Untitled - Planet Smoothie Franchise

Transcription

Franchise
Information Report
Contents
What is Planet Smoothie?...................................................................................................................................... 1
The Planet Smoothie Story.................................................................................................................................... 3
How Big is the Smoothie Industry?...................................................................................................................... 4
What Are my Startup Costs?................................................................................................................................ 5
How Much Can I Make?.......................................................................................................................................... 9
What Territories Are Available?...........................................................................................................................11
What Makes Us a Healthy Franchise?...............................................................................................................12
Who Buys Smoothies?............................................................................................................................................13
Why Customers Love Us.......................................................................................................................................14
Planet Smoothie Franchise Reviews..................................................................................................................15
What Marketing Resources Are Available?.....................................................................................................17
Training and Support.............................................................................................................................................19
A Day in the Life......................................................................................................................................................19
Can I Scale a Planet Smoothie?.........................................................................................................................20
What is a Planet Smoothie Location Like? .....................................................................................................21
Do I Qualify?............................................................................................................................................................ 22
How Planet Smoothie and Tasti D-Lite Combine to Conquer All Day Parts.........................................24
FAQ............................................................................................................................................................................24
Next Steps................................................................................................................................................................ 26
Franchise
Information Report
Mele Frumer, center, owns a Planet Smoothie franchise in Orlando, Florida.
What is Planet Smoothie?
Innovative and rapidly growing smoothie
franchise
Demand for smoothies is on the rise. As Americans have grown more health-conscious, they are
looking for food options that are both healthy and
convenient, and smoothies are a great combination
of both. The smoothie market hit $2.4 billion in 2011
— nearly doubling over the previous five years —
according to research by Mintel Intelligence Group.
Planet Smoothie has helped lead the growth.
Our first store opened in Atlanta in 1995, and we
quickly grew into a dominant smoothie brand in the
Southeast. We now have more than 100 stores.
Planet Smoothie is known for its healthier ingredients and for its proprietary sweeteners and
PLANETSMOOTHIEFRANCHISE.COM
supplements. We use real fruits and vegetables in
our smoothies, and we also have our own line of
proprietary supplements to provide more vitamins,
boost protein, accelerate fat burning, improve
alertness and help customers achieve their goals.
We also offer the best-tasting smoothies on the
planet! Our franchise owners have helped customers learn that “healthy” can also be “tasty.”
“The product is exceptional,” says President and
CEO Michael Serruya. “Our tagline is ‘the best tasting smoothie on the planet,’ and it’s true! They taste
great, and the nutritionals are amazing. We use real
fruit, and we have developed our own low-calorie
sweetener that is a mix of agave nectar and stevia. Then we also have ‘blasts’ we can add to your
smoothie to provide even more nutrition, fight cravings or help recuperate from exercise. Our menu is
extremely flexible to meet the unique preferences of
each guest. With different retail formats and single-
1
Franchise
Information Report
and multi-unit franchise programs, our business
concept is flexible, too.”
Planet Smoothie owners have had success in
shopping centers, as well as in kiosks and express
units; and growing numbers of multi-unit franchise owners have been adding Planet Smoothie
to complement their existing business. Planet
Smoothie stores can also be co-branded with its
sister brand, Tasti D-Lite, in order to capture customers looking for healthier soft serve as well as
smoothies. It’s an especially good pairing because
smoothies are most popular during breakfast and
lunch hours, while soft serve traffic peaks from
early afternoon through evening time.
Healthy eating is no longer a trend
Americans have awakened to the importance of
healthy eating. The obesity rate has more than doubled since 1980, according to the Centers for Disease
Control and Prevention, prompting a re-examination
of eating habits. According a report issued in 2014 by
the U.S. Department of Agriculture, Americans have
started to cut back on their daily calorie intake and
are reading more nutritional labels.
It’s not always easy to eat well on the go, but
Planet Smoothie is changing that. Our freshly prepared smoothies are usually ready just a couple of
minutes after they are ordered, which makes it easy
for a customer to stop in, grab a cup full of nutritious yumminess and head to their next destination.
A unique menu
Planet Smoothie’s menu is
unique. Just because a customer
wants a healthy meal replacement doesn’t mean they want a
smoothie that doesn’t taste great!
For instance, most smoothie
shops use some form of sugar
for added sweetening, but we
developed our own sweetener
called LeanLeaf® that is a mixture
of agave nectar and stevia. It’s
just as sweet, and it has far fewer
calories and carbs, as well as other health benefits.
Smoothie customers often make purchases around
functional preferences: weight loss, protein buildup,
whole-meal replacement or vitamin supplement, and
we have a functional menu to accommodate what
our customers want.
We have more than 40 regular menu items. Because everything is made to order, we can create
thousands of combinations for our customers. To
guide customers, we divide our menu into categories such as “Planet Classics,” “Energy,” “Planet
Lite,” “Protein,” and “Superfruit.” The categories
help guide customers to the options that best fit
their nutritional goals.
Why is Planet Smoothie a good business?
Planet Smoothie is a great business because it
costs a lot less to start compared with most restaurant concepts, it appeals to a
growing segment of customers, it
is simple to operate, and it attracts
loyal customers who often visit once
a week or more. In fact, most stores
have a group of regulars who stop
by every single day — sometimes
twice! — and our customer loyalty
rewards program offers deals and
discounts to encourage customers to become regulars. (Several
customers are approaching their
1,000th visit!)
2
Franchise
Information Report
Mele Frumer
likes that Planet
Smoothie is both
simple and healthy.
“I would never have
gone into something
that was unhealthy,
and it has gotten
healthier and healthier,” she says. The
breast cancer survivor is proud to offer
healthier foods with natural flavors — not artificially
flavored junk. “I had somebody come in one day and
ask if we use ‘banana spray.’ Banana spray!?! What
is that?!” When customers learn they can trust you to
offer authentic food, they come back.
Craig Accardo, a veteran franchisee business
owner who added a Planet Smoothie Express module to his existing business, said he likes co-branding with Planet Smoothie because Planet Smoothie
is a simple concept that brings in significant extra
revenue and complements his other business.
The Planet Smoothie Story
A national smoothie brand in the making
Planet Smoothie started in Atlanta in 1995, when
smoothies were first beginning to gain a solid niche
in the market. Before the 1990s, smoothies were
almost completely associated with hardcore health
fanatics — people who did a lot of their shopping
at health stores or who were disciples of the late,
great Jack Lalanne. Lalanne preached the virtues of
exercise and nutrition for 80 years, and he inspired
countless people to slim down and muscle up.
Smoothies gained a foothold in the dining marketplace thanks to people who wanted to be able
to order something tasty and nutritious, with the
convenience to fit their busy lifestyles. Fitness
buffs were the first smoothie customers, and as
it became easier to obtain a good smoothie, they
told their friends — “Hey! Here’s a new place you
should try. It tastes good, there are lots of choices,
and you get fruits
and vegetables!”
As more people
discovered smoothies, the market exploded, and Planet
Smoothie quickly
spread throughout
the Southeast, becoming a dominant
brand, especially in
Georgia and Florida.
A new era for Planet Smoothie
The opportunity to rapidly expand Planet
Smoothie excited a team of veteran franchise executives who had helped build other iconic brands,
including Cold Stone Creamery and Blimpie. Planet
Smoothie was combined with Tasti D-Lite and now
there are 128 units. Together with all the great Kahala brands, Planet Smoothie now has the capabilities and resources to accelerate growth and drive
stronger results for franchisees as Kahala is busily
improving supply chains and introducing innovations within the smoothie franchise.
Under new ownership since 2015, the management team has been busy improving supply chains
and introducing new innovations within Planet
Smoothie, which now has more than 100 locations
nationwide.
That’s just the beginning. Planet Smoothie is
expanding nationwide. The hunger for healthy foods
has increased dramatically since the 1990s — especially for healthy foods that taste great. A 2012
customer survey by public relations giant Edelman
found that 83% of customers want food and beverage companies to offer healthy foods that taste
great, but only 50% of them think the industry is
doing a good job. More than half of consumers said
they avoid processed foods whenever possible.
Planet Smoothie is focused on delivering exceptional nutritional value and great-tasting items to
customers, and our leadership team is committed
to innovation and continued business improve-
3
Franchise
Information Report
ment. For instance, we developed our own proprietary sweetener made from agave nectar and
stevia, which allows us to create great-tasting
smoothies that have fewer calories and lower
sugar content. We also reformulated classic Planet
Smoothie menu items to use cocoa powder rather
than chocolate syrup, which lowered calories and
raised the amount of antioxidants without changing the flavor. We added leafy greens as an option
on our menu to add to any of our smoothies. All of
these changes have made Planet Smoothie menu
items even healthier and were undertaken after
careful research into ways we could better serve
our customers and encourage more people to visit
our stores.
The changes, as well as an aggressive marketing
and promotion plan, have helped drive up sales for
Planet Smoothie franchise owners.
“I am very happy with our new corporate group,”
says Colin MacGuire, who opened his Planet
Smoothie in Winter Garden, Florida, in 2007. “We
are definitely staying ahead of the competition,
which makes me happy. We are in good hands.”
How Big is the
Smoothie Industry?
One of the fastest-growing food franchise
segments
Planet Smoothie is a rapidly growing franchise
brand in a booming sector of the beverage industry.
Best of all, Planet Smoothie is a dominant leader in
the rapid-growth, made-to-order smoothie category.
Smoothies have grown
from a niche market in
the 1990s to a $2.4 billion industry, according
to research firm Mintel
Intelligence Group. They
are mainstream snack
or meal replacement for
millions. The demand for
healthier smoothies like
the ones we concoct at Planet Smoothie is only getting stronger.
Why smoothie franchises are growing
It’s no secret that America has a major problem
with obesity, diabetes and heart disease. It’s also
clear that people want to eat better and are willing
to seek healthy alternatives to fast food, processed
food and other menu items and beverages that are
spiked with sugar, salt and artificial flavorings.
Technomic, a food industry market research firm,
recently found that 64% of consumers agree that it’s
important to eat healthy, up from 57% in 2010 — a
massive shift in just two years. Another survey conducted by the Mintel consumer research firm in 2013,
asked participants to identify the barriers that keep
them from reaching their healthy eating goals. Among
the reasons: availability of products, time constraints,
taste concerns and confusion about what’s healthy.
As a leader in the industry, Planet Smoothie addresses these barriers with lower-sugar, lower-calorie smoothie choices. Our stores make it super-easy
for customers to purchase a delicious smoothie
within minutes of walking in the door.
Our smoothie franchise is a
simple business
Planet Smoothie’s streamlined
business model is simple and easy
to execute. Ask Planet Smoothie
owners what they like best about
the franchise, and nine times out
of 10 they’ll talk about the brand’s
simplicity. Planet Smoothie stores
4
Franchise
Information Report
have surprisingly low costs of goods sold and fewer
of the operating costs and complexities found in
many other dining concepts. For instance, equipment costs are lower, and there are minimal spoilage
costs because most of our fruits are flash frozen and
kept in freezers until they are needed.
Jason Mann, a 15-year Planet Smoothie veteran
and owner of three successful stores in the Orlando,
Florida, area, puts it this way:
“One of the attraction points for Planet Smoothie
is the small amount of employees and labor needed
to run the locations. Planet Smoothie is an enthusiastic and fun atmosphere to work in and a fun
business to own. You don’t need tremendous inventory, and it is a simple concept for someone without
restaurant experience to operate.”
Keith Lehmann, who owns a store in Winter Park,
Florida, says:
“There’s a real advantage to owning a Planet
Smoothie franchise.
It’s a simpler operation than most food
industry businesses.
You’re not dealing
with grease, meat or
knives. You can be
involved in an immensely popular industry without having
a food background.
Here is a food business that’s not as
difficult to run as a
restaurant.”
3 reasons why smoothies are here to stay
• Smoothies are relevant to a fast-growing national and international customer base that desires
— and indeed even often demands — healthier and
tastier quick-service food options.
• Smoothies taste good! So many healthy foods
feel like punishment, but smoothies allow people to
eat well while actually enjoying what they eat. Plus,
flavor combinations are virtually endless, which pro-
vides variety for customers who want to try different
things.
• Smoothie buyers are a growing demographic.
The demographics of the smoothie segment point to
demand with a long-term horizon. While just 3.6%
of our customers are 55 or older, that number grows
to 12.6% for people 45-54, 19.4% for those 35-44,
25.6% for people 25-34, and 26.1% for people 1824. Smoothies have been mainstream or 20 years —
and that is creating more demand as time goes by.
What Are my Startup
Costs?
What a Planet Smoothie franchise costs
The Planet Smoothie franchise has a flexible
business model that can be successful in traditional
shopping center locations, street-level retail
and in nontraditional
locations like kiosks.
We also offer dualbranded locations with
both Planet Smoothie
and Tasti D-Lite to
capture a broader audience during different
parts of the day.
The charts on the
following pages outline
the investment range
for each of these three
concepts. The cost to
get started can vary widely depending on location,
the particular market (Manhattan vs. Des Moines
real estate costs, for instance) and other factors.
The best way to get a better idea of your likely
startup costs is to start a conversation with our development team.
Estimates are provided in greater detail in our
Franchise Disclosure Document, which is provided
to franchise candidates who are in touch with us
and evaluating the franchise.
5
Franchise
Information Report
Traditional Planet Smoothie model
This investment range is based on a 1,000-square-foot retail location serving only Planet Smoothie products.
Type of Expenditure
Amount
Method of Payment
When Due
To Whom Payment is Made
Initial Franchise Fee
$25,000 (1st store),
$20,000 (2nd store),
$15,000 (3+ stores)
Lump sum
Upon signing Franchise
Agreement
Us
Grand Opening Contribution
$7,500
Lump sum
Upon signing of Franchise
Agreement
Us
Office Equipment & Supplies
$500 to $2,500
Lump sum
100% due upon placing order
Third Parties
Computer System
$3,300 to $6,000
Lump sum
Third Parties
Merchant Account Equipment
$0 to $500
As agreed
As incurred
Third Parties
Voice and Data Circuits Setup
Costs
$100 to $750
As agreed
As incurred
Third Parties
Radio System and Installation
$300 to $900
Lump sum
Third Parties
Radio Annual Subscription Fee
(1 year)
$0 to $480
Lump sum
Third Parties
Furnishings, Fixtures and Equipment
$48,000 to $54,000
Lump sum
Third Parties
Furnishings, Fixtures and Equipment Installation
$7,000 to $12,000
Lump sum
As incurred
Third Parties
Freight
$3,000 to $7,000
Lump sum
As incurred
Third Parties
Initial Inventory Order
$3,300 to $6,300
As agreed
As incurred
Us and Third
Parties
Rent and security deposit
$6,500 to 18,500
As agreed
As incurred
Landlord
Leasehold improvements (based
upon 1,000 square feet)
$51,000 to $85,000
As agreed
As incurred
Third Parties
Architect and Design Fees
$5,000 to $12,000
As agreed
As incurred
Third Parties
Utility deposits
$1,000 to $2,000
As agreed
As incurred
Utility companies
Security System and Installation
$200 to $3,200
Lump sum
Third Parties
Security System Annual Monitoring
$0 to $720
Lump sum
Monthly
Third Parties
Travel, lodging and meals for initial
training (includes 3 individuals)
$1,700 to $3,400
As agreed
As incurred
Third Parties
Professional fees (lawyer, accountant, etc.)
$0 to $4,000
Lump sum
As incurred
Third Parties
Business licenses, permits, etc. (for $1,000 to $4,000
1st year)
As agreed
As incurred
Third Parties
Insurance (premium for 1st year)
$2,000 to $5,000
As agreed
As incurred
Third Parties
Additional funds (for 1st 3 months)
$10,000 to $30,000
As agreed
As incurred
Third Parties
Totals
$164,400 to $287,350
6
Franchise
Information Report
Traditional Planet-Tasti model
This investment range is based on a 1,000-squarefoot retail location serving both Planet Smoothie
products and Tasti D-Lite frozen dessert. We encourage franchisees to consider co-branding because the
brands are so complementary — smoothies tend to
sell best during the mornings and afternoon, while
forzen dessert sales peak in the evenings. By dualbranding, you can capture more sales with the same
lease costs.
Type of Expenditure
Amount
Method of
Payment
When Due
To Whom Payment is Made
$25,000 (1st store),
$20,000 (2nd store),
$15,000 (3+ stores)
Lump sum
Upon signing Franchise Agreement
Us
$7,500
Lump sum
Upon signing of Franchise Agreement
Us
$500 to $2,500
Lump sum
Third Parties
Computer System
$3,300 to $6,000
Lump sum
Third Parties
Merchant Account Equipment
$0 to $500
As agreed
As incurred
Third Parties
Voice and Data Circuits Setup Costs
$100 to $750
As agreed
As incurred
Third Parties
Radio System and Installation
$300 to $900
Lump sum
Third Parties
Radio Annual Subscription Fee (1
year)
$0 to $480
Lump sum
Third Parties
(excluding Soft Serve Equipment)
$68,000 to $75,000
Lump sum
Third Parties
Soft Serve Equipment (2-3 machines)
$32,000 to $48,000
Lump sum
Third Parties
Installation
$8,000 to $15,000
Lump sum
As incurred
Third Parties
Freight
$4,600 to $12,000
Lump sum
As incurred
Third Parties
$9,000 to $15,900
As agreed
As incurred
Us and Third
Parties
$10,000 to $22,000
As agreed
As incurred
Landlord
Leasehold improvements (based
upon 1,000 square feet)
$51,000 to $89,000
As agreed
As incurred
Third Parties
Architect and Design Fees
$5,000 to $12,000
As agreed
As incurred
Third Parties
Utility deposits
$1,000 to $2,000
As agreed
As incurred
Utility companies
Security System and Installation
$200 to $3,200
Lump sum
Third Parties
Security System Annual Monitoring
$0 to $720
Lump sum
Monthly
Third Parties
Travel, lodging and meals for initial
training (includes 3 individuals)
$1,700 to $3,400
As agreed
As incurred
Third Parties
Professional fees (lawyer, accountant,
etc.)
$0 to $4,000
Lump sum
As incurred
Third Parties
Business licenses, permits, etc. (for
1st year)
$1,000 to $4,000
As agreed
As incurred
Third Parties
Insurance (premium for 1st year)
$2,000 to $5,000
As agreed
As incurred
Third Parties
Additional funds (for 1st 3 months)
$10,000 to $30,000
As agreed
As incurred
Third Parties
Totals
$225,249 to $374,982
7
Franchise
Information Report
Nontraditional Planet Smoothie model
Planet Smoothie’s simplicity lends itself to nontraditional locations, such as kiosks. Several franchisees
who already own other brands have used this business model to add Planet Smoothie to their locations
with impressive results. This investment range is
based on a 350-square-foot location.
Type of Expenditure
Amount
Method of Payment
When Due
To Whom Payment is
Made
$20,000
Lump sum
Upon signing Franchise
Agreement
Us
$2,500
Lump sum
Upon signing of Franchise Agreement
Us
$200 to $300
Lump sum
100% due upon placing
order
Third Parties
Computer System (1
terminal)
$3,300 to $3,600
Lump sum
order
Third Parties
Merchant Account
Equipment
$0 to $500
As agreed
As incurred
Third Parties
Voice and Data Circuits
Setup Costs
$100 to $750
As agreed
As incurred
Third Parties
Furnishings, Fixtures and $11,500 to $54,000
Equipment
Lump sum
order
Third Parties
Furnishings, Fixtures and $5,500 to $10,000
Equipment Installation
Lump sum
As incurred
Third Parties
Freight
$2,000 to $5,000
Lump sum
As incurred
Third Parties
$3,000 to $5,000
As agreed
As incurred
Us and Third Parties
$4,000 to $15,000
As agreed
As incurred
Landlord
Leasehold improvements $25,000 to $61,000
As agreed
As incurred
Third Parties
Architect and Design
Fees
$5,000 to $12,000
As agreed
As incurred
Third Parties
Utility deposits
$1,000 to $2,000
As agreed
As incurred
Utility companies
Travel, lodging and
meals for initial training
(includes 2 individual)
$1,500 to $2,000
As agreed
As incurred
Third Parties
Lump sum
As incurred
Third Parties
Professional fees (lawyer, $0 to $4,000
accountant, etc.)
Business licenses, permits, etc. (for 1st year)
$1,000 to $4,000
As agreed
As incurred
Third Parties
Insurance (premium for
1st year)
$1,000 to $2,000
As agreed
As incurred
Third Parties
Additional funds (for 1st
3 months)
$5,000 to $15,000
As agreed
As incurred
Third Parties
Totals
$89,600 to $222,243
8
Franchise
Information Report
How Much Can I Make?
How to evaluate the Planet Smoothie
franchise opportunity
How much do Planet Smoothie franchise owners make? That can vary a lot depending on the
business skills and drive of the franchisee, the local
economy and the quality and makeup of a particular shopping center or mall. We do not provide
revenue projections in our FDD (Franchise Disclosure Document); however, our process will enable
you to get the information you need to understand
the economics of our franchise. As you go through
the process of learning more about the concept,
you’ll have a chance to speak with current Planet
Smoothie store operators and learn from their experiences with the business.
There’s a reason Planet Smoothie is one of
the strongest brands in our business segment —
smoothies are a great product with solid profit
margins.
We provide a list of Planet Smoothie franchisees
during your evaluation process. We’re happy to put
you in touch with them so they can tell you what
they love about Planet Smoothie! They are also free
to share details of their investment. Here’s some of
what we expect you to hear:
We enjoy a large customer base
Your first customers will probably be neighbors
eager to try out the new smoothie shop nearby, and
9
Franchise
Information Report
you can expect to quickly build upon that initial audience. Nearly 80% of our customers exercise regularly — proof that our brand resonates with healthminded consumers. While our core customers are
women in their teens through mid-40s, we serve a
surprisingly diverse range of the population. Fortytwo percent of customers come in at least once a
week, and 50% of customers come in as part of a
crowd. Smoothies have also become popular over
the past 20 years, and demographics are working in
our favor. While less than 4% of our customers are
over the age of 55, the percentage grows to nearly
20% for people ages 35-44, and the percentage
continues grow for ages 25-34 and 18-24. Today’s
35-44 year olds represent the first generation of
heavy smoothie consumers. With each new generation, the pool of smoothie customers is growing.
We have strong marketing and a powerful
supply chain
With new management and investment, and
by joining forces with Tasti D-Lite and Kahala
Brands, we have been able to leverage the brands’
combined strength to lower supply costs for franchisees and to improve the supply chain. That
enables our franchisees to take advantage of
frequent seasonal product promotions that are
designed to draw in more customers and test out
new menu items. Supply chain improvements have
Grouping of
franchised
Traditional Planet
Smoothie models
of Planet Tasti
Centers
Average Annual
Gross Sales
of franchised
Traditional Planet
Smoothie models of
Planet Tasti Centers
in 2014 Fiscal Year
for the respective
grouping
Number of
Centers in
Grouping
Number and
Percentage
of Centers in
Grouping in which
Individual Center
Sales Equaled
or Exceeded the
Grouping Average
Average Increase
in Annual Gross
Sales from 2013
Fiscal Year to 2014
Fiscal Year for the
respective grouping
Number and
Percentage of
Centers in Grouping
in which Individual
Percentage Increase
in Gross Sales
Equaled or Exceeded
the Grouping Average
Highest
Performing 10%
of Centers by
2014 Annual
Gross Sales
$565,556
6
3 / 50%
6%
3 / 50%
Highest
Performing 25%
of Centers by
2014 Annual
Gross Sales
$460,872
14
4 / 29%
8%
7 / 50%
Highest
Performing 50%
of Centers by
2014 Annual
Gross Sales
$386,362
28
8 / 29%
10%
15 / 54%
Highest
Performing 75%
of Centers by
2014 Annual
Gross Sales
$337,311
42
18 / 43%
9%
23 / 55%
All Centers by
2014 Annual
Gross Sales
$290,012
57
25 / 44%
9%
30 / 53%
10
Franchise
Information Report
also increased margins and the ease of doing business for Planet Smoothie franchise owners, and
the clockwork nature of our promotions has helped
drive customer traffic.
establish itself in many other parts of the country.
Here’s a look at where we are.
Smoothies have strong margins
While most restaurant concepts have thin profit
margins, smoothie franchises are able to generate
revenue without a lot of the costs associated with
running a full kitchen. Smoothie franchises can be
operated with minimal staffing, don’t require ovens
and don’t require you to stock an extensive array of
food that may spoil before it is ever ordered. Planet
Smoothie franchises have virtually no spoilage
costs because most of our fruits are flash-frozen
and kept in freezers until they are needed.
What Territories Are
Available?
What makes a great market?
Planet Smoothie is expanding nationwide, and
territories are available throughout the country for
single-unit and multi-unit franchisees, as well as for
area developers who wish to lead the growth of an
entire metro area.
With deep roots and a strong presence in the
Southeast, Planet Smoothie has already grown to
Target markets
Americans everywhere are searching for healthy
options, and Planet Smoothie is ready to partner
with entrepreneurs nationwide to deliver our products to more customers.
Jason Mann, who serves as area developer for
Planet Smoothie in Orlando, has helped grow the
brand from a handful of stores in Central Florida in
1999 to more than two dozen today. Planet Smoothie is now a dominant brand in Central Florida, and
Jason says he thinks the success could be duplicated throughout the country.
“I was living in Washington
when I decided to look into
Planet Smoothie, and I knew I
wanted to move back to Florida,”
he says. “We went through a
process with Planet Smoothie,
and they pinpointed Orlando as a
great growth opportunity.”
It’s worked out well. He now
owns three stores and assists
other Orlando-area franchisees.
“Back in 1999, nobody really
knew what smoothies were in Orlando, so we were breaking into
11
Franchise
Information Report
the market with a new brand and a new concept.
My wife would be behind the counter, and I would
go outside in a banana suit and drive traffic to the
store,” Jason says. “We were also marketing in the
community extremely hard and built relationships
with all the schools near our store. To be really successful, you have to make yourself part of the community. You need to be the ‘mayor of the village.’ ”
Today, Jason has a management infrastructure
in place to operate his three stores and to provide
best-of-class support to the 20-plus other franchise
owners in his region.
What Makes Us a Healthy
Franchise?
Best-in-class
ingredients make
Planet Smoothie
stand out
Not all smoothies are equal. Some
smoothie businesses lose sight
of the fact that if
healthy food doesn’t
taste great, nobody
will want it! Other
businesses take a cost-cutting and low-effort approach to smoothies, and they use mass-produced
concoctions of processed fruit and sugar that they
give to customers in two or three artificially derived
flavors.
Customers love Planet Smoothie because we
offer great-tasting smoothies that are contain many
natural and nutritious ingredients. Customers can
watch us make their smoothies and see us scoop
strawberries, blueberries and other fruit into the
blender jar. They can watch us add fresh greens to
the blender, or toss in açaí that is flash-frozen in
the Brazilian rainforest and shipped to our franchisees.
A healthier fast food franchise
Customers also love that we are fast. One of the
things that makes Planet Smoothie a healthier franchise is that we make it convenient to be healthy.
Quick convenience foods have become a big part
of the American diet, not because they are laden
with salt and fat but because they are fast. Planet
Smoothie customers can order at the counter and be
out the door with their smoothie within minutes. That
allows people to grab a smoothie on the way to work
or to stop in for a quick meal replacement or treat
during the day. The speed also allows franchisees to
serve a lot of customers in a short amount of time.
Passion for health
drives innovation
Fruit is good for
your body, and most
Americans don’t get
even half as much as
they should, according to the U.S. Department of Agriculture. We make it easy
for people to add a lot
more fruit to their diets — and that’s just
one of the things that
make our smoothies
healthier.
Over the past several years, Planet Smoothie
has been busily re-creating many of our classic
recipes in ways that lower their sugar content,
reduce calories, boost vitamins and antioxidants,
and introduce leafy greens — all without changing
the great taste that customers love.
We have developed our own sweetener —
LeanLeaf — that combines the natural goodness
of agave nectar and stevia, two of the world’s
sweetest plants. The new sweetener allowed us to
lower the sugar content and calorie counts of our
smoothies.
We also substituted cocoa powder in place of
12
Franchise
Information Report
chocolate syrup for our more decadent smoothies
— a move that lowered the calorie counts in those
smoothies while adding much more antioxidant
power.
We have also created Greek yogurt smoothies
that have more protein and fewer calories, have
created veggie smoothies and can add leafy green
vegetables to any smoothie (moms love this —
kids don’t even notice when you sneak some green
veggies into their smoothies!).
On top of that, we offer our “blasts” — supplements that can be added to any smoothie. Some
are designed to help dieters burn fat more efficiently and feel more full, some are designed to boost
energy or the immune system, others are designed
to add more vitamins or fiber to your diet, and still
others are designed to help athletes and exercisers
recover and build muscle after a workout.
We provide full nutritional information for our
menu items and invite customers and potential
franchisees to compare our nutritional information to
those of any competitor. You’ll see why we’re confident we have the best smoothies on the planet!
Who Buys Smoothies?
Who are Planet Smoothie’s customers?
Smoothies are far more common than they used
to be, and even giant fast food chains have tried to
capitalize on the huge demand. Planet Smoothie
has major advantages — we are hardcore smoothie experts, we know a lot about our customers and
we make the best-tasting smoothie on the planet.
When we opened the first Planet
Smoothie store in 1995 in Atlanta,
smoothies were considered a
niche product, but we knew
things wouldn’t stay that
way forever. Something so delicious,
healthy and convenient was bound
to go mainstream.
We were right.
Smoothies are now a household word — but all
smoothies aren’t created equal. Planet Smoothie
customers know it, too. Many of them want a delicious treat or meal replacement, but they don’t
want to overdose on sugar, additives or imitation
flavorings. They want a great-tasting, healthier alternative to what’s on the menu at fast food joints.
Planet Smoothie communities
Many kinds of people flock to Planet Smoothie.
Over almost two decades of doing business we’ve
learned a lot about them. First and foremost, they
are super-loyal to the Planet Smoothie brand. In
fact, 42% stop into their local store at least once a
week.
About 90% of Planet Smoothie customers
exercise at least once a week. That doesn’t mean
they’re all health and fitness buffs with six-pack
abs and the ideal percentage of body fat — although some are. Many are simply active individuals who do the best they can to live a healthier
lifestyle.
A large percentage of Planet Smoothie guests
are 18- to 49-year-olds. Of course, we also attract
customers on both ends of that spectrum — active
Baby Boomers and teenagers on the go. The exact
mix of customers can have a lot to do with the
location of a Planet Smoothie. When a store is near
a high school or college, it will fill up after school
with students. When a store is very close to a gym,
you’re going to see even more of the gym crowd.
Smoothies become part of customers’
routines
Some of the best Planet Smoothie customers are Millennials, individuals born between 1980
and 2000. This crowd grew up in the 1990s when
smoothies began to go mainstream. They represent an entire swath of the population who think
of smoothies as a normal, everyday choice. We’ve
learned a lot from observing this particular demographic. Many Millennials snack five times a day
rather than eating three square meals. Armed with
their smartphones and laptops, they are just as com-
13
Franchise
Information Report
fortable in a smoothie shop as a coffeehouse.
A diverse pool of professionals also show up
every day at Planet Smoothie — store managers,
medical workers, police officers, school teachers, personal trainers, computer programmers,
entrepreneurs and more. These folks are on the
go and have little time to waste. And when they’re
in a hurry, they would much rather pop into a
Planet Smoothie for an energy-packed Java the
Nut smoothie or a slimming, delicious Screamsicle smoothie than rush through a drive-through
window or grab an empty-calorie soda at a convenience store.
Why Customers Love Us
Planet Smoothie franchises’ dedication
to healthier offerings and great guest
experiences make us a customer favorite
We serve the best-tasting smoothie on the planet,
and our team constantly strives to keep up with the
latest advances in nutrition and healthy living — and
incorporate those advances into our menu and business model. We train everyone from our owners to
our part-time workers to serve our delicious, real-
fruit smoothies with enthusiasm and smiles.
Our product and our service leave customers
smiling, too. Below are some comments that customers have posted on social media networks,
where they tend to be very honest about their experiences. We invite you to do some research yourself,
because we’re confident about the positive customer experiences you’ll find.
Recent Yelp reviews
“I have had smoothies from different places
spread all over Atlanta and in my view this location
is tops. First of all it is very conveniently located
in the same shopping center as Publix is so it’s a
logical stop for breakfast before some Saturdaymorning grocery shopping. You can’t make a marathon shopping trip on an empty stomach, that’s just
madness. Secondly, the staff that I have encountered here so far has been exemplary. They are very
friendly and prompt and really seem like they are
happy to see you. That’s hard to find in this day and
age when most of the time you get the feeling customer-service people are irritated that you showed
up and actually made them work at the job they
went to great lengths to procure. Not here, though!
Finally, the smoothies are delicious and healthy! I
always get the Planet Pro Lite and add in some leafy
greens to really jazz up the whole experience. Extra
vitamin K? Count me in!” — Jonathan F., Atlanta
“I love Planet Smoothie! I just had an Acai Berry
smoothie that had protein and it was the BEST
EVER! Service is great, place is super-clean.” — Susan T., Perkasie, Pennsylvania
“Great business owned by hometown family!
Smoothies are made with fresh fruit and they are delicious. A great place to bring your children, a date
or your spouse for an antioxidant, healthy treat!” —
Patricia P., Cary, North Carolina
14
Franchise
Information Report
Recent social media reviews
“I love everything about this place! I go almost
every day! Great tasting smoothies and everyone
who works there is extremely friendly!” — Cory G.,
Orlando
“This is my Absolute Favorite Place - I am not a
coffee person - so this is my almost everyday treat :)
not only does Planet Smoothie in Doylestown have
the best Smoothie around - it also has one of nicest
Friendliest Staff I have ever met :)” — Michele G.,
Doylestown, Pennsylvania
“I can drink a smoothie every day. They are just
that good!!!!!” — Cindy M., McDonough, Georgia
Planet Smoothie Franchise
Reviews
Shannon Lelli of Doylestown, Pennsylvania:
For me, it’s a miracle. It has so
completely exceeded my expectations. … I feel like Planet Smoothie
offers the perfect balance that lets
different people adapt their lifestyle
to our menu. There’s low-sugar
options, there’s no-dairy options,
there’s no-gluten options. There is not a healthy diet
that you can’t accommodate. There is something for
everyone. People getting healthier and more healthconscious has absolutely helped my store, and we
also have great-tasting smoothies for people who
don’t care about health — and they’re still healthy.
… I struggled with my weight all my life. I remember
being a 6-year-old girl in ballet class who was “the
chubby girl.” When I first opened Planet Smoothie, I
wasn’t obese, but I was always fighting it and I was
still chubby. Having a healthy business, people look at
you, and since I opened the store and started exercising and using my own products, I have been able
to get into good shape. It is such a testament to the
product that, after having four kids, I can be in better
shape now than I was when I was in high school.
Karen Hendrix (left), co-owner in Suwanee,
Georgia, with Kristen Scott (right):
It’s a really, really positive environment. When
you are serving smoothies, your customers are
coming in for a treat that is healthy, and they are
in a good mood. You get to know your customers, and you just feel like you are making people’s
lives a little bit better. It’s hard to be in a bad mood
when you are around smiling people and you’re
helping them do good for themselves!
Craig Accardo, of Sanford, Florida (who
added a Planet Smoothie express module
to his existing foodservice business):
Health is important, but taste is
still the No. 1 reason people want
smoothies. The reason I decided
to add Planet Smoothie was the
taste. It’s easy for me to sell products I believe in. I eat and drink at
Planet Smoothie myself. They’re
good, and I am happy to serve it. … When people
come, they are usually happy. They are buying a
healthy indulgence.
Michelle Williams of Tucson, Arizona:
If I only had one store to provide income for my retirement, I
would be ecstatic based on what
I’m seeing from my first store. My
customers are always asking us
to open in more places, though,
so we’re opening a second store,
and as soon as No. 2 is done, we’ll start working on
No. 3. I think it’s our duty to continue to grow here in
Tucson.
15
Franchise
Information Report
Community partnerships and rewards have helped Corey and Keith Lehmann’s store thrive.
Jason Mann of Orlando:
I have a passion for what I do,
so it doesn’t feel like work. It has
provided a wonderful financial
life for us, and it also provides
challenges on a daily basis, figuring out how to get better, how
to achieve higher sales, and how
to better employees’ lives. There’s a lot of self-fulfillment in this business — whether from helping a customer become more healthy or helping an employee
pay their way through school — there’s a tremendous
amount of fulfillment through Planet Smoothie.
Mele Frumer of Orlando:
Over the years, five of my six
children have worked for Planet
Smoothie — not to mention
their fiancées and girlfriends —
and I have absolutely loved it.
My 17-year-old son has been
helping since he was 12, and
he can run the show. It has been great for them
— it has given them a taste for having a real job a
little earlier than most of their friends. I’ve had two
daughters-in-law work for me, and stepchildren
work for me, too. It’s a perfect business to do with
your kids. It’s not too complicated.
Keith Lehmann, a business broker and
accountant who owns a Planet Smoothie
with his wife, Corey, in Winter Park, Florida:
The first smoothie shop I
helped sell, I didn’t quite understand the concept. It was a
mom-and-pop place, and I remember thinking, “I guess there
are coffee people and smoothie
people.” When I started working
with Planet Smoothie as an accountant for some of the Orlando stores, I saw how
popular they were, how brand-loyal the customers became, how good the product was. I never
had a smoothie I didn’t like! I thought, “This is a
very interesting business.” When the opportunity
came up a couple of years later to buy one, we did.
16
Franchise
Information Report
Since I had been doing the accounting, I knew the
numbers and understood how much it was making.
Planet Smoothies are in no way a “get rich quick”
business, but I knew we could make a good living
and have the freedom of being business owners.
What Marketing Resources
Are Available?
One of the great benefits of
owning a Planet Smoothie franchise is that you start out with a
sophisticated marketing plan that
helps drive customers to your
business. You also get expert
guidance from the Planet Smoothie management team, and marketing support begins well before
your store opens.
Our 100+ page marketing
toolkit lays out a comprehensive
strategy for attracting customers, encouraging repeat visits and
boosting revenue. We will teach
you how to analyze your competitors, identify potential community
partnerships, and scout pools
of likely customers. This analysis helps guide your community outreach, which
can have a huge impact on your business. We also
provide coupons and outreach strategies that are
tailored to each audience.
We also provide a depth of assistance in planning
and executing your grand opening marketing initiative. Whether your store is the first in a new area or
is in a region where Planet Smoothie is already wellknown, this is an essential step in getting your store
known and visited by those in your community.
Community partnerships
Keith and Corey Lehmann’s store in Orlando is
a great example of the power of local marketing
and bountiful opportunities to promote your store.
The 2013 Planet Smoothie Franchisees of the Year
have made themselves a fixture in the community
by giving out samples to runners and walkers at the
end of 5k charity events, and by providing Planet
Smoothie items to community groups who then sell
them to raise money.
“The more samples I give out at events, the more
success we seem to have,” Keith says. “I actively
pursue any opportunity to get out in the community
and help — whether it’s a school,
a church, a not-for-profit, a library
event, neighborhood movies in
the park. ... We said, ‘Hey, can
we support your event by coming
out and giving free smoothies and
free samples?’ They appreciate
that we are coming out to support them, and I tell them, ‘It’s not
100% selfless — it’s a great way
to promote my store.’ ”
Planet Smoothie’s corporate
team provides a wealth of predesigned marketing pieces that
can be customized for local
marketing efforts, and they can
also assist you in the creation of
custom marketing pieces. For
instance, Keith and Corey’s store
turned 15 in 2014, and to celebrate the anniversary, they wanted
to offer a special promotion: 15% off on the 15th of
each month. “I asked for help designing the materials because I am not a design guy, and they helped
design a nice banner for the store and something for
my store’s Facebook page,” Keith says. “They were
great, and that’s just an example. I know they do that
for other folks, too.”
In-store marketing
Planet Smoothie franchises enjoy high customer
frequency. Forty-two percent of our customers
come to Planet Smoothie at least once a week, and
a significant number of customers stop in every
single day — sometimes twice! That means more
17
Franchise
Information Report
revenue for franchisees and more healthy habits
among our customers — both great things!
Franchisees can offer several types of rewards
to keep customers coming back: bounce-back
coupons for discounts off their next smoothie,
same-day incentives for customers who order in the
morning and come back for an evening smoothie, a
rewards card program that provides a free smoothie
on a customer’s 11th visit, and more.
Franchisees can also use our loyalty technology
to conduct customized text-based marketing to
customers who sign up for our rewards program.
Perhaps you’d like to spot customers who come
in at least twice a week, and offer them a special
incentive to encourage them to bring in a friend who
may join them for future visits. Maybe you’d like to
see a list of customers who have stopped in over
the past 60 days, but haven’t visited in the last two
weeks, so that you can encourage a repeat trip.
Our rewards program is a powerful tool for keeping
customers coming back.
Limited-time-only menu items
Planet Smoothie is constantly monitoring health
trends and creating innovative menu items to appeal
to customers, and we maintain a yearlong calendar
of coming promotions so that customers can always
look forward to something new on the menu. Promotional items encourage customers to try more
things and visit more often, and they help increase
sales for franchisees. At the same time, promotional
items create fresh marketing opportunities for your
store, and they also give Planet Smoothie a chance
to identify breakout hits that should be added to the
regular menu. For example, a green smoothie that
was recently offered as a promotional item was such
a massive hit with customers that it earned a spot on
our menu — when you visit a store to check out the
atmosphere, be sure to try a Lean Green Extreme!
Mele Frumer, who owns a Planet Smoothie in
Orlando, loves the way the promotions are created: Planet Smoothie’s headquarters team surveys
customers and talks to an advisory board of Planet
Smoothie franchisees to learn what customers are
asking for. Once we have those insights, we devise new menu items, carefully manage ingredient
costs to ensure the products will provide a strong
margin, secure the supply chain and design promotional materials. Like clockwork, franchisees receive
everything they need to bring the new item to their
customers and promote it effectively.
Mele says the attention to detail is awesome:
“Sometimes, as part of our promotions, they send
us new uniform T-shirts that feature the current promotion. It not only advertises the promotion, it also
means we have new uniforms coming every couple
of months, so our employees stay looking sharp!”
Training and Support
How do I learn how to run a Planet
Smoothie franchise?
Planet Smoothie franchisees receive extensive
training, ongoing coaching and operations manuals that help them master the operations of a Planet
Smoothie store. Training takes place four to 10
weeks before your store opens and includes three
days of classroom training at our headquarters in
Brentwood, Tennessee, as well four days of in-store
training at an operating Planet Smoothie. In most
cases, the in-store training will immediately follow
your classroom training.
If you are opening a traditional Planet Smoothie
or Planet-Tasti location, you and up to two other
18
Franchise
Information Report
people may participate in training. If you are opening
a nontraditional location, you and one other person
may participate without incurring additional training
fees. All store managers must go through training,
and you may send one new manager for training
each year without incurring training fees, which are
detailed in our Franchise Disclosure Document.
Our training program provides an overview of the
business and franchise industry, details on center
operations, our insights into providing exceptional
customer service, details about the products that go
into your smoothies and distribution, instruction in
how to use the Planet Smoothie point of sale system and our internal communications portal, financial management instruction, and more. You’ll also
learn about store-opening procedures, food-product
handling, sanitation procedures, back-office administration, equipment operation, storage and store
management.
Planet Smoothie also provides franchisees seven
to 10 days of on-site assistance to get your store
set up and to open your store with you.
Conventions, conferences provide chance
to meet and learn from other owners
Franchisees also attend conventions and conferences where they learn the latest food industry
trends and business strategies, share ideas with the
Planet Smoothie management team, learn about
new company initiatives and have a chance to meet
Planet Smoothie owners in other markets and learn
from their successes.
The gatherings also illustrate one of the best
things about being part of a franchise system: You
aren’t alone in your business. You have the support
of a veteran team of business executives, as well
as other franchise owners who can offer you advice
and fellowship as you grow your store.
Alexis Williams, daughter of franchise owners Alonzo
and Michelle Williams, at their store in Tucson.
A Day in the Life
What is life like as a Planet Smoothie
owner? Spend a day with Mele Frumer
Mele Frumer gets up at 5:30 in the morning to
drive to her store in Orlando and get it ready to open
at 7 a.m. She heads to the back room — which
houses freezers, an ice machine and a refrigerated
thawing station where frozen fruit spends 48 hours
thawing for use. She takes the fruit that has partially
thawed and moves it into bins in the kitchen area
of the store, and also fills up the ice bin. With those
simple steps completed, she’s ready to start making
smoothies for the morning rush!
Planet Smoothie stores see their first influx of
customers between 7 a.m. and 9 a.m. As people
rush to work, they love being able to pop into Planet
Smoothie for a cheerful greeting and a healthier
breakfast full of fruit — and often, at this time of
19
Franchise
Information Report
day, energy blasts! Some customers will also stop in
after their morning jog or workout to grab a burst of
protein before heading off to work. Morning customers appreciate the fact that they can stop in, order
and be on their way in just a few minutes — which
makes a smoothie every bit as convenient as a
breakfast burrito, and a whole lot better for you!
Mele also uses the early part of the morning to
examine the books from the previous day. Since
she’s not in the store all day long, she checks to
make sure her employees have done a good job
of managing the cash register and tracking sales.
She makes sure that the cash register has been
balanced. In between serving customers, she also
takes a look at her point-of-sale system to see
which smoothies were most popular the previous
day. That helps her spot trends. For instance, if
the high school football team has decided to start
ordering “Chocolate Elvis” en masse, she can adjust
her ordering to ensure that the right ingredients
stay stocked in her freezers. One of the great things
about having frozen fruit as your main ingredient?
There’s virtually no spoilage, so there’s very little risk
in maintaining a large supply of a popular item: If
demand shifts, you won’t lose your inventory.
Mele has plenty of help in the business — five of
her six children have been employees, and her son
Noah now helps out with the store.
“The model is easy to operate, and it’s fun,” she
says. “I love it because it has been such a great
family business. I don’t know what else I could have
done and had so much fun with my kids. And they
have learned so much!”
Can I Scale a Planet
Smoothie?
Planet Smoothie is easy to scale
Planet Smoothie’s systems make it simple to
ramp up your operation and eventually expand to
multiple locations. One of the great things about the
brand is its simplicity. Smoothies are easy to make
— and if you have the right ingredients, market-
ing and cost structures in place, the business can
be perfect for you! One of the best aspects of the
business for a new Planet Smoothie owner — and
this is especially true if you are new to the restaurant
industry — is that it is very easy to hire and train
Planet Smoothie employees.
You don’t need to have years of culinary experience and training to make a great smoothie. We
provide outstanding recipes, the ideal equipment
package and the operating know-how to get things
done efficiently.
Because the store is simple to run, you don’t
need to be in the store every moment it is open,
which frees you up to build your business by doing community outreach and local marketing.
Planet Smoothie’s grand opening plans and ongoing marketing resources put a lot of tools at your
disposal, but nothing is more effective at growing
your customer base than connecting with schools,
gyms, health organizations and other groups in your
community. Our business model allows you to get
out from behind the counter and become Mr. or Mrs.
Planet Smoothie in your community.
As more customers pour into your store, you
should be able to easily add staff to handle the
increased volume. Once volume increases enough,
you’ll be ready to open an additional location.
Planet Smoothie’s business model makes it simple
for a multi-unit franchise owner to put managers in
charge of day-to-day operations while keeping tabs
on the business’s performance and handling back-
20
Franchise
Information Report
end business operations like accounting, marketing,
payroll and ordering.
Multi-unit owners typically visit their stores frequently to meet with the managers and ensure that
the guest experience stays top-notch, but they don’t
have to be in the business every waking hour.
Ambitious multi-unit owners can even choose to
ramp up an entire market. Our area developer program lays out a path to pioneer the Planet Smoothie
brand in new cities and build brand dominance.
What is a Planet Smoothie
Location Like?
What makes a good location for a Planet Smoothie? Since we offer multiple store types, we work
well in a variety of locations. For traditional Planet
Smoothie stores and co-branded Planet-Tasti
stores, we look for retail corridors with concentrations of middle- to high-income consumers with
proximity to “anchor” retailers, business districts,
schools and exercise facilities.
Planet Smoothie has an energetic store design
that attracts customers. The branding begins with a
large, eye-catching swirl at the glass-framed entrance. As customers walk into the store, they are
immediately greeted by a smiling employee who can
help them navigate the menu. (Although if you’re a
regular customer, they’ll already know your order
and may start creating it as soon as they see you
headed toward the door!)
One of the first things customers see after they
are greeted is our blenders. They are front and
center, which allows customers to watch as their
smoothie is created. Customers never have to wonder what goes into their smoothies — they see the
preparation as it happens, step by step.
A brand wall lists the different ingredients and nutritional qualities that make Planet Smoothie special,
and several tables provide a space for customers
to have fun while they enjoy their smoothies. They
can also log on to free WiFi if it is available at your
location. While many customers are in and out in
minutes, we provide a welcoming place for people
to hang out, too.
We have a digital menuboard, which makes it
easy to adjust prices and display new promotional
items, and the menu is broken down into lifestyle
categories such as “Planet Classics”, “Planet Lite,”
“Energy,” “Protein,” and “Superfruit” which helps
customers understand the nutritional and functional
benefits of our 40+ menu items.
As you continue down the L-shaped counter, you
might come to the Tasti D-Lite section of the store.
Tasti D-Lite, which is a brand of soft-serve frozen
desserts, can be opened with Planet Smoothie as
part of a co-branded location without any extra franchise fees. With Tasti as a part of the offering we at-
21
Franchise
Information Report
tract extra customers who are looking for something
beyond a smoothie, especially during the afternoon
and evening hours.
In the back room, you’ll find a commercial icemaker for the smoothies, as well as freezers to hold
produce.
The entire operation flows seamlessly and is designed to allow employees to quickly take and fulfill
orders, and to allow customers who are on the go to
place their orders, pay and walk out in just minutes.
Do I Qualify?
How to finance a Planet Smoothie store
“How do I finance a Planet Smoothie franchise if
I do not have the needed liquid capital to launch the
business?” That’s a question that many franchise
candidates ask — especially if this is their first time
owning a franchised business. We advise prospective franchisees to consult with lenders and qualified
professional advisors. To give you an idea of where
you might start, here’s a look at the most common
forms of financing:
1. Home equity loans
If you have owned your home for many years,
there’s a good chance you can obtain a home equity
loan (HELOC) in order to finance your new business.
Advantages: They usually have a very low interest rate; they are highly flexible and sometimes have
no specific repayment schedule; and they don’t
require a lot of documentation, such as a formal
business plan or an accounting of how the funds
will be used, which provides even more flexibility for
your business.
Things you should know: You’ll need to show
that you have enough income to repay the loan
through your existing sources of income — your
projected earnings as a franchise owner won’t count
when the bank calculates your ability to repay. Also,
in most markets, you can borrow up to 80% of
the loan-to-value cost of your home. To calculate
how much you can likely borrow, multiply the value
of your home by 80%, then deduct the remaining
mortgage debt from the total. For instance, here’s
what the calculation would look like if your house
is valued at $400,000 and your remaining mortgage debt is $100,000: $400,000 x 0.8 = $320,000.
$320,000 - $100,000 = $220,000. In most markets,
you should be able to obtain a home equity loan of
$220,000. A real estate appraisal will be required to
establish your home’s value.
2. Leverage retirement funds tax-free and
penalty-free
If you have a 401(k) or IRA, it can be converted
into a self-directed IRA that you can use to fund
your business. This financing option became extremely popular during the recession, when depressed real estate prices eliminated home equity
loans as an option for many franchise buyers.
Advantages: Once you set up a self-directed IRA,
you can tap into your retirement funds without paying penalties. Since it’s your money, not the bank’s,
you don’t have to worry about a long loan approval
process, and as your business succeeds, you make
payments back into your retirement account without
having to pay interest to a bank. This option also
allows you to conserve cash in your bank accounts
so that it is available for starting and growing your
business.
Things you should know: Your business becomes a part of your retirement plan, which brings
risks and rewards. You should be confident that you
can beat the stock market by building the value of
your business, as well as by avoiding interest payments on a loan.
3. SBA Loans.
SBA lending has made a strong comeback as
the economy has improved, and it is much easier to
obtain an SBA loan than it was just a few years ago.
These are government-backed loans, which eliminates most of the risk for banks.
Advantages: You can finance a percentage of
the cost of your business, which allows you to
conserve cash; the interest rates tend to be fairly
22
Franchise
Information Report
low; there is no prepayment penalty; and you can
obtain better loan terms once you have a proven
track record.
Things you should know: It can take three
months or more to obtain an SBA loan, and by the
time the documentation process is over, they’ll
probably know the color of your toothbrush. The
loan also requires 100% collateral. If most of your
collateral comes from home equity, you may want to
consider a home equity loan instead.
4. Friends and family
You may have friends or relatives who are willing
to invest in your success.
Advantages: They know you, they are typically
flexible on repayment terms and they may have expertise that they can offer your business. They may
not require collateral.
Things you should know: If the business doesn’t
meet expectations, it may strain your relationships.
Family and friends may also seek equity in exchange for your investment, which would create a
partnership arrangement.
5. Partnerships
Partnerships can allow two or more people to
combine their resources to purchase a Planet
Smoothie. If partners complement one another’s
skill sets and add value to the business, it can be a
great arrangement.
Advantages: You can split management and
leadership duties, which gives you greater capacity and flexibility. Since you have multiple people to
oversee operations and marketing, you may be able
to grow faster.
Things you should know: Partners must have
clear guidelines for who handles what and how profits are divided. In addition, to get the most out of
your partnership and avoid disputes, clear communication and a shared commitment to the business
are essential.
Let us help you examine your options
Planet Smoothie’s veteran executive team has
helped countless people start their own businesses, and we are adept at helping people identify
promising sources of financing. If you’re not sure
which way to go — or if you are even qualified —
send us a message using the form below. We’d
love to help you realize your dream of owning a
business!
23
Franchise
Information Report
How Planet Smoothie and
Tasti D-Lite Combine to
Conquer All Day Parts
Think of your three favorite places for breakfast.
Now think of your three favorite spots for lunch, and
your three favorite places to grab a bite after work.
If you’re like most people, there’s not much overlap on your lists. That’s because people’s eating
habits change throughout the day, and different restaurants have optimized their menus and operations
to capture customers at different times of day.
These daily dining preference cycles are known as
“dayparts” — and restaurants that appeal to multiple
dayparts have an opportunity to generate more revenue by bringing in customers throughout the day.
The power of the Planet Smoothie-Tasti
D-Lite co-brand
When Tasti D-Lite LLC purchased the Planet
Smoothie franchise system, they saw a huge opportunity. No. 1, Planet Smoothie was already an
outstanding brand with loyal customers and strong
potential. No. 2, Planet Smoothie and Tasti D-Lite use
a lot of the same store fixtures and equipment and
share supply chains. Bringing the brands together
under one corporate structure allowed us to leverage
additional buying power on behalf of the franchisees
of both brands. No. 3, we knew that Planet Smoothie
and Tasti D-Lite were a perfect fit for co-branded
stores. Since they have similar logistical needs, its
possible to operate both Planet Smoothie and Tasti
D-Lite in one retail location without the need for a lot
of extra space. That leads to reason No. 4: dayparts.
As you continue down the L-shaped counter, you
might come to the Tasti D-Lite section of the store.
Tasti D-Lite, which is a brand of soft-serve frozen
desserts, can be opened with Planet Smoothie as
part of a co-branded location without any extra franchise fees. With Tasti as a part of the offering we attract extra customers who are looking for something
beyond a smoothie, especially during the afternoon
and evening hours.
Do I have to offer both concepts?
Planet Smoothie and Tasti D-Lite are both simple
operations, and they dovetail well, but you do not
have to offer both Planet Smoothie and Tasti D-Lite.
We offer standalone Planet Smoothie franchises, cobranded Planet-Tasti locations, and standalone Tasti
D-Lite locations. Our experienced franchise team
can help you determine which concept makes the
most sense for you.
FAQ
How much does it cost to open a franchise?
The initial investment for our different franchise
models are as follows:
• Planet Smoothie full service franchise: $164,400
- $287,350
• Planet Smoothie / Tasti D-Lite co-branded franchise: $225,249 - $374,982
• Non-Traditional (Kiosk/Express) Franchise:
$89,600 - $222,243
This includes the franchise fee and a provision
for some working capital. We require a minimum
liquidity of $100,000 cash and a net worth of at least
$400,000.
Are there opportunities to own more than one
store?
We offer single-unit franchises and multi-unit franchises. The multi-unit opportunity enables entrepreneurs to own and operate two or more stores in a
particular territory.
Can I become an area developer?
Yes, Planet Smoothie offers area developer agreements to more-experienced entrepreneurs. Area
developers work with us in developing the franchise
network across a larger region.
Does Planet Smoothie offer franchises
internationally?
We award master franchises in select international markets to qualified entrepreneurs or companies
with significant resources and business experience
in their countries.
24
Franchise
Information Report
Josh Rosado owns two Planet Smoothie locations in Central Florida.
What is your franchise fee?
What is the average size of a Planet Smoothie?
The franchise fee for a traditional location in the
U.S. is $25,000 for your first location, $20,000 for
your second, or $15,000 for your third or additional
store. The franchise fee for an individual, nontraditional franchise store in the U.S. is $20,000.
We suggest between 600 and 1,800 square feet,
with a target of between 750 and 1,000 square feet.
Kiosks and Express models can be as small as 200
square feet.
What are the royalties and marketing fees?
After your site has been secured, we will define a
protected geographic territory for your franchise.
For U.S. franchises, royalties are 5% of gross
sales, and the national marketing fund contribution
is 2% of gross sales. Outside the U.S., marketing
funds for specific countries or regions will be managed by local master franchisees.
Do you help with financing?
We do not provide financing directly to franchisees, but we’d be happy to introduce you to our
network of lenders who specialize in franchising and
small business finance.
How do I find the right location?
Once you sign a preliminary agreement, we’ll
introduce you to real estate professionals who understand our site criteria. These professionals work
with us to take you from site selection to the signing
of your lease.
Will I have a protected territory?
What sites are available?
We have prime territories available across the
U.S. and in selected international markets.
What does my training include?
Our training program consists of one week
of classroom and in-store learning at a Planet
Smoothie training store and seven to 10 days of
new-store training during the opening of your store.
An additional week of specialized training is provided for area developers and master franchisees to
address other aspects of these business models.
After you have opened your store, you’ll be invited
to participate in live and online training programs
designed to continually sharpen your skills and
help you improve your business.
25
Franchise
Information Report
What support will I receive besides training?
The franchise support team, experienced in franchising and food service, will visit you on-site and
is also available by phone and email. We provide
continual support through business consulting,
marketing and product development, beginning with
a grand opening program that’s customized for your
store. Additionally, we leverage national marketing
programs and provide guidance on local marketing to
help you promote your store and attract customers.
How much money can I make?
We do not provide revenue projections in our FDD
(Franchise Disclosure Document); however, our process will enable you to get the information you need
to understand the economics of our franchise. As
you go through the process of learning more about
the concept, you’ll have a chance to speak with current Planet Smoothie store operators and learn from
their experiences with the business.
Next Steps
Planet Smoothie’s process of awarding franchises
is designed to make sure that we partner with people
who have a high likelihood of success and will enjoy
owning a Planet Smoothie franchise. The process is
designed to give you a chance to get to know us and
to give us a chance to get to know you. As you move
through the process — going from potential franchisee to happy franchise owner — you can count on
step-by-step guidance from our team.
Now that you have downloaded this report, we’ll
be in touch. A member of our team will call you back
within one business day, usually within two hours.
During your phone call, you will receive an introduction to the Planet Smoothie business and information on a few of the key details and requirements
of owning a Planet Smoothie franchise. The first
26
Franchise
Information Report
phone call is also meant to be a time for you to ask
some initial questions.
The next steps begin after you fill out a Request
for Consideration, which is to help us learn more
about you, your interest and your general financial
qualifications. Essentially, we want to make sure that
you have the financial resources you will need to get
started. You are under no obligation to us when you
submit the RFC. As a future franchise owner, it is
important to you that we carefully assess the qualifications of all new franchise candidates coming into
the business.
Once we have received your RFC we will reach
out to you to get acquainted, share more with you
about the franchise and help by providing answers to
your questions. Then, we will provide you a copy of
Planet Smoothie’s Franchise Disclosure Document
(FDD) and the financial model template that will help
you to evaluate the economics of the business. The
FDD provides details about the franchise opportunity
and outlines the business relationship between Tasti
D-Lite LLC and our franchisees. It is a large document, with a lot of legal language that is required by
federal and state regulators, so if you’ve never seen
one before, it may seem complicated. We can answer any questions you have about the contents of
the FDD. Before you sign an agreement with us, we
encourage you to review it with your accountant and/
or a franchise attorney.
As you begin a more in-depth review, you will have
the opportunity to speak with our franchise owners.
We will provide you their contact information, and we
have happy to make introductions on your behalf.
Following discussions with franchisees, you’ll fill
out a financial application and plan a date to attend
a Discovery Day at our headquarters near Nashville,
Tennessee. Most franchisees tell us that attending a
Planet Smoothie Discovery Day is a very important
time for them. It gives them a chance to get close
to the heart and soul of the Planet Smoothie brand
and really get to know our corporate management
and support team. If all goes well before, during and
after your Discovery Day, we’ll offer you a preliminary
agreement to review. Following consultation with
your advisors, our next step is to sign the preliminary
agreement. A deposit of $10,000 toward the franchise fee is due at that time.
After you’ve signed your preliminary agreement,
we begin taking the concrete steps necessary to
open your Planet Smoothie store. It’s time to dive
into the tasks and duties required to get your store
up and running — site selection, lease negotiations,
design and construction, training, etc. You’ll never be
left alone during this process. Our dedicated team
supports you heavily during this phase. We develop
a customized plan for each new store and help you
keep on track with your goals.
27
Franchise
Information Report
Ready to get started?
Give us a call at
1-866-4-KAHALA (452-4252)
Kahala Brands
9311 E. Via de Ventura
Scottsdale, AZ 85258
This franchise report and any request for information or attached forms are not a franchise offering or an
offer to sell a franchise. A franchise offering can be made by us only in a state if we are first registered,
excluded, exempted or otherwise qualified to offer franchises in that state, and only if we provide you
with an appropriate franchise disclosure document. Follow-up or individualized responses to you that
involve either effecting or attempting to effect the sale of a franchise will be made only if we are first in
compliance with state registration requirements, or are covered by an applicable state exclusion or exemption. The following states regulate the offer and sale of franchises: California, Connecticut, Florida,
Hawaii, Illinois, Indiana, Kentucky, Maryland, Michigan, Minnesota, Nebraska, New York, North Dakota,
Rhode Island, South Dakota, Texas, Utah, Virginia, Washington and Wisconsin. If you reside in one of
these states, or even if you reside elsewhere, you may have certain rights under applicable franchise
laws or regulations. MN Reg. File No. F-5963.
Copyright © 2014 Planet Smoothie. All rights reserved.
28

Untitled - Planet Smoothie Franchise

Transcription

Similar documents

The Anti-Inflammatory Smoothie

Our Mission. - Smoothie King Franchises

weight loss + body shaping

The Solar System The Solar System - A to Z Teacher Stuff Printable

Wim Van Gils, Natuurpunt

newhouse news

Introducing - Auburn DECA

FRANCHISE APPLICATION FORM - Frankfinn Institute of Air

YOUR DAILY IGNITE SCHEDULE