Baja Smoothies Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Baja Smoothies is a mobile beverage franchise selling fresh-fruit smoothies from carts at events and festivals. Franchisees run the mobile operation, managing prep, event bookings, and sales.
FranchiseVerdict summary · 2026
A Baja Smoothies franchise requires a total initial investment of $160K – $202K, including a $30K franchise fee. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $160K – $202K
- 6th pct Service Resta…
- Avg gross sales
- N/A
- n=1
- Royalty
- N/A
- Units
- 1
- 1st pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $160K – $202K including a $30K franchise fee.
- RETURNSItem 19 discloses only a single Qualifying Outlet's gross sales from a single 2-day art festival event: $13,954 gross sales, 1,350 cups sold, over 2 event days (not an annual whole-unit revenue figure).
- RISKVerdict C (Average), verdict score 43/100 (higher is better).
- DATAItem 19 reports single-event gross sales (not whole-unit annual revenue) rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Baja Smoothies Franchise, LLC
- Parent company
- None
- CEO title
- Founder and Owner
- Chad Warzeka
- Incorporated in
- Minnesota
- HQ
- 11419 Crestbury Echo, Woodbury, Minnesota 55129-5700
- Auditor
- Lethert, Skwira, Schultz & Co. LLP
- Audited financials
- Franchisor revenue
- $2
- vs $0 prior year
Affiliated brands
- Baja Smoothies
- you
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Chad Warzeka
- Headquarters
- Minnesota
- Founded
- 2004
- FDD year
- 2024
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 85% below the typical full-service restaurants franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Carts, Trailer and Installed Equipmentnot refundable | $110K | $110K | |
| Initial Franchise Feenot refundable | $30K | $30K | |
| Carts, Trailer, Club Car and Installed Equipmentnot refundable | $225K | $225K | |
| Food, Lodging & Travel Expenses (3 people while training) | $150 | $900 | |
| Insurance | $2K | $3K | |
| Cart Compliance Fee | $0 | $10K | |
| Tax, Title and Licensing | $360 | $34K | |
| Technology Systems and POS System | $2K | $3K | |
| Additional Pre-Opening Inventory | $1K | $6K | |
| Grand Opening Advertising | $0 | $500 | |
| Permits and Business Licenses | $250 | $2K | |
| Professional Fees | $0 | $5K | |
| Real Estate for Equipment Storage | $0 | $1K | |
| Additional Funds (3 months) | $0 | $7K | |
| Total initial investment | $370K | $436K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $160K – $202K
- Top 40% of category vs category
- Liquid capital req'd
- $0 – $7K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- Flat Annual Fee of $2,995/year (2-Cart) or $3,995/year (4…
- Ad fund
- $750 per year flat Brand Fund Fee (not percentage-based)
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Annual Fee: $2,995/year for 2-Cart Franchise; $3,995/year for 4-Cart Franchise, due June 1st |
| Technology fee | $0 |
| Training fee | $200 |
| Transfer fee | $8K |
| Renewal fee | $7K |
| Inventory (initial) | $500 – $3K |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Baja Smoothies did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Baja Smoothies unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
37%
Within the 30–60% "attractive franchise" band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
Item 19 discloses only a single Qualifying Outlet's gross sales from a single 2-day art festival event: $13,954 gross sales, 1,350 cups sold, over 2 event days (not an annual whole-unit revenue figure).
Based on a single reporting unit - not a system average
- Item 19 type
- single-event gross sales (not whole-unit annual revenue)
- Sample size
- 1
- vs category median 18 · small
- Transparency tier
- none
- Categorical assessment of disclosure depth
- Source filing
- FDD 2024
- The FDD edition these figures were read from
- Transparency
- 0 / 10
- vs category median 3 / 10 · below
Compared against 805 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Baja Smoothies Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
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.
Litigation (Item 3)
No litigation required to be disclosed in Item 3.
Largest disclosed settlement: $224,900
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Lethert, Skwira, Schultz & Co. LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 43 / 100 verdict
- 01MINOROnly 2 existing units indicates an extremely underdeveloped franchise system with no meaningful track record or network support
- 02HIGHGoing Concern status is False, suggesting potential financial instability or operational risk at franchisor level
- 03MEDCart-based model is inherently location-dependent and weather-vulnerable with limited scalability or revenue diversification
- 04MINOR10-year term is unusually long without demonstrated franchisee success metrics or exit data
- 05MINORTiny 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
What are you signing up for?
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 150,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Washington County, Minnesota (franchisor's principal place of business) |
| Jury trial waiver | No |
| Governing law | State where Baja Smoothies Business is located |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 28 hrs
- On-the-job training
- 16 hrs
- Training location
- Woodbury, Minnesota (corporate headquarters, or company-owned Baja Smoothies Business)
- Ongoing training
- Required
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Baja Smoothies franchise?
The total investment to open a Baja Smoothies franchise ranges from $160K – $202K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Baja Smoothies franchise owners earn?
Baja Smoothies does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Baja Smoothies FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Baja Smoothies FDD and qualifies whose outlets they describe.
What is Baja Smoothies's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Baja Smoothies (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Baja Smoothies franchise locations are there?
As of their most recent FDD filing, Baja Smoothies has 1 total units in the United States, including 1 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Baja Smoothies a good franchise to buy?
FranchiseVerdict rates Baja Smoothies as a C-grade franchise with a verdict score of 43 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.