The smoothie business industry is booming these days. Statistics show that sales are increasing every year, with forecasts of further increases in the following years. This is because more people are now aware of the benefits of a healthy lifestyle and have taken the necessary steps to live it. Since smoothies are known as nutritious drinks, they are becoming more popular as consumers have made a habit of drinking them after a workout, as meal replacements or as snacks. Some of those who were born with an entrepreneurial spirit have taken advantage of this trend and gone into smoothie franchises, earning handsome profits.
There are a number of smoothie franchises to choose from. However, there are certain requirements that the potential business owner must meet to own a franchise. Firstly, a liquid capital is required. Amounts range from $50K to $250K, depending on the franchise brand. For those who cannot put up this amount can opt for a business loan; however, this needs more serious consideration. Another basic requirement is the individual’s net worth, which must be at least $100K. Aside from these, he must be interested in the food industry and be capable of managing a company.
Smoothie franchises have both advantages and disadvantages. The most obvious advantage is the name recognition. Consumers tend to buy from a familiar brand so a franchise not only comes with the brand, but with customers as well. In addition to the established brand, a franchisee gets support from the franchiser in terms of training in handling the business and in sourcing supplies and ingredients. There is less work involved in opening the business even for first-timers and marketing materials are already provided. However, these advantages do not come for free. There is a franchise fee to be paid plus monthly franchise fees as well, which amounts to eight to ten percent of gross sales. There is also less motivation to be creative when owning a franchise because the owner is bound by the terms of a contract. There are rules to be adhered to especially on menu offerings and marketing.
The decision to franchise or not depends on how the owner wants to run his business. If he wants flexibility and relishes pressure and risk, he can opt to create his own smoothie brand and ditch offers for smoothie franchises. On the other hand, if he prefers more organization, less pressure and more stability, then franchising is the better choice.
To make a better decision, it would be helpful for the potential business owner to learn more about smoothie franchises. He can do this by attending workshops and seminars and familiarize himself with opportunities. There are several smoothie brands that offer franchises and each has its own unique set of features. It would also be advisable to research on the backgrounds of the companies. Once a decision has been made, then dedication and hard work has to be applied.
Success is important for someone who ventures into smoothie franchises. He will be helping himself when he earns profits but more importantly, he will be helping people to become healthy.