How to Finance a Smart Drinks Franchise: Smoothie Van or Store
By Chris Cornella
A Smart Drinks franchise loan can fund one of two very different businesses: a mobile smoothie van or a retail store with a drive-thru window. Smart Drinks and Nutrition, a Texas brand built around real fruit smoothies, gourmet coffees and nutrition products, lists a $45,000 franchise fee for either format in its franchise brochure, with estimated initial investments that differ by format.
This article explains the brand, the published costs for each format, how a vehicle-based business and a storefront are financed differently, what lenders look for and what the brand’s SBA Franchise Directory note about lease documents means.
US Professional Funding is not affiliated with, sponsored by or endorsed by Smart Drinks; the name is used only to describe the business. Figures from the franchisor’s disclosure document and brochure can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice.
Smart Drinks Franchise Loan at a Glance
- Concept: real fruit smoothies, gourmet coffees and teas, veggie juices, vitamins and nutritional supplements, and fitness and weight-loss products.
- Formats: a mobile unit (a smoothie van, the original concept) and a retail store that combines quick service and retail, with a drive-thru window and in-store seating.
- Initial franchise fee: $45,000 for either the mobile unit or the retail store, according to the company’s franchise brochure.
- Estimated initial investment, mobile unit: $194,070 to $222,520.
- Estimated initial investment, retail store: $126,400 to $272,200.
- Candidate requirements: $150,000 net worth and $75,000 in liquid assets.
- Franchising: the company says it sold its first mobile unit franchise in 2017.
- Royalty and marketing fees: not published in the franchisor’s materials; see Item 6 of the FDD.
- SBA status: listed on the SBA Franchise Directory (code S1586) with a note about the lease addendum when real estate secures the loan.
What Is Smart Drinks?
Smart Drinks and Nutrition was founded by Charles and Martha Levinson in Houston, Texas. The company says the couple launched one of the first mobile real fruit smoothie and gourmet coffee trucks, served large crowds at a major Houston stadium for five years and later opened a brick-and-mortar Smart Drinks and Nutrition store in Cypress, Texas, where the company is based. Charles Levinson serves as CEO.
The company sold its first mobile unit franchise in 2017 and describes the brand as known across Texas and Florida. It also notes that it does not currently offer franchises in several states that regulate franchise sales, including California, New York and Illinois.
Two formats, two financing profiles. The mobile unit is a retrofitted van that goes to events, gyms, schools and stadiums. The retail store is a hybrid quick-service restaurant and nutrition shop with a drive-thru window, in-store seating and a shelf of supplements and wellness products. The first is mostly a vehicle and equipment loan; the second looks like a small restaurant build-out.
Why lenders view it the way they do. Lenders see a modest total investment and a health-focused menu with add-on retail sales. They also see a small, regional system, so they lean heavily on the borrower’s experience, local market plan and liquidity rather than on long brand-wide performance data.
Smart Drinks Franchise Costs
Initial franchise fee. The company’s brochure lists a $45,000 franchise fee for both the mobile unit and the retail store. Confirm in Item 5 of the FDD when it is due and whether any portion is refundable.
Mobile unit: the vehicle and retrofit. The company provides a turnkey retrofit of the smoothie van. The vehicle, the retrofit, blenders, refrigeration, a generator or power system, coffee equipment and wraps make up most of the mobile investment of $194,070 to $222,520.
Retail store: lease and build-out. The store format needs a leased space, ideally with a drive-thru window, plus plumbing, electrical work, counters, seating and retail shelving. The company provides store layout and design guidance and site selection assistance. The retail range of $126,400 to $272,200 is wide because build-out costs vary so much by site. Our page on financing a restaurant build-out explains how lenders fund tenant improvements.
Technology. Both formats use point-of-sale technology and the brand’s integrated app.
Opening inventory and working capital. Fruit, coffee, supplements and retail products, plus payroll, insurance and marketing during the opening months.
The brochure does not break out the Item 7 line items, so request the full table from the FDD. Expect it to include categories like these:
- Initial franchise fee
- Vehicle purchase and turnkey retrofit (mobile) or leasehold improvements (retail)
- Blenders, refrigeration, freezers and coffee equipment
- Furniture, seating, shelving and signage (retail)
- Point-of-sale technology
- Opening inventory of produce, beverages and nutrition products
- Training, travel and grand opening marketing
- Insurance, licenses and permits
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Royalty and marketing. The brochure does not publish the royalty rate or any brand marketing contribution. Get both from Item 6 of the FDD, along with any technology or app fees.
Vehicle and event costs (mobile). Fuel, maintenance, commercial auto insurance, event fees and permits are recurring costs that a storefront does not carry.
Rent (retail). For the store, rent and common area charges are the largest fixed cost.
How lenders factor these costs in. Lenders subtract product costs, labor, royalty, marketing and occupancy or vehicle costs from projected sales to see how much remains for debt service. A Smart Drinks franchise loan for a mobile unit should be supported by a realistic event calendar, while a retail loan needs projections tied to local traffic.
Franchisor Requirements for New Owners
The company’s brochure lists a required net worth of $150,000 and liquid assets of $75,000. It describes complete staff training, comprehensive initial and ongoing training, marketing and digital marketing support, site selection help and ongoing support programs.
Lenders treat the franchisor’s minimums as a starting point. They will also want to see that your equity injection leaves reserves for slow weeks or vehicle repairs. Our article on how much franchise you can afford walks through the math.
Ways to Own a Smart Drinks
A new mobile unit. The original format and often the lower-overhead route for an owner-operator. Financing centers on the vehicle and its equipment.
A new retail store. A storefront with a drive-thru window and seating, financed like a small food service start-up. See our restaurant start-up financing options.
Buying an existing unit. An operating van or store may come up for sale. The buyer needs franchisor approval of the transfer, and a lender can underwrite actual results. Read our guide to buying a franchise resale.
Adding units. An owner might start with a van and add a store, or the reverse, using one unit’s cash flow to support the next loan.
Financing Options for a Smart Drinks Franchise
SBA 7(a) loans. Because Smart Drinks is on the SBA Franchise Directory, an SBA 7(a) loan can cover the franchise fee, vehicle or build-out, equipment and working capital for an eligible borrower.
SBA 504 loans. An SBA 504 loan fits only when an owner buys the building where a retail store operates, which also triggers the directory note discussed below.
Conventional term loans. Borrowers with strong credit and liquidity may use a conventional business loan, especially to add a second unit.
Equipment and vehicle financing. For the mobile format, the van and its retrofit can often be financed as equipment, secured by the vehicle itself. For the store, blenders, refrigeration and coffee equipment can be financed separately. Learn more about franchise equipment financing and leasing.
Working capital and lines of credit. Smoothie demand peaks in warm months, and a mobile unit’s revenue depends on the event calendar. A line of credit helps cover inventory before peak season and payroll during slower stretches. See our restaurant working capital solutions.
Seller financing on resales. On the purchase of an existing unit, a seller may carry part of the price. Seller notes are typically subordinate to the senior loan, and SBA program rules may limit them.
SBA Loans for Smart Drinks Franchisees
SBA lenders use the SBA Franchise Directory to confirm that a brand’s agreements have been reviewed for SBA eligibility. Smart Drinks is listed under code S1586.
What the directory note means. The listing states: “When the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lease Addendum may not be executed.” In plain English, the brand’s lease addendum is a document meant for owners who lease their location. If you own the property where a store operates and pledge it as collateral for the SBA loan, that addendum should not be signed, and your lender and attorney should confirm which documents apply instead. For a mobile unit or a leased store, the note generally does not come into play.
Program limits. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
Application tips. Bring the FDD, franchise agreement, vehicle and retrofit quotes or your lease and build-out bids, a business plan with monthly projections and your personal financial statement. Our SBA loan calculator provides early payment estimates for planning only.
How Lenders Evaluate a Smart Drinks Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement and usually require a personal guarantee.
Net worth and liquidity. The $150,000 net worth and $75,000 liquidity requirements set a floor; lenders look for reserves beyond the equity injection.
Industry and management experience. Food service, retail, fitness or event sales experience strengthens a request. For a van, experience booking events matters.
Business plan and projections. For a mobile unit, show the event calendar, average sales per event and travel costs. For a store, show drive-thru and walk-in traffic, smoothie and coffee mix, and supplement sales.
The FDD and franchise agreement. Lenders look at the term, renewal, transfer and territory provisions. Review Items 3 and 4 for litigation and bankruptcy history and Item 19 to see whether the FDD includes financial performance representations. Because the system is small, our article on financing an emerging franchise is worth reading.
Site, lease or vehicle. For a store, lenders want a lease term at least as long as the loan. For a van, they look at the vehicle’s value, title and insurance.
Historical financials on resales. Expect to provide several years of profit and loss statements and tax returns for an existing unit.
Real-World Scenarios
A fitness professional starting with a van. A personal trainer uses an SBA 7(a) loan to buy the van and retrofit and books events at gyms and youth sports tournaments.
A couple opening a drive-thru store. Two first-time owners lease an end-cap with a drive-thru window and finance the build-out and equipment with an SBA loan, keeping cash for working capital.
An owner who buys the building. A store owner buys the property and pledges it as collateral for an SBA loan. The lender follows the directory note and does not use the lease addendum.
An owner adding a second format. A successful van operator adds a retail store, and the lender underwrites both units together.
Common Mistakes to Avoid
- Comparing the two formats on fee alone instead of total investment and operating costs
- Projecting a van’s revenue without a confirmed event calendar
- Ignoring the directory note when buying the real estate for a store
- Skipping Item 6 and modeling without the royalty and marketing fees
- Leaving too little working capital for slower seasons
- Forgetting fuel, maintenance and commercial auto insurance for a mobile unit
Read more in common restaurant loan mistakes.
Next Steps to Finance Your Smart Drinks Franchise
Step 1: Choose your format. Decide between the mobile unit and the retail store based on your market and budget.
Step 2: Request the FDD. Get the current FDD and review Items 5, 6, 7 and 17 with a franchise attorney and accountant.
Step 3: Confirm your capital. Make sure you meet the $150,000 net worth and $75,000 liquidity requirements with reserves to spare.
Step 4: Gather quotes or a site. Get vehicle and retrofit quotes or a lease proposal and build-out bids.
Step 5: Build your projections. Prepare monthly projections based on events or store traffic.
Step 6: Apply for financing. Submit your loan request with the SBA directory code and your documents.
Smart Drinks Franchise Loan FAQs
How much does a Smart Drinks franchise cost?
The company’s brochure lists an estimated initial investment of $194,070 to $222,520 for the mobile unit and $126,400 to $272,200 for the retail store.
What is the Smart Drinks franchise fee?
$45,000 for either the mobile unit or the retail store, according to the brochure.
What royalty does Smart Drinks charge?
The brochure does not publish the royalty or marketing fee. Check Item 6 of the current FDD.
How much net worth and liquid capital do I need?
The brochure lists $150,000 in net worth and $75,000 in liquid assets.
Can I get an SBA loan for a Smart Drinks?
Yes, subject to approval. Smart Drinks is listed on the SBA Franchise Directory under code S1586, with a note about the lease addendum when real estate secures the loan.
Can I finance the smoothie van?
Yes. The vehicle and its retrofit can be part of an SBA loan or financed separately as equipment, usually secured by the vehicle.
Is a Smart Drinks franchise loan available to first-time owners?
Yes. First-time owners can qualify with solid credit, the required liquidity and a realistic plan, and the company provides initial and ongoing training.
Can I buy an existing Smart Drinks?
Yes, with franchisor approval. A resale lets lenders underwrite actual results.
Does Smart Drinks offer financing?
The brochure does not mention franchisor financing. Check Item 10 of the FDD.
Can I own both a van and a store?
Owners can add units over time, subject to franchisor approval. A second Smart Drinks franchise loan is usually easier once the first unit has a track record.
Final Thoughts
A Smart Drinks franchise loan starts with choosing the format, because a smoothie van and a drive-thru store carry different costs, collateral and risks. With the FDD in hand, a clear event calendar or site plan and the right mix of SBA, equipment and working capital financing, either format can be financed on solid footing.
US Professional Funding helps franchise owners and buyers finance start-ups, equipment, acquisitions and working capital. Learn more about our franchise financing and restaurant and beverage financing solutions.
