Signing out of account, Standby...
- 2022 Franchise 500 Rank
#13 Ranked #19 last year
- Initial investment
$264K - $1.2M
- Units as of 2022
1,373 28.0% over 3 years
Here’s what you need to know if you’re interested in opening a Smoothie King franchise.
Smoothie King is a juice bar franchise that sells nutrition-driven smoothies. As a fast-food alternative, the drinks at Smoothie King are intended to help people meet their dietary needs and goals.
First opened in 1973, Smoothie King was one of the United State's very first smoothie locations. By 1988, they began to franchise. It now has over 1,000 locations in the U.S. and internationally. These centers don't just make and sell smoothies, but also energy bars, healthy snacks, sports drinks, vitamins, herbs, and supplements.
Your mission as a franchisee is to encourage guests to choose and maintain a healthy lifestyle. As a franchisee, you are expected to show customers that Smoothie King is one way to do that. Its locations use organic fruits, vegetables, and other ingredients free of artificial preservatives, flavors, and dyes. They even have a "No No List" that tells you what ingredients the company will never use in their smoothies.
Why You May Want to Open a Smoothie King Franchise
Smoothie King usually offers comprehensive support for franchisees and is ready for them to rule their future, as they say. The company might provide the tools for your business and is typically working to develop new products to keep the business fresh. You may own more than one unit and work closely with their real estate team to find the perfect location.
As a fitness-focused smoothie chain, you might work within a well-defined niche and can target your customer base. More importantly, its franchisees may be able to rest easy knowing that they're selling nutritious products to improve people's health. Your franchise could become the healthy sweet treat in your neighborhood.
What Might Make Smoothie King Franchise a Good Choice?
Rated in Entrepreneur’s Franchise 500 for franchise organizations, Smoothie King may continue to keep up its momentum. Its ranking on the Franchise 500 is based on an evaluation of more than 150 data points that consist of areas in costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
In October 2020, CEO Wan Kim went on Undercover Boss to see what it was like at Smoothie King. Now that the brand has network television level recognition, it's gained even more popularity. The company is planning to expand in many more locations.
If you want to open a franchise, Smoothie King may offer a contract agreement that typically lasts for ten years. You should ensure that you're financially ready to cover the initial investment made up of a franchise fee and other startup costs. In addition, you should prepare for ongoing fees that will include royalty, advertising, and renewal fees. Excellent credit and strong business acumen are typically a must. The company may expect its franchisees to develop multiple units.
How to Open a Smoothie King Franchise
Like with other franchises out there, the first step to owning a Smoothie King franchise is making sure it's a good fit for you. As part of the onboarding process, the company will usually connect you with a franchise development manager. This is a great opportunity to ask questions, especially about your planned location.
Your development manager will then generally schedule a discovery day at company headquarters in Dallas, Texas. Here, the executive team typically meets with potential franchisees and interviews them.
After the interview, they typically review finances, credit, and background information. Occasionally, they hold second-round interviews. After approval, it's generally time to send in your franchise fee so you can officially become a Smoothie King franchisee!
About Smoothie King
- Franchising Since
- 1988 (34 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
- # of Units
- 1,373 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Smoothie King franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
- $15,000 - $30,000
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $263,601 - $1,184,865
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 20% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Smoothie King has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 100-240 hours
- Classroom Training
- 54-102 hours
- Additional Training
- Managment training at corporate office for new store managers (optional)
- Ongoing Support
NewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in franchise ownership like Smoothie King? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Smoothie King landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Smoothie King ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse more franchises that are similar to Smoothie King.
Related Franchise Content
Catch up on the latest franchise news, trends, and more.
First determine if you can follow a system, then find the right system for you.
2022 Franchise Supplier Rankings: Top Software Solutions Providers
New initiative offers gratitude to the "behind-the-scenes" personnel who support the brand's franchisees