Planet Smoothie Franchise Fee Revenue And Profit Margin
For more than 20 years now, Planet Smoothie has been one of the best smoothie franchises in the world and also one of the most innovative as well.
The company was established in the year 1995 in Atlanta and they expanded in no time through the Southeast and presently, they can boast of more than 100 stores across the United States of America.
They are a customer-centered smoothie outfit, with focus on delivering the best smoothies in varying flavours, this is no doubt one of the reasons a lot of people search for information on how much is a Planet Smoothie Franchise?
ABOUT THE COMPANY
Planet Smoothie is known for making healthy smoothies and that alone has helped the brand to develop a large followership among its numerous customers that seem to be growing by the day.
Demand for smoothies is growing and now that Americans are getting more conscious health-wise, they are seeking for food options that are not only healthy but are as well convenient and smoothies tend to present these benefits that the people seek.
In the year 2011, it was reported that the smoothie market hit $2.4 billion. This was a double of what was achieved some five years earlier.
In the making of smoothies at Planet Smoothies, they utilise fresh fruits and vegetables and also have their own line of supplements to boost the vitamins, protein content of the mixtures. What customers also stand to gain in accelerated fat-burning and increased alertness to help them achieve their health and life goals.
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.
What Is The Growth Potential For A Smoothie Business
Growth potential typically depends on where you open, how you market, and what menu items you offer. But smoothie businesses do have major potential, even if there are certain locations that are saturated. Notoriously green states like California and Colorado, for instance, have many options for people to choose from. To succeed, owners may want to look at different markets throughout the United States to capitalize on new demographics who haven’t been introduced to the taste sensations of gourmet smoothies.
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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.
Smoothie King Franchise Fee
Smoothie King franchise fees are an Initial fee of $ 15,000 for non-traditional locations, and for other locations, this fee can go up to max. $ 30,000. The ongoing fees that each franchisee must pay every month are 9% of gross revenue .
Smoothie King is a member of the Vet Fran program, which means that all active members of the U.S Armed Forces and those who are honorably discharged have the right to a 20% discount off the initial fee.
Also, franchisees who are police officers, firefighters, and hospital employees with 10 or more years of experience have the right to a 20% off discount to Smoothie Kings initial fee.
The initial franchise fee is paid after the franchise agreement has been closed.
The ongoing fees must be paid regularly every month regardless of whether the franchise facility is profitable for its owner or not. If these fees are not paid regularly, the franchisor can nullify the franchise agreement.
Other Smoothie King franchise fees are the Technology fee of $ 200 per month and the Design fee of $ 2,500. The design fee is a one-time cost.
Also, we must include the Smoothie King franchise POS System fee in this list, which costs between $ 2,250 and $ 4,490. This is a one-time cost, and after it is paid, the franchise facility will be equipped with the billing system that every facility of this type must have.
Smoothie King franchise one time and ongoing fees:
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Lawsuit For Discrimination And Violations Of Disabilities Act
On February 6, 2021, a lawsuit against Smoothie King Franchises Inc. was filed by an employee being fired unfairly due to her Parkinsons disease. The case was filed in the Eastern District of Louisiana, United States District Court, accusing Smoothie King, supposedly did fail to offer alternative accommodation, discriminated, and firing her because of her sex and disability. Such an allegation is unhealthy for franchises offering only healthy menus.
Juice Franchise Vs Independent
Should you start a juice franchise or start an independent concept? Theres no right or wrong answer on this one. This will depend on your goals and preference.
Key advantages of operating a franchise smoothie business is that you get to leverage an existing brand, systems, processes and supply chain. Ideally, youll already have a built-in customer base that knows how you are and what the menu is.
Generally speaking, however, Andrew does not recommend enrolling in a franchise juice opportunity. One big reason is because youre creating extra overhead to your business in the form of franchise fees, royalties and sometimes being stuck buying supplies from a specific supplier that is high cost.
By creating a juice brand, you retain the upside of being able to create your own franchise opportunity in the coming 5 10 years. Youll have less overhead and have the flexibility to change suppliers, menus, or brand positioning if needed. Andrews consulting company helps new juice / smoothie entrepreneurs establish a new business with the benefits of enrolling in a franchise without the ongoing costs and other downside of this approach.
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Ready To Bring Planet Smoothie Franchise To Your Community
The total investment estimate for a Planet Smoothie franchise ranges from $190,150 $358,500. The smoothie market is strong and growing, and Planet Smoothie stands out with a menu built around real fruit and other healthier ingredients. Planet Smoothie has been around for more than 20 years because we do one thing really well: we make delicious smoothies. Capture a piece of the strong and growing smoothie industry with a Planet Smoothie franchise.
What Are The Ongoing Fees Paid To Smoothie King
Franchisees pay an ongoing royalty fee of 6% of their store’s weekly sales. An additional 3% of your weekly sales will be paid into the Smoothie King National Advertising Fund. We also require that franchisees spend an additional 2% of weekly gross sales on local store marketing. Additionally, every location currently pays a technology contribution of $200 per month.
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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.
Juice Bar Equipment And Supplies
Juice bars have unique inventory needs because fresh produce will make up the bulk of your food orders. That means youll need to find a high-quality wholesale produce supplier. Look for distributors that can supply you with local seasonal produce, but you may also need a different supplier for fruits that dont grow locally. Youll want to consider these factors when choosing a produce supplier:
- Produce Selection – Some suppliers specialize in citrus fruits only while others provide a wide selection
- Fair Trade Certified – Look for suppliers that only work with fair trade certified growers
- Farming Practices – If organic, pesticide-free produce is part of your concept, youll need to find a supplier that can meet these needs
- Specialty Items – Depending on your location, you may need to find suppliers to provide you with specialty, tropical produce
With fresh produce also comes the need for specialized storage techniques. Understanding the shelf-life of certain fruits will be key to your reordering schedule. Some fruits need refrigeration, and some fruits need to be washed prior to storage. Check out our produce storage guide for detailed information.
Your juice bar will need to be outfitted with the right equipment for storing, prepping, and juicing fresh fruits. Commercial juicers are the obvious place to start, but there are several types of juicers designed for different applications. Here is a list of equipment and supplies you’ll need to get started:
Also Check: Smoothie King Benefits
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.
Step : Obtain Necessary Permits And Licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
Federal Business Licensing Requirements
There are federal regulations regarding what can and cannot be added to, sold as, and processed with food. Attached is a resource from the Food and Drug Administration detailing the process of starting a food business: How to Start a Food Business
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a smoothie business. Learn more about licensing requirements in your state by visiting SBAs reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerks office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Certificate of Occupancy
A smoothie business is generally run out of a storefront. Businesses operating out of a physical location typically require a Certificate of Occupancy . A CO confirms that all building codes, zoning laws and government regulations have been met.
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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.
In 1997 The Tropical Smoothie Franchise Development Corporation Was Founded In Destin Florida
How much do smoothie king smoothies cost. Appreciate the investment required for a juicy bar franchise. There are three size options to choose from on the smoothie king menu, and each one of these is priced the same regardless of which smoothie you buy. On one occasion, andrew has consulted for a business owner that invested $400,000 starting a single location.
There is a $30,000 franchise fee, and you must have at least $100,000 years in cash. This is the most important factor when deciding how much to charge. Meals, lunch, dinner, drinks and kids menu.
Kids cup provide smaller portions that are perfect for children, most of which cost $3.19. If it is your first time to franchise smoothie king, the company will charge you $30,000 for each unit. it is actually something that is very hard to make money off of..
The rapidly growing industry is expected to outgrow $3 billion in 2021. You can have at least 3 units. Smoothie king franchise startup cost is around $20,000 up to $30,000.
Soon enough, franchised locations opened. You will need to consider building and real estate costs, the cost of equipment and signs, the costs of licenses and permits, the cost of uniforms, the cost of insurance, etc. How much does food cost?
Smoothie king menu prices begin at $4.99 for a small, $6.99 for a medium and $7.99 for a large. $7.29 the shredder 40 oz. The cost will be at least $25,000 each unit if you have already 3 units still operating and you want to add more.
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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.