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Smoothie Factory + Kitchen Franchise Costs $82K – $501K (2024)

Smoothie Factory + Kitchen is a franchise based in Dallas, Texas, specializing in healthy smoothies and various nutritious foods. Founded in 1996 by Olympian James Villasana, the franchise began in 1997, catering to athletes and health-conscious consumers with quality, natural food options.

This franchise stands out with its extensive menu that includes juices, superfood bowls, salads, and soups, which meet a range of dietary needs and preferences. The ability to operate in diverse environments such as malls, airports, and campuses enables franchisees to reach a wide customer base.

For franchisees, Smoothie Factory + Kitchen offers comprehensive support which includes training, ongoing operational assistance, and marketing. This support system is designed to equip franchisees with the tools they need for success in this highly competitive industry.

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Initial investment

Type of ExpenditureAmount (Low – High)
Initial Franchise Fee$30,000
RED MANGO License Fee$5,000
Site Selection Fee$3,500
Project Management Fee$3,500
Lease Deposits & Rent$8,000 – $12,500
Architect; Engineer; Drawings$7,500 – $14,000
Permits$1,500 – $3,000
Interior Improvements, General Contractor; Lighting; Tile$125,000 – $150,000
Exterior Signage$7,500 – $12,000
Millwork; Smallwares; Furniture; Interior Graphics; Fixtures; Equipment$95,000 – $140,000
Additional Equipment (frozen yogurt dispensers and toppings bar)$55,000 – $65,000
POS System$7,000 – $10,000
Inventory; Uniforms$10,000 – $15,000
Pre-opening training expenses$3,000 – $8,000
New Store Marketing Plan Fee$5,000
Additional Grand Opening expenses$500 – $1,000
Insurance – Liability & Workers compensation (initial deposit)$1,000 – $2,000
Professional Fees$2,000 – $6,000
Additional Funds (3 months)$5,000 – $15,000
TOTAL for a SF+K-RED MANGO Co-Branded Traditional Store$375,000 – $500,500

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

Initial Franchise Fee

The initial franchise fee varies depending on the type of store and any applicable discounts. For a SF+K Traditional Store, the initial fee is $30,000, reduced to $15,000 with eligible discounts. For a SMOOTHIE FACTORY Non-Traditional Store, the initial fee is $15,000, also reduced with eligible discounts.

Royalty Fee

The Royalty Fee is set at 5% of Gross Revenue, payable weekly.

Marketing Allocation

The marketing allocation is 3% of gross revenue for traditional stores, including co-branded stores, and 1% for non-traditional stores.

Interest on Overdue Amounts

Overdue amounts may be charged interest at the lesser of 1.5% per month or the highest legal rate.

Technical Services Fee

This fee covers gift card processing, loyalty program processing, and potential costs related to FranConnect, totaling approximately $150 per Accounting Period.

Managed Security Service Provider Fee

The cost is typically between $250 and $350 a month, covering in-store network security, cyber security, firewall monitoring, and failover services.

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How to apply

1. Research and Evaluate the Opportunity

  • Investigate the Smoothie Factory + Kitchen franchise concept to understand its business model, market presence, and brand reputation.
  • Consider your interest and alignment with the health and wellness industry, as this is crucial for a successful franchise in this sector.

2. Review the Franchise Disclosure Document (FDD)

  • Obtain and carefully review the Franchise Disclosure Document (FDD) provided by Smoothie Factory + Kitchen. This document contains essential information about the franchise, including fees, obligations, and performance.
  • Pay close attention to details regarding initial and ongoing costs, support provided by the franchisor, and any litigation or regulatory issues faced by the franchise.

3. Secure Financing

  • Determine the total investment required for opening a Smoothie Factory + Kitchen franchise, which includes franchise fees, equipment costs, leasing, and operational expenses.
  • Explore financing options such as loans, investors, or personal savings to cover the initial investment and ensure financial stability during the business’s initial phase.

4. Find a Perfect Location

  • Identify a strategic location that aligns with Smoothie Factory + Kitchen’s target demographic. High-foot-traffic areas such as malls, fitness centers, or university campuses are ideal.

5. Complete Franchise Training

  • Participate in all required training programs offered by Smoothie Factory + Kitchen to understand their operational procedures, marketing strategies, and service standards.
  • Training may include hands-on operational training, management courses, and customer service workshops to equip you with the necessary skills to run the franchise effectively.

6. Obtain Necessary Permits and Licenses

  • Apply for all necessary permits and licenses needed to operate a food and beverage service in your locality. This typically includes health department permits, business licenses, and food handler’s certifications.
  • Ensure compliance with local, state, and federal regulations to avoid legal complications.

7. Set Up Your Franchise

  • Finalize the lease, complete any necessary remodeling to fit the franchise’s brand requirements, and install the necessary equipment.
  • Hire and train staff according to the franchisor’s guidelines and standards.
  • Establish relationships with suppliers recommended by the franchisor to ensure that all products meet brand standards.

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.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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