Smoothie King is one of the fastest-growing companies with a global presence, and if you want to own your own Smoothie King franchise, then this guide is exactly what you need.
In this article, we reveal to you how much a Smoothie King franchise owner makes, what is the profit earning potential, the failure rate, the payback period of Smoothie King, and much more.
So stick to this article till the end!
About Smoothie King
Smoothie King is a health-focused international smoothie company that serves delicious blends of smoothies and encourages people to live healthy lives.
The company’s founder Steve Kuhnau started experimenting with different smoothie recipes to improve his health. Because of smoothies, his health improved so drastically that he opened a health store in 1973 in New Orleans, Louisiana, with his wife, Cindy Kuhnau.
Then in 1989, they officially founded Smoothie King® Franchises, Inc. and today, there are more than 1400+ Smoothie King locations in the world and counting.
Smoothie King offers franchise opportunities to eligible entrepreneurs, so if you want to learn what it takes to be a Smoothie King franchise owner, then keep on reading.
((https://www.smoothieking.com/stories/the-history-of-smoothie-king-and-whats-coming-back))
Smoothie King Key Investment Figures
| Cost or Fee | Amount or Percentage |
|---|---|
| Franchise fee | $30,000 |
| Royalty fee | 6.0% |
| Marketing fee | 5.0% |
| Investment (mid-point) | $688,000 |
| Payback period | 3.5 years |
| Minimum net worth | $350,000 |
| Minimum liquid capital | $150,000 |
Investment Required to Start Smoothie King Franchise
Here’s how much investment you need to start a Smoothie King franchise:
- For Free-standing Drive-thru location: $723,501 – $1,184,865.
- For Endcap or inline location: $320,301 – $585,465.
How Much Does A Smoothie King Franchise Owner Make?
The sales of different Smoothie King franchise owners may differ based on their location, operating cost, number of employees, service, etc.
However, as per the FDD, out of the 831 Smoothie King franchise outlets operating in 2020-2021, the lowest annual net sales of Smoothie King is $93,807, and the highest is $1,690,867 with the average annual net sales being $514,989.
Smoothie King Revenue
| Year | Systemwide Sales | Average Unit Volume (AUV) |
|---|---|---|
| 2020 | $451.5 Million | – |
| 2021 | $602 Million (25% more than 2020) | – |
| 2022 | – | $609,753 |
The brand’s top 25% of stores reported an AUV of over $907,000.
How Much Does Smoothie King Employee Earn?
As per ZipRecruiter, Smoothie King pays its employees a minimum of $9.33 an hour and a maximum of $20.52 an hour on average.
So in yearly terms, a Smoothie King employee at an entry-level position of Crew member makes $19,400 a year while an employee in a higher-level position of General Manager makes $42,678 a year on average.
Please note that this is an average figure, and the salary of a Smoothie King employee may vary based on what department they are in, their designation, location, experience, etc.
Pros & Cons Of Smoothie King Franchise
Pros Of Smoothie King Franchise
- Expert real estate team, which helps you to choose the perfect location.
- Provides training & support.
- Fast-growing niche.
- High profit potential.
- Global presence.
- 72% success rate for franchisees.
Cons Of Smoothie King Franchise
- High royalty and marketing fees (12% in total).
- Technology contribution fees of $200 per month.
- Need a credit score of more than 700.
Smoothie King Franchise Average Revenue & Profit
A Smoothie King franchise owner makes average net sales of $514,989 a year, and with an average profit margin of 15%, one can make an estimated average profit of $77,240 annually.
Even if we talk about the lowest and highest-performing Smoothie King franchises, then one can make a minimum of $80,000 a year and a maximum of $400,000 a year on average by owning this franchise.
This is how we calculated the net profit of Smoothie King Franchise:
| Financial Overview | Percentage of Revenue | Amount ($) |
|---|---|---|
| Individual Franchise Annual Revenue | 100% | 514989.00 |
| Rent | 10.63% | (54717.58) |
| Insurance | 5.31% | (27358.79) |
| Salaries | 21.25% | (109435.16) |
| Franchise Royalty Fees | 5.31% | (27358.79) |
| Utilities | 2.13% | (10943.52) |
| Cost of Goods Sold (COGS) | 26.56% | (136793.95) |
| Labor (Variable) | 13.81% | (71132.86) |
| Total (Expenses) | 85.00% | (437740.65) |
| Net Profit | 15.00% | 77248.35 |
Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.
Smoothie King Franchise Failure Rate
To determine the failure rate of Smoothie King franchise let us have a look at this table:
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 871 | 931 | +60 |
| 2020 | 931 | 968 | +37 |
| 2021 | 968 | 995 | +27 |
For the Franchised outlets:
- In 2019, the growth rate was (60)/871×100≈6.88%
- In 2020, the growth rate was (37)/931×100≈3.97%
- In 2021, the growth rate was (27)/968×100≈2.78%
Company-Owned Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 29 | 38 | +9 |
| 2020 | 38 | 40 | +2 |
| 2021 | 40 | 56 | +16 |
For the Company-Owned outlets:
- In 2019, the growth rate was (9)/29×100≈31.03%
- In 2020, the growth rate was (2)/38×100≈5.26%
- In 2021, the growth rate was (16)/40×100≈40%
Total Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 900 | 969 | +69 |
| 2020 | 969 | 1008 | +39 |
| 2021 | 1008 | 1051 | +43 |
- In 2019, the growth rate was (69)/900×100≈7.66%
- In 2020, the growth rate was (39)/969×100≈4.02%
- In 2021, the growth rate was (43)/1008×100≈4.26%
According to the above-mentioned data, there is no failure rate for franchised outlets as well as company-owned outlets as the outlets at the end of the year increased during the span of 3 years.
The franchised outlets for Smoothie King grew from 2019 to 2021, showing a growth rate between 6.88% and 2.78%. On the other hand, for company-owned outlets, the growth rate of Smoothie King was lying in the range between 31.03% and 40% for the same period.
Overall, when we combine the data of franchise and company-owned outlets, we can see that the Smoothie King franchise has expanded in the years 2019-2021 showing a total growth rate between 7.66% and 4.26%.
Smoothie King Franchise Payback Period
To find out the payback period of the Smoothie King, let us do some calculations:
| AVERAGE INVESTMENT | $688,000 |
| AVERAGE REVENUE PER OWNER | $514,989 |
| AVERAGE PROFIT PERCENTAGE | 20% |
| AVERAGE PROFIT PER YEAR | $200,000 |
| AVERAGE PAYBACK PERIOD | 3.5 years |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 688000/200000 = 3.44 = 3.5 Years based on median
The average investment for a Smoothie King is $688,000.
With an average profit percentage of 20%, the average profit per year is $200,000.
This means that the average payback period for a Smoothie King Franchise is 3.5 years, and the total investment of $688,000 would be recovered within this period.
Smoothie King Might Be The Hardest Franchise To Get
With high profit-earning potential, a global presence, and a proven business model, Smoothie King offers everything that an entrepreneur looks for. As such, it is not that easy to get your own Smoothie King franchise. Here’s what you need to be eligible to own a Smoothie King franchise:
- Minimum Net Worth (1 Store): $350,000.
- Minimum Credit Score: 700.
- Minimum Liquidity (1 Store): $150,000.
- Investment range: $320,301 – $585,465 for an Inline or endcap store and $723,501 – $1,184,865 for Free-standing Drive-thru locations.
((https://www.smoothiekingfranchise.com/investment/))
What Is Smoothie King Best Known For?
Smoothie King is known for their healthy and tasty smoothies, and each smoothie on its menu is carefully crafted to help its customers reach their health goals.
The company promises that its smoothies use 100% non-GMO fruits and veggies and do not contain added sugar, artificial colors, trans-fat, hydrogenated oils, gluten, etc.
Another reason why they are so popular is that they always use organic and fresh vegetables and fruits, making them the best option for health-conscious people.
Apart from Smoothies, Smoothie King also offers breakfast bowls, sports beverages, nutrition snacks, energy bars, herbs, and minerals, among others.
If you have never been to Smoothie King’s, then here are some of their popular menu items that you can try:
- Lean1 Vanilla
- Original High Protein Banana
- Vegan Pineapple Spinach
- Vegan Nutty Super Grain
- Vegan Mango Kale
- Slim-N-Trim Blueberry
- Lean1 Strawberry
- Gladiator Vanilla Smoothie
- High-Intensity Workout Veggie Mango
- Veggie Lemon Ginger
Is Smoothie King Franchise Profitable?
Smoothie King is definitely a profitable franchise to invest in, and over the past few years, there has been a constant increase in the sales of Smoothie King Franchise.
So as already shared above, a Smoothie King franchise owner made a minimum of $93,807 in sales and the highest of $1,690,867 in the year 2020-2021.
And the profit margin of Smoothie King is 20% on average. So you can easily make a net profit of anywhere between $80,000 a year to $400,000 a year in the worst and best case scenario, respectively.
Smoothie King Franchise Earning Potential
The earning potential of any company is dependent on the demand for their products and the increase in their sales figure.
And as per the company’s website, in 2021, Smoothie King had a 17% increase in AUV since 2020, and even previous to that, there has been constant growth in the sales figure of the Smoothie King Franchise.
Here’s the sales figure of Smoothie King between 2019-2020:
- 2019: $476,000
- 2020: $490,000
- 2020: $573,000
In fact, in the year 2020-2021, the highest 10% Smoothie King franchises made as much as $1,690,867 in net sales. So the earning potential of Smoothie King is very high, and franchise owners can make even more than this average amount.
Wrap Up
Smoothie King is one of the fastest-growing franchises with high-profit potential. The company offers training and support, construction and site selection help, etc., and does not have a rigorous training process.
However, to be eligible, you must meet some stringent financial requirements, as already shared above.
The failure rate of Smoothie King is low, and their profit earnings are good. However, they charge high weekly royalty and marketing fees which you must consider.
Overall, Smoothie King seems like a good business opportunity.
Frequently Asked Questions
How much royalty and advertisement fee does Smoothie King charge?
Smoothie King charges a royalty fee of 6% of the store’s weekly sales and advertising fees of 5% (3% + 2% for local advertisment) of weekly sales, which is more than the industry average. Additionally, it also charges a technology contribution of $200 per month.
Does Smoothie King offer in-house financing?
No, Smoothie King does not offer in-house financing. However, they can provide you with a list of various finance vendors.
What kind of training does Smoothie King provides?
Smoothie King provides five weeks of training split into three segments. So they offer one day of orientation, four weeks of management training before opening, and five-days of on-site training.
Who owns Smoothie King?
Smoothie King is owned by Wan Kim, a South Korean entrepreneur. Kim purchased the company in 2012 and has since worked to expand the brand globally.
How many locations does Smoothie King have?
As of 2023, Smoothie King has 1,159 stores operating in the USA.
Who founded Smoothie King?
Smoothie King was founded by Steve Kuhnau and his wife, Cindy Kuhnau, in March 1989.
Where is Smoothie King Headquartered?
Smoothie King is headquartered in Coppell, 9797 Rombauer Rd Suite 150, United States.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.