Smart DrinksFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Smart Drinks franchise requires a total initial investment of $197K – $226K, including a $45K franchise fee. Per the 2025 FDD, average unit revenue was $243K[2]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $197K – $226K
- 30th pct Service Resta…
- Avg gross sales
- $243K
- 1st pct Service Resta…
- Royalty
- N/A
- Units
- 7
- 29th pct Service Resta…
- SBA default
- 0.0%
- 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
The system contracted 25% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $197K – $226K including a $45K franchise fee.
- Average unit revenue of $243K/year.
- Verdict F (Bottom Quintile) with a risk score of 100/100.
- Revenue data based on only 1 reporting unit. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Smart Drinks Franchising, L.L.C.
- Ultimate parent
- Smart Drinks, L.L.C.
- CEO title
- President and Manager
- Charles Levinson
- CEO experience
- 30 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- TX
- HQ
- 11115 Mills Road, Suite 112, Cypress, Texas 77429
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $331K
- vs $182K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Smart Drinks franchisees operate beverage retail locations (likely juice bars, smoothie shops, or functional drink stands) selling branded health-focused beverages. Day-to-day operations involve inventory management, customer service, POS transactions, and product preparation while paying $400 semi-monthly royalties to the franchisor.
- CEO
- Charles Levinson
- Headquarters
- TX
- Founded
- 2013
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 10 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $45K | $45K | |
| Vehicle Purchasenot refundable | $56K | $70K | |
| Vehicle - Turnkey-Retrofit-Package Feenot refundable | $90K | $90K | |
| Additional Technology/App Feenot refundable | $400 | $400 | |
| Additional GPS Feenot refundable | $120 | $120 | |
| Licenses & Permitsnot refundable | $750 | $3K | |
| Professional Feesnot refundable | $2K | $3K | |
| Travel and Living Expenses While Trainingnot refundable | $0 | $4K | |
| Insurance Premium, Excluding Workers Compensation Insurance - 3 monthsnot refundable | $400 | $600 | |
| Additional Funds - 3 Monthsnot refundable | $3K | $10K | |
| Total initial investment | $197K | $226K |
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
$32K
13.0% margin
Unlevered ROIC
15%
EBITDA / total invested capital
Payback
6.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $197K – $226K
- Better than avg vs category
- Liquid capital req'd
- $3K – $10K
- Better than avg vs category
- Franchise fee
- $20K – $45K
- Below avg, review vs category
- Royalty
- $400 semi-monthly
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | $800 per month |
| Technology fee | $75 |
| Transfer fee | $10K |
| Renewal fee | $50 |
Financial Performance
- Avg gross sales
- $243K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Affiliate Owned/Operated Smart Drinks Mobile Units
- Sample size
- 1 units
- vs category median 28 · small
- Range (low → high)
- $213K→$273K
- Cohort dispersion (min → max)
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Smart Drinks Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 7
- Opened
- 0
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 28.6%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
- Net growth (yr3)
- -25.0%
- Net unit change last year
- 3-yr CAGR
- -14.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 4
- Franchisor's next-year forecast
- Continuity rate
- 75.0%
- Units that stayed open
- Ceased ops
- 28.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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 loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $254K
- Median loan
- $127K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Smart Drinks's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Smart Drinks presents HIGH RISK due to severe unit contraction (-25% YoY), undisclosed profitability metrics, going concern doubt, and unprotected territories in a collapsing franchise system.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- 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 100 / 100 rating
- 01MEDSystem contracting sharply: 25% unit decline year-over-year (7 units remaining) indicates accelerating franchisee exits
- 02MINORNo Item 19 financial disclosure: Average revenue of $240,744 appears healthy but net income completely hidden—likely masking poor profitability
- 03HIGHGoing Concern status: False flag suggests franchisor may have disclosed material uncertainty about business viability to regulators
- 04MINORZero territory protection: Franchisees face cannibalization risk and no defensible market position despite $45,000 franchise fee
- 05MINORWeak ROI visibility: $9,600 annual royalties on ~$240K revenue (4% rate) is reasonable, but without net income data, true payback period is unknowable
- 06MINORTiny, shrinking network: 7 units means minimal brand recognition, supply chain leverage, or peer support—franchise system appears to be failing
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 | 2 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- On-the-job training
- 40 hrs
- Training location
- Houston, Texas
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
- Time to open
- 9 mo
- From signing to launch
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
20 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Smart Drinks · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Smart Drinks franchise?
The total investment to open a Smart Drinks franchise ranges from $197K – $226K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Smart Drinks franchise owners earn?
According to Item 19 of the Smart Drinks FDD, the average gross sales per unit is $243K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Smart Drinks's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Smart Drinks (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 Smart Drinks franchise locations are there?
As of their most recent FDD filing, Smart Drinks has 7 total units in the United States, including 6 franchised units and 1 company-owned units.
Is Smart Drinks a good franchise to buy?
FranchiseVerdict rates Smart Drinks as a F-grade franchise with a risk score of 100 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.
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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.