FranchiseVerdict
Baja Smoothies logo
FV-00227·CAUTIONExcellent81

Baja Smoothies

Food & Beverage - Full ServiceFranchising since 2023Website
Investment
$145K – $327K
11th pct Full Service
Avg revenue
57th pct Full Service
Royalty
Units
2
11th pct Full Service
SBA default

Bottom line

  • Total investment $145K – $327K including a $30K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated CAUTION with a risk score of 72/100.
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Baja Smoothies Franchise, LLC
Incorporated in
Minnesota
HQ
5995 Oren Ave. N, Ste. 209-270, Stillwater, MN 55083
Auditor
LETHERT, SKWIRA, SCHULTZ & CO. LLP
Audited financials
Franchisor revenue
$0
vs $2 prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Baja Smoothies unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $145K–$327K
Working capital
$
Item 7 didn't break this out — defaulted to ~10% of annual revenue

Unlevered ROIC · per unit

44%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$105K
EBITDA margin
14.0%
Total invested
$239K
Payback
27 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees operate portable smoothie carts (2 or 4 stations per unit) in high-traffic outdoor or indoor locations, preparing and selling blended fruit beverages and related products. Day-to-day operations include inventory management, customer service, cash handling, equipment maintenance, and location optimization to drive foot traffic and repeat sales.

CEO
Chad Warzeka
Founded
2022
FDD year
2024
States available
1

Item 7 · what it costs

The Vitals

Total investment
$145K – $327K
All-in to open one unit
Liquid capital
$0 – $7K
Cash you must have on hand
Franchise fee
$30K
Royalty
Annual Fee of $2,995 for 2-Cart Franchise or $3,995 for 4…
Ad fund
$750

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
2
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
2
Corporate units in the system
% franchised
0%
vs corporate-owned
2022
0±0
Franchised units
2023
0
Franchised units
2024
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 14 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 14 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

72
Risk · 0-100
CAUTION72 / 100

Baja Smoothies presents HIGH RISK due to a micro-franchise system (2 units), undisclosed financial performance, franchisor going concern issues, and insufficient royalty revenue to support franchisee growth—avoid until system demonstrates sustainable unit growth and profitability.

Score breakdown · what drove the 72 / 100 rating

  1. 01MINOROnly 2 existing units indicates an extremely underdeveloped franchise system with no meaningful track record or network support
  2. 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation; unable to assess if $144K-$326K investment can generate acceptable returns
  3. 03HIGHGoing Concern status is False, suggesting potential financial instability or operational risk at franchisor level
  4. 04MINORHigh initial investment ($144K-$326K) combined with low royalty fees ($2,995-$3,995 annually) indicates franchisor may be underfunded to support franchisees adequately
  5. 05MEDCart-based model is inherently location-dependent and weather-vulnerable with limited scalability or revenue diversification
  6. 06MINOR10-year term is unusually long without demonstrated franchisee success metrics or exit data
  7. 07MINORTiny unit count (2) suggests either brand is pre-revenue stage or prior franchisees have exited—both are severe red flags

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Zip Code
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Minnesota

Item 11

Training & Operations

Classroom training
28 hrs
On-the-job training
16 hrs

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

14 numbers

Locked
(701) 328-••••
ND
(410) 576-••••
MD
(213) 576-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

Baja Smoothies · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above