How to Buy a Smoothie Franchise

Protected by Copyscape Unique Content Check
Published: 16th April 2013
Views: N/A

Smoothie franchises are popular, profitable and a stable business to invest in. Juice It Up is a well-known smoothie and juice bar franchise based out of Irvine, California whose business model I will continually reference in this article. Trends for smoothie stores include fusion concepts that combine the products of two different franchises. For instance, Maui Wowi Hawaiian Coffees & Smoothies is leading this trend by offering both smoothies and coffee in one place. There are many choices to consider when it comes to investing in a smoothie franchise. It will be necessary to understand the financial commitment and requirements that are associated with owning a smoothie franchise when determining which type of smoothie franchise is the best fit for yourself. It is also beneficial to consult other franchises when trying to decide if a particular smoothie franchise is the right for you.

Look at the Financial Commitment and the Fees

Franchises have fees associated with ownership including the initial franchise fee, marketing and advertising fees and ongoing royalty payments. Franchisors also have a net worth requirement which determines your eligibility for ownership. Franchise fees for smoothie businesses typically are in the $25,000 range or more. Most franchises list their financial requirements right on their website.

Juice It Up has a minimum net worth of $300,000 with at least $75,000 being liquid assets. Juice It Up also has ongoing fees that franchisees are responsible for. Juiceitup.com states that there is a royalty fee of 6.5% percent of gross sales and additional 2.5% percent fee that is collected for Marketing and Advertising. The marketing and advertising fees are used to build the Juice It Up brand. As you research smoothie franchise opportunities, look at these fees closely, you want to find the franchise that has low fees and good support.

Consult Other Franchisees

I always recommend checking references. Contact current and past franchises to find out about their experiences with the company. This is valuable information financials cannot provide. Important questions to ask are: Were they happy with the income provided? How was the support from the company?

Once you have selected a < ahref="smoothie franchise that you meet the requirements for and that you are content with the financial commitment then you should check to see if the franchise has name recognition or not. Name recognition is an important factor to consider. Those without name recognition will require more advertising.

Location

Once you have selected a smoothie franchise, you will need to find a location. Most franchisors assist in location selection. However, in the case that you are on your own to find a location I suggest contacting a real estate broker to assist in this process.

It is desirable to be located in a high traffic area. The best option would to be located near a gym or fitness center. Smoothie franchises do not require a lot of square footage. Planet Smoothie franchises are between 700-1200 square feet. Other franchises are located in kiosk business models.

Consider occupancy costs. Make sure occupancy costs coincide with the amount of space you are getting.

The Process

After doing all your research, selecting a franchise, finding a location the next steps include securing funding and going through the franchisors training program. You will also need to hire and train employees.

Also, it will be critical to have a marketing strategy in place for the launch of the business.

Most franchisors will offer support in getting the business up and running.

Industry Outlook

The smoothie business is experience steady growth as society becomes increasingly health conscious. Make sure that you select a smoothie franchise that is the right fit for you.

This article is copyright


Report this article Ask About This Article


Loading...
More to Explore