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 you’d 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.
How Much do Smoothie Franchises Cost?
Let’s look at some top smoothie franchises with recognizable names, plus examine their price tags and what profit you can expect to earn. Find out if the investment is worth the costs.
How Much is a Smoothie King Franchise?
Smoothie King opened their first franchise location in 1989. The brand targets millennials between the ages of 16 and 35 and skews their focus towards women.
The costs associated with a Smoothie King franchise are outlined on their website and through their Franchise Disclosure Statement (FDD).
The smoothie king franchises fee is $30,000 for one store. Their financial requirements to open a store in the US include:
- Endcap or inline location: $268,900 – $555,965
- Free-standing Drive-thru location: $589,300 – $858,900
- Minimum Net Worth (1 Store): $300,000
- Minimum Liquidity (1 Store): $100,000
- Minimum Credit Score: 700
In addition, franchisees pay an ongoing royalty fee of 6 percent of their store’s weekly sales. An additional 3 percent of weekly sales will be paid into the Smoothie King national advertising fund. They also require that franchisees spend an additional 2 percent of weekly gross sales on local store marketing. Additionally, every location currently pays a technology contribution of $200 per month.
Smoothie King doesn’t provide income figures because there are so many variables, however, average annual gross sales of the top 25 percent of stores average $793,456.
Tropical Smoothie Franchise Cost
According to the Tropical Smoothie website, as of 2020 they had 914 stores open. The franchisee minimum net worth requirement is $350,000, which includes $125,000 in liquid assets and a new Tropical Smoothie investment is between $257,500 and $560,500. There are on-going fees paid as a percentage of gross sales including a 6 percent royalty fee, 3 percent national marketing fee and a 2 percent local advertising cooperative contribution.
Robeks Franchise Cost
The Robeks brand, known for açaí bowls, fresh juices and smoothies has 80 stores throughout the country. Franchisees must have a minimum of $100,000 in liquid capital and a $300,000 net worth. The initial franchise fee is up to $30,000 and the initial start-up fee ranges from $228,450-$340,000. There is a 7 percent royalty fee and an advertising fee of 2.5 percent of net sales.
SoBol is the Best Option
Remember, bigger does not always mean better. It’s important to align with the brand that share your values and you can grow with. SoBol allows franchisees the opportunity to partner with a more unified brand, providing a better opportunity than the big-name companies. There is an advantage to being a part of a franchise that can furnish personalized attention to its franchisees.
Our costs are transparent and competitive. We have an affordable franchise cost including a $30,000 franchise fee. Your initial start-up can range from $240,000-$450,000 and we equip you with training and on-going support. Our on-going fees include a Royalty, which is five percent of net sales and a brand development fee that is one percent of sales. You can see a bigger bang for your buck investing in a SoBol franchise. The numbers do the talking!
If we sound like the right fit for you, let’s make this happen. Fill out this form and join our family which delivers supercool food and awesome experiences.