Smoothie King Franchise Pros And Cons

Don't Miss

Tropical Smoothie Caf Franchise Owners Have A 24% Sba Loan Default Rate

Should I Buy A Franchise? 5 Pros and Cons You MUST Know

The overall net growth of Tropical Smoothie Café franchises by 23% might give the appearance of steady, failure-free growth. However, data from the Tropical Smoothie Cafe FDD indicates that within that same period, 67 franchises were terminated or reaquired.

When doing your due diligence, it pays to dig into the numbers of the Franchise Disclosure Document rather than rely on the overall growth figures available online.

Tropical Smoothie Café Franchise

The inability to repay an SBA-backed loan indicates a serious situation for the franchisee.

Its likely that Tropical Smoothie Café franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans despite the serious incentive to do so.

Section V Financial Performance Representations And Analysis

  • Under Part A below, Smoothie King has provided unaudited statements of average annual Unit Net Sales as of December 30, 2019, December 31, 2018, December 31, 2017, December 31, 2016, December 31, 2015, and December 31, 2014.
  • Under Part B below, Smoothie King has provided information on the average annual Net Sales percentage increase for Units comparing the 2019 and 2018 calendar years, the 2018 and 2017 calendar years, the 2017 and 2016 calendar years, the 2016 and 2015 calendar years, the 2015 and 2014 calendar years, and the 2014 and 2013 calendar years.
  • All Units offer substantially the same products and services to the public. New franchisees will receive substantially the same services as those offered to existing franchisees.
  • Smoothie King obtained these historical financial results from the information submitted by its franchisees. Neither Smoothie King nor an independent certified public accountant has independently audited or verified the information.

Who Invented The First Smoothie

The exact inventor of the first smoothie is unknown however, historians believe the drink was likely developed during the 1920s-1930s in either America or Europe. During the 20th century, there was a growing interest in natural foods and the health benefits that came with them.

This was likely the inspiration behind the invention of the smoothie, as it contained blended fruits, vegetables and natural juices.

In 1934, the first mention of the term smoothie was found in an issue of the magazine Food and Nutrition. This article described a beverage made from pulverized fruit and milk, and the author went on to say that the drink was smooth like a snake, giving the drink its name.

As time went on, the smoothie evolved and began to contain additional ingredients such as yogurt, seeds, and vitamins. Additionally, more fruit and vegetable flavor combinations were made popular and the drink became a worldwide phenomenon.

Today, smoothies are enjoyed by people from all walks of life, often taking the form of a convenient breakfast or post-workout energy booster.

Read Also: Pulp Juice And Smoothie Bar

Advantages And Disadvantages Of Operating A Juice / Smoothie Truck:

One big reason entrepreneurs start out with a food truck is due to the lower upfront startup cost compared to a retail location. But as Andrew explains the overhead in greater detail within the interview. After looking at the economics, Andrew realized the juice truck business was spending $4,000 a month for rent at the commissary, fuel, parking tickets, and payments on the truck. In many parts of the United States, you could lease a retail space for that kind of overhead.

This realization led Andrew to the conclusion that a retail space is often the right choice for startups even if the one-time startup costs are higher. There are advantages and disadvantages to either approach you decide to take:


  • Lower barrier to entry and upfront cost. Expect to pay between $50,000 $100,000 to be all in with a juice food truck.
  • You arent stuck in a permanent location. You can move to more profitable locations at anytime.
  • Labor expenses can be lower on a truck, especially if you plan to operate the truck yourself. You may only need to hire 1 2 part-time employees to assist in the operations.
  • This can serve as a lower cost way to create a proof of concept for your business.


The barrier to entry is low, but the cost of operating is high.

Andrew McFarlane on the advantages / disadvantages of starting a juice truck.

How Much Does A Tropical Smoothie Cafe Franchise Cost

Robeks Job Application &  Careers

You would invest around $430,500 to open a new Tropical Smoothie Cafe franchise. This also includes the initial franchise fee of $30,000.

This number is an average that can vary based on your location, the size of your store and other factors. Usually, the investment ranges between $277,000 and $584,000.

From pre-opening fees to the first 3 months working capital, the initial investment cost covers it all. Heres the complete breakdown of the different types of costs you can expect:

Type of expenditure

Donât Miss: Best Blender For Protein Shakes And Smoothies

Recommended Reading: Best Blender For Smoothies 2020

Whats The Average Day Like Operating A Smoothie Bar

Operating a smoothie bar, whether you decide to use a food truck or juice bar is no easy task. As with any startup business, its going to take a lot of time and effort to get the business off the ground. Heres what a typical day for Andrew was like in the early days with a juice truck:

My lack of intellegence forced me to work harder!

Andrew McFarlane describing the early days of his food startup.

Andrews first juice truck started in Hollywood, California. For anyone thats visited you know this is a highly congested urban area. As a result, Andrew had to wake up at 4 a.m. to begin prep work for the day and secure a vending location for a 28 foot truck.

Andrew would regularly park his truck outside a Trader Joes location. Around 6:30 a.m., the windows would be up and they would start taking sales for the day.

From this point Andrew describes being in a flow state most days. Andrew would be making juices to order, cleaning the truck, and working as fast as possible to meet demand until about 3 p.m. when business would slow for the day or they would run out of product.

Even though the work day was ending at this time there was still a lot of work that needed to be done to prepare for the next day. Ordering more produce and cleaning the truck for the next day all happen after hours. On average it would take a team about 2 hours to clean out the truck after a day of operation.

Whats the biggest challenge associated with running a successful juice bar?

Tropical Smoothie Cafe Franchise Rankings

There is no doubt that Tropical Smoothie Cafe Franchises are growing in popularity. Tropical Smoothie Cafe Franchises are known for their delicious smoothies and juices, which are made with fresh fruit and whole foods. The franchises are growing in popularity because they offer an affordable and convenient way to get healthy and fresh foods.

The Tropical Smoothie Cafe Franchise Ranking is

  • Ranked #1 for Best Smoothie and Juice Franchise in 2022 by Entrepreneur Magzine

The below image will highlight to you the franchise rankings and its standing among its competition.

Recommended Reading: Fruit Smoothie With Almond Milk

How Much Does It Cost To Be A Smoothie King Franchise Owner

The cost of becoming a franchise owner at Smoothie King varies depending on a variety of factors, such as the size of the store, the market conditions, and the location. Generally speaking, the franchise fee is $30,000, with an additional estimated investment of around $224,800.

This includes the cost of opening a new store, such as rent, construction, initial franchise fee and liquid capital needed to sustain the business for 6 months. Additionally, depending on the size of the store, there may also be ongoing royalties and advertising fees.

The franchise agreement sets out the terms for a franchisee to open and operate a Smoothie King store. The agreement typically covers store construction, equipment, supplies, and other necessary costs related to operating a Smoothie King franchise.

Ultimately, potential franchise owners should be prepared to make a large financial investment in the initial and ongoing costs associated with the business. It is recommended that prospective franchisees carefully consider all costs before moving forward with investing in a Smoothie King franchise.

Tropical Smoothie Cafe Franchise Opportunity For You

Cost of Juice Bar Franchises – Top 14

Included in the awareness of a healthy lifestyle demand for a healthy diet or, more specifically, healthy food, the topical smoothie company opportunity is rapidly expanding. The franchise owners will serve a healthier menu to customers with the intention of contributing to the health and wellness of the community.

The companys system is designed in such a way that it will increase demand for innovative health-focused menu services, providing a one-of-a-kind experience for the Tropical Smoothie Café family. Customers will enjoy the cafés delicious food offerings in a fun, beachy atmosphere.

The company has been named one of the top ten fastest-growing chains in the United States. Between 2015 and 2020, the company opened 486 new units. They opened 133 cafés in the United States last year.

The franchise agreement was signed by 56 franchises in the first quarter of 2020. In this case, 70% is an existing franchise that has demonstrated success and dedication to the brand. Currently, the topical smoothie café has over 1100 locations across the country and is expected to reach 1500 locations by the end of 2025. The company is experiencing consistent and growing demand for its services. That is all a successful franchise requires.

Don’t Miss: Tropical Smoothie Cafe Amarillo Tx

I Really Like This As A Go To For

I really like this as a go to for something a little different and fairly healthy. It is a little costly but I feel that its comparable to normal takeout. Its very good food also. My only issue with the specific spot I visited in person is that it seemed run down. If I had just been driving by, I would not want to stop there. Also I could barely hear them when going through the drive through. The food was delicious and the smoothies were out of this world

Date of experience:June 06, 2021

You May Like: 10 Day Green Smoothie Nutritious Healthy Weight Loss Drink

What Are The Pros And Cons Of Buying A Franchise

As good as it is, the business model of franchising is not for everybody. There are even some franchises-like E-Cig franchises, that arent for everybody. Franchise business ownership certainly has its pros and cons.

If youre seriously considering owning a franchise, the pros need to outweigh the cons in order for you to buy into a franchise.

Tip: Please remember that you are investing in someone elses system-someone elses ideas. The words you need to focus on here someone elses.

With that in mind, its time for me to show you several pros and cons of franchises.

Also Check: Smoothie Diet Lose 10 Pounds In A Week

Pros Of Franchise Ownership


There are business systems in place for you to use. Lots of them. They include things like computer systems, marketing systems, operating systems and more. A franchisors business system is the heart and soul of their business. Respect it and use it. Thats what youre paying for upfront as part of the franchise fee.


Youll be provided with a formal training program soon after you sign your franchise agreement. Some of your training may come in the form of online modules. Some franchisors have you jump onto their Extranet so you can start learning about the business before you attend a formal training class at franchise headquarters. Call it pre-training. Its a great way to get into the groove before you fly out to headquarters.


Technology budgets in franchising have grown over the years. As a franchisee, youll benefit greatly from the technology that franchisors have in place these days. Some of this technology is designed to help you manage your customers. Some of it will help you with things like accounting and payroll. Would you like to know how good a franchisors technology is? Before you move forward with buying a franchise, talk to the franchisees. Theyre using it every day. Believe metheyll tell you if its good-or not so good.

Franchisors have marketing plans and advertising templates all ready to go for you. Having those at your disposal can really help you get your name out quickly. Speaking of getting your name out

Can You Make A Living Owning A Franchise

Yes, you can make a living owning a franchise. With the right amount of hard work and dedication, owning a franchise can be a great way to earn income. Franchises vary in size, cost, and the expected rewards for ownership.

Depending on the size and industry of the franchise, you may be able to earn enough to make it your full-time job.

Before you invest in a franchise, its important to consider the amount of money youre willing to spend, the available resources, and the estimated operating costs. A franchise can require a large up-front cost, such as the purchase of machines and equipment, as well as potential ongoing payments for legal and marketing services.

It is possible to make a living owning a franchise but it takes a lot of time and effort to get it up and running. You need to have a good business plan in place and ensure that you hire the right help.

You will also need to remain flexible with pricing and market conditions, as too high or too low of pricing can have an impact on your financial success. Additionally, focusing on marketing initiatives and developing relationships with suppliers are key to success when owning a franchise.

Read Also: Tropical Smoothie Rapid City Sd

How Much Does An Smoothie King Franchisee Make

As with any new franchised business, the franchise owner’s salary and the revenue from a Smoothie King business depends on many factors. One way to confirm the potential revenues or profits earned from a Smoothie King franchise investment is to review the franchisor’s Item 19 within their FDD. Typically, profits and owner’s salary are equitable to the size of the investment and number of locations you own. Demand for your products, the labor costs, commercial lease rates and several other variables also play a large role in your bottom line and your personal salary

For additional information and franchise specific on the revenue of an Smoothie King franchise opportunity, unlock this franchise

Site Selection Key For Multi

Joanne is particularly excited about where her new smoothie bars will be located.

The one on Austin Highway is in Alamo Heights, a pretty prestigious area with a high average household income, Joanne explained. And its going to be an end-cap drive-thru.

Her Smoothie King will be situated next door to a dental facility and diagonally across the street from a gym franchise.

Meanwhile, her other store under construction will be the first Smoothie King on the south side of San Antonio and will be part of City Base Commons, a nine-acre commercial center. The smoothie bar will be a free-standing, 1,200-square foot building with a drive-thru located adjacent to the University of the Incarnate Word, which is a medical school, and not far from the Mission Trail Baptist Hospital. Joanne sees both medical facilities as significant sources of guest traffic.

When the military moved out of Brooks Air Force Base, the medical community moved in, said Joanne. And thats our target audience.

At the same time, theres a strong mix of residential and commercial construction in the vicinity.

Another advantage Joanne foresees with opening a Smoothie King on San Antonios burgeoning southern district is the fact that she owns a mens hair care salon franchise location down the road from where her smoothie bar will be. She plans on leveraging both concepts to help increase awareness of each other to drive traffic to her respective businesses.

Read Also: Smoothies That Fill You Up

Is Smoothie King Privately Owned

Yes, Smoothie King is a privately owned franchise. The franchises headquarters are located in Dallas, Texas and owned by CEO Wan Kim. The company started in 1973 when Steve Kuhnau purchased a juice store and renamed it Smoothie King.

As of 2020, Smoothie King operates over 1,000 stores all over the world, including locations in the United States, Guam and South Korea. The company also offers a variety of smoothie and health food products.

Are There Any Smoothie King Franchise Opportunities In My Area

Malika Andrewsâ 1-on-1 with Zion Williamson ð?¿ | NBA Today

Based on 2020 FDD data, Smoothie King has franchise locations in 33 states. There may be no locations in several states as each franchise plans their growth strategy differently. Certain states also require franchise companies to register their franchise opportunity and file their Franchise Disclosure Document with state examiners prior to awarding franchise opportunities to residents in that state. These registration states have examiners review a franchise company’s FDD to confirm it satisfies state regulatory requirements. In addition to registration states, additional states have enacted supplemental franchise or business opportunity laws that require franchise companies to file their franchise within the state. In most instances the filing is simply a notice with the state. Unlike franchise registration states, the franchise filing states do not review the FDD.

Based on our research Smoothie King is expanding into new markets and might be available near you. While planning your franchise purchase, you always need to be considering what is a good location for my business. Review the potential customer base to assess that your city has a need or customers for this franchise. Even the most popular franchises have states that they are not successful in. The reasons why a specific franchised location can fail are plentiful. You need to analyze not only the franchised business itself, but review locations where you believe it has a more profitable opportunity.

You May Like: How To Make Your Own Smoothie

Popular Articles

More Recipes Like This