An Overview of Smoothie Franchises
The smoothie business has been booming in the recent years. Statistics show that the sales are increasing year by year and forecasts indicate that sales will increase further in the coming years. The reason for this is basically because more people understand the benefits of a healthy lifestyle and have taken the measures that are required to live such a life. Folks know smoothies as nutritious drinks, therefore, they may be becoming popular as consumers drink them after workouts or as snacks. Some individuals who have an entrepreneurial spirit have taken advantage of the popularity and have ventured into smoothie franchises making great earnings.
There are several smoothie franchises these entrepreneurs can select from. However, there are particular conditions the business proprietor must meet to purchase a franchise. They need to have some liquid capital of amounts which range from $50,000 to $250,000 depending on the brand of the franchise. For all those who cannot raise the liquid capital, they can try to qualify to get a business loan, but this alternative requires a lot of thought. Another essential condition is the person’s net worth which should be $100,000 at the least. Apart from these, they must have an interest in the food industry and be able to manage a business.
Smoothie businesses have both benefits and drawbacks. The most obvious benefit is the name recognition that your business gets. Customers tend to buy from a brand they are familiar with so a franchise not only comes with a name but with the customers also. Not only does the business owner get an established brand however they get support from the franchise in the form of procuring supplies and the ingredients and training in managing the business. Even for first timers, there is less work involved in developing the business as these resources already are supplied and advertising their products. However, these benefits do not come cheap. The entrepreneur must pay a franchise fee and monthly franchise fees also which amount to about ten percent of the gross sales. There is a less demand for innovation and imagination when having a franchise because the franchise owner is obligated by the terms of the contract. They should adhere to these terms notably on menu offerings and marketing.
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The decision on whether to franchise or not is dependent on how the business owner wants to run their business. If they relish pressure and risk and desire some flexibility, they can opt to come up with their smoothie brand and refuse the offers from smoothie franchises. On the flip side, if they favor less pressure, more stability and organization then they should choose to franchise.
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To make the best choice; it’d be prudent for the company owner to learn more about Smoothie franchises.