FAQS
Not everyone is Planet Smoothie material. These questions and answers will help
you decide if you have what it takes.
Q: Is it necessary to have previous
retail or restaurant experience to be a Planet Smoothie franchisee?
A: Absolutely not. We provide a complete training
program which will qualify you to run your store.
Q: How
much is the franchise fee?
A: The franchise fee is $25,000 for your first
store.
Q: How much does it cost to get
my store opened?
A: Including the franchise fee, it costs between
$160k and $275k to open a store in a leased space.
Q: What are the best locations
for Planet Smoothie stores?
A: Primarily we look for 700 to 1,200 square feet
in strip shopping centers and malls. Although, because of our flexible footprint,
we can locate in non-traditional sites such as airports, convenience stores, food
courts, college campuses, and office buildings. During our analysis process we take
into account such variables as visibility, ingress and egress, co-tenancy, traffic
counts, comparables, demographic studies, and the overall economics of the deal.
Q: Does Planet Smoothie provide
financing?
A: Yes, indirectly. We have several institutions
who work with our franchisees to provide financing.
Q: What is aggressive advertising
spending on a local basis?
A: Planet Smoothie franchisees are required to
spend a minimum of 4% of actual annual sales. Most franchisees spend 4-7% of sales
in order to grow their business. There is a full program of print, radio, television,
direct mail and promotional materials available for the franchisee's use.
Q: I know very little about commercial
lease arrangements. Will Planet Smoothie assist me in reviewing my lease?
A: Yes, experienced help and recommendations will
be provided to you in these important negotiations.
Q: Will I be trained to run my
store?
A: Yes, all franchisees must attend and successfully
complete the training program provided by Planet Smoothie. The cost of this initial
training is included in your franchise fee. However, the costs connected with travel
and lodging will be the responsibility of the franchisee. All owners and operating
managers should attend training.
Q: Do I receive help when I open
my business?
A: Yes. In addition to your initial training period,
our field marketing managers will work with you in your store for several days prior
to opening and several days after your opening. The exact schedule will be worked
out with you. Your field marketing manager will assist you thereafter in developing
your business.
Q: What other support can I expect?
A: You will receive support in all areas of operations
and construction through our Store Development System (SDS) and for marketing from
our Guerrilla Marketing Kit. As revisions take place in each manual, you will receive
the relevant updates. You will receive our newsletter which contains information,
ideas, management information and developments of interest along with periodic visits
from our field marketing managers and other members of our company. They will offer
you help in setting budgets, creating your annual plan, quality control, operational
issues, record keeping, and employee training. We offer complete support in all
areas of running your business.
Q: Where do I get the products
I sell in my store?
A: The vast majority of products you sell are
purchased through our national distribution system.
Q: Do I receive any purchasing
power?
A: Yes you do! Our unique approach to purchasing
enables you to reap the benefit of our franchise community's buying power. Because
our purchasing professionals have negotiated hundreds of millions of purchase contracts,
you can piggyback the buying power of other franchise systems as well.
Q: Does Planet Smoothie supply
me with an accounting system, daily sales summary system, and inventory control
system?
A: Yes. Complete, easy-to-use accounting, daily
sales summary and inventory control systems are provided in your accounting manual,
and you will be trained in their use. These systems are designed to help you maintain
the highest product quality and to track your business performance.
Q: Who decides what prices will
be charged for smoothies and other products?
A: You make those decisions based on recommendations
from Planet Smoothie and conditions in your market.
Q: Can I ever sell my Planet Smoothie
franchise?
A: Yes. You can sell your business to any buyer
approved by Planet Smoothie. There is a transfer fee for administrative, legal and
training expenses involved with the transfer.
Q: Can I visit some of your other
stores and talk to the owners?
A: Absolutely, yes. We strongly recommend that
you talk to or visit any number of our stores after you have completed the application,
submitted it, and received our disclosure document and franchise agreement. All
of our franchisees are listed in the disclosure document. However, we would appreciate
a call from you telling us which ones you would prefer to call or visit. We will
then notify them that you are bona-fide applicants and are truly interested in information
so that you can make a decision.
Q: How much money can I make
from a smoothie store?
A: The Federal Trade Commission will not let us
make any earnings claims to prospective franchisees. Therefore we rely on our stores
to supply you information on this subject and with some effort on your part, you
can put together a fairly accurate pro-forma. We do provide selected information
concerning gross revenues of certain full service Planet Smoothie stores in our
disclosure document.
Q: How long does it take to get
my store opened?
A: The best case scenario is that your store can
be in operation within 8 to 12 weeks from the time you sign the franchise agreement
with us. However, timing varies depending on the availability of real estate.