Jamba Juice franchise was founded in 1990 in California. Today, with more than 850 franchisee-owned units located in the U.S. and abroad, this company is one of the better-known franchising brands in the Snack & Juice Industry.
This franchisor seeks new franchise owners throughout the U.S, so in this review, we will present facts about Jamba Juice franchise cost, fee, and profit that can be expected.
Although fresh-squeezed juices and smoothies are trademarks of the Jamba Juice outlets, these franchises also offer sandwiches, pizzas, and a wide variety of hot and cold beverages. This completeness of the offer indicates that the future owner will be able to count on income from various types of products that are in high demand in the market.
We must outline this franchise opportunity as one of the better choices in the Snack & Juice Industry because when we analyze the Jamba Juice franchise cost and profit ratio, we can see that this type of shop has good earning potential and a fast Return of Investment.
How Much Does The Jamba Juice Franchise Cost
The estimated total Jamba Juice franchise cost is between $164,750 and $563,100; this financial projection includes the Initial Franchise Fee of $35,000 for Traditional and Non-Traditional locations and $10,000 for Food Truck.
The exact cost will depend primarily on the type of franchise chosen by the investor; the most costly option will be starting a Traditional Store, and Food Truck will be the cheaper option to start this brand franchise.
Jamba Juice estimated cost by type of franchise unit:
- $290,450 to $560,500 for a Traditional Store (urban in-line locations and other free-standing buildings)
- $272,600 to $563,100 for a Non-Traditional Store (stadiums, arenas, public transportation facilities, etc)
- $164,750 to $301,500 for a Food Truck
Investing in the Jamba Juice food truck is the cheapest option for all new franchisees because there is no monthly shop leasing cost and the initial franchise fee is only $10,000. Traditional and Non-traditional shop locations have the cost of an Initial Franchise Fee that is $35,000, and these types of facilities most often have a high lease cost that franchise owners must pay every month.
Usually, the cost of the property lease for the Jamba Juice shop goes in the range of $2,000 to $10,000. Also, the franchisor must approve the new franchise location, and only after the shop place gets the green light, the Franchise Agreement can be closed.
To be considered for the Jamba Juice franchise owner, the investor must fulfill the requirement of owning a minimum of $120,000 in non-borrowed funds and have a Net Worth of a minimum of $300,000.
Jamba Juice franchise cost list:
- Shop Construction Build Out Cost: $150,000 – $250,000 (turnkey/ready-to-use)
- Work Equipment Cost: $47,500 – $90,000
- Shop Lease Cost: $0 – $10,000
- Permits and Working Licenses Cost: $500 – $2,000
- Opening Inventory Cost: $2,000 – $10,000
- Total Training Cost: $10,000- $25,000
- All Other Costs: $30,000 – $50,000
Jamba Juice Franchise Fee
Jamba Juice fees are a one-time Initial Franchise Fee of $35,000 for Traditional and Non-Traditional Store Locations and $10,000 for Food Trucks. Also, when we add up all ongoing fees, we come to a cost that will be 9% of the franchise monthly Gross Revenue; Royalty Fee is 6%, and Advertising/Marketing Fee is 3%.
Jamba Juice, as a part of the VetFran Program, offers a 45% Initial Franchise Fee discount to Veterans and active members of the USA Armed forces; for this group of investors, the Initial Franchise Fee will be $20,000
Jamba Juice Initial Franchise Training is one of the most comprehensive on the market, and because of that, this training is not cheap. Every new franchise owner must pay a one-time fee of $5,000 for on-site support and an Initial Training Fee, which is $500 per day per trainee.
The goal of the initial training is to prepare new franchise owners/managers and employees for business operations. After this training, the quality of service will be on an expected level because the franchisor will equip the franchise owner with the necessary managerial knowledge that is needed to operate a profitable Jamba Juice franchise.
Every new Jamba Juice franchise owner has to invest money in installing the so-called Electronic Learning System; this system has a fee cost of $300 per Store per year. Learning software delivers the franchisee access to specific training modules and other instructional training materials.
Also, the Initial Training Program portions take place within Electronic Learning System, so investors can’t avoid the cost of this fee.
Jamba Juice franchise fee list:
- Initial Franchise Fee: $10,000 – $35,000 (Armed Forces members have right to 45% off discount) – one time fee
- Royalty Fee: 6% – ongoing monthly fee
- Marketing/Advertising Fee: 3% – ongoing monthly fee
- Local Marketing Fee: Each calendar quarter, it is required to spend a minimum of 1% of gross revenue on the local market advertising
- Initial Training Fee: $500 per day per trainee
- Additional On-Site Support Fee: $500 per trainer per day
- Electronic Learning System Fee: $300 per Store per year
- POS System Support Fee: $100 – $250 per month
- Agreement Renewal Fee: 10% of the Initial Franchise Fee
Jamba Juice Franchise Profit
The Jamba Juice franchise delivers a profit (Net Operating Income) of 13.7%. On average, Jamba Juice outlets produce Gross Income that is around $ 700,000; this suggests that the owner of this franchise can expect a profit of $100,000 per year per store.
According to the Jamba Juice Franchise Disclosure Document, their Traditional Store Locations make average gross sales revenue of $650,000, and franchises that are operating on Non-Traditional locations make $750,000 in sales.
There is no available finance information about Jamba Juice Food Truck Stores and their profit!
Operating expenses of the Jamba Juice franchise:
- Cost of Goods Sold: 21.8% of the gross revenue
- Labor: 33.0% of the gross revenue
- Rent: 11.8% of the gross revenue
- All Other Costs: 19.7% of the gross revenue
- Expected Profit Margin = 13.7% from the Yearly Gross Sales
As we noted before, no available documents show how much profit the Jamba Juice truck franchise owner can expect. Still, when we know that food truck stores don’t have property rental costs, we can estimate that this brand mobile store can deliver a Profit Margin of 24%.
Also, food truck franchises have low starting costs, minimal labor costs, and the owner of this type of franchise can change locations which can be very useful and lucrative.
So investors who want to own the most profitable type of Jamba Juice franchise need to choose the food truck option. Truck franchises are not so ”glamorous” as traditional and non-traditional locations, but with a profit of 24% of the gross sales, they are a most lucrative opportunity.
Jamba Juice is an ideal franchise opportunity for rookie entrepreneurs that are starting their first business venture. This franchisor provides complete training, support in all business segments, and the profit that produces outlets from this brand is one of the largest in the Juice Industry.
Jamba Juice History
In 1990 an entrepreneur from California, Kirk Perron opened his first smoothie bar; the bar’s name was Juice Club. In the beginning, Perron was struggling, and profit from his business was not good: his bar had sales on average around only $500 per day in the first year.
In 1995 Perron changed his company name from Juice Club to Jamba Juice. This happened because other companies started to copy his business concept, and many of them had similar business names.
In 1999 Jamba Juice was bought by its main competitor Zuka Juice. By merging these two smoothies brands in one, the costs of starting a franchise were reduced to a minimum, and overall company profit began to grow.
2018 the Jamba Juice become part of Focus Brand; this franchising company from Atlanta also owns franchise Trademarks of Auntie Anne’s, Carvel, Cinnabon, McAlister’s Deli, Moe’s Southwest Grill, and Schlotzsky’s.
Jamba Juice owners thru the history:
- 1990 – 1999: Kirk Perron
- 1999 – 2006: Zuka Juice
- 2006 – 2018: Services Acquisition Corp. International
- Since 2018 Focus Brands
Jamba Juice has become one of the most popular franchising opportunities among entrepreneurs because these stores deliver a good profit to their owners, and franchise starting cost is relatively low. This brand is one of the pioneers of the healthy meal industry, so it is no wonder that many entrepreneurs choose to own this brand franchise.
In 2009 Jamba Juice franchises started offering wraps, sandwiches, and flatbreads. Today, franchises from this brand are more like food stores than smoothie bars, and because of that, they have a large base of loyal buyers.
Today, this company has more than 750 franchises in the U.S and approximately 100 international ones. They are growing steadily every year because choosing profit over quality was not an option for Jamba Juice.
Summary
Although Jamba Juice franchises are often placed in the group of smoothies bars, these outlets also offer a variety of snack products on which it is possible to make an excellent profit. Because of this wide range of products that this franchising opportunity gives, investors looking for their next business venture in the Food Industry must outline this brand.
We recommend investing in a food truck store if the franchisee wants to own a Jamba Juice franchise with the lowest starting cost and the best Net Operating Income. These mobile stores are very affordable, so with an investment of approximately $200,000, it is possible to own a facility that delivers the owner a profit of 24% of all Gross Sales.