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TASTI D-LITE/PLANET SMOOTHI Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
What Are the Initial Investment Requirements for a TASTI D-LITE/PLANET SMOOTHI Franchise?
To open a TASTI D-LITE/PLANET SMOOTHI franchise, you will need to prepare for a low initial investment of around $77,650, which can go up to $327,550. This includes a franchise fee of $25,000. Additionally, you should have cash reserves ranging from $122,150 to $327,550, and a net worth between $300,000 and $500,000 to meet the financial criteria set by the franchisor.
What Are the Ongoing Fees for TASTI D-LITE/PLANET SMOOTHI Franchisees?
Franchisees are required to pay ongoing fees that include a royalty fee of 5% of gross sales and a marketing fee of 2%. These fees contribute to the brand's overall marketing efforts and support systems, ensuring franchisees benefit from a recognized brand presence in the market. Understanding these costs is crucial for maintaining profitability in your franchise operations.
What Is the Average Revenue Potential for a TASTI D-LITE/PLANET SMOOTHI Franchise?
The average annual revenue per unit for a TASTI D-LITE/PLANET SMOOTHI franchise is approximately $253,973, with a median revenue of $235,066. Units have reported revenues ranging from a low of $120,551 to a high of $500,958. This revenue potential highlights the opportunity for franchisees to achieve significant financial returns, depending on their location and operational efficiency.
How Quickly Can Franchisees Expect to Break Even?
TASTI D-LITE/PLANET SMOOTHI franchisees can expect to reach breakeven within 12 months of opening their unit. The investment payback period is estimated at around 16 months, allowing franchisees to recover their initial investment relatively quickly. This timeline can vary based on factors such as location, management practices, and market conditions. Understanding these metrics can help aspiring franchisees gauge the financial viability of their investment.
TASTI D-LITE/PLANET SMOOTHI Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
TASTI D-LITE/PLANET SMOOTHI Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2016 | 2017 | 2018 |
|---|---|---|---|
| Total Units | 122 | 127 | 136 |
| Net Change YoY | 5 | 9 | |
| Franchised Units | 121 | 127 | 136 |
| Net Change YoY | 6 | 9 | |
| Corporate Units | 1 | 0 | 0 |
| Net Change YoY | -1 | 0 |
Investment Overview
The Tasti D-Lite/Planet Smoothie franchise offers a range of initial investment options, with costs ranging from $77,650 to $327,550. The initial franchise fee is set at $25,000, while ongoing royalties are 5% of gross sales, accompanied by a 2% marketing fee. Prospective franchisees should have a net worth between $300,000 and $500,000, along with liquid cash requirements spanning from $122,150 to $327,550.
Financial Performance
Franchisees can expect average annual revenues of approximately $253,973 per unit, with a median revenue of $235,066. The revenue potential varies significantly, as some units report as low as $120,551 and others as high as $500,958. With a breakeven period of just 12 months and an investment payback timeline of 16 months, Tasti D-Lite/Planet Smoothie presents a promising financial opportunity for investors.
Unit Growth
The Tasti D-Lite/Planet Smoothie brand has shown consistent growth in franchised units over the years. In 2016, there were 121 franchised locations, which increased to 127 in 2017 and further to 136 in 2018. This steady expansion indicates a healthy demand for the brand and a positive outlook for potential franchisees looking to enter the market.
Operating Expenses
Franchisees should be aware of the operating expenses associated with running a Tasti D-Lite/Planet Smoothie unit. Key expenses include cost of goods sold (approximately 30% of revenue), operating expenses (around 60% of revenue), and other costs such as business insurance, marketing, and employee training. Understanding these financial metrics is crucial for effective budget management and profitability.
Support and Training
Tasti D-Lite/Planet Smoothie provides comprehensive support and training to its franchisees. This includes assistance with site selection, store setup, and ongoing operational guidance. The franchise also emphasizes employee training, ensuring that staff are well-equipped to deliver excellent customer service and maintain brand standards.
Brand Positioning
Tasti D-Lite/Planet Smoothie positions itself in the health-conscious segment of the food and beverage industry. With a focus on providing delicious, low-calorie frozen desserts and smoothies, the brand appeals to consumers looking for healthier alternatives. This unique positioning not only attracts a loyal customer base but also aligns with current trends toward healthier eating habits, making it an attractive option for franchisees.
Frequently Asked Questions
The initial investment for a Tasti D-Lite/Planet Smoothie franchise ranges from $77,650 to $327,550, which includes the initial franchise fee of $25,000.