Robeks Smoothie Franchise Pays for Itself in 2024
Robeks is a chain of smoothie and juice bars that was founded in 1996 in Los Angeles, California. The company was started by David Robertson, who had a passion for healthy living and wanted to create a business that would make it easy for people to access nutritious, high-quality smoothies and juices. So keep reading, because on this article we will analyze Robeks Smoothie Franchise metrics.
In the early years of the company, Robeks focused on expanding its presence in the Los Angeles area, opening a number of stores throughout the region. As the company grew, it began to expand nationally, opening locations in a number of other states. Today, Robeks has a nationwide network of stores and is known for its high-quality smoothies and juices, which are made using fresh natural ingredients.
In addition to smoothies and juices, Robeks also offers a range of food items, including sandwiches, wraps, and salads. The company is committed to using fresh, natural ingredients and offering healthy, tasty options for its customers.
In 2017, Robeks introduced a new menu. In February 2018, Robeks launched their new Online Ordering program allowing customers to place orders from their desktop or mobile devices. The cornerstone of the program is a new mobile app that is now available to the public.
How Is Robeks Smoothie Franchise Positioned in the Food and Beverage Industry
The Food and Beverage industry in the USA accounts for 13% of all manufacturing employment in the country. Around 14.6 million people get employed in this industry. Food franchises make up 36% of the total franchise establishments in the USA and it is expected to create 1.6 million more jobs by 2027. The annual growth rate in the industry is around 2% and the EBITDA multiplier is around 3x.
How Much Is a Robeks Smoothie Franchise?
The initial Robeks Smoothie Franchise Fee is $30,000. You have to pay this upfront fee when opening a Robeks Smoothie franchise.
Robeks Smoothie Franchise Cost
The estimated total investment necessary to begin the operation of a Robeks Smoothie Franchise ranges from $258,450 to $353,000. The following costs are part of the upfront costs included in the initial investment for Robeks Smoothie. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy a Robeks Smoothie franchise in 2022.
| Type of expediture | Amount | To Whom Payment Is to Be Made | |
|---|---|---|---|
| Low | High | ||
| Initial Franchise Fee | $30,000 | $30,000 | Us |
| Leasehold improvements | $120,000 | $155,000 | Third Party Suppliers |
| Equipment | $60,000 | $70,000 | Third party suppliers |
| Fixtures | $11,000 | $21,000 | Third party suppliers |
| Signs | $5,000 | $10,000 | Third party suppliers |
| Computer system (includes POS system, networking and software) | $3,500 | $8,000 | Third party suppliers |
| Proffesional fees | $6,800 | $15,000 | Third parties such as architects and lawyers |
| Security deposits, utility deposits and business licenses | $2,500 | $5,000 | Landlord, suppliers, government agencies, utility companies |
| Real estate costs | $3,500 | $5,000 | Landlord |
| Opening inventory | $5,000 | $8,000 | Third party suppliers approved by us |
| Grand opening advertising | $5,000 | $5,000 | Third party suppliers and us |
| Travel for training | $0 | $3,500 | Third party suppliers |
| Insurance | $1,150 | $2,500 | Third party suppliers |
| Additional funds- first 3 months of operations | $5,000 | $15,000 | Third party suppliers |
| TOTAL | $258,450 | $353,000 | |
Robeks Smoothie Franchise Requirements
You need a minimum of $100,000 in liquid capital and a $300,000 net worth.
Ongoing Fees
Royalty: 6.25% to 7% of Net Sales
Marketing Fee: 2.5% of Net Sales
Local Marketing: 2.5% of Net Sales
How Much Do Robeks Smoothie Franchise Owners Make?
| Group | Number of stores in group (%) | Average net sales | Number and percent of stores within group that met or exceed group average net sales | Range of highest to lowest net sales in group | Median Net Sales | |
|---|---|---|---|---|---|---|
| No. | % | |||||
| First Quartile | 16 | $977,108 | 6 | 37.5% | $1,482,159 to $708,565 | $917,965 |
| Second Quartile | 16 | $647,149 | 9 | 56.3% | $697,213 to $566,339 | $659,493 |
| Third Quartile | 17 | $495,513 | 9 | 52.9% | $558,083 to $437,170 | $508,363 |
| Fourth Quartile | 17 | $347,703 | 10 | 58.8% | $407,134 to $267,770 | $350,144 |
| All Stores | 66 | $610,951 | 29 | 43.9% | $1,482,159 to $267,770 | $550,951 |
2020 Robeks Smoothie Median Franchise Sales: $550,951
| Initial investment (midpoint) | %Profit margin of median franchise sales | Estimated Profits | Time to recoup investments |
|---|---|---|---|
| $305,725 | 10% | $55,095 | 7 years |
| 15% | $82,643 | 5 years | |
| 20% | $110,190 | 4.25 years |
Based on the median sales provided by Robeks Smoothie’s franchise locations, at an average of a 15% profit margin, it will take around 5 years to recoup your investment. This is standard for such franchise opportunities. You may not get a 15% profit margin, which would elongate getting a return on your investment.
Many factors affect the sales, costs, and expenses of your Franchised Store, such as the Franchised Store’s size, geographic location, menu mix, and competition in the marketplace; the presence of other Smoothie stores; and the extent of market penetration and brand awareness that Robeks Smoothie stores have attained in your market. Also, the quality of management and service at your Franchised Store are major factors.
Is the Robeks Smoothie Franchise Profit Worth the Franchise Cost?
To assign a valuation multiple for Robeks Smoothie franchises, we leverage estimates from DealStats, a database of acquired private company transactions sourced from U.S. business brokers and SEC filings. We reviewed the larger franchise industry as well as selling price multiples for larger systems where more transaction data is available.
Under $5 Million Net Sales
- Estimated Selling Price = Net Sales * 0.55
When you go to sell a Robeks Smoothie franchise based on the median multiple of .55 and net sales in 2021 of $550,951, it would sell for $303,023. This is very close to the midpoint investment of $305,725.
The more franchises you own, the more earning potential you have as private equity firms become interested in your business instead of individual owner-operators
Robeks (Franchisor) Income Statement Key Insights
Robeks Franchise Corp. (a wholly-owned Subsidiary of Robeks Corporation) Statements of Operations For the Fiscal Years Ended December 27, 2020, December 29, 2019 and December 30, 2018
| 2020 | 2019 | 2018 | |
|---|---|---|---|
| Revenues | |||
| Royalties | $2,136,033 | 2,429,721 | 2,399,939 |
| Marketing contributions | 795,852 | 922,288 | 907,045 |
| Franchise fees | 169,867 | 256,805 | 107,430 |
| Regional management fees | 13,000 | 20,000 | |
| Total revenues | 3,101,752 | 3,621,814 | 3,434,414 |
| Operating expenses | |||
| Salaries and related accounts | 1,348,895 | 1,229,465 | 1,086,674 |
| Marketing expense | 794,158 | 924,048 | 1,004,454 |
| Sales commissions | 426,045 | 511,478 | 467,402 |
| Office | 256,513 | 234,821 | 197,941 |
| Legal and professional | 181,333 | 145,236 | 131,974 |
| Advertising | 90,460 | 91,662 | 74,128 |
| Allocated administrative and overhead | 68,345 | 75,855 | 42,296 |
| Meetings and travel | 29,600 | 90,858 | 75,430 |
| Bad debt | 12,814 | 5,000 | 7,478 |
| Total operating expenses | 3,208,163 | 3,308,423 | 3,087,777 |
| Net income (loss) | (106,411) | (313,391) | (346,637) |
Robeks Smoothie is a profitable business for the franchisor. While the franchisor saw profits of $346,637 and $313,391 in 2018 and 2019, it struggled a bit in 2020 when it saw a loss of $106,411.
How Many Robeks Smoothie Units Have Opened and Closed?
| Outlet type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2018 | 82 | 83 | 1 |
| 2019 | 83 | 83 | 0 | |
| 2020 | 83 | 82 | -1 | |
| Company-Owned | 2018 | 0 | 0 | 0 |
| 2019 | 0 | 0 | 0 | |
| 2020 | 0 | 1 | +1 | |
| Total Outlets | 2018 | 82 | 83 | +1 |
| 2019 | 83 | 83 | +0 | |
| 2020 | 83 | 83 | +0 |
The number of Robeks Smoothie stores has remained consistent at 82 – 83 in the last three years. This shows a strong loyalty to the brand by franchisees but might also indicate a high barrier to entry into the Robeks Smoothie system
Conclusion
Robeks Smoothie is a leading franchise opportunity in the Food and Beverage industry, offering a range of healthy and convenient meal options through its smoothies, bowls, and other menu items. With a focus on high-quality ingredients and innovative offerings, Robeks Smoothie is a trusted choice for those seeking to improve their health and wellness through nutrition.
The initial investment for a Robeks Smoothie franchise ranges from $258,450 to $353,000, including the upfront franchise fee of $30,000. To become a Robeks Smoothie franchisee, you will need a minimum of $100,000 in liquid capital and a net worth of $300,000. Ongoing fees for a Robeks Smoothie franchise include a royalty of 6.25% to 7% of net sales, a marketing fee of 2.5% of net sales, and a local marketing fee of 2.5% of net sales.
According to the 2020 median franchise sales for Robeks Smoothie, at an average profit margin of 15%, it will take around 5 years to recoup your initial investment. While it may take longer to recoup your investment than other franchise opportunities, the potential earning potential of a Robeks Smoothie franchise may be worth the initial investment.
While this may be the business for you, make sure also to check out other companies offered on Vetted Biz and in the Food and Beverage industry.
