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Robeks Franchise Costs & Fees

Date of Incorporation: 1996
Franchising Since: 2001
Headquarters: Los Angeles, California

Business Description: Robeks Franchise Corporation is the franchisor. Robeks stores feature freshly prepared juices and blended-to-order fruit smoothies made from freshly-squeezed and concentrated fruit juices, fresh and frozen fruits, and frozen dairy ingredients, all according to the franchisor’s recipes. Robeks stores also feature Robeks Nutritional Boosts, a proprietary line of premium nutritional supplements, which customers may add to their blended-to-order smoothies, as well as purchase in packaged form for at-home consumption.

Franchise Offer: The franchise offered is for the operation of a Robeks store which will feature nutritious food offerings including freshly prepared juices, smoothies, and other food and non-food items.

Financial Assistance: Neither the franchisor nor any agents or affiliates of its offer direct or indirect financing, although it reserves the right to do so in the future. The franchisor does not guarantee a franchisee’s note, lease, or other obligation.

Training and Assistance: Before franchisees open their Robeks store, at a minimum, they and the person they designate to operate their Store must attend and successfully complete to the franchisor’s satisfaction the In-Store Training and Support Center Orientation Training, qualify as a Certified Manager and participate in New Store Opening Training, all before the Store opens for business. The Certified Manager is responsible for training the other Store-level managers and employees to the franchisor’s satisfaction. Franchisees may send up to 2 people to attend the In-Store Training and Support Center Orientation Training, provided that they attend all sessions at the same time. In-Store Training (Initial Operations training) typically covers 80 hours over 10 days with most hours in a certified training center that we designate, and a few hours in office. The franchisor may conduct an annual meeting of franchisees to address its Proprietary Product line, industry trends, recently-implemented changes in the Robeks System, and other topics of common interest to its franchisees, including customer relations, personnel administration, new products, advertising programs and local store promotions.

Territory: Franchisees do not receive an exclusive territory. Franchisees may face competition from other franchisees, from stores that the franchisor or its affiliates own, from other channels of distribution such as retail sales, and from competitive brands that the franchisor may control.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two successive renewal periods are available, each for a 5-year term, if requirements are met./p>

Obligations and Restrictions: Each of the owners, employees, and agents who have access to any information that the franchisor deems to be proprietary or confidential must enter into a written confidentiality agreement either with the franchisor or with franchisees. The franchisor designates the form of contract, which it refers to as a Confidentiality, Non-Disclosure and Non-Competition Agreement. The franchisor does not require that franchisees or their Primary Owner devote full time and attention to day-to-day store operations, although they are responsible for the acts and omissions of their Certified Managers and other employees and agents and franchisees must possess the same operational knowledge of the System that a Certified Manager is required to possess. Franchisees may operate their Robeks store only at the location that the franchisor approves and nowhere else, except with its prior written approval. Franchisees must offer all of the products and services that the franchisor designates are part of the Robeks System, and nothing else, except with its prior written approval.

Estimated Number of Units: 95

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $25,000 $25,000
Leasehold Improvements $90,000 $124,000
Equipment $62,000 $83,800
Fixtures $14,000 $23,000
Signs $5,000 $8,500
Computer System (includes POS system, networking and software) and Retail Radio $7,500 $10,000
Security Deposits, Utility Deposits and Business Licenses $4,500 $8,500
Real Estate Costs $3,500 $7,000
Opening Inventory $6,000 $8,000
Grand Opening Advertising $7,500 $7,500
Travel for Training $1,500 $3,500
Miscellaneous and Additional Funds (for first 3 months of operations) $10,000 $15,000
ESTIMATED TOTAL $243,000 $336,800
Other Fees
Type of Fee Amount
Royalty Fee 6% to 7% of Net Sales depending on number of stores the franchisee operates.
Advertising Fees 2.5% of Net Sales.
Local Advertising Expenditures 2.5% of Net Sales.
Audit Costs Cost of audit plus full amount of any underpayment and interest and late charges.
Returned ACH 1st returned ACH - $10 per returned item;
2nd through 4th returned ACH - $25 per returned item;
5 or more returned ACHs - $50 per returned item.
Late or Non-Submission of Required Profit and Loss Statements or Other Reports 1st late fee - $10; Increased by $10 for each late submission up to a maximum of $50
Late or Non-Submission of Construction Costs $50 per month until submitted.
Fines Ranging from $30 to $500 per occurrence.
Late Charge and Interest Late charge: $200 per late payment.
Interest: 1.5% per month not to exceed the maximum legal rate of interest.
Remedial Work to Correct Unhealthy or Unsafe Condition The franchisor’s actual costs for remedial or corrective work, including labor, materials, travel, supervision and subcontractors, plus a service charge equal to 25% of the cost of the remedial or corrective work.
Insurance The franchisor’s actual costs of new required insurance for the period of coverage, plus a service charge equal to 25% of the cost of new required insurance for the period of coverage.
Annual insurance premiums range from $2,200 to $5,000 or more for general liability and $2,100 and $10,000 or more for workers’ compensation.
Renewal Fee (Franchise Agreement) Franchise Agreement: 25% of the then-current Initial Franchise Fee at the time of renewal.
Transfer Fee(Franchise Agreement, Area Development Agreement) Franchise Agreement: $15,000, non-refundable;
Area Development Agreement: $25,000, non-refundable, in addition to transfer fees under individual Franchise Agreements.
Training The initial training is included in the Initial Franchise Fee. Costs for additional training will vary under the circumstances.
Indemnification and Defense All costs including attorneys’ fees; amount will vary under circumstances.
Alternative Supplier Testing Fee Based on our actual cost.
Monthly Financial Report Deviation Fee Maximum $50 per hour.
Extra Operational and Marketing Support; including visits to cure operational issues Reimbursement of reasonable actual expenses (no fee).
Point of Sale (POS) System Help Desk Fees and Software License Fees Up to $175 per month for a standard two terminal system. Fees may vary. Price may increase if additional terminals are required.
Loyalty Program Software License Fee $121 per month.
Non-POS Related Computer Technical Support $75 to $200 per hour, subject to service minimums (generally 2 hours) which may vary depending on geographic location of Store.
Dedicated High Speed Broadband Internet Connection Actual costs incurred for service provided by the franchisor’s approved vendor.
Inspection Reimbursement The franchisor’s costs and expenses in connection with each inspection of the Robeks store but not less than $100 per inspection. Payable only if franchisees receive a failing score during the inspection.
Reimbursement for Refunds And Adjustments Paid to Resolve Customer Complaints Relating to Goods or Services Franchisees Provide The amount the franchisor pays to customers to resolve complaints.
Fines for Violations under the Franchise Agreement or Manual Up to $500 per instance.
Conventions or Franchisee Meetings If the franchisor holds an annual or semi-annual meeting for franchisees (whether national or regional), attendance is mandatory. The franchisor may charge a registration fee to recoup its costs. If the franchisor holds a meeting and franchisees do not attend, the franchisor may assess a fine of up to $500

The above information has been taken from the FDD of Robeks. Year of FDD: 2016

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