How to Finance a Planet Smoothie Franchise: Kiosks to Storefronts
By Anthony Cornella
A Planet Smoothie franchise loan is usually a build-out and equipment loan rather than a real estate deal. Planet Smoothie stores are small, blender-driven shops in shopping centers, mall food courts, convenience stores and office buildings, so most of the money goes into leasehold improvements, equipment and opening costs inside leased space.
This article covers the startup costs Planet Smoothie publishes, the ongoing fees lenders will factor into cash flow, how SBA lending works for a brand that is listed on the SBA Franchise Directory, and what lenders review before they approve a deal.
US Professional Funding is not affiliated with, sponsored by or endorsed by Planet Smoothie; the name is used only to describe the business. Figures from the franchisor’s website and disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Planet Smoothie Franchise Loan at a Glance
- Initial franchise fee: $25,000 for a traditional location, according to the franchisor. Its startup cost table shows a range of $12,000 to $25,000 for traditional stores and $16,000 to $20,000 for nontraditional stores.
- Royalty: 5% of gross sales.
- Marketing fund: 2% of gross sales within the U.S.
- Estimated initial investment: $227,650 to $488,000 for a traditional store and $128,150 to $327,000 for a nontraditional kiosk or express store.
- Store size: 900 to 1,300 square feet suggested for a traditional store; kiosk and express stores can be as small as 200 square feet with extra storage.
- System size: the company reports over 100 stores across the country.
- Franchisor financing: Planet Smoothie does not lend directly but introduces franchisees to lenders.
- SBA Franchise Directory: listed under code S1324, with no special note.
What Is Planet Smoothie?
Planet Smoothie opened its first store in Atlanta, Georgia, in 1995 and grew quickly through the Southeast before expanding into other regions. The brand joined its current parent company in 2015, and the franchisor today is Kahala Franchising, LLC, based in Scottsdale, Arizona. The company reports over 100 stores across the country, each independently owned and operated, and it awards master franchises in some international markets.
The menu centers on real-fruit smoothies sweetened with a proprietary zero-calorie, stevia-based sweetener, organized into categories such as Planet Favorites, Bowls, Superfood, Energy, Protein, Meal Replacement and Planet Kids. Add-ins and “Blasts” add vitamins, protein or energy, and orders are typically ready within a few minutes.
Store formats. The franchisor describes locations in outdoor shopping centers, mall food courts and convenience stores, plus an express, kiosk-style model for urban office buildings and meeting centers.
Why lenders view Planet Smoothie the way they do. A smoothie shop has a compact footprint, a short equipment list and no cooking line, which keeps the project small compared with full-service restaurants. Lenders still focus on the lease, the location’s traffic, the owner’s liquidity and the fact that smoothie demand can shift with the seasons.
Planet Smoothie Franchise Costs
The franchisor publishes an estimated startup cost table for each model, with notes provided in the FDD.
Initial franchise fee. The FAQ lists $25,000 for a traditional location. The startup table shows $12,000 to $25,000 for traditional stores and $16,000 to $20,000 for nontraditional stores; Item 5 of the FDD explains when a lower fee applies.
Real estate and build-out. Planet Smoothie stores are typically in leased space, so the real estate line is handled through rent and deposits rather than a purchase. A traditional store’s table includes $6,000 to $20,000 for three months of rent and security deposit, $10,000 to $21,500 for architectural fees and $100,000 to $226,000 for leasehold improvements, the largest single line.
Equipment. Restaurant equipment, furniture, small wares, interior signage and menu panels run $56,000 to $97,000 for a traditional store, with exterior signage adding $8,000 to $17,000.
Opening costs and working capital. The table includes a $10,000 grand opening, a $3,000 depository account, opening inventory, insurance, miscellaneous opening costs and $5,000 to $15,000 of additional funds for a 3-month initial period.
Total investment. The traditional model’s line items are:
- Initial franchise fee: $12,000 to $25,000
- Lease review fee: up to $2,500
- Rent and security deposit (three months): $6,000 to $20,000
- Travel and living expenses for 3 people while training: $3,750 to $7,500
- Architectural fees: $10,000 to $21,500
- Leasehold improvements: $100,000 to $226,000
- Restaurant equipment, furniture, small wares, interior signage and menu panels: $56,000 to $97,000
- Exterior signage: $8,000 to $17,000
- Computer hardware and POS software: $3,000 to $5,000
- PCI compliance costs: $150 to $1,300
- Opening inventory (food and paper): $5,000 to $15,000
- Business insurance: $1,000 to $5,000
- Miscellaneous opening costs: $4,750 to $17,200
- Grand opening: $10,000
- Depository account: $3,000
- Additional funds (3-month initial period): $5,000 to $15,000
These items total $227,650 to $488,000 for a traditional store. The franchisor puts the nontraditional kiosk or express model at $128,150 to $327,000. Ask for the current FDD’s Item 7 table and notes for the nontraditional line items before you size a loan.
Ongoing Fees and How They Affect Your Loan
Royalty. Planet Smoothie charges a royalty of 5% of gross sales.
Marketing fund. Franchisees contribute 2% of gross sales to the marketing fund within the U.S.
Other costs. The startup table lists PCI compliance costs and point-of-sale technology, and Item 6 of the FDD lists technology, transfer, renewal and other recurring fees. Ask what remodel or equipment refresh obligations apply.
How lenders factor these costs in. With 7% of gross sales going to royalty and marketing, lenders subtract those payments, then rent, labor and product costs, from projected sales to measure cash available for debt service. Mall and food court leases can carry common area charges that add to occupancy cost, and lenders will want those included when they size a Planet Smoothie franchise loan.
Franchisor Requirements for New Owners
Planet Smoothie does not publish minimum net worth or liquid capital figures on its franchise website, so ask the franchise development team for its current financial qualifications and check the FDD.
- Experience: the franchisor says prior food experience is not required.
- Personal qualities: it looks for owners who enjoy engaging with people, building community relationships and running their own business.
- Training: five days of classroom training at the Scottsdale headquarters and three days of in-store training, several weeks before opening.
- Support: on-site visits, phone and email support, a grand-opening marketing plan, national and local marketing guidance and ongoing coaching.
- Real estate help: the franchisor introduces real estate professionals who work with franchisees from site selection through lease signing.
What lenders will expect. Even without a published liquidity minimum, lenders expect an equity injection and post-closing reserves. Our article on how much franchise you can afford walks through the math for a project in this range.
Ways to Own a Planet Smoothie
A traditional store. A shopping center or food court store of roughly 900 to 1,300 square feet. Financing covers the franchise fee, leasehold improvements, equipment, signage and opening costs, and lenders check that the lease runs longer than the loan.
A nontraditional kiosk or express store. A smaller format for office buildings, meeting centers, convenience stores and similar venues. The lower cost can make financing simpler, but the lender will review the host agreement and traffic carefully.
Buying an existing store. Existing Planet Smoothie stores sometimes change hands, subject to franchisor approval. A resale gives lenders actual sales history to underwrite. Read our guide to buying a franchise resale.
Multiple stores. The franchisor offers single-unit and multi-unit programs, with multi-unit owners running two or more stores in one territory.
Financing Options for a Planet Smoothie Franchise
SBA 7(a) loans. Because Planet Smoothie is listed on the SBA Franchise Directory, the SBA 7(a) loan program can combine the franchise fee, leasehold improvements, equipment, signage, opening costs and working capital in one loan. The program maximum is currently $5 million, far above a single store’s published range, which leaves room for multi-unit owners.
SBA 504 loans. The SBA 504 program is built for owner-occupied real estate and long-lived equipment. Because most Planet Smoothie stores lease their space, 504 financing is less common, but it can fit an owner who buys a small retail building or a multi-unit operator purchasing major fixed assets.
Conventional term loans. Owners with strong credit and liquidity may use a conventional business loan for a new store, a resale or refinancing.
Equipment financing. Commercial blenders, reach-in and under-counter refrigeration, freezers, ice machines, menu panels, signage and POS hardware can be financed separately. Learn more about restaurant equipment financing and leasing.
Working capital and lines of credit. The startup table includes only $5,000 to $15,000 of additional funds for a 3-month initial period. Smoothie sales can swing with the weather, school schedules and mall traffic, so a line of credit or a reserve built into the loan can help. See our restaurant working capital options.
Seller financing on resales. A seller may carry part of the price on a resale. A seller note is typically subordinate to the senior loan, and SBA rules may limit its structure, so involve your lender early.
SBA Loans for Planet Smoothie Franchisees
SBA lending to franchisees runs through the SBA Franchise Directory, which lists brands whose franchise agreements have been reviewed for SBA eligibility. A listing clears the franchise relationship for SBA review; it does not approve any borrower.
Planet Smoothie is listed on the SBA Franchise Directory under code S1324, with no special note. In plain terms, SBA lenders can generally use the brand’s standard franchise documents without an extra condition flagged on the directory. They still review the franchise agreement, the lease and the borrower’s finances under normal SBA rules.
SBA application tips. For a Planet Smoothie franchise loan backed by the SBA, provide the full FDD, a signed letter of intent or lease, contractor bids for the build-out and a personal financial statement showing your injection and reserves. Confirm directory status when you apply. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
How Lenders Evaluate a Planet Smoothie Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and owners typically provide personal guarantees.
Net worth and liquidity. Lenders look for an equity injection plus reserves after closing. Because the franchisor does not publish its minimums online, confirm them early so your financing plan matches.
Industry and management experience. Food experience is not required by the franchisor, but lenders look favorably on retail, customer service or management experience and a clear plan for who will run the store day to day.
Business plan and projections. Projections should reflect seasonality, the location’s traffic pattern (mall hours, office weekday traffic or gym and school proximity), labor scheduling around peaks, the 5% royalty and 2% marketing contribution, and occupancy costs. The franchisor says it does not provide revenue projections in the FDD, so build projections conservatively and talk with current owners. Our guide to how lenders read a Franchise Disclosure Document explains which items matter most.
The FDD and franchise agreement. Lenders review the franchise term, renewal rights, transfer conditions and territory in Item 17, and they check Item 19 to see whether any financial performance representations are included.
Site and lease. Lenders want a lease long enough to cover the loan term, reasonable occupancy costs and evidence of steady foot traffic.
Historical financials for resales. For an existing store, provide several years of profit and loss statements and sales reports reconciled to tax returns.
Equipment and Build-Out Deep Dive
A smoothie shop’s equipment list is short but works hard. Blenders run constantly, refrigeration and freezers hold fruit and frozen bases, and ice machines carry heavy daily loads. Because the equipment package for a traditional store runs $56,000 to $97,000, separate equipment financing can preserve cash for the build-out and working capital.
Kiosk considerations. Kiosk and express stores can be as small as 200 square feet but need extra storage. Lenders will want to understand where inventory is kept and whether the host venue’s hours support the projected sales.
Refresh planning. Blenders and refrigeration wear out, so match financing terms to their useful life and budget for replacements.
Multi-Unit Growth and Development Agreements
Planet Smoothie’s multi-unit program lets owners run two or more stores in one territory, and the franchisor points to a growing number of multi-unit owners.
Financing additional stores. Once the first store has a track record, lenders can underwrite its cash flow alongside projections for the next. Mixing a traditional store with a lower-cost kiosk can help control capital needs. Our article on multi-unit franchise financing explains how lenders size growth.
Development schedules. Before committing to several stores, compare the schedule with realistic site availability and your ability to fund each opening.
Real-World Scenarios
A first-time owner in a shopping center. A former retail manager opens a traditional store near a gym and grocery anchor, using an SBA 7(a) loan for the build-out, equipment and opening costs, with added working capital for the slower season.
An express kiosk in an office building. An entrepreneur opens a kiosk serving weekday commuters, financing equipment and improvements while negotiating a host agreement that runs longer than the loan.
A resale near a university. A buyer acquires an existing store, and the lender underwrites actual sales, adjusting for summer slowdowns.
Common Mistakes to Avoid
- Budgeting from the low end of the range when the space needs major improvements
- Ignoring seasonality when projecting sales and debt service
- Overlooking mall common area charges in occupancy costs
- Signing a lease or host agreement shorter than the loan term
- Leaving too little working capital beyond the 3-month figure in the startup table
- Financing blenders over a term longer than their useful life
For more pitfalls, read about the restaurant loan mistakes to avoid.
Next Steps to Finance Your Planet Smoothie Franchise
Step 1: Confirm the franchisor’s financial qualifications. Ask for the current net worth and liquidity expectations and compare them with your finances.
Step 2: Review the FDD. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 3: Choose a format and site. Decide between a traditional store and a kiosk or express model, then work with the real estate professionals the franchisor introduces.
Step 4: Talk with a financing specialist early. Our franchise start-up financing team can help you compare SBA, conventional and equipment options.
Step 5: Build projections and a budget. Use the Item 7 table, contractor bids and conservative seasonal sales assumptions.
Step 6: Apply and coordinate approvals. Submit your loan package while completing franchisor approvals and lease negotiations.
Step 7: Close, build and train. Manage the build-out, complete training in Scottsdale and hold reserves for opening.
Planet Smoothie Franchise Loan FAQs
How much does it cost to open a Planet Smoothie?
The franchisor estimates $227,650 to $488,000 for a traditional store and $128,150 to $327,000 for a nontraditional kiosk or express store, including the franchise fee and some working capital.
What is the Planet Smoothie franchise fee?
The franchisor lists $25,000 for a traditional location, with a range of $12,000 to $25,000 in its traditional startup table and $16,000 to $20,000 for nontraditional stores.
What royalty does Planet Smoothie charge?
5% of gross sales, plus 2% of gross sales to the marketing fund within the U.S.
How much liquid capital do I need?
The franchisor does not publish minimums on its website. Ask for its current requirements, and expect lenders to look for an equity injection plus reserves.
Is Planet Smoothie eligible for SBA loans?
Yes. Planet Smoothie is listed on the SBA Franchise Directory under code S1324 with no special note, so SBA 7(a) financing is an available route, subject to lender approval.
Does Planet Smoothie offer financing?
The franchisor does not lend directly but introduces franchisees to lenders who specialize in franchising and small-business finance. Review Item 10 of the FDD.
Do I need food service experience?
No. The franchisor says prior food experience is not required.
How big is a Planet Smoothie store?
The franchisor suggests 900 to 1,300 square feet for a traditional store, while kiosk and express stores can be as small as 200 square feet with extra storage.
Can I buy an existing Planet Smoothie?
Yes, subject to franchisor approval. A resale lets lenders underwrite actual sales and expenses.
What documents does a Planet Smoothie franchise loan require?
Personal financial statements, tax returns, a resume, the FDD and franchise agreement, a business plan with projections, the lease or letter of intent and contractor bids.
Does the FDD include financial performance information?
The franchisor says it does not provide revenue projections in the FDD. Check Item 19 of the current FDD, and rely on actual financial statements when buying an existing store.
Final Thoughts
A Planet Smoothie franchise loan is a compact build-out and equipment project. Buyers who confirm the franchisor’s financial qualifications, pick a high-traffic site, plan for seasonal swings and pair an SBA or conventional loan with real working capital give themselves a strong start.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment, working capital and refinancing. Learn more about our franchise financing options and restaurant and quick-service financing.
