FDD Analysis 2025 FDD

Smoothie King Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from Smoothie King's FDD, including franchise costs (Item 7), ongoing fees (Item 6), financial performance data (Item 19), and unit growth trends (Item 20).

What the Smoothie King FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Revenue data provided

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$346,350 - $679,465
Franchise Fee$25,000

Investment Breakdown

Initial Franchise Fee$25,000 - $30,000
Three Months’ Rental & Deposit$5,000 - $25,000
Technology Systems$9,100 - $12,215
Grand Opening Marketing$15,000 - $15,000
Travel and Training Expenses$1,000 - $6,000

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee6% of gross sales
Marketing/Advertising Fee7% of gross sales

Other Ongoing Fees

Interest on Late PaymentsVaries
Training FeesVaries
Remodel CostsVaries
Audit FeesVaries
Transfer Fees - Franchise AgreementVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

Median Revenue$573,269/year
Disclosure Year2025
Reporting Units
Revenue VarianceHigh variance (wide performance range)

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

1,201

Total Units

+49

Net Growth (YoY)

+4.3%

Growth Rate

Franchised Units1,149
Company-Owned Units52

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

This FDD discloses litigation history. Review Item 3 carefully to understand the nature and outcome of any legal proceedings.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

Related Resources

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