Swig Franchise Cost, Revenue & Profit 2024

If you are looking to own a Swig franchise and wondering if it’s a good decision, you are one of the many thinking about this.

Swig is a famous brand, especially in the Western United States, that is growing rapidly. They also offer franchising for qualified franchisees, which could be profitable.

It is a soda fountain chain that works with a drive-through system. The Swig menu is rich with a variety of sodas, and that too at affordable prices.

This article will discuss Swig and its franchise system and show you if it’s worth owning a Swig.

Swig Franchise
Swig Franchise

About Swig and Swig History

Swig is a relatively new but quite popular drive-through soda franchise fountain chain, mainly operating in the Western United States.

They are popular for their “dirty sodas,” which are a mix of popular brands like Coca-Cola and Dr Pepper.

Swig was founded in 2010 and had quite a fast growth, reaching operations in six states as of 2023. They now have over 40 outlets and offer franchising to those interested.


Franchise Model Table

Cost or FeeAmount
Initial Investment       $534,900+
FranchiseYES
Franchising Since2010
Franchise-Fee$39,500
Royalty-Fee7%
Liquidity$300,000
Estimated Outlets43

How Much Does it Cost to Open a Swig Franchise?

The cost to open a Swig franchise depends on a lot of different factors. The biggest differentiator is the number of stores you will be opening, their location, and size.

According to Swig’s website, the average investment required starts from $534,900 and goes up. It could well be over millions of dollars if you are going to open more than five stores.

In addition to this, you also need to pay a $39,500 franchise fee. This franchise fee is paid in a lump sum before you start building the store. You will also pay a 7% royalty fee from your gross sales to Swig.


Swig Franchise Requirements

Swig Franchise Requirements

Swig requires potential franchisees to complete two types of requirements, financial and professional.

On the financial side, you need to have liquid capital of a minimum of $300,000 and a net worth of at least $750,000.

The financial requirement is a must, and every applicant has to have these two at the minimum.

On the business side, Swig only takes applications from those who can open at least 5 Swig locations.

If you are going to apply for less than five stores, you will not become a franchisee. Apart from that, there is no specific information about what kind of background they require.


Swig Profit & Revenue

Swig’s annual revenue was $18.7 million in the last available report for 2022, which is a massive drop from the $21 million annual revenue in the year before.

Their data for the store’s annual revenue is not available, but it’s easy to make a calculation from the currently available numbers.

Considering they have 43 outlets, each franchise owner makes an average of $410,000 annually in revenue.

So now, if we consider a profit margin of 30% as per the industry average, then we can find out that a Swig franchise owner makes $123,000 a year on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%410000.00
Rent8.75%(35875.00)
Insurance4.38%(17937.50)
Salaries17.50%(71750.00)
Franchise Royalty Fees4.38%(17937.50)
Utilities1.75%(7175.00)
Cost of Goods Sold (COGS)21.88%(89687.50)
Labor (Variable)11.38%(46637.50)
Total (Expenses)70.00%(287000.00)
Net Profit30.00%123000.00

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.


Payback Period Of Swig Franchise

With an investment of $534,900 and an estimated 30% profit on the average net revenue, which is $410,000, the yearly profit would be $123,000.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Midpoint Investment / Yearly Profit = $534,900 / $123,000 = 4.3 years

Based on these figures, it will take approximately 4 years to pay back the initial investment for Swig. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Swig Training and Support

Swig offers a set of training to get you accustomed to managing and running a Swig branch.

The details of the training are provided to you during your onboarding when you are approved as a franchisee. There might be additional training depending on your individual situation.

In addition, Swig also helps their franchisees in finding your location, helps you to make the hires, and give you pre-opening help. This comes in during their onboarding and at no extra cost.

For those looking to open a franchise in the soda industry, possibilities include the Rocket Fizz franchise.


Swig Comparison

NameFranchise FeeRoyalty FeeInitial Investment
Smoothie King$15,000-$30,0006%$311,601-$1.3 million
Sonic Drive-In$45,0000-5%$864,000-$3.6 million
Swig$39,5007%$534,900+

Conclusion

All in all, Swig is a popular brand in the Western United States, and they offer franchising in quite a lot of states in the US. However, you need to open at least five stores if you want to be approved as a Swig franchisee.

The costs start from $534,900, and it could go quite high depending on the number of outlets you want to open.

Their annual revenue last year was $18 million, which equals to about an average of $410,000 annual revenue for each store.

It shows good potential for those interested if you can satisfy the financial requirements.


FAQs

Is Swig a franchise?

Yes. Swig is currently a franchise but offers franchising opportunities to very few selected individuals.

They do not offer franchising in several states, including Utah, Arizona, Oklahoma, Washington, and a couple more. You can get the full list on their website.

How many stores do I need to open to get approved?

The minimum store location is five. If you want to open less than this, you will not get approved to be a Swig franchisee. There is no maximum limit as to how many stores you can open.

Who owns Swig?

The Savory Fund, a private equity firm, the Larry H own swig.

Who founded Swig?

Swig got started in 2010 in Utah. It was founded by Nicole Tanner.

Where is Swig headquartered?

The headquarters of Swig is located in American Fork, Utah.

How many locations does Swig has?

Swig currently has only 54 locations, but the company is planning to have 70 corporate locations by the end of the year.

Sources

https://swigdrinks.com/franchi$sing-2/

https://en.wikipedia.org/wiki/Swig_(soft_drink_shop)

https://www.konaequity.com/company/swig-4395753475/

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