Smoothie Factory / Smoothie Factory+KitchenFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Smoothie Factory / Smoothie Factory+Kitchen franchise requires a total initial investment of $279K – $475K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $279K – $475K
- 53rd pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 7
- 29th pct Service Resta…
- SBA default
- N/A
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 50% year-over-year. Investigate why units are closing.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $279K – $475K including a $30K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 90/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Smoothie Holdings FC, LLC
- Parent company
- Smoothie Holdings, LLC
- CEO title
- Chief Executive Officer
- Sherif Mityas
- Incorporated in
- TX
- HQ
- 14860 Montfort Drive, Suite 150 PMB 34, Dallas, Texas 75254
- Auditor
- A&G LLP
- Audited financials
- Franchisor revenue
- $183K
- vs $190K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Franchisees operate quick-service smoothie bars (and kitchen-equipped locations) where they blend and serve made-to-order smoothies, juices, and related beverages to walk-in and takeout customers. Day-to-day operations involve inventory management, staff scheduling, customer service, equipment maintenance, and local marketing while remitting 6% gross royalties to the franchisor.
- CEO
- Sherif Mityas
- Headquarters
- TX
- Founded
- 2013
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing · 16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| RED MANGO License Fee | $5K | $5K | |
| Lease Deposits & Rent | $4K | $9K | |
| Additional Equipment (soft serve machines and toppings bar) | $45K | $60K | |
| Initial Franchise Feenot refundable | $15K | $15K | |
| Architect; Engineer; Drawings | $4K | $9K | |
| Permits | $500 | $3K | |
| Interior Improvements, General Contractor; Electrical; Millwork; Tile, Plumbing, HVAC | $23K | $75K | |
| Signage Package | $3K | $6K | |
| Smallwares; Furniture; Interior Graphics; Fixtures; Digital Menu Boards; Equipment | $15K | $25K | |
| POS System | $0 | $10K | |
| Inventory; Uniforms | $4K | $5K | |
| Pre-opening training expenses | $3K | $5K | |
| New Store Marketing Plan Fee | $5K | $5K | |
| Insurance - Liability & Workers compensation (initial deposit) | $1K | $2K | |
| Professional Fees | $2K | $6K | |
| Additional Funds (3 months) | $5K | $10K | |
| Total initial investment | $133K | $250K |
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
- $279K – $475K
- Near category avg vs category
- Liquid capital req'd
- $10K – $20K
- Better than avg vs category
- Franchise fee
- $15K – $30K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $2K |
| Transfer fee | $10K |
| Renewal fee | $8K |
| Total fee load | 9.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Smoothie Factory / Smoothie Factory+Kitchen Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 7
- Opened
- 0
- Last reporting year
- Closed
- 7
- Terminated
- 5
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 50.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (yr3)
- -50.0%
- Net unit change last year
- 3-yr CAGR
- -58.8%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
- Projected new
- 3
- Franchisor's next-year forecast
- Transfer rate
- 14.3%
- Owners selling to other franchisees
Last reporting year only, multi-year history not disclosed in this brand's FDD.
Item 20 · 19 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
- 45
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Smoothie Factory is a collapsing system with 50% unit attrition, active litigation over unpaid royalties, no financial disclosures, and going concern status—suggesting severe operational and franchisor solvency risks.
Litigation (Item 3)
Three concluded breach of contract actions: (1) Smoothie Holdings FC, LLC v. Farhaj Haq and Wahaj Haq (settled April 2023, $9,000 payment); (2) Smoothie Holdings FC, LLC v. Extremeline Nutrition, LLC et al. (settled May 2024, permanent injunction); (3) Smoothie Holdings FC, LLC v. Fortune Ajebon, LLC et al. (settled December 2024, $4,500 payment plus injunction).
Largest disclosed settlement: $9,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · A&G LLP⚠ Going-concern note flagged
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 90 / 100 rating
- 01MINORUnit count collapsed 50% YoY (7 units remaining) indicating severe system contraction and franchisee failure rate
- 02HIGHThree active litigation cases involving breaches, unpaid royalties, and covenant violations suggest franchisor enforcement issues and franchisee disputes
- 03MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation and suggests poor unit economics or franchisor unwillingness to disclose
- 04HIGHGoing concern status indicates financial distress at corporate level, raising questions about support, marketing funds, and long-term viability
- 05MED6% royalty on undisclosed revenue with $278.5K-$475K investment creates opaque payback timeline and profitability uncertainty
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 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 1 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 3 |
View Item 3 litigation summary
Three concluded breach of contract actions: (1) Smoothie Holdings FC, LLC v. Farhaj Haq and Wahaj Haq (settled April 2023, $9,000 payment); (2) Smoothie Holdings FC, LLC v. Extremeline Nutrition, LLC et al. (settled May 2024, permanent injunction); (3) Smoothie Holdings FC, LLC v. Fortune Ajebon, LLC et al. (settled December 2024, $4,500 payment plus injunction).
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 36 hrs
- Training location
- On-site and corporate
- POS system
- Revel
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel
Item 20 · call current owners
Franchisee Contacts
37 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Smoothie Factory / Smoothie Factory+Kitchen · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Smoothie Factory / Smoothie Factory+Kitchen franchise?
The total investment to open a Smoothie Factory / Smoothie Factory+Kitchen franchise ranges from $279K – $475K, 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 Smoothie Factory / Smoothie Factory+Kitchen franchise owners earn?
Smoothie Factory / Smoothie Factory+Kitchen 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 Smoothie Factory / Smoothie Factory+Kitchen's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Smoothie Factory / Smoothie Factory+Kitchen (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 Smoothie Factory / Smoothie Factory+Kitchen franchise locations are there?
As of their most recent FDD filing, Smoothie Factory / Smoothie Factory+Kitchen has 7 total units in the United States.
Is Smoothie Factory / Smoothie Factory+Kitchen a good franchise to buy?
FranchiseVerdict rates Smoothie Factory / Smoothie Factory+Kitchen as a F-grade franchise with a risk score of 90 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.