Planet SmoothieFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Planet Smoothie franchise requires a total initial investment of $84K – $479K, including a $25K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $280K[2]. SBA 7(a) loans show a 27.2% charge-off rate across 120 loans[1]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $84K – $479K
- 6th pct Service Resta…
- Avg gross sales
- $280K
- 2nd pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 154
- 78th pct Service Resta…
- SBA default
- 27.2%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
27.2% of SBA loans charged off across 120 loans, above the 16% franchise average.
Franchising since 1998. Systems this mature have refined operations and brand recognition.
Franchised units fell from 154 to 152 over 3 years. Investigate why operators are leaving.
12 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $84K – $479K including a $25K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $280K/year (median $260K).
- Verdict C (Average) with a risk score of 68/100. SBA loan charge-off rate of 27.2% across 120 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 12 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Kahala Franchising, L.L.C.
- Parent company
- Kahala Brands, Inc.
- Ultimate parent
- MTY Food Group, Inc.
- CEO title
- Chief Executive Officer
- Eric Lefebvre
- CEO experience
- 2018 yrs
- Years in role or industry
- Incorporated in
- AZ
- HQ
- 9311 E. Via De Ventura, Scottsdale, Arizona 85258
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $606.6M
- vs $597.5M prior year
Overview
About
Planet Smoothie franchisees operate quick-service beverage retail locations selling smoothies, juices, and blended drinks. Day-to-day operations include managing inventory (fresh fruit, bases, supplements), staffing point-of-sale transactions, maintaining food safety/equipment, and driving local marketing/promotions to compete in the crowded smoothie/juice category.
- CEO
- Eric Lefebvre
- Headquarters
- AZ
- Founded
- 1995
- FDD year
- 2025
- States available
- 28
FDD Item 7 · 2025 filing · 34 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Traditional) | $12K | $25K | |
| Lease Review Fee (Traditional) | $0 | $3K | |
| Rent/Security Deposit (3 months) (Traditional) | $6K | $20K | |
| Travel and Living Expenses (3 persons) during training (Traditional) | $4K | $8K | |
| Real Estate (Traditional) | — | — | |
| Architectural Fees (Traditional) | $10K | $21K | |
| Leasehold Improvements (Traditional) | $78K | $220K | |
| Restaurant Equipment, Furniture, Small Wares, Interior Signage and Menu Panels (Traditional) | $56K | $94K | |
| Exterior Signage (Traditional) | $8K | $17K | |
| Computer Hardware, Software (POS System) (Traditional) | $3K | $5K | |
| PCI Compliance Costs (Traditional) | $150 | $1K | |
| Opening Inventory (food and paper) (Traditional) | $5K | $15K | |
| Business Insurance (Traditional) | $1K | $5K | |
| Miscellaneous Opening Costs (Traditional) | $5K | $17K | |
| Grand Opening Marketing (Traditional) | $10K | $10K | |
| Depository Account (Traditional) | $3K | $3K | |
| Additional Funds - 3 month initial period (Traditional) | $5K | $15K | |
| Initial Franchise Fee (Non-Traditional) | $16K | $20K | |
| Lease Review Fee (Non-Traditional) | $0 | $3K | |
| Rent/Security Deposit (3 months) (Non-Traditional) | $6K | $20K | |
| Total initial investment | $290K | $801K |
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$42K
15.0% margin
Unlevered ROIC
14%
EBITDA / total invested capital
Payback
6.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $84K – $479K
- Better than avg vs category
- Liquid capital req'd
- $5K – $15K
- Better than avg vs category
- Franchise fee
- $12K – $25K
- Better than avg vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $55 |
| Training fee | $1K |
| Transfer fee | $8K |
| Renewal fee | $13K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $280K
- Per unit, per year
- Median gross sales
- $260K
- Item 19 type
- gross_sales
- Sample size
- 143 units
- vs category median 28 · large
- Quartile band
- $141K→$554K
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
Revenue is only 1.0x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Quick-Service Restaurants averages
How Planet Smoothie Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 154
- Opened
- 10
- Last reporting year
- Closed
- 14
- Terminated
- 4
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 9.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -2.5%
- Net unit change last year
- 3-yr CAGR
- +1.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 11
- Transfer rate
- 7.1%
- Owners selling to other franchisees
- Continuity rate
- 91.7%
- Units that stayed open
- Termination rate
- 3.9%
- Franchisor-initiated terminations
- Ceased ops
- 5.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 26 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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 120
- Loan volume
- $22.1M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 27.2%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 73.1%
- 5-yr charge-off
- 9.1%
- Loans approved 2021+
- Active lenders
- 49
- Defaults
- 22
Vintage analysis
Planet Smoothie charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Planet Smoothie's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 22-year lending trend
Instant access. No subscription.
A 27.2% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Planet Smoothie presents a CAUTION-to-HIGH RISK profile: shrinking franchisee base, undisclosed profitability, litigation pattern involving fraud/misrepresentation claims, unprotected territories, and opaque earnings claims.
Litigation (Item 3)
Two concluded litigation cases involving predecessor and affiliate entities. First case: Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc. (FIPA violations and misrepresentation) settled for $20,000 on March 11, 2016. Second case: KOHO, Inc. v. Kahala Franchising, L.L.C. (breach of contract, unjust enrichment) with cross-complaint filed; outcome status incomplete in provided text.
Largest disclosed settlement: $20,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 68 / 100 rating
- 01MINORDeclining unit count (-2.5% YoY) suggests system contraction and potential market saturation or performance issues
- 02HIGHSignificant litigation history involving franchisor, predecessors, and affiliates with claims of breach of contract, misrepresentation, fraud, and franchise act violations—pattern of legal disputes is concerning
- 03MEDNo average net income disclosed in FDD—inability or unwillingness to provide profitability data is a major red flag for franchisee earnings potential
- 04MINORHigh investment range ($84,150–$478,500) with low franchise fee ($25,000) suggests majority costs are in startup/build-out; unclear ROI timeline
- 05MINORNo protected territory creates direct competition risk; franchisees could face cannibalization from new units in same geographic area
- 06MEDRoyalty structure (5% + $10/week surcharge) on disclosed $280,048 average revenue generates approximately $14,402–$16,002 annual franchisor revenue per unit—sustainability concern if units continue declining
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 14 days |
| Mandatory arbitration | Yes |
| Arbitration location | county and state where the Franchised Business is located |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 12 |
View Item 3 litigation summary
Two concluded litigation cases involving predecessor and affiliate entities. First case: Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc. (FIPA violations and misrepresentation) settled for $20,000 on March 11, 2016. Second case: KOHO, Inc. v. Kahala Franchising, L.L.C. (breach of contract, unjust enrichment) with cross-complaint filed; outcome status incomplete in provided text.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 24 hrs
- Training location
- Online, KTEC (Kahala Training & Education Center) in Scottsdale, AZ, or such other location designated by us
- Field support
- 0 hrs/yr
- On-site visits per year
- Time to open
- 9 mo
- From signing to launch
- POS system
- FOCUS POS System or NCR POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: FOCUS POS System or NCR POS System
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Planet Smoothie · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Planet Smoothie franchise?
The total investment to open a Planet Smoothie franchise ranges from $84K – $479K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Planet Smoothie franchise owners earn?
According to Item 19 of the Planet Smoothie FDD, the average gross sales per unit is $280K. The median is $260K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Planet Smoothie's franchise failure rate?
Based on SBA 7(a) loan data, Planet Smoothie has a charge-off rate of 27.2% across 120 loans, meaning 27.2% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Planet Smoothie franchise locations are there?
As of their most recent FDD filing, Planet Smoothie has 154 total units in the United States, including 154 franchised units and 0 company-owned units. 10 new units were opened in the latest reporting year.
Is Planet Smoothie a good franchise to buy?
FranchiseVerdict rates Planet Smoothie as a C-grade franchise with a risk score of 68 out of 100, 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.