Robeks Franchise Costs $320K – $484K (+ 2024 Profits)
Robeks is a notable player in the fast-casual franchise market, specializing in smoothies, fresh juices, and acai bowls. With a strong focus on health and nutrition, Robeks has carved out a significant niche in the $2 billion annual sales market for smoothie and juice franchises.
The brand, which began franchising its concept in 2001, prides itself on its straightforward and quality-driven offerings, mirroring the simplicity and health focus of its menu items.
Founded in 1996 and headquartered in Los Angeles, California, Robeks has grown offering a range of freshly prepared beverages and snacks that cater to health-conscious consumers.
Robeks differentiates itself in the competitive landscape with its commitment to fresh, high-quality ingredients, eschewing the use of artificial additives and preservatives.
The franchise model appeals to entrepreneurs who are passionate about healthy living and wish to make a positive impact on their communities by promoting healthier eating habits.
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Initial investment
Here’s what you can expect to spend to start a Robeks franchise.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $30,000 |
| Leasehold Improvements | $130,000 – $200,000 |
| Equipment | $90,500 – $128,000 |
| Fixtures | $19,000 – $29,000 |
| Signs | $5,000 – $14,000 |
| Computer System | $4,500 – $7,000 |
| Professional Fees | $12,000 – $18,700 |
| Deposits and Business Licenses | $5,000 – $11,000 |
| Real Estate Costs | $3,500 – $5,400 |
| Opening Inventory | $7,200 – $10,000 |
| Grand Opening Advertising | $5,000 – $7,500 |
| Travel for Training | $0 – $5,000 |
| Insurance | $1,200 – $3,800 |
| Additional Funds – 3 months | $7,500 – $15,000 |
| Total | $320,400 – $484,400 |
Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.
Franchise fees & Royalties
Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.
Initial Franchise Fee
The standard Initial Franchise Fee for a Robeks franchise is $30,000, payable upon signing the Franchise Agreement. This fee is non-refundable and fully earned upon receipt.
Royalty Fee
Royalty fees range from 6% to 7% of Net Sales, depending on the number of stores operated by the franchisee. These fees are due weekly and are calculated based on the gross sales of the preceding week.
Advertising Fees
Franchisees must contribute 2.5% of Net Sales to the Marketing Fund, payable alongside the weekly royalty fees.
Local Advertising Expenditures
In addition to the Advertising Fees, franchisees are required to spend at least 2.5% of Net Sales on local or regional advertising, approved by the franchisor.
Transfer Fee
A transfer fee of $10,000 (or $5,000 for transfers to existing franchisees) is required for the sale, transfer, or assignment of a Robeks franchise. For Area Development Agreements, an additional $25,000 transfer fee applies.
Renewal Fee
A renewal fee of $10,000 is charged for renewing the franchise agreement.
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Juice Bar Business Plan Template (Download)
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Franchise Pros and cons
The Pros:
- Comprehensive training program: The brand has detailed classroom and on-the-job training for its franchisees. It trains them on its systems and procedures, products, customer service, and management operations. Also, it trains them for a successful grand opening and continues to train them for success after launching the restaurants.
- Site selection and construction: The brand has an experienced real estate team and brokers. It helps its franchisees with site selection, store design, floor plans, construction, and lease negotiations.
- Marketing and public relations: Robeks has a robust marketing strategy to help its franchisees with their publicity and local store marketing. It provides its franchisees with effective local store marketing tools and resources to prepare them for grand opening and event planning, digital and social media marketing, sponsorships and fundraisers, trade area assessment, and ongoing promotional campaigns.
- Simple operation: The Robeks concept is easy and simple to implement with no cooking, fryers, or grills. Also, it requires less staff and training, which reduces labor costs. Franchisees can get started quickly, work on quality service, and improve their profitability.
The Cons:
- No direct franchise financing: The brand does not directly or indirectly finance the franchisees for start-up costs, equipment, inventory, or trade fixtures. Also, it does not guarantee any lease, note, or grant on behalf of its franchisees.
- Not a part-time business: The franchise does not present a part-time business opportunity. Franchisees are supposed to follow the operating hours set by the franchisor.
- No absentee ownership: The franchise is not a passive investment opportunity. Franchisees are required to be actively involved in the decision-making and daily running of the restaurants.
- Competition: Robeks franchisees face stiff competition from well-established juice and smoothie brands such as Tropical Smoothie Café, Clean Juice or Jamba to name a few.
How to open a Robeks franchise
Opening a Robeks franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Robeks franchise.
1. Initial Research and Inquiry
- Begin by exploring Robeks Franchise, understanding their brand values, product offerings, and the market potential for health-focused fast-casual restaurants.
- Visit the Robeks Franchise website to learn more about the franchise opportunity and what makes Robeks stand out in the smoothie and juice bar sector.
2. Financial Requirements Assessment
- Ensure you meet Robeks’ minimum financial requirements, which include a certain amount in liquid capital and net worth.
- Understanding the financial commitment is crucial to ensuring you are prepared for the investment.
3. Submit an Information Form
- If you meet the financial prerequisites, fill out and submit the short information form available on the Robeks Franchise website to express your interest.
4. Introductory Conversation
- Participate in an initial discussion with a Robeks Franchise representative to discuss your goals and to better understand the franchise opportunity.
- This conversation is an opportunity to ask questions and assess if Robeks is the right fit for your business aspirations.
5. Review Detailed Information
- If there’s mutual interest, Robeks will share more detailed information about the franchise opportunity, including operational, marketing, and financial aspects.
- This step is crucial for due diligence and to gain a deeper understanding of what running a Robeks franchise entails.
6. Review the Franchise Disclosure Document (FDD)
- Robeks will provide you with their Franchise Disclosure Document (FDD), which contains essential information about the franchise opportunity, fees, and legal obligations.
- Carefully review the FDD and consider consulting with a franchise attorney to understand the terms and conditions.
7. Executive Team Meeting
- You’ll have the opportunity to meet Robeks’ Executive Team to discuss the franchise opportunity further and to ask any remaining questions.
- This meeting is also a chance for the executive team to get to know you and your business vision.
8. Approval Process
- The Robeks team will review all aspects of your application and make a decision on approval.
- This step includes assessing your financial capability, business plan, and fit with the Robeks brand.
9. Franchise Agreement and Onboarding
- Upon approval, you will sign the franchise agreement and officially become a Robeks franchisee.
- You’ll then begin the onboarding process, which includes site selection, training, and store setup guidance.
10. Training and Store Launch
- Robeks provides comprehensive training to ensure you and your team are prepared to operate your franchise effectively.
- With the training completed, you’ll proceed to launch your Robeks franchise, with ongoing support from the Robeks team to ensure your success.
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
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