Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
  • Yogurt Land
  • And Hundreds More...

No, thanks. I'm not interested in uncovering the actual earnings of hundreds of franchises at this time.

Franchise Costs 2013: Detailed Estimates of Jamba Juice Franchise Costs (2013 FDD)

by Franchise Chatter on July 13, 2013

in Franchise Costs,Smoothie Franchise



Franchise Chatter Membership Information

Detailed Estimates of Jamba Juice Franchise Costs Based on Item 7 (Estimated Initial Investment) of Jamba Juice’s 2013 Franchise Disclosure Document

For Traditional Stores

1.  Initial Fee:  $20,000 to $25,000

2.  Background/Credit Check:  $100

Jamba Juice by Jestur3.  Real Estate, Leasehold Improvements, and Construction Related Costs:  $127,000 to $250,000

4.  Furniture and Fixtures:  $63,000 to $83,000

5.  Equipment:  $47,000 to $80,500

6.  Signage:  $17,000 to $23,000

7.  Computer System (includes POS System and Software):  $13,000 to $15,000

8.  Insurance – 1 Year (Liability, Property, Business Interruption, Workers’ Comp, and Auto):  $5,000 to $20,000

9.  Smallwares:  $6,000 to $7,700

10.  Opening Inventory:  $7,000 to $10,000

11.  New Store Marketing Obligation:  $10,000

12.  Training:  $12,000 to $56,000

13.  Miscellaneous Costs to Begin Operations:  $9,000 to $14,000

14.  Additional Funds (3 Months):  $10,000 to $25,000

15.  Total:  $346,100 to $619,300

For Non-Traditional Stores (Excluding Kiosks)

1.  Initial Fee:  $5,000 to $25,000

  • The standard Initial Fee for Non-Traditional Stores is $15,000 ($5,000 under the Multi-Unit Program).
  • Non-Traditional Stores located in Shopping Malls pay an Initial Fee of $25,000, or $20,000 under the Store Incentive Program.
  • Non-Traditional Stores located on college or university campuses pay an Initial Fee of $5,000.

2.  Background/Credit Check:  $100

3.  Real Estate, Leasehold Improvements, and Construction Related Costs:  $190,000 to $399,000

4.  Furniture and Fixtures:  $40,000 to $76,000

5.  Equipment:  $50,000 to $97,000

6.  Signage:  $9,000 to $20,000

7.  Computer System (includes POS System and Software):  $8,000 to $17,000

8.  Insurance – 1 Year (Liability, Property, Business Interruption, Workers’ Comp):  $5,000 to $20,000

9.  Smallwares:  $3,000 to $7,000

10.  Opening Inventory:  $5,000 to $10,000

11.  New Store Marketing Obligation:  $10,000

12.  Training:  $15,000 to $70,000

13.  Miscellaneous Costs to Begin Operations:  $9,000 to $14,000

14.  Additional Funds (3 Months):  $10,000 to $25,000

15.  Total:  $359,100 to $790,100

For Non-Traditional Kiosks

1.  Initial Fee:  $5,000 to $15,000

2.  Background/Credit Check:  $100

3.  Real Estate, Leasehold Improvements, and Construction Related Costs:  $86,000 to $87,000

4.  Furniture and Fixtures:  $16,000 to $20,000

5.  Equipment:  $37,000 to $39,000

6.  Signage:  $5,000 to $6,000

7.  Computer System (includes POS System and Software):  $5,000 to $11,000

8.  Insurance – 1 Year (Liability, Property, Business Interruption, Workers’ Comp):  $5,000 to $20,000

9.  Smallwares:  $3,000 to $4,000

10.  Opening Inventory:  $5,000 to $10,000

11.  Training:  $15,000 to $70,000

12.  Miscellaneous Costs to Begin Operations:  $9,000 to $14,000

13.  Additional Funds (3 Months):  $10,000 to $25,000

14.  Total:  $201,100 to $321,100

Explanatory Notes

  • Initial Fee. When you sign a Development Agreement, you must pay Jamba Juice a Development Fee of one-half the Initial Fee for each Store multiplied by the number of Stores you must open. Each time you execute a Franchise Agreement for a Store, Jamba Juice will credit the amount paid for that Store as part of the Development Fee against the amount of the Initial Fee for the Store, and you must pay the balance of the Initial Fee. The Development Fee is fully earned by Jamba Juice when paid and is not refundable under any circumstances.
  • Background/Credit Check. If the company requires a background check as part of the application process, you must pay the cost for background and credit checks that the company has a third party conduct.
  • Real Estate. If you do not already own an adequate space, you will have to lease the land and building for a Jamba Juice Store. Typical locations include areas with highly visible locations, in high-traffic urban and suburban areas. The units generally occupy 1,000 to 1,500 square feet. Rent is generally estimated to cost between $2,000 and $13,000 per month but can vary widely and is dependent upon factors such as size, location, demand, general economic conditions, and condition of the premises.
  • Equipment. As Jamba Juice expands its menu to offer a broader array of items, the company may require you to purchase additional equipment after opening, like an oven, cold case storage, and additional juicing equipment. These purchases may increase your costs.
  • Training. You must make arrangements for and pay the expenses of persons attending the Training Program and Orientation Program, including transportation, lodging, meals, and wages. The amount expended will depend, in part, on the distance you must travel and the type of accommodation you choose. The estimates provided above for Traditional and Non-Traditional Locations contemplate the training of 3 people for 4 weeks.
  • Additional Funds (3 Months). These amounts are the minimum recommended levels to cover Store operating expenses, including employees’ salaries for three months. However, the company cannot guarantee that such an amount will be sufficient. You should not plan to draw income from the operation during the start-up and development stages, the actual duration of which will vary materially and cannot be predicted by the company.
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