Smoothie KingFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Smoothie King franchise requires a total initial investment of $346K – $1.3M, including a $30K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $660K[2]. SBA 7(a) loans show a 12.5% charge-off rate across 710 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $346K – $1.3M
- 65th pct Service Resta…
- Avg gross sales
- $660K
- 17th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 1,201
- 94th pct Service Resta…
- SBA default
- 12.5%
- 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
Franchising since 1988. Systems this mature have refined operations and brand recognition.
Franchised units fell from 1149 to 1048 over 3 years. Investigate why operators are leaving.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $346K – $1.3M including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $660K/year (median $627K).
- Verdict A (Top Quintile) with a risk score of 49/100. SBA loan charge-off rate of 12.5% across 710 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Smoothie King Franchises, Inc.
- Parent company
- SK USA Inc.
- Ultimate parent
- Legacy Brands International, LLC
- CEO title
- Chairman of the Board and Chief Executive Officer
- Sung-Wan Kim
- Incorporated in
- TX
- HQ
- 9797 Rombauer Road, Suite 150, Coppell, Texas 75019
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $59.6M
- vs $63.6M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- Souper Salad FC
- Humble Ds FC
- Orange Leaf FC
- Red Mango
- Red Mango FC
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Smoothie King franchisees operate fast-casual smoothie shops focused on health-oriented blended beverages and nutritional products. Day-to-day operations involve managing inventory, preparing customized smoothies to order, staffing point-of-sale, maintaining equipment, and executing local marketing in a protected territory.
- CEO
- Sung-Wan Kim
- Headquarters
- TX
- Founded
- 1973
- FDD year
- 2025
- States available
- 37
FDD Item 7 · 2025 filing · 32 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (End-Cap or In-Line)not refundable | $25K | $30K | |
| Three Months' Rental & Deposit (End-Cap or In-Line) | $5K | $25K | |
| Technology Systems (End-Cap or In-Line) | $9K | $12K | |
| Grand Opening Marketing (End-Cap or In-Line) | $8K | $15K | |
| Travel and Training Expenses (End-Cap or In-Line) | $1K | $6K | |
| Insurance - First Year's Premium (End-Cap or In-Line) | $3K | $8K | |
| Other Prepaid Expenses (End-Cap or In-Line) | $1K | $3K | |
| Start-Up Supplies, Inventory (End-Cap or In-Line) | $25K | $26K | |
| Furniture, Fixtures & Equipment, Millwork and Graphics (End-Cap or In-Line) | $98K | $159K | |
| Architectural & Engineering Professional Services (End-Cap or In-Line) | $4K | $15K | |
| Signage (End-Cap or In-Line) | $5K | $14K | |
| Leasehold Improvements (End-Cap or In-Line) | $150K | $300K | |
| Legal, Accounting & Organizational Costs (End-Cap or In-Line) | $500 | $4K | |
| Miscellaneous Costs (End-Cap or In-Line) | $1K | $5K | |
| Drive-Thru (End-Cap or In-Line) | $0 | $34K | |
| Additional Funds - 3 Months (End-Cap or In-Line) | $5K | $25K | |
| Initial Franchise Fee (Free-Standing Drive-Thru)not refundable | $25K | $30K | |
| Three Months' Rental & Deposit (Free-Standing Drive-Thru) | $5K | $30K | |
| Technology Systems (Free-Standing Drive-Thru) | $12K | $15K | |
| Grand Opening Marketing (Free-Standing Drive-Thru) | $8K | $15K | |
| Total initial investment | $993K | $2.0M |
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
$86K
13.0% margin
Unlevered ROIC
10%
EBITDA / total invested capital
Payback
9.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $346K – $1.3M
- Near category avg vs category
- Liquid capital req'd
- $5K – $25K
- Better than avg vs category
- Franchise fee
- $15K – $30K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · 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 | $200 |
| Transfer fee | $13K |
| Renewal fee | $15K |
| Inventory (initial) | $4K – $14K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $660K
- Per unit, per year
- Median gross sales
- $627K
- Item 19 type
- net_sales
- Sample size
- 1026 units
- vs category median 28 · large
- Range (low → high)
- $177K→$1.7M
- Cohort dispersion (min → max)
- Quartile band
- $417K→$955K
- Bottom 25% → top 25%
- Transparency tier
- none
- Categorical assessment of disclosure depth
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
Revenue is only 0.8x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Quick-Service Restaurants averages
How Smoothie King Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,201
- Opened
- 85
- Last reporting year
- Closed
- 24
- Terminated
- 6
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 2.0%
- Company-owned
- 52
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Net growth (yr3)
- +5.1%
- Net unit change last year
- 3-yr CAGR
- +9.6%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 2
- Non-renewed (3yr)
- 3
- Transfers (3yr)
- 108
- Transfer rate
- 9.0%
- Owners selling to other franchisees
- Continuity rate
- 97.5%
- Units that stayed open
- Termination rate
- 0.7%
- Franchisor-initiated terminations
- Ceased ops
- 2.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 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.
Available to sell in · Item 12
- Michigan
- South Dakota
- Virginia
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 710
- Loan volume
- $193.1M
- Median loan
- $319K
- 50th percentile
- Charge-off rate
- 12.5%
- 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)
- 95.6%
- 5-yr charge-off
- 2.9%
- Loans approved 2021+
- Active lenders
- 158
- Defaults
- 58
Vintage analysis
Smoothie King 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 Smoothie King'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
- 14-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Smoothie King presents caution-level risk: meaningful profitability opacity, active litigation, modest growth, and high capital requirements without disclosed net income benchmarks.
Litigation (Item 3)
Two cases disclosed: (1) Smoothie King Franchises, Inc. v. Best Smoothie Inc. and Jean Victome - trademark/trade secret infringement case filed October 2021, concluded February 2025 with judgment in franchisor's favor for $373,796.72 and permanent injunction; appeal pending as of March 7, 2025. (2) Thomas O'Keefe, et al. v. Smoothie King Franchises, Inc. & SK USA, Inc. - employment-related stock options dispute filed August 2024 by nine former employees, alleging breach of contract and various claims; answer filed February 2025; trial scheduled October 20, 2025.
Largest disclosed settlement: $16,153
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · Ernst & Young 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: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 49 / 100 rating
- 01MEDNo disclosed net income data despite $659k average revenue — inability to verify actual profitability and ROI
- 02HIGHTwo active litigation cases involving IP/trade dress disputes and employee stock option claims suggest internal governance and legal compliance issues
- 03MINORSlow unit growth of only 5.1% YoY in a mature QSR segment indicates market saturation or franchisee struggles
- 04MINORHigh investment ceiling ($1.28M) with 6% royalty creates significant break-even burden if net margins are compressed
- 05MEDMissing Item 19 (Financial Performance Representations) prevents independent validation of franchise economics
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 | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | population-based |
| Protected territory | Yes |
| Territory population | 20,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| 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 |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 2 |
View Item 3 litigation summary
Two cases disclosed: (1) Smoothie King Franchises, Inc. v. Best Smoothie Inc. and Jean Victome - trademark/trade secret infringement case filed October 2021, concluded February 2025 with judgment in franchisor's favor for $373,796.72 and permanent injunction; appeal pending as of March 7, 2025. (2) Thomas O'Keefe, et al. v. Smoothie King Franchises, Inc. & SK USA, Inc. - employment-related stock options dispute filed August 2024 by nine former employees, alleging breach of contract and various claims; answer filed February 2025; trial scheduled October 20, 2025.
Items 10, 11
Training & Operations
- Classroom training
- 102 hrs
- On-the-job training
- 240 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- Smoothie King POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Smoothie King POS System
Item 20 · call current owners
Franchisee Contacts
221 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Smoothie King · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Smoothie King franchise?
The total investment to open a Smoothie King franchise ranges from $346K – $1.3M, 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 King franchise owners earn?
According to Item 19 of the Smoothie King FDD, the average gross sales per unit is $660K. The median is $627K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Smoothie King's franchise failure rate?
Based on SBA 7(a) loan data, Smoothie King has a charge-off rate of 12.5% across 710 loans, meaning 12.5% 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 Smoothie King franchise locations are there?
As of their most recent FDD filing, Smoothie King has 1,201 total units in the United States, including 1,149 franchised units and 52 company-owned units. 85 new units were opened in the latest reporting year.
Is Smoothie King a good franchise to buy?
FranchiseVerdict rates Smoothie King as a A-grade franchise with a risk score of 49 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.