From Jamaican Gleaner

New company ASK7 Enterprises Limited has struck a deal with Smoothie Factory Inc to build out a network of its juice bars in Jamaica and at least 24 other Caribbean countries.

The Master Franchise Agreement (MFA) was signed on March 21 and the first store is set for opening by June in the Cayman Islands, where ASK7 is based.

The next store is planned for the Dominican Republic in the next 12-18 months.

Smoothie Factory is a 17-year-old company based in Texas. Its president is James Villasana. The chain has spread to nine states in the United States and to markets in Asia since its 1996 debut.

ASK7 Enterprises is owned by Alfred Bodden and Katherine Hernandez, said a joint release announcing the franchise deal. President Leo Blodden is also a regional product manager for LIME.

Blodden declined to discuss the amount of the investment involved and the structure of ASK7, which he indicated was a new company based in the Cayman Islands, but promised more information at a future date.

Blodden said his focus now was on enlisting subfranchisees.

“ASK7 Enterprises Company has purchased the franchising rights to the Smoothie Factory brand for the Caribbean which includes over 25 countries,” he said via email to the Financial Gleaner.

“The MFA Agreement allows for ASK7 Enterprises to open corporate stores and also allows for the sub-franchising of the Smoothie Factory brand to qualified local business within any of the countries.”

ASK7 has begun the process of recruitment via the Smoothie Factory Caribbean website.

Smoothie Factory retails real fruit smoothies, fresh-squeezed juices, authentic frozen yogurt, light foods and nutritional products in the United States, China, and Vietnam. Its stores are also headed to Saudi Arabia, India and Canada, among other markets.

To qualify for a franchise, the investor must demonstrate access to a minimum of US$90,000 of “non-borrowed” capital.

A one-time franchise fee of US$30,000 per store is payable upfront to Smoothie Factory, and once the business is operational, the store operator pays a monthly royalty amounting to six per cent of sales.

The American company does not finance its franchise partners, but is willing to steer them towards potential backers. Each store can cost up to US$215,000 to establish, the company said.

The Smoothie Factory menus will be adapted to the Caribbean palate, said the press release, but will also include “traditional American favourites” such as Peanut Butter Powerhouse, as well as Mango Smoothie and Tropical Smoothie.

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