Verified — real FDD extraction
SBA-eligible · directory code S1590 since 2017
Smoothie Factory, Smoothie Factory + Kitchen
Food & Dining · independent · est. —
Smoothie Factory is a beverage franchise selling fruit smoothies, fresh juices, and bowls, with the Smoothie Factory + Kitchen format adding a light food menu. A franchisee operates a counter-service storefront, from a compact smoothie bar to a larger unit with food preparation, serving health-oriented walk-in customers.
Smoothie Factory, Smoothie Factory + Kitchen net unit count declined -46.7% from 2023–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Too new to judge
Distress
14 franchised units over 3 disclosed years is not a track record — systems this early have realized only a fraction of their eventual failures. Judge the disclosures, not a verdict.
Exit rate · latest year
14.3%
vs 8.6% across 137 food & dining systems
Cost to open
$79K–$558K
Item 7 total investment range
SBA loan defaults
40.5%
vs 14.8% avg across rated brands
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 1 of 7 franchised outlets left the system — a 14.3% annualized exit rate, vs 8.6% across 137 food & dining systems. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 17 | 15 | 7 |
| Opened | 2 | 0 | 2 |
| Transfers | 0 | 1 | 0 |
| Terminations | 0 | 5 | 0 |
| Non-renewals | 3 | 2 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 2 | 0 | 1 |
| Outlets at end | 15 | 7 | 8 |
| Net change | -2 | -8 | +1 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 43 SBA-backed loans to Smoothie Factory, Smoothie Factory + Kitchen franchisees since 1998. Of the 37 that have resolved, 40.5% were charged off (defaulted) rather than paid in full, versus 14.8% across 576 rated brands.
40.5%
15 of 37 resolved defaulted
74.5%
avg. charged-off $ ÷ approved $
30.2%
default rate × loss severity
$314,150
what recent franchisees borrowed
48 mo
approval → charge-off, defaulted loans
1 vs 2
distinct banks — pulling back
Charge-off rate by loan approval year (%)
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO SMOOTHIE FACTORY, SMOOTHIE FACTORY + KITCHEN BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
The owner's side of the deal
FDD × federal loan record
Who finances it
Southstate Bank, National Association
20.9% of this brand's loans
That lender charges off 8.8% of its loans to other franchise brands, vs 14.8% nationally.
Who buys it
Too few identified operators
Does experience help here?
Not enough resolved loans to split
Computed from 43 SBA 7(a)/504 loans to Smoothie Factory, Smoothie Factory + Kitchen franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $30K franchise fee (Item 5) and a total investment of $79K–$558K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$79K–$558K
all-in investment range
Franchise fee (Item 5)
$30K
upfront, one-time
Royalty (Item 6)
5%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$50K
5% of sales, before profit
Over a 10-yr term
$500K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for Smoothie Factory, Smoothie Factory + Kitchen with an independent CPADistress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for Smoothie Factory, Smoothie Factory + Kitchen. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing Smoothie Factory, Smoothie Factory + Kitchen's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →Smoothie Factory, Smoothie Factory + Kitchen franchise questions, answered from the filings
What percentage of Smoothie Factory, Smoothie Factory + Kitchen franchises closed last year?
In Smoothie Factory, Smoothie Factory + Kitchen's latest FDD Item 20 (fiscal 2025), 1 of 7 franchised outlets left the system — an annualized exit rate of 14.3% — compared with 8.6% across 137 food & dining systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a Smoothie Factory, Smoothie Factory + Kitchen franchise cost?
Per Smoothie Factory, Smoothie Factory + Kitchen's 2026 FDD, buying in requires an initial franchise fee of $30K (Item 5) and a total initial investment of $79K–$558K (Item 7).
What royalty does Smoothie Factory, Smoothie Factory + Kitchen charge?
Smoothie Factory, Smoothie Factory + Kitchen charges an ongoing royalty of 5.0% of gross sales, per Item 6 of its 2026 FDD.
Does Smoothie Factory, Smoothie Factory + Kitchen disclose earnings (Item 19)?
Yes — Smoothie Factory, Smoothie Factory + Kitchen makes a financial performance representation in Item 19 of its 2026 FDD. Read it closely: franchisors choose which units and which metrics to include.
How often do SBA loans for Smoothie Factory, Smoothie Factory + Kitchen franchises default?
Across 43 SBA-backed loans to Smoothie Factory, Smoothie Factory + Kitchen franchisees since 1998, 15 of the 37 that have resolved were charged off — a 40.5% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.