Risk Score
Pending analysis
Investment Range
$320,600 - $1,266,650
Franchise Fee
$15,000
Min Cash Required
$5,000
Total US Locations
1,152
Business Summary
Smoothie King operates units that offer guests a variety of custom smoothies and smoothie bowls designed to support healthy and active lifestyles. Each blend is made with select whole fruits and organic vegetables, without artificial preservatives, flavors, or colors. Smoothie King also sells other nutritional drinks and general nutritional products, aiming to inspire people to live healthy and active lifestyles and be part of their health and fitness journeys.
Corporate History
The Smoothie King concept and its primary product were first created in 1973 by Stephen C. Kuhnau, Sr. Smoothie King Franchises, Inc. was initially incorporated in Louisiana in May 1987, and began offering franchises in May 1988. In 2018, the company redomesticated as a Texas corporation. Smoothie King's mission is to inspire people to live healthy and active lifestyles.
Financial Overview
Investment Range
$320,600 - $1,266,650
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$30,000
Minimum Cash Required
$5,000
Royalty %
6%
Marketing %
6%
Equipment Costs (Low)
$233,500
Equipment Costs (High)
$1,076,750
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Smoothie King Franchises, Inc.'s financial statements for 2021, 2022, and 2023 were audited by independent auditors who issued an unqualified opinion, indicating that the financial statements present fairly, in all material respects, the company's financial position and results of operations. The auditors did not identify any conditions or events that raised substantial doubt about Smoothie King's ability to continue as a going concern. Management maintains provisions for uncollectible amounts and defers income taxes, which are standard accounting practices, with no reported financial difficulties or concerns.
Financing Details
Smoothie King does not offer direct or indirect financing to its franchisees. Additionally, Smoothie King does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
1,152
Franchised Units
1,093
Corporate Units
59
Avg Square Footage
1,300
Franchising Since
1988
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Smoothie King has one active lawsuit. In October 2021, Smoothie King Franchises, Inc. filed an action in the U.S. District Court in Georgia against Best Smoothie Inc. and Jean Victome, alleging a violation of a consent judgment and unfair competition. Smoothie King claims that the defendants, who purchased a former franchisee's assets, continued the business using Smoothie King's proprietary materials, trade secrets (including recipes), marks, and trade dress. Smoothie King is seeking damages and injunctive relief, and a trial date is set for April 29, 2024.
Bankruptcy History
Smoothie King has no bankruptcy history to report. No bankruptcies are required to be disclosed in Item 4 of their FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Smoothie King franchise agreement, franchisees must have consistently complied with all mandatory provisions in the Smoothie King Manuals and the Franchise Agreement. They must satisfy all financial obligations to Smoothie King and its affiliates, provide written notice of their intent to renew between 6 and 9 months before the current term ends, and present proof of their right to remain at the location for the new term. Franchisees must also commit to renovating and modernizing their unit to meet Smoothie King's then-current standards and image, complete any required training, and sign a general release of claims against Smoothie King. Finally, they must sign Smoothie King's then-current franchise agreement, which may have different terms, and pay the current renewal fee.
Training & Support Program
Franchisor Assistance
Smoothie King provides franchisees with a range of assistance, both before and after opening. Prior to opening, Smoothie King offers general site selection criteria and guidance, reviews leases, prepares proposed design documents for the unit (including equipment, furnishings, decor, and signs), and reviews final construction plans for compliance. Franchisees and their managers receive initial management training, which can be in-person at the corporate office in Coppell, Texas, or Dallas, Texas, or virtually. For the first three units, Smoothie King also provides up to five days of on-site assistance during the grand opening. Post-opening, franchisees receive ongoing support through a Marketing Manual, marketing and advertising guidance and approval, and periodic consultations from Smoothie King representatives. This ongoing support includes information on system changes, advertising strategies, and regular inspections to ensure compliance with standards. Smoothie King also offers advanced training, evaluates new products and services, and provides resources such as newsletters, bulletins, digital manuals, and reports.
Initial Training Hours
200
Training Location
Smoothie King corporate office in Coppell, Texas and Unit in Dallas, Texas, or another location Smoothie King designates or virtual
Ongoing Support
After opening, Smoothie King franchisees receive ongoing support including on-site assistance for their first three units, marketing and advertising guidance, and periodic consultations from Smoothie King representatives regarding business operations. Smoothie King provides information on system changes, advertising activities, and required reports. Franchisees also have access to advanced training programs as deemed necessary by Smoothie King, and information through newsletters, bulletins, brochures, digital manuals, and reports on Smoothie King's policies, research, and developments. Smoothie King periodically inspects units to ensure compliance with standards.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Absentee Allowed
Territory Type
Protected
Territory Size Requirements
Smoothie King grants a Protected Territory for traditional locations, defined by identifiable boundaries. This territory typically includes a business, seasonal, and/or residential population count of approximately 15,000 people, based on Smoothie King's site selection data. The boundaries are shaped at Smoothie King's discretion to match population criteria, traffic patterns, and natural geographic features like bodies of water or interstate highways. In some suburban, rural, or beach communities, the Protected Territory may have a population count of less than 15,000 people, specifically where there are fewer than 15,000 people within a 2-mile natural trade area.
Staffing Notes
Smoothie King requires that the franchised business must always be under the direct, full-time, on-location supervision of the franchisee or a trained and competent full-time manager. If the franchisee or their affiliates operate four or more units, a district manager must also oversee operations across those units. Both unit managers and district managers must satisfactorily complete Smoothie King's initial management training program. Franchisees are responsible for hiring and maintaining a competent, trained staff, ensuring compliance with all laws, and upholding guest relations and appearance standards. Franchisees are solely responsible for all employment decisions, including hiring, firing, and scheduling of their employees.