Opening a Smoothie King franchise requires an initial investment of between $277,850 and $584,350. This includes the franchise fee, buildout costs, equipment, inventory, working capital, grand opening marketing, and additional funds. The total cost varies based on the location, size, and buildout needs of each store.
Smoothie King Franchise Fee
The Smoothie King franchise fee is $40,000. This grants you the rights to open and operate a Smoothie King store using their name, branding, and proprietary processes and recipes. It also includes training and ongoing franchise support.
Smoothie King Store Buildout Cost
Store buildout costs range from $125,000 to $300,000. This covers remodeling construction, equipment costs, signage, furniture, and décor needed to open your location. Costs vary significantly based on the size and condition of your leased space.
Key Buildout Cost Components
- Construction – $75,000 to $150,000. Includes flooring, walls, lighting, bathrooms, etc.
- Equipment – $25,000 to $60,000. Blender, fridge, freezer, point of sale system, etc.
- Furniture – $10,000 to $25,000. Tables, chairs, cabinets, shelving, etc.
- Signage – $5,000 to $15,000. Interior and exterior signage with Smoothie King branding.
- Permits – $5,000 to $15,000. Health, building, and business permits.
- Architectural Fees – $5,000 to $10,000.
- Utilities – $5,000. Gas, electric, internet, phone.
Smoothie King Equipment Cost
You will need commercial grade equipment to produce Smoothie King’s signature blends. Equipment costs range from $25,000 to $60,000.
Required Equipment
- High performance blenders – $500 to $1000 each
- Refrigerator – $1500 to $3000+
- Freezer – $1000 to $2000
- Display cooler – $2000 to $4000
- Point of sale system – $2500 to $5000
- Credit card terminal – $200 to $500
Smoothie King Initial Inventory
Initial inventory and supplies will cost $10,000 to $15,000. This includes ingredients, cups, straws, napkins, cleaning supplies, and other items needed to launch your store.
Opening Inventory Needs
- Fresh produce – $3000
- Frozen fruit – $2000
- Dairy and yogurt – $2000
- Nuts, seeds, supplements – $1000
- Sweeteners – $500
- Cups, lids, straws – $2000
- Napkins, utensils – $500
- Cleaning supplies – $1000
- Marketing materials – $1000
Smoothie King Working Capital
You will need working capital to cover costs in the first few months before your store generates profits. This includes payroll, rent, supplies, insurance, utilities, and other expenses. Have $75,000 to $100,000 available.
Monthly Expenses
| Expense | Cost |
|---|---|
| Rent | $4000 – $8000 |
| Payroll | $4000 – $8000 |
| Supplies | $3000 – $5000 |
| Insurance | $500 – $1000 |
| Utilities | $1000 – $2000 |
| Misc. | $1000 – $2000 |
Smoothie King Grand Opening Marketing
Grand opening advertising and promotions help drive traffic when you first launch. Budget $15,000 to $25,000 for your grand opening marketing plan.
Grand Opening Marketing Ideas
- Free giveaways – Samples, coupons, gifts
- Contests and prizes
- Discounted grand opening combos
- Radio ads
- Print ads
- Direct mailers
- Social media advertising
- In-store events
Additional Smoothie King Franchise Costs
Some additional costs to factor into your total budget include:
- Travel and lodging for training – $5000
- Legal fees – $2500
- Accounting fees – $2000
- Licenses – $500 – $2000
- Permitting fees – $3000
- POS software – $1000
- Security deposit – $5000
- Insurance – $2000
Smoothie King Franchise Financing Options
Coming up with $277,850 to $584,350 in liquid capital is a challenge for most franchisees. Here are some options to fund your Smoothie King store:
- Savings: Personal savings, retirement accounts
- Home equity loan: Tap into home equity to access funds
- Business loan: SBA loans, equipment financing loans
- Rollover 401(k): Use 401(k) savings without early withdrawal fees
- Partners: Bring in partners or investors to share costs
- Crowdfunding: Raise money from crowdsourcing platforms
Smoothie King Franchise Loans
Smoothie King has relationships with several lenders that offer customized financing for new franchisees. They offer SBA loans, equipment leasing, and lines of credit with flexible terms.
Smoothie King Franchise Ongoing Fees
In addition to your initial investment, expect to pay ongoing royalties and advertising fees to Smoothie King corporate. These include:
- Royalty fee – 6% of net sales
- Advertising fee – 2.25% of net sales
Smoothie King Franchise Profit Potential
A Smoothie King store generates average annual sales of $650,000 according to Franchise Disclosure Documents. After expenses, the average store profit is $90,000 per year. Individual profits depend on your location, competition, local marketing, operations and management.
Key Takeaways on Smoothie King Franchise Costs
- Total investment ranges from $277,850 to $584,350.
- The franchise fee is $40,000.
- Buildout costs are $125,000 to $300,000.
- Equipment costs are $25,000 to $60,000.
- Inventory is approximately $10,000 to $15,000.
- Have $75,000 to $100,000 in working capital.
- Grand opening marketing averages $15,000 to $25,000.
- Royalty fees are 6% of net sales.
- Average unit volume is $650,000.
Is a Smoothie King Franchise Profitable?
A Smoothie King franchise can be very profitable with average earnings of $90,000 per year. However, your individual results depend on your location, operations, competition, and economic conditions. Do your due diligence to evaluate the opportunity.
Advantages of Owning a Smoothie King
- Popular brand with loyal customers
- Recurring revenue from repeat business
- Scalable model for multi-unit expansion
- Training and support from franchisor
- Smoothies are a growing health food trend
Potential Smoothie King Franchise Challenges
- High startup costs
- Managing perishable inventory
- Staffing and labor costs
- Finding a good location
- Competing against other chains
Final Thoughts
Smoothie King offers a profitable franchise opportunity with a popular brand in a growing smoothie industry. However, the costs are substantial. Do your homework to make sure you have the necessary capital and experience. Consider your location carefully and have a marketing plan to stand out. If run properly, a Smoothie King can generate good income as a health-focused franchise investment.
