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.
What It Takes To Own A Leading Smoothie Franchise
The following costs are excerpted from Smoothie King’s Franchise Disclosure Document and are estimated. Each Smoothie King franchise owner 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, varying store sizes, build-out costs and expenses, and your experience and management of the stores development.
Below are the financial requirements to open a Smoothie King in the United States:
- Investment Range:
- Endcap or inline location: $268,900 – $555,965
- Free-standing Drive-thru location: $589,300 – $858,900
The Smoothie King Purpose
Smoothie King Franchises, Inc., is a privately held, Dallas-area-based franchise company with nearly 1,300 units worldwide. By creating each Smoothie with a “purpose”, Smoothie King makes it simple and pleasurable for guests to achieve their individual health goals. Our stores offer a number of healthier retail products in addition to our delicious smoothies, including sports beverages, energy bars, vitamin supplements, and more.
Fruit, juice, yogurt, and dairy are all commodities that anyone with a blender can provide. Only Smoothie King creates specialized Smoothies that are expertly blended with more than “just fruit in a blender” for specific needs, goals, and ambitions to inspire our guests to live a healthy and active lifestyle each and every day.
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Is The Smoothie King Franchise Right For You
A man drinking a smoothie king blend to refresh!
Now that youve learned everything there is to know about launching a Smoothie King franchise, its time to evaluate whether or not this restaurant is suitable for you. In order to do so, you can ask yourself the following questions:
- Do you have a passion for the brand? Undoubtedly, one of the most important characteristics of any great entrepreneur is passion. Success in this franchise, or any other type of business, necessitates this. As a franchise owner, you will inevitably face difficulties. Entrepreneurs that are passionate about their business are more likely to overcome obstacles and go forward because passion is the fuel that keeps you moving when you would otherwise be stagnant or give up.
- Do you have an entrepreneurial spirit and experience in sales, marketing, restaurant, and/or retail? According to their franchise candidate requirements, although restaurant experience is not really required, it is more ideal if the candidate has an entrepreneurial spirit as well as experience in sales, marketing, restaurant, and/or retail.
To determine whether Smoothie King is the best business opportunity for you, you must first examine yourself to determine whether you can completely commit to the franchisors requirements.
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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How Much Money Can I Make
Since the actual results of individual franchises are based on factors that are not within the control of Smoothie King, we do not provide estimates of profits or revenues. However, after consulting with a Smoothie King Franchise Development Manager and reviewing the Franchise Disclosure Document , you will have the opportunity to contact our existing franchisees regarding their experiences. Review theUnit Performance page for some additional insight.
How Much Can I Make With A Smoothie King Franchise
Smoothie King was ranked no. 1 on Entrepreneurs annual Franchise 500 list, so many people clearly regard it as a lucrative franchising opportunity. They have a simple core product offering and a cost-effective POS system for making sales. Franchises also partner with vendors to keep supply costs competitive and prices affordable.
Smoothie King does not publish official data about per-location revenues, but we can do a bit of math to figure out the average revenue per store. In 2020, Smoothie King managed to generate approximately $415.7 million. Smoothie King currently operates 1,195 shops worldwide, so doing the math, that comes out to an average annual revenue of about $347,866 per store.
That number is just a simple average though and may not accurately represent the total potential revenue for a particular location. According to Smoothie King corporate, the top 25% of locations in sales produce an average annual gross revenue of $793.459.
Smoothie King locations also tend to produce more revenue each progressive year. Same-store sales increases were an average of about 5%. It is true that store sales have faltered a bit in the past 4 years, but locations have shown consistent sales growth for the past 7 years straight.
All that is well and good, but how much can you, personally, expect to make from owning a Smoothie King franchise?
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How Much Does Smoothie King Franchise Cost
Looking for a business to franchise? Why dont 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?
Smoothie King Franchise Fee Revenue And Profit Margin
Smoothie King is a private Franchise Company and it has established itself as the premier Smoothie Bar Centre in the industry. The company offers its customers the finest and original nutrient-rich fruits and freshly blended smoothies.
They are not only involved in the sales of smoothies, each of their Lifestyle Centre offers healthy retail products to their numerous customers such as healthy snacks, energy bars, vitamin supplements, minerals, herbs, and sports nutrition products.
The company has since 1989 being named the top smoothie franchise company for 16 different years. You can now understand why you want to know how much is a Smoothie King Franchise?
ABOUT THE COMPANY
At a time when so many doctors visitations had done nothing to Steve Kuhnaus allergies, his nurse began to study and get more information on nutrition and hoping that a change in his diet would assist him to recover from his symptoms.
He then began to eat fresh foods and cutting fat out of his meals and then the miracle popped up. Kuhnau began to feel better and then decided to begin the quest to combat his midday fatigue which was caused by hypoglycemia, with his expertise and the drink mixture experience he gathered while in high school, he then began to experiment with protein shakes.
DOES SMOOTHIE KING SELL FRANCHISE?
The simple answer to that question is yes.
This is one important factor to determine your buying into the Smoothie King Franchise opportunity.
SMOOTHIE KING FRANCHISE OFFER
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Allegation For Unpaid Rent On Many Franchisees
A lawsuit was filed against Smoothie King franchisee, by Ivy League Enterprises Inc., a subsidiary of Cordish Cos., the Louisville Galleria LLC, for owing around $25,000 in unpaid rent. Such failure resulted in a lawsuit that is deteriorating brand image and left us perplexed about the financial mismanagement of franchisees.
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.
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What Is The Profit Of Owning A Franchise
This is the initial investment. You earn more as a franchisee if your business is affiliated with a brand and industry you are familiar with. In the restaurant industry, franchise owners earn an average of $82,000 per year, which is a pretty good salary considering that nonfranchise restaurant owners can earn anywhere from $24,000 to $155,000 per year.
High Loan Failure Rate
According to the Smoothie King franchise website: By buying into a franchise, you have the backing of a recognized brand with a proven track record and business method Franchising allows you to obtain independence and to be your own boss with far less risk.
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However, Smoothie King franchise owners who qualified for SBA-backed franchise loans had a high loan failure rate of 28 percent, according to data supplied by the Small Business Administration . Failure to repay an SBA-backed loan implies that the franchisees were in a bad financial situation when they defaulted on their loan. With that being said, this data also suggests a 72% success rate for franchisees that get started with the help of an SBA loan.
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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.
Learn More About Our Nationally Recognized Smoothie Franchise
Smoothie King embraces a connected franchise culture that focuses on helping consumers lead healthier lifestyles. We appreciate your interest in our brand and what we do for our communities. Our support team members have provided answers to commonly asked questions below and would be happy to address any additional questions you may have about our unique Smoothie franchise opportunity.
Dont hesitate tocontact us with any additional questions you may have. Our friendly franchise support team members look forward to connecting with you!
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Staying Fruitful With Simple Operations And Strong Cost Controls
With our core product offering, were able to keep operations streamlined and simple. A diligently engineered POS system, as well as cutting-edge web and intranet technologies, build new efficiencies and organize the business and guest data that can help franchisees manage their resources and grow their business.
And by leveraging international buying power and vendor relationships, we provide franchisees with robust supply chains that maintain competitive pricing. Our supply chain specialists work with vendors to maintain affordable prices.
Higher Cost Of Investment As Compared To Other Brands
The total investment, franchise fee, and other investment costs to buy a Smoothie Kings franchise are much higher than other brands, making it challenging to buy. A few major investments to purchase its franchise are as follows:
- Liquid Capital- $100,000
- Total Investment- $269,550 to $845,985
- Furniture Fixtures and Equipment etc.- $115,500
- Leasehold Improvements- $428,535
- Grand Opening Advertising- $15,000
The Operating Fee is 6% of total sales with a $30000 minimum monthly fee. The National Marketing Fee is about 3% of sales revenue. Smoothie King is entitled to raise the marketing fee to 5% of total sales upon notice of 60 days. Besides, several other charges are there that you must consider and look through before buying a Smoothie King franchise.
To evaluate the accurate profit of Smoothie King Franchise owners, watch the video below, which gives you the potential financial model of how much profit is earned by any franchise owners after making investment and operation costs.
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How Much Does It Cost To Open Smoothie King Franchise
Do you want to open a juice bar business by buying Smoothie King franchise? If YES, here is how much it cost to open a Smoothie King franchise successfully. The juice and smoothie bar franchise segment in the United States is ripe for investment. The rapidly growing industry is expected to outgrow $3 billion in 2022. For smoothie bars, high product demand, coupled with low overhead costs and simple operations, can align together to create an unparalleled business opportunity.
Many prospective smoothie bar owners seek out turnkey franchise models, which offer them a pre-determined investment range that clarifies initial expenses and ongoing operational costs. However, Smoothie King is here to offer that and a lot more.
Smoothie King is a privately held New Orleans, Louisiana based Franchise Company and it is the premier Smoothie Bar and Nutritional Lifestyle Centre in the industry. Smoothie King Centres offer their guests the industrys first and original nutritional fruit and function-based fresh blended smoothies.
Each Lifestyle Centre also offers healthy retail product solutions in sport beverages, energy bars, healthy snacks, vitamin supplements, and herbs, minerals, and sports nutrition products.
Right from 1989, Smoothie King was been proclaimed #1 franchise in their category 16 times. Smoothie King has about 600 locations operating in the continental US and Seoul, Korea and is presently developing additional stores across the United States.
Is A Smoothie Bar Profitable
Is a Juice Bar ars Profitable? There is a great deal of potential for profit when it comes to juice bars. According to reports, a juice bar’s average revenue ranges between $100,000 and $600,000. Because labor and expenses are so low at juice bars, profit margins are higher than at other restaurants.
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Top Drawbacks To Consider Before Buying A Smoothie King Franchise
Buying a franchise is a sturdy financial commitment, and the brand which was profitable earlier or is paying does not mean it will give you profits in the future. Here are the main disadvantages of buying the Smoothie King Franchise
The disadvantages of buying a franchise:
- Buying a franchise is a hefty financial investment.
- The success of a franchise depends mainly on the industry and location.
- Local laws and regulations may be out-of-date and challenging to navigate.
Number Of Units Opened/closed
At the end of 2018, there were 871 Smoothie King franchised units for a net change of +84 units.
At the end of 2019, there were 931 Smoothie King franchised units for a net change of +60 units.
At the end of 2020, there were 968 Smoothie King franchised units for a net change of +37 units.
At the end of 2018, there were 29 Smoothie King corporate owned units for a net change of +1 unit.
At the end of 2019, there were 38 Smoothie King corporate owned units for a net change of +9 units.
At the end of 2020, there were 40 Smoothie King corporate owned units for a net change of +2 units.
At the end of 2018, there were a total of 900 Smoothie King units for a net change of +85 units.
At the end of 2019, there were a total of 969 Smoothie King units for a net change of +69 units.
At the end of 2020, there were a total of 1008 Smoothie King units for a net change of +39 units.
Overall, the franchised Smoothie King units have been growing at a much faster rate than the corporate owned units. Even in 2020, with the COVID-19 pandemic, there was a net positive change in the number of units. Furthermore, there are significantly more Smoothie King franchises than corporate owned units, proving that the franchisor has invested a lot of their resources into their franchise system.
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