An Overview of Smoothie Franchises
The smoothie business has recently become a booming business. Statistics show that the sales are increasing year by year and forecasts indicate that sales will increase further in the coming years. The cause of this is because more people understand the benefits of a healthy lifestyle and have taken the measures that are necessary to live this kind of life. People know smoothies as nutritious beverages hence they are becoming popular as consumers drink them as meal replacements, after workouts or as snacks. Some people who have an entrepreneurial spirit have taken advantage of this popularity and have ventured into smoothie franchises earning good revenue.
There are several smoothie franchises that these entrepreneurs can choose from. Nevertheless, you will find special requirements that the business proprietor must meet to get a franchise. First, they should have some liquid capital of amounts that range from $50,000 to $250,000 depending on the brand of the franchise. For those who cannot raise the liquid capital, they can apply for a business loan but this option requires a lot of consideration. 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 companies have both advantages and disadvantages. The most noticeable benefit is the name recognition that the company gets. Customers are inclined to buy from a brand they are conversant, so a franchise comes not only with not only 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. For first timers, there’s less work involved in establishing the company and marketing their products as these resources happen to be supplied. However, these advantages usually 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 also a less need for innovation and creativity when owning a franchise because the franchise owner is bound 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 determined by the way in which the company 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.