Verified — real FDD extraction
SBA-eligible · directory code S1590 since 2017
Smoothie Factory
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 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 8.2% across 146 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
Market density · Texas
Typical density
-7% thinner than the national average
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 8.2% across 146 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 franchisees since 1998. Of the 37 that have resolved, 40.5% were charged off (defaulted) rather than paid in full, versus 14.8% across 570 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 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 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 with an independent CPADistress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for Smoothie Factory. That's a good sign — but it reflects news coverage, not a guarantee.
11 questions to ask a Smoothie Factory franchisee
Built from this brand's own disclosures · take it to your validation calls
The franchisor will give you a list of owners to call. Most buyers ask whether they like it. These are the questions built from what Smoothie Factory has actually disclosed — each one carries the number it came from, so you can tell whether the answer squares with the record.
- 01
Smoothie Factory’s own Item 20 shows 1 of 7 franchised outlets left the system in fiscal 2025 — about 14.3%. Do you know any of those owners, and do you know why they left?
A franchisor will call these “transitions.” An owner three doors down usually knows whether they sold at a profit or handed the keys back.
FDD Item 20 · FY2025
- 02
The system went from 15 units to 8 over 3 disclosed years. What's the explanation you've been given, and do you believe it?
A shrinking system means fewer owners funding the ad fund and support staff you're paying for.
FDD Item 20 · FY2023–FY2025
- 03
Of 37 SBA loans to Smoothie Factory franchisees that have finished, 40.5% were charged off — the borrower didn't repay. Did you finance with an SBA loan, and how close did your first two years come to trouble?
This is the lender's view of failure, from public federal records, and it is independent of anything the franchisor discloses.
SBA 7(a)/504 loan record, FY1991–present
- 04
Item 7 says the low end to open is $79K, but the average recent SBA loan to a Smoothie Factory franchisee was $314K. What did you actually spend to open, all in?
Lenders size loans to real project costs. A large gap between the disclosed floor and what banks actually fund is the most common way buyers get underfunded.
FDD Item 7 vs SBA approvals FY2020+
- 05
You pay 5.0% royalty on gross sales, plus the ad fund, before any of your own costs. On your actual revenue last year, what did you take home as the owner — not revenue, take-home?
Royalty is charged on sales, not profit. This is the number the brochure never shows and the one your life actually runs on.
FDD Item 6
- 06
Smoothie Factory makes an earnings claim in Item 19. Does your unit look like that number — and do you know which units they included to build it?
Item 19 is legal to build from a flattering subset. Ask whether they excluded new units, closed units, or company stores.
FDD Item 19 · 2026
- 07
How many months did it take to cover your own costs, and how much cash did you burn getting there?
Ramp-to-breakeven working capital is the most underestimated line in any franchise purchase, and the most common reason otherwise-good units fail.
Not disclosed in any FDD — ask an owner
- 08
Item 3 discloses 4 legal matters. Do you know what those were about, and were any brought by franchisees?
Franchisee-brought suits over territory, fees or support tell you how the franchisor behaves when there's a disagreement.
FDD Item 3 · 2026
- 09
What does the franchisor charge for that you didn't expect — required tech fees, mandatory remodels, approved-supplier pricing?
Required spending appears across Items 6, 8 and 11 rather than in one place, so buyers routinely miss the total.
FDD Items 6, 8, 11
- 10
If your agreement came up for renewal tomorrow at current terms, would you sign again?
The single most predictive question you can ask. A hesitation is the answer.
Ask every owner you speak to
- 11
Who else should I call — including someone who left?
The franchisor's list is curated by definition. Former franchisees are where the unflattering truth lives, and current owners usually know how to reach them.
Ask every owner you speak to
Want this as a checklist you can take to the calls?
I'll email you the printable version, and tell you if Smoothie Factory’s numbers move — a new filing, a rising exit rate, a distress signal. Unsubscribe in one click.
A broker is paid by the franchisor to place you. I'm paid by you — and the job is pressure-testing Smoothie Factory's numbers, including talking you out of a bad deal.
This page is what buyers see before they call you for validation. If the record above is wrong — or right in a way the numbers can't show — say so. Corrections are checked against the filings; nothing you write is published with your name unless you agree to it.
Smoothie Factory franchise questions, answered from the filings
What percentage of Smoothie Factory franchises closed last year?
In Smoothie Factory's latest FDD Item 20 (fiscal 2025), 1 of 7 franchised outlets left the system — an annualized exit rate of 14.3% — compared with 8.2% across 146 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 franchise cost?
Per Smoothie Factory'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 charge?
Smoothie Factory charges an ongoing royalty of 5.0% of gross sales, per Item 6 of its 2026 FDD.
Does Smoothie Factory disclose earnings (Item 19)?
Yes — Smoothie Factory 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 franchises default?
Across 43 SBA-backed loans to Smoothie Factory 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.