for health and wellness.
Not Sure What Franchise to Start? Take Our 7-Minute Franchise Business Quiz!
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How Much Profit Does A Franchisee Of Smoothie King Make Per Year
Smoothie King outdoor shop.
According to Glassdoor, a Smoothie King franchise owners average salary in 2020 would be $42,337 $46,085. This figure is a reported average, thus there could be a wide range of salaries. From an ownership perspective, it can also be advantageous from a tax perspective to earn less annually. We have to rely on what other franchise owners report making because Smoothie King does not post any form of expected franchise owner payment.
I suspect the real average revenue of an owner per unit is around $100,000 and not whats being reported on Glassdoor. Its hard to believe that this franchise would still be in business of ownership made less than $50,000 in annual profit.
As a Smoothie King franchisee, your profitability is determined by a number of factors. Food costs, labor costs, commercial lease rates in your area , local product demand, and how well you manage your operations are some of these aspects. In addition, the amount and scope of your investment will also have a big impact on profit.
A Statement Of Average Net Sales For 2019 2018 2017 2016 2015 And 2014
- The six tables below provide information on average Net Sales of Units during each of the 12-month periods starting January 1, 2019 and ending December 30, 2019 January 1, 2018 and ending December 31, 2018 January 1, 2017 and ending December 31, 2017 starting January 1, 2016 and ending December 31, 2016 starting January 1, 2015 and ending December 31, 2015 and starting January 1, 2014 and ending December 31, 2014.
- The term Net Sales is defined as all products and services sold in or from the Unit, including off premises catering and delivery, but excluding excise or sales taxes, as well as returns, allowances, and discounts.
- The data below is a representation of average Net Sales for Units broken into nine segments: top 10%, top 25%, top 50%, top 75%, bottom 10%, bottom 25%, bottom 50%, bottom 75%, and total/all.
- Net Sales information is provided on Units open for the consecutive 13-month period ending on December 30, 2019, and on December 31st for all other years presented, including those Units closed for a period of less than 8 weeks for remodeling purposes.
- Units presented exclude those Units not scheduled to be open daily throughout the period , such as Units within office buildings that close for the weekend and Units on college campuses that close for the summer period.
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Store Closure Due To Racist Remarks On The Receipts
Two store locations of Smoothie King in Charlotte, N.C., were closed in 2019 after racist remarks were allegedly added to the receipt of customers. It was a disrespectful experience for the customers who received it, and they found it entirely inappropriate to use such language. Again, such incidents are wrong for a brands ethical image in society.
Ongoing Costs And Fees
There are several ongoing fees associated with a Smoothie King franchise. The first is an operating fee, which is 6% of gross salesThe total amount in dollars made in the business before expenses are deducted. See also Gross Revenue. or a monthly minimum fee of $500, paid on a monthly basis.
There are also several advertising and marketing fees that come with running a Smoothie King franchise. The first is a national marketing fee, which is currently 3% of gross sales. There is also a regional marketing fee, which is not to exceed 2% of gross sales.
The local marketing requirement is a minimum of 2% of gross sales. Finally, the last marketing payment is the grand opening advertising payment, which is a minimum of $15,000 for all new units and a minimum of $10,000 for relocated units.
Reasons Why Not To Buy Smoothie King Franchise
Smoothie King Franchises, Inc., the first smoothie franchise in the United States, is a privately held franchise company based in Dallas. Smoothie King, founded in 1973, has developed into a lifestyle company just like todays innovative and everyones favorite Brooklyn Dumpling or Slapfish Shack Franchise that encourages people to maintain active and healthy lifestyles through great-tasting and nutritious food items.
A trend of healthy lifestyles has many people excited for the future. Its promising news for Smoothie King, which will open 32 stores in the next few years. At the same time, Smoothie King franchise owners are facing an alarming 28% SBA default rate, which is a difficult situation.
We strongly recommend our investors to have a quick overview of unparallel healthy menu Greek franchises or revolutionary sandwich franchises that are making their steady space in the U.S. market. We compare their growth potential to other types of franchises that have been around for longer, use the same proven operating model, and offer more training.
For a more secure return on investment, you can also find out more about franchises that have won awards and can grow in multi-folds.
Three Smoothie King Franchises For Sale With Sales Of $15 Million
Buying Smoothie King franchises for sale like these is an instant path to earnings. Sales of $854,706 in the FIRST 6 months of 2018!Smoothie King franchises for saleWe Sell RestaurantsThis is an exclusive listing of We Sell Restaurants who is the rightful owner of all intellectual property associated with this website. This may not be duplicated without the express permission of We Sell Restaurants. We Sell Restaurants is a federally registered trademark.
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Financial Requirements Of Opening A Smoothie King Franchise
According to Smoothie King FDD, here are major fees to expect when acquiring this franchise. However, note that all fees are payable to Smoothie King and apply to the Franchise Agreement. The fees are non refundable. Occasionally, Smoothie King waives or reduces certain one time fees, otherwise the fees are uniformly imposed unless otherwise noted.
Also note that during the term of the Franchise Agreement, Smoothie King may offer optional services not presently contemplated for which Smoothie King may charge a fee. All fees apply to both Traditional and Non Traditional locations unless otherwise noted.
Make A Lasting Impact On Your Community
Are you looking for an exciting business opportunity that will allow you to work for yourself while helping people live healthier lifestyles? Welcome to Smoothie King! We are theworlds largest smoothie brand and offer an exciting franchise opportunity for you.
As a Smoothie King franchise owner, youll have access to:
World-class training and support
Comprehensive marketing services
A business model thatâs been tested and perfected for over 48+ years
And a proven record of success from top rankings on Entrepreneur Magazineâs Franchise 500 list for over 28 years
If youre ready to make a difference in your life and your community,join our movement to Rule The DayÂ® and start ruling your future!
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How To Buy A Smoothie King Franchise
Blend your enjoyment of delicious smoothies with your business savvy and consider buying a Smoothie King franchise. The company has been in business since 1973, starting as a vitamin shop, and currently ranks as one of the top franchises in the country. A Smoothie King franchise offers several advantages to new business owners, including a successful business model and national branding as a company that sells healthy products. Additionally, they sell the products and supplies to franchisees without any mark-up. This helps you to increase your Smoothie King franchise revenue and profits.