Planet Smoothie
Planet Smoothie offers smoothies, bowls, and other beverages in franchised restaurants. Known for healthy, nutritious options, it operates in the fast-casual food service sector.
About Planet Smoothie
Planet Smoothie is the third largest American chain of smoothie stores serving smoothies. The company was founded in 1995 by Martin Sprock in Atlanta, Georgia, and currently operates more than 100 locations.
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Planet Smoothie franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Planet Smoothie franchise ranges from $84,150 to $322,500 for non-traditional locations and from $205,650 to $478,500 for traditional locations. This range includes the costs specified in the initial fees and other expenses such as real estate and construction [p.1, p.33, p.45-46].
What is the initial franchise fee?
The initial franchise fee varies based on the type and number of restaurants. For traditional Planet Smoothie locations, it starts at $25,000 for the first location, decreases to $20,000 for the second, and further reduces to $15,000 for each subsequent traditional restaurant. Non-traditional Planet Smoothie locations have a uniform initial franchise fee of $20,000 [p.33, p.383, p.273].
What are the ongoing royalty and advertising fees?
The ongoing fees, including Royalty Fees and Advertising Fees, are not specified in detail in these excerpts. The fees are generally earned based on the value of purchases during the period from certain suppliers [p.581], and franchisees must pay separate Royalty Fees and Advertising Fees for this Planet Smoothie restaurant from those under the original brand agreement [p.399]. However, specific amounts are not provided in the given excerpts.
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not mention the duration of the initial franchise agreement or details about renewal terms beyond the requirement to pay a 50% renewal franchise fee when renewing the agreement [p.319, p.183].
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but it requires good cause as determined by the franchisor. The franchisor may also exercise a right of first refusal to purchase the franchise instead. [p.106, p.494]
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes failure to comply with material provisions of the franchise agreement and not curing such defaults within a reasonable time [p.119, p.509, p.121]. Additionally, the franchisor may terminate without notice if the franchisee is adjudicated bankrupt, makes an assignment for the benefit of creditors, voluntarily abandons the business, or is convicted of violating laws related to the franchised business [p.119, p.509, p.121].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. According to [p.111] and other relevant excerpts, the franchise agreement explicitly states that you will not have any exclusive or protected territory for your restaurant.
What training and ongoing support does the franchisor provide?
The franchisor provides a Training Program consisting of In-Store Training (24 hours) and New Owner Training (40 hours), which can be conducted either online or at their training center in Scottsdale, Arizona. This program is mandatory for new franchisees, but existing experience with Planet Smoothie may allow some flexibility. Additionally, the franchisor reserves the right to require further training if a franchisee does not meet system standards and has the option to charge an Additional Training Fee [p.243]. The franchisor also offers support through Neptune Equipment for purchasing equipment and supplies [p.49], and may receive vendor allowances that can be used for various brand benefits, including marketing and education programs [p.49].
How many franchised outlets are there, and how many have closed or been terminated?
As of November 30, 2024, there were 154 franchised stores open in the United States. During the year ending November 30, 2024, 14 franchise agreements were terminated, canceled, not renewed, or otherwise ceased to do business under the Franchise Agreements [p.93].
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations except for providing actual records of an existing outlet if you are purchasing one. However, they can provide financial performance information based on a reasonable basis and must disclose this in the disclosure document [p.83]. If you receive other financial performance information or projections, you should report it to specified entities as outlined [p.85].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling only certain items; however, you may have to purchase or lease specific items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.3]. This isn't specified in the excerpts regarding where you must buy supplies specifically for your operations.