In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Smoothie King franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Smoothie King franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Smoothie King outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Smoothie King franchise opportunity

Section V – Presentation and analysis of Smoothie King’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023, 2022, and 2021 average, median, high, and low net sales for Smoothie King franchised units that had been open for the 13-month period ending December 25, 2023, December 26, 2022, and December 27, 2021, respectively

• 2023 vs. 2022, 2022 vs. 2021, 2021 vs. 2020, 2020 vs. 2019, 2019 vs. 2018, 2018 vs. 2017, 2017 vs. 2016, 2016 vs. 2015, and 2015 vs. 2014 average and median net sales percentage (same-store sales) increase for Smoothie King units based on a comparison of net sales for a comparable period in both years

Section VI – Key ratios, comparables, computations, and analyses for the Smoothie King franchise opportunity (exclusive content for Platinum subscribers)

Section I – Smoothie King Franchise Costs

• Initial Franchise Fee:  $25,000 to $30,000 ($15,000 for a Non-Traditional Location)
• Three Months’ Rental and Deposit:  $5,000 to $25,000
• Technology Systems:  $9,100 to $12,215
• Grand Opening Marketing (New Unit):  minimum of $15,000 for Traditional Units and $7,500 for Non-Traditional Units
• Travel and Training Expenses:  $1,000 to $6,000
• Insurance (First Year’s Premium):  $2,500 to $7,500
• Other Prepaid Expenses:  $1,000 to $2,500
• Start-Up Supplies, Inventory:  $22,000 to $23,500
• Furniture, Fixtures, Equipment, Millwork, and Graphics:  $80,000 to $150,000
• Architectural and Engineering Professional Services:  $3,500 to $15,000
• Signage:  $5,000 to $14,000
• Leasehold Improvements:  $145,000 to $280,000
• Legal, Accounting, and Organizational Costs:  $500 to $4,000
• Miscellaneous Costs:  $1,000 to $5,000
• Drive-Thru:  $0 to $33,750
• Additional Funds – 3 Months:  $5,000 to $25,000
• Total Estimated Smoothie King Franchise Costs:  $320,600 to $648,465

Section II – Smoothie King’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $30,000 for a Traditional Store; $15,000 for a Non-Traditional Store

• Operating Fee:  6% of Gross Sales, subject to a monthly minimum fee of $500

• National Marketing Fee:  currently, if there is a Regional Marketing Fund in the region where your Unit is located, 3% of monthly Gross Sales. If there is no Regional Marketing Fund in the region where your Unit is located, 4% of monthly Gross Sales.

• Regional Marketing Fee:  if established in a region where the Unit is located, Smoothie King will determine the amount of the Fee, not to exceed 2% of Gross Sales; Non-Traditional Units do not contribute to a Regional Marketing Fund

• Local Marketing Requirements:  if there is no Regional Marketing Fund in the region where your Unit is located, you must spend 1% of annual Gross Sales on local marketing

Section III – Number of Franchised and Company-Owned Smoothie King Outlets

Franchised

2021

• Outlets at the Start of the Year:  968
• Outlets at the End of the Year:  995
• Net Change:  +27

2022

• Outlets at the Start of the Year:  995
• Outlets at the End of the Year:  1,048
• Net Change:  +53

2023

• Outlets at the Start of the Year:  1,048
• Outlets at the End of the Year:  1,093
• Net Change:  +45

Company-Owned

2021

• Outlets at the Start of the Year:  40
• Outlets at the End of the Year:  56
• Net Change:  +16

2022

• Outlets at the Start of the Year:  56
• Outlets at the End of the Year:  55
• Net Change:  -1

2023

• Outlets at the Start of the Year:  55
• Outlets at the End of the Year:  59
• Net Change:  +4

Section IV – News Updates on the Smoothie King Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Smoothie King Franchise (Item 19, 2024 FDD)

• Under Part A below, Smoothie King has provided unaudited statements of average annual Unit Net Sales as of December 25, 2023, December 26, 2022, and December 27, 2021.

• Under Part B below, Smoothie King has provided information on the average annual Net Sales percentage increase for Units comparing the 2023 and 2022 fiscal years, the 2022 and 2021 fiscal years, the 2021 and 2020 fiscal years, the 2020 and 2019 fiscal years, the 2019 and 2018 fiscal years, the 2018 and 2017 fiscal years, and the 2017 and 2016 fiscal years.

• All Units offer substantially the same products and services to the public. New franchisees will receive substantially the same services as those offered to existing franchisees.

• Smoothie King obtained these historical financial results from the information submitted by its franchisees. Neither Smoothie King nor an independent certified public accountant has independently audited or verified the information.

Part A – Statement of Average Net Sales for 2022, 2022, and 2021

• The tables below provide information on average Net Sales of Units during each of the 12-month periods starting December 27, 2022 and ending December 25, 2023, December 28, 2021 and ending December 26, 2022, and December 29, 2020 and ending December 27, 2021.

• The term “Net Sales” is defined as all products and services sold in or from the Unit, including off premises catering and delivery, but excluding excise or sales taxes, as well as returns, allowances, and discounts.

• The data below is a representation of average Net Sales for Units broken into nine segments: top 10%, top 25%, top 50%, top 75%, bottom 10%, bottom 25%, bottom 50%, bottom 75%, and total/all.

• Net Sales information is provided on Units open for the consecutive 13-month period ending on December 25, 2023, December 26, 2022, and on December 27, 2021, including those Units closed for a period of less than 8 weeks for remodeling purposes.

• Units presented exclude those Units not scheduled to be open daily throughout the period (excluding holidays), such as Units within office buildings that close for the weekend and Units on college campuses that close for the summer period.

Table A-1 – Average Net Sales of USA Units (December 28, 2021 to December 26, 2022)

• As of December 25, 2023, there were 1,093 Units operated by franchisees and 59 Units operated by Smoothie King. Of the 1,152 Units, 1,009 Units operated by franchisees and 58 Units operated by Smoothie King had been open during the 13-month period ending December 25, 2023, meaning Units opened prior to November 29, 2022.

• The 1,152 Units do not include 32 Units that permanently closed during the reporting period.

• Of those 1,009 franchised Units, 39 Units were excluded since (i) they were not scheduled to be open daily during the reporting period, (ii) they were temporarily closed for more than an 8-week period during the reporting period, (iii) they did not use the POS system required by Smoothie King, or (iv) they sold non-Smoothie King approved items pursuant to prior versions of the franchise agreement (2 Units).

• Of the 970 franchised Units referenced in the below table, all reported sufficient financial performance information to be included in this financial performance representation.

• The information below does not include information from Units operated by Smoothie King.

Top 10%

• Number of Units in Category:  97
• Average Net Sales:  $1,102,762
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  36/37%
• Median Net Sales:  $1,060,141
• High Net Sales:  $1,658,160
• Low Net Sales:  $948,902

Top 25%

• Number of Units in Category:  243
• Average Net Sales:  $959,794
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  92/38%
• Median Net Sales:  $915,507
• High Net Sales:  $1,658,160
• Low Net Sales:  $788,063

Top 50%

• Number of Units in Category:  485
• Average Net Sales:  $830,191
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  203/42%
• Median Net Sales:  $788,063
• High Net Sales:  $1,658,160
• Low Net Sales:  $634,110

Top 75%

• Number of Units in Category:  728
• Average Net Sales:  $742,278
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  292/40%
• Median Net Sales:  $699,626
• High Net Sales:  $1,658,160
• Low Net Sales:  $503,776

Bottom 10%

• Number of Units in Category:  97
• Average Net Sales:  $352,711
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  57/59%
• Median Net Sales:  $367,345
• High Net Sales:  $411,706
• Low Net Sales:  $195,681

Bottom 25%

• Number of Units in Category:  243
• Average Net Sales:  $418,113
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  136/56%
• Median Net Sales:  $431,145
• High Net Sales:  $503,776
• Low Net Sales:  $195,681

Bottom 50%

• Number of Units in Category:  485
• Average Net Sales:  $492,440
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  263/54%
• Median Net Sales:  $503,776
• High Net Sales:  $632,325
• Low Net Sales:  $195,681

Bottom 75%

• Number of Units in Category:  728
• Average Net Sales:  $561,860
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  372/51%
• Median Net Sales:  $565,588
• High Net Sales:  $788,063
• Low Net Sales:  $195,681

Total

• Number of Units in Category:  970
• Average Net Sales:  $661,316
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  430/44%
• Median Net Sales:  $633,218
• High Net Sales:  $1,658,160
• Low Net Sales:  $195,681

Table A-2 – Average Net Sales of USA Units (December 28, 2021 to December 26, 2022)

• As of December 26, 2022, there were 1,048 Units operated by franchisees and 55 Units operated by Smoothie King. Of the 1,103 Units, 966 Units operated by franchisees and 54 Units operated by Smoothie King had been open during the 13-month period ending December 26, 2022, meaning Units opened prior to December 1, 2021.

• The 1,103 Units do not include 25 Units that permanently closed during the reporting period.

• Of those 966 franchised Units, 42 Units were excluded since (i) they were not scheduled to be open daily during the reporting period, (ii) they were temporarily closed for more than an 8-week period during the reporting period, (iii) they did not use the POS system required by Smoothie King, or (iv) they sold non-Smoothie King approved items pursuant to prior versions of the franchise agreement (2 Units).

• Of the 924 franchised Units referenced in the below table, all reported sufficient financial performance information to be included in this financial performance representation.

• The information below does not include information from Units operated by Smoothie King.

Top 10%

• Number of Units in Category:  92
• Average Net Sales:  $994,932
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  32/35%
• Median Net Sales:  $962,845
• High Net Sales:  $1,471,207
• Low Net Sales:  $850,841

Top 25%

• Number of Units in Category:  231
• Average Net Sales:  $862,839
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  82/35%
• Median Net Sales:  $820,733
• High Net Sales:  $1,471,207
• Low Net Sales:  $706,588

Top 50%

• Number of Units in Category:  462
• Average Net Sales:  $743,386
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  194/42%
• Median Net Sales:  $706,588
• High Net Sales:  $1,471,207
• Low Net Sales:  $561,351

Top 75%

• Number of Units in Category:  693
• Average Net Sales:  $664,777
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  277/40%
• Median Net Sales:  $617,222
• High Net Sales:  $1,471,207
• Low Net Sales:  $451,786

Bottom 10%

• Number of Units in Category:  92
• Average Net Sales:  $308,499
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  54/59%
• Median Net Sales:  $319,962
• High Net Sales:  $362,831
• Low Net Sales:  $169,008

Bottom 25%

• Number of Units in Category:  231
• Average Net Sales:  $369,408
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  130/56%
• Median Net Sales:  $381,704
• High Net Sales:  $451,506
• Low Net Sales:  $169,008

Bottom 50%

• Number of Units in Category:  462
• Average Net Sales:  $438,484
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  253/55%
• Median Net Sales:  $451,646
• High Net Sales:  $561,152
• Low Net Sales:  $169,008

Bottom 75%

• Number of Units in Category:  693
• Average Net Sales:  $500,300
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  363/52%
• Median Net Sales:  $511,202
• High Net Sales:  $706,588
• Low Net Sales:  $169,008

Total

• Number of Units in Category:  924
• Average Net Sales:  $590,935
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  405/44%
• Median Net Sales:  $561,251
• High Net Sales:  $1,471,207
• Low Net Sales:  $169,008

Table A-3 – Average Net Sales of USA Units (December 29, 2020 to December 27, 2021)

• As of December 27, 2021, there were 995 Units operated by franchisees and 56 Units operated by Smoothie King. Of the 1,051 Units, 921 Units operated by franchisees and 52 Units operated by Smoothie King had been open during the 13-month period ending December 27, 2021, meaning Units opened prior to December 1, 2020.

• The 1,051 Units do not include 28 Units that permanently closed during the reporting period.

• Of those 921 franchised Units, 41 Units were excluded since (i) they were not scheduled to be open daily during the reporting period, (ii) they were temporarily closed for more than an 8-week period during the reporting period, (iii) they did not use the POS system required by Smoothie King, or (iv) they sold non-Smoothie King approved items pursuant to prior versions of the franchise agreement (2 Units).

• Of the 880 franchised Units referenced in the below table, all reported sufficient financial performance information to be included in this financial performance representation.

• The information below does not include information from Units operated by Smoothie King.

Top 10%

• Number of Units in Category:  88
• Average Net Sales:  $1,062,545
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  36/41%
• Median Net Sales:  $1,014,225
• High Net Sales:  $1,605,120
• Low Net Sales:  $896,948

Top 25%

• Number of Units in Category:  220
• Average Net Sales:  $907,346
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  84/38%
• Median Net Sales:  $855,618
• High Net Sales:  $1,605,120
• Low Net Sales:  $730,074

Top 50%

• Number of Units in Category:  440
• Average Net Sales:  $775,979
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  176/40%
• Median Net Sales:  $730,050
• High Net Sales:  $1,605,120
• Low Net Sales:  $573,792

Top 75%

• Number of Units in Category:  660
• Average Net Sales:  $689,233
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  266/40%
• Median Net Sales:  $643,696
• High Net Sales:  $1,605,120
• Low Net Sales:  $461,013

Bottom 10%

• Number of Units in Category:  88
• Average Net Sales:  $304,367
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  50/57%
• Median Net Sales:  $313,983
• High Net Sales:  $363,472
• Low Net Sales:  $156,243

Bottom 25%

• Number of Units in Category:  220
• Average Net Sales:  $371,310
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  124/56%
• Median Net Sales:  $385,209
• High Net Sales:  $460,778
• Low Net Sales:  $156,243

Bottom 50%

• Number of Units in Category:  440
• Average Net Sales:  $443,526
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  247/56%
• Median Net Sales:  $460,896
• High Net Sales:  $572,747
• Low Net Sales:  $156,243

Bottom 75%

• Number of Units in Category:  660
• Average Net Sales:  $510,555
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  339/51%
• Median Net Sales:  $514,148
• High Net Sales:  $730,026
• Low Net Sales:  $156,243

Total

• Number of Units in Category:  880
• Average Net Sales:  $609,753
• Number and Percent That Met or Exceeded the Average Gross Sales in Category:  377/43%
• Median Net Sales:  $573,269
• High Net Sales:  $1,605,120
• Low Net Sales:  $156,243

Part B – Statement of Average and Median Annual Net Sales Percentage Increase for Units

• Part B below includes the average and median Net Sales percentage increase for Units based on a comparison of Net Sales for Units open for a comparable period in both years.

• Partial years are included in the calculation; for example, if a Unit was opened on October 1, 2018, there would be three months of sales from both years included in the 2019-versus-2018 comparison.

• The information disclosed includes only Units scheduled to be open daily during the reporting period, or were closed for less than an 8-week period during each calendar year.

• Of the total number of Units listed for each comparison year in the table below, all reported sufficient financial performance information to be included in this financial performance representation.

2023 vs. 2022

• Number of Units:  970
• Average Percentage (Same-Store Sales) Increase:  11.64%
• Number and Percentage of Units That Met or Exceeded Average Percentage Increase:  488/50%
• Median Percentage Increase:  11.69%

2022 vs. 2021

• Number of Units:  924
• Average Percentage (Same-Store Sales) Increase:  -3.23%
• Number and Percentage of Units That Met or Exceeded Average Percentage Increase:  496/54%
• Median Percentage Increase:  -2.25%

2021 vs. 2020

• Number of Units:  880
• Average Percentage (Same-Store Sales) Increase:  16.34%
• Number and Percentage of Units That Met or Exceeded Average Percentage Increase:  441/50%
• Median Percentage Increase:  16.36%

2020 vs. 2019

• Number of Units:  827
• Average Percentage (Same-Store Sales) Increase:  2.46%
• Number and Percentage of Units That Met or Exceeded Average Percentage Increase:  415/50%
• Median Percentage Increase:  2.61%

2019 vs. 2018

• Number of Units:  806
• Average Percentage (Same-Store Sales) Increase:  1.43%
• Number and Percentage of Units That Met or Exceeded Average Percentage Increase:  408/51%
• Median Percentage Increase:  1.56%

2018 vs. 2017

• Number of Units:  738
• Average Percentage (Same-Store Sales) Increase:  0.36%
• Number and Percentage of Units That Met or Exceeded Average Percentage Increase:  342/46%
• Median Percentage Increase:  0.45%

2017 vs. 2016

• Number of Units:  660
• Average Percentage (Same-Store Sales) Increase:  1.23%
• Number and Percentage of Units That Met or Exceeded Average Percentage Increase:  331/50%
• Median Percentage Increase:  1.29%

2016 vs. 2015

• Number of Units:  585
• Average Percentage (Same-Store Sales) Increase:  9.38%
• Number and Percentage of Units That Met or Exceeded Average Percentage Increase:  275/47%
• Median Percentage Increase:  8.73%

2015 vs. 2014

• Number of Units:  520
• Average Percentage (Same-Store Sales) Increase:  9.79%
• Number and Percentage of Units That Met or Exceeded Average Percentage Increase:  260/50%
• Median Percentage Increase:  9.64%

Section VI – Smoothie King Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️