The Most Profitable Franchises In 2021
The following 10 franchises are representative of a range of industries, investment amounts, number of locations, and degree of brand recognition. The diversity on this list is indicative that a franchise doesnt necessarily have to be top-tier in order for you to turn a profit. That said, we would be remiss not to include some of the worlds most popular franchises on this list, as well.
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Juice Bar Soft Opening
Before your official grand opening, it can be helpful to plan a practice run. A soft opening is a modified opening that gives your team the opportunity to test out the flow of service. You can observe potential hiccups and get a better idea of what processes may need to be improved before the big grand opening. Here are some tips for planning a soft opening of your juice bar:
- Friends and Family Night – Invite friends and family of your staff for a sneak peek opening. Its a good way to ease into things because theres less pressure when you know all the guests.
- Neighborhood Meetup – Send soft opening invites to neighboring businesses and residents. You get to meet all your neighbors and get the word out in your community.
- Limited Menu – For your soft opening, it can be helpful to start with a small limited menu. Instead of offering all juices on your menu, you could showcase three different juices. Its less stressful for your employees when you start small.
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How Much Does It Cost To Open A Typical Smoothie King Location
The estimated initial investment for an inline or end-cap store can be between $268,900 and $555,965 . The estimated initial investment for a free-standing drive-thru store can be between $589,300 and $858,900. Your costs could be significantly higher depending on a number of factors, including your location. Please refer to theInvestment Page or Franchise Disclosure Document for additional details.
Advantages Of Tropical Smoothie Cafe Franchise
One of the many advantages of owning a Tropical Smoothie Cafe is the in-depth training managers, owners, and employees go through. After you pay the training fee, you will be able to access the TSC LLC systems, technology, operational support, and Internet services. In addition to these technological resources, you will attend a four-week training program near one of the TSC outlets. This training will include experience in the franchise, learning the ins and outs of the menu and business model, as well as marketing techniques.
Next, youll graduate to a one-week classroom training at the Support Center in Atlanta, Georgia, and continue on to a ten-day onsite training at your very own franchise. If youre surprised by the sheer volume of training days, do not be alarmed this is TSC LLCs way of supporting you to the utmost degree in making running your business easier than ever.
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In fact, you wont even need to handle the menu creation and marketing support TSC LLC will do that for you. In addition to hands-on help from TSC employees, the company will make sure that your equipment is easy-to-use. Deep fryers, hooding systems, and stoves will be installed without complicated fixtures making it easier to focus on preparing fresh food in a timely manner.
A fresh berry smoothie.
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Smoothie King Franchise Application
If you are seriously considering owning your own Smoothie King franchise, please complete ouronline franchise application. If you are interested in an International opportunity, please complete ourinternational form.
*20% is the average EBITDA as a percentage of total net sales for the period from December 29, 2020 to March 29, 2021 for the 387 traditional franchised units that submitted complete profit and loss statements to us. This information appears in Item 19 of our Franchise Disclosure Document dated September 23, 2021. Your results may differ. There is no assurance that you will achieve these sales.
**$834,562 is the average gross sales for the top 25% of franchised units in operation for the entire 12-month period ending March 29, 2021. Of the 207 franchised units included in the average gross sales for the top 25%, 80 franchised units of the franchised units gained or surpassed this sales level. This information appears in Item 19 of our Franchise Disclosure Document dated September 23, 2021. Your results may differ. There is no assurance that you will achieve these sales.
What Types Of Locations Fit Into Smoothie King Site Criteria
The ideal size range for a Smoothie King Franchise is generally 800-1,600 square feet. However, smaller or larger stores are an option. They’re usually located in neighborhood and community strip centers, power centers, shopping malls, universities, airports, and downtown business districts. The optimal area typically has a strong residential population, strong daytime employment, dynamic retail activity and proximity to fitness . It also has good street visibility and presence as well as good ingress and egress. We also prefer a drive-thru when possible.
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Obtain Permits And Licenses For Your Juice Shop
Before your juice bar can open for business, youll need to obtain several permits and licenses at the federal, state, and local levels. Enlisting the help of legal counsel ensures you wont miss a step when filing for new permits.
- Business License – Every new business needs a business license to operate legally in the US. Each state has its own business license requirements.
- Employee Identification Number – You need an Employee Identification Number to start hiring employees and set up your payroll. The application process can be lengthy, so start working on this one right away.
- Foodservice License – To legally serve food, youll need a foodservice business license. This requires an inspection that shows your business meets food safety protocols.
Learn more about foodservice permits in our restaurant licenses guide.
Section V Financial Performance Representations And Analysis
- The following tables provide historical sales information for Tropical Smoothie Cafe franchised stores that were open at least one full year as of: the calendar year 2017 for 494 Stores the calendar year 2016 for 412 Stores and the calendar year 2015 for 358 Stores.
- The tables do not include any financial performance information for any other types of franchises, such as non-traditional locations or seasonal locations, and do not include any franchises of any type that had not been open for at least one year on December 31, 2017, December 25, 2016, and December 27, 2015, respectively.
- The information presented is not a forecast of future potential performance.
- For purposes of the tables below, Net Revenue means all revenue related to the sale of products and performance of services at the Store, whether cash or credit, and regardless of collection in the case of credit, and income of every kind or nature related to the Store, less any discounts. Net Revenue does not include bona fide refunds to customers, revenues from sales taxes or other add-on taxes collected from customers by you and actually transmitted to the appropriate taxing authority, sales of used equipment not in the ordinary course of business, or sales of gift cards or similar products .
- The tables provide the average and median net revenues for the following categories of Stores in 2017, 2016, and 2015 on a category and cumulative basis:
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Hepatitis A Outbreak Linked To Strawberries At Tropical Smoothie Cafe Locations
Tropical Smoothie Cafes impressive growth in 2016 was tempered by an outbreak of hepatitis A in August that was linked to strawberries the company sourced from Egypt.
The outbreak primarily affected people in Virginia but involved eight other states as well. The chain pulled the Egyptian strawberries and found an alternative source, but the outbreak sickened 143 people.
Of those, 129 reported consuming strawberries from a Tropical Smoothie Cafe location, according to a November 2016 report by the Centers for Disease Control and Prevention. Fifty-two people were hospitalized. No deaths occurred as a result of the outbreak. There have been no reported cases of illness from this same exposure since Sept. 23.
On Oct. 30, The International Company for Agricultural Production & Processing, which had supplied the Egyptian strawberries to Tropical Smoothie Cafe, recalled all of its frozen strawberries that had been imported into the United States since Jan. 1. According to the Food and Drug Administration, hepatitis A virus contamination was found in four samples of the frozen strawberries from the ICAPP.
The investigation into the outbreak is continuing.
On the companys website, CEO Mike Rotondo is prominently featured in a video message addressing the hepatitis A outbreak.
Use Software That Is Industry
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Through dedicated software, scheduling can be automated and templated, saving management precious working hours that can be spent elsewhere in better marketing the brand and providing exceptional customer service.
Zip Schedules will not only make schedule creation simpler, but it will , reduce overtime work which can lead to labor lawsuits, and increase the bottom line for Tropical Smoothie Franchise Development Corp..
Start improving profit margins, saving time and increasing sales today.
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Can I Freeze My Tropical Smoothie
When my daughters or their friends have a sore throat, I offer to bring them a fruit-based smoothie with no sugar and added vitamins. Its a great pick-me-up, and when youre sick, 24 oz. seems huge, so you can usually drink 1/3 and keep the rest in the freezer for later.
Ceo Elected To Ifa Board
Rotondo was elected to the International Franchise Association Board of Directors in November 2016. He will officially join the board on Feb. 1, 2017, at the IFAs 57th annual convention in Las Vegas, Nevada.
Over the past five years, Rotondo has increased Tropical Smoothie Cafes average unit volume by more than 50 percent.
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Average Net Revenues In 2020
|$615,478 $2,552,230||$244,404 $2,552,230|
The highest-earning franchise made over $2.5 million in revenue while the lowest-earning franchise made $244,000. These figures indicate that there is a widespread of the potential earningsTotal earnings received by a business based on the U.S. Income Tax Return. The financial numbers of these earnings depend on the type of business, but can include income, guaranteed payments, compensation, interest, depreciation, elective deferrals, and contributions.For further details on how to calculate earnings and where to find financial numbers on tax return forms based on the type of you can make and it depends on how well the business is run, the location, and amount of time in operation. It is estimated that based on average net revenue of $840,000 and a profit margin of 15%, the average tropical smoothie franchise owner salary/ compensation is $126,000 per year.
From the moment you allocate your capital to invest in a food franchise, it can take up to a year to open the location and pass the breakeven point.
Based on a midpoint investment of $409,000 with estimated profits of $126,000, we expect it to take a little over 4 years to recoup the initial investmentThe amount of funds necessary to begin operations of a business or franchise including the first three months of operation. in a Tropical Smoothie franchise.
Choose A Juice And Smoothie Shop Location
Your juice bar location and business concept should go hand in hand. Sometimes choosing your location ends up being the first step in the process of opening your business. You might have your eye on a commercial space that speaks to you, or maybe you got a great deal on leasing a juice bar kiosk. If thats the case, you should base the concept of your shop on your chosen location. For example, if the location is in a college town, youll want to create a concept that appeals to a young crowd.
If you have your heart set on a particular concept, youll need to find a juice bar location that can support it. Look for locations near gyms or in neighborhoods with jogging paths and outdoor spaces. Boardwalks, beach towns, and charming main streets are great for juice bars and smoothie shops. Performing a location analysis will help you understand the benefits and limitations of specific locations.
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What Is The Average Profit Margin For A Fruit Smoothie
Juicing, which includes both fruit and vegetable beverages, has become a $5 billion business and it is projected to grow by about 4 percent to 8 percent per year, according to Barron’s. A large portion of that business consists of fruit smoothies, which are especially popular in warmer climates. Fruit smoothies are a popular drink for college and high school students, often replacing meals for a quick pick-me-up in between classes. However profit margins vary widely in the smoothie business, dependent on business operations and management and ingredients used to concoct the smoothie recipes.
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Eat Better Feel Better Its Our Mantra
Todays consumers are embracing healthier food options and more active lifestyles. Tropical Smoothie Cafe is ready to satisfy the cravings of our health-conscious, flavor-craving guests. To keep up with them, we opened 124 Cafes in 2019, and have been recognized as one of 2019s fastest-growing franchises by Entrepreneur and Nations Restaurant News.
- 5+ multiple revenue streams with drive-thru, delivery, curbside pickup, online and mobile app ordering
- $9.47 average ticket per person thanks to our balanced mix of smoothies and food that supports all dayparts
- 840+ locations coast-to-coastwith 486+ opened in the last 5 yearsfeeds the demand of our loyal customer base
- 213 new agreements signed in 2019, with 60% coming from existing Franchise Owners
- Ranked one of the best by the best. Entrepreneur #18 Franchise 500 , Franchise Times #17 Fast & Serious Smartest-Growing Brands , Franchise Business Review Top 40 Franchises by Franchisees
How Tropical Smoothie Franchise Development Corp Can Lower Labor Costs
In order to effectively combat the top trouble-areas that are hurting Tropical Smoothie Franchise Development Corp. the most, many companies similar to your industry have turned to Zip Schedules for employee scheduling and schedule monitoring solutions.
The areas that will see vast improvements are:
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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.
Tropical Smoothie Caf Posts +29% Ytd Same
Explosive 2021 YTD growth continues with 95 openings and 270 franchisee agreements
ATLANTA, Oct. 7, 2021 /PRNewswire/ — Tropical Smoothie Cafe is experiencing a phenomenal year in 2021, beating goals with year-to-date same-store sales up 29% over 2019. It has also exceeded 2020’s record-setting number of franchisee agreements signed, with 270 new deals signed going into the fourth quarter. In Q3 alone, Tropical Smoothie Cafe opened 32 new locations, including five in Chicago and five in Detroit, and celebrated its 1,000th cafe milestone in September for a total of 95 openings year to date. The brand posted a 24.6% year-to-date same-store sales increase over 2020, continuing a nine-year trend of consecutive same-store-sales growth.
“We set what we thought were some pretty lofty goals for 2021, and here we are exceeding our full-year goals in Q3, with another full quarter to go,” said Charles Watson, CEO of Tropical Smoothie Café, LLC. “The fact that more than 85% of our new cafe agreements this quarter are with existing franchisees tells us that they are experiencing great success with the brand and want more of it, while the sales growth shows that our digital investments and menu innovations are connecting with the consumer.”
In fact, digital channels accounted for 75% of the company’s sales growth in the quarter. The brand introduced the ability to customize smoothies in online and mobile orders, adding another layer of convenience to drive sales.
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What Is The Best Source For Researching The Smoothie King Franchising Opportunity
Each qualified candidate receives a copy of the Smoothie King Franchise Disclosure Document , which provides the following information and more: franchisors financial statements, copy of the franchise agreement, copy of the area development agreement, list of existing franchisees to contact, cost breakdowns, advertising fees, royalties, and initial franchise fees.