Smoothie King Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Smoothie King is a quick-service franchise focused on blended, nutrition-oriented smoothies and wellness products. Franchisees run compact shops preparing made-to-order smoothies with an emphasis on health-goal positioning.
FranchiseVerdict summary · 2026
A Smoothie King franchise requires a total initial investment of $346K – $679K, including a $15K – $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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $346K – $679K
- 57th pct Service Resta…
- Avg gross sales
- $660K
- Net sales7th pct Service Resta…
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 1,201
- 93rd pct Service Resta…
- SBA charge-off
- 12.5%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-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 $346K – $679K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $660K/year (median $627K).
- RISKVerdict A (Strongest tier), verdict score 69/100 (higher is better). SBA loan charge-off rate of 12.5% across 710 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Smoothie King Franchises, Inc.
- Parent company
- SK USA Inc. (SK USA Holdings, Inc.)
- Ultimate parent
- SK USA Holdings, Inc.
- CEO title
- Chairman of the Board and Chief Executive Officer
- Sung-Wan Kim
- Incorporated in
- Texas
- 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
- CEO
- Sung-Wan Kim
- Headquarters
- TX
- Founded
- 1973
- FDD year
- 2025
- States available
- 37
Can you afford it, and what does the money buy?
Entry cost runs 22% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown32 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $346K – $679K
- Middle of category vs category
- Liquid capital req'd
- $5K – $25K
- Top 40% of category vs category
- Franchise fee
- $15K – $30K
- Top 40% of category 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 |
What do units actually make?
Average unit sales run 45% below the quick-service restaurants norm.
Reported as net sales, not gross sales
Source: FDD 2025 · Item 19
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
16%
EBITDA / total invested capital
Payback
6.2 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Smoothie King unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
16%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Smoothie King units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$791K
on $4.0M purchase
Total debt
$3.2M
SBA $2.0M + senior + seller note
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: 2025 FDD
Financial Performance
Reported as net sales, not gross sales
- Avg gross sales
- $660K
- Per unit, per year
- Median gross sales
- $627K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- net sales
- Sample size
- 1,026 outlets
- vs category median 20 · 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
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 782 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $660K/year in gross sales. Revenue-to-investment ratio: 1.3x.
Fee burden
Total ongoing fee load of 9.0% (near the Quick-Service Restaurants average).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 9.6% CAGR over 3 years across 1,201 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Smoothie King Compares
Is the system healthy?
Source: FDD 2025 · Item 20
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)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.6%
- Company-owned
- 52
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- +9.6%
- Net unit change over 3 years
- 3-yr CAGR
- +9.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 85
- Closed (3yr)
- 24
- Terminated (3yr)
- 6
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 108
- Reacquired (3yr)
- 1
- Franchisor bought back
- 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)
- 87.5%
- 5-yr charge-off
- 2.9%
- Loans approved 2021+
- Active lenders
- 158
- Defaults
- 58
- Typical loan rate
- 6.8%
- avg rate to borrowers
- Franchised industry avg
- 10.6%
- brand above franchise avg ↑
- Jobs supported
- 5,415
- 4.2 per loan
- Lender concentration
- 11%
- top lender's share
Borrower mix: 77% went to startups / new businesses, 23% to established operators
Franchise vs independent — in snack and nonalcoholic beverage bars, franchised businesses charge off at 10.6% vs 8.9% for independents — franchising is associated with 19% higher SBA default risk in this category.
Vintage analysis
Smoothie King charge-off rate by loan vintage
Top lenders financing Smoothie King franchisees
Showing 3 of 158 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
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.
What could kill this investment?
SBA loans charge off at 12.5% — 22% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Clean, financially strong FDD: net worth $39.3M, net income $15.8M on $63.6M revenue, audited, Item 19 disclosed, 1,201 units growing +9.6% with low turnover 2.6%. 2 disclosed matters (a trademark win with damages and a nine-employee suit) are routine for a system this size.
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 69 / 100 verdict
- 01MINORStrong financials: net worth $39,255,000, net income $15,776,000
- 02MINOR2 routine suits for a 1,201-unit system
- 03MINORGrowing +9.6%, low turnover 2.6%
- 04MEDAudited, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 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 – $679K, 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 Item 19 in the Smoothie King 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 Smoothie King FDD and qualifies whose outlets they describe.
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 verdict score of 69 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
Are you the franchisor?
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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.