Smoothie King Franchise
|Franchising Company||Smoothie King Franchising, LLC|
|Estimated Start Up Costs||$140,400 to $329,500|
|In Business Since:||N/A|
|Is Financing Available?||Yes|
Details and reviews on Smoothie King franchise opportunity. Are you an franchisee with smoothie king experience? Please submit your feedback on what it’s like to own a Smoothie King franchise. Smoothie King franchise owners operate fruit smoothie franchise businesses. These businesses are engaged in selling freshly made fruit smoothies.
Smoothie King Franchising Franchise Disclosure Document
The franchisee will operate a retail business offering smoothies and other nutritional drinks and general nutritional products under the name Smoothie King®.
The total investment necessary to begin operation of a traditional Smoothie King® Business is from $140,400 to $329,500. This includes $20,000 to $33,500 that must be paid to us. The total investment necessary to begin operation of a non-traditional Smoothie King® Business is from $93,500 to $189,000. This includes $12,500 to $21,000 that must be paid to us.
This disclosure document summarizes certain provisions of your franchise agreement and other information in plain English, Read this disclosure document and all accompanying agreements carefully.
You must receive this disclosure document at least 14 calendar days before you sign a binding agreement with, or make any payment to, the franchisor or an affiliate in connection with the proposed franchise sale. Note, however, that no governmental agency has verified the information contained in this document.
You may wish to receive your disclosure document in another format that is more convenient for you. To discuss the availability of disclosures in different formats, contact Michael Powers at 121 Park Place, Covington, LA 70433, (985) 635-6973.
The terms of your contract will govern your franchise relationship. Don’t rely on the disclosure document alone to understand your contract. Read all of your contract carefully. Show your contract and this disclosure document to an advisor, like a lawyer or an accountant.
Buying a franchise is a complex investment. The information in this disclosure document can help you make up your mind. More information on franchising, such as “A Consumer’s Guide to Buying a Franchise.” which can help you understand how to use this disclosure document, is available from the Federal Trade Commission. You can contact the FTC at 1-877-FTC-HELP or by writing to the FTC at 600 Pennsylvania Avenue, NW, Washington, D.C. 20580. You can also visit the FTC’s home page at www.ftc.gov for additional information. Call your state agency or visit your public library for other sources of information on franchising.
SMOOTHIE KING FRANCHISES, INC. FRANCHISE DISCLOSURE DOCUMENT
The Franchisor: To simplify the language in this disclosure document “Smoothie King” or ”we” means Smoothie King Franchises, Inc., the franchisor. “You” means the person(s) who signs the Franchise Agreement, including a corporation, partnership, limited liability company or other legal business entity (“business entity”). You must enter into a Franchise Agreement for each store purchased.
If you are a business entity, certain provisions of Smoothie King’s Franchise Agreement will also apply to some of your owners. This disclosure document will indicate when your owners are also covered by a particular provision.
The Smoothie King® concept and primary product was originated in 1973 by Stephen C. Kuhnau, Sr. Smoothie King is a Louisiana corporation incorporated on May 5, 1987. The corporation was originally incorporated under the name Original California Smoothie Bar Franchises, Inc. On April 6, 1989, the name of the corporation was changed to Smoothie King Home of the Muscle Punch Franchises, Inc. On January 2, 1997, the name of the Corporation was changed to Smoothie King Franchises, Inc. Effective as of January 1, 1997, Smoothie King became a subsidiary of Smoothie King Systems, Inc. (“SKSI”). Except as noted below, Smoothie King has no predecessors or affiliates. Smoothie King’s affiliate, SK Nutritional Formulas, LLC (“SKN”), owns, develops, licenses and distributes SMOOTHIE KING® private label and other retail products which all Smoothie King® stores are required to sell. Smoothie King® stores must purchase these items from our designated third party suppliers. SKN has not offered franchises for this or any other business. Smoothie King’s affiliate,
Smoothie King System Ad Fund (“SKSAF”), operates the System Fund (as described in Item 11) and will provide services to Smoothie King® franchisees. Smoothie King’s, SKSPs, SKN’s and SKSAF’s principal business address is 121 Park Place, Covington, Louisiana 70433. Smoothie King operates under its corporate name and under the service marks “SMOOTHIE KING®” and associated marks and logos.
Smoothie King Franchises’ agent in this state for service of process, if applicable, is disclosed in Exhibit K.
Smoothie King Franchises offers you a franchise whose primary business is the sale of products under the name and service mark “SMOOTHIE KING®.” The type of business that you will operate is referred to in this disclosure document as a “Smoothie King Nutritional Lifestyle Center,” “Unit” or “Smoothie King Business.”
Smoothie King has been offering franchises since May 1988. Smoothie King owned and operated Smoothie King Nutritional Lifestyle Centers from March 1, 1994 until January 1, 1997.
Effective January 1, 1997, Smoothie King transferred all of the assets of its Smoothie King Businesses to Smoothie King Co., Inc. (“SKCI”), which is also a subsidiary of SKSI. Smoothie King does not currently operate any Smoothie King Businesses. SKCI currently owns and operates a Smoothie King Business under a non-exclusive royalty-free license from Smoothie King. SKCI may own and operate more Smoothie King Businesses in the future. Stephen C. Kuhnau, Sr., co-founder of Smoothie King, has owned and operated Eclipse Enterprises, Inc. d/b/a Town & Country Health Foods/Smoothie King® since 1973, which also does business under the service mark “SMOOTHIE KING®.” Mr. Kuhnau is the sole shareholder and owner of Eclipse Enterprises, Inc. d/b/a Town & Country Health Foods/Smoothie King® and continues to operate Eclipse Enterprises, Inc. d/b/a Town & Country Health Foods/Smoothie King® under a non-exclusive royalty-free license from Smoothie King. Smoothie King does not have any ownership interest in Town & Country Health Foods.
Smoothie King has not offered franchises in any other lines of business. Smoothie King does not have any other business activities. Neither SKSI nor SKCI provide goods or services to franchisees or offer franchises in any line of business. The Franchise Opportunity: Smoothie King, which has been in operation for 36 years, does business on a national and international level. You will find the details of the stores developed in Item 20. Smoothie King has been offering progressively more people a lifestyle solution which is unique in and of itself because we offer two business segments in one friendly environment. First, we offer our original Smoothie King® smoothies, a meal replacement item that is custom made to order. Smoothies are the heart and soul of the business consisting of all natural blends of real fruits, pure fruit juices, and fruit and vegetable purees combined with nutritional supplements that create a functional and nutritious beverage that benefits the consumer and ultimately delivers a distinctively, unique and refreshing taste. Secondly, Smoothie King offers consumers the benefit of nutritional retail merchandise, which includes: vitamins, herbs, minerals, a myriad of supplements, and healthy snack items, among many others. Smoothie King developed and owns a proprietary system (“System”) that you will use in operating a Smoothie King Nutritional Lifestyle Center. This System includes specialized hands-on training, marketing and advertising support, volume buying power, business synergy, on-going support and corporate integrity. Smoothie King also provides you with certain confidential information and methods for managing a Smoothie King Nutritional Lifestyle Center. You will use Smoothie King’s trademarks, logos, brand and overall developed intellectual property including “SMOOTHIE KING®,” the “CROWN” design and other product and service names and marks that Smoothie King may designate to identify the System. These names and marks are referred to in this disclosure document as “Proprietary Marks.” Market and Competition: The market for the products sold in a Smoothie King Nutritional Lifestyle Center is the general public. Although the market for the nutritional products carried in the Unit is more developed, the market(s) for “smoothies” continues to develop and build on its growing recognition. The market may be affected by general economic conditions and is seasonal in most areas.
The market is highly competitive and you will be competing with other smoothie businesses, juice bars, general food service establishments carrying smoothies as an offering on their menus, national and local general nutrition businesses and health food businesses. National and local restaurants also develop smoothie drinks as additional menu items and national and local supermarkets and other retailers may carry some of the same or similar product lines. If the Unit is located in a strip center or local or regional shopping mall, you typically will compete with businesses offering competitive goods or services within the same center or mall. Smoothie King believes that its emphasis on high quality nutritional drinks that taste good and its combination refreshment/general nutrition business and its operating system gives Smoothie King a competitive advantage over its competitors in the market. Government Regulation: Local, state and federal laws and regulations will apply to the business operations of a Smoothie King Nutritional Lifestyle Center. The Food and Drug Administration (“FDA”) and Federal Trade Commission (FTC) have certain laws and regulations that apply directly to