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Franchise Costs: Detailed Estimates of Jamba Juice Franchise Costs (2015 FDD)

by Franchise Chatter on July 13, 2013

in Franchise Costs, Smoothie Franchise



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Jamba Juice by Jestur

This post was updated on July 13, 2015 to reflect information from Jamba Juice’s 2015 FDD (Item 7).

Detailed Estimates of Jamba Juice Franchise Costs Based on Item 7 (Estimated Initial Investment) of Jamba Juice’s 2015 Franchise Disclosure Document

Table A – For Traditional Stores

1.  Initial Fee:  $10,000 to $25,000

2.  Background/Credit Check:  $100

3.  Real Estate and Leasehold Improvements:  $101,000 to $150,000

4.  Furniture and Fixtures:  $48,000 to $60,000

5.  Equipment:  $59,000 to $70,000

6.  Signage:  $8,000 to $15,000

7.  Computer System (includes POS System and Software):  $10,000 to $15,000

8.  Insurance – 1 Year (Liability, Property, Business Interruption, Workers’ Comp, and Auto):  $5,000 to $15,000

9.  Smallwares:  $6,000 to $7,700

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

11.  New Store Marketing Obligation:  $10,000

12.  Training:  $15,000 to $45,000

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

14.  Additional Funds (3 Months):  $10,000 to $20,000

15.  Total:  $298,100 to $456,800

Table B – For Non-Traditional Stores (Excluding Kiosks)

1.  Initial Fee:  $2,500 to $15,000 ($25,000 – Shopping Malls only)

  • 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 ($20,000 under the Store Incentive Program), except Kiosks located in Shopping Malls pay an Initial Fee of $15,000.
  • 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:  $180,000 to $225,000

4.  Furniture and Fixtures:  $40,000 to $55,000

5.  Equipment:  $50,000 to $70,000

6.  Signage:  $5,000 to $15,000

7.  Computer System (includes POS System and Software):  $8,000 to $15,000

8.  Insurance – 1 Year (Liability, Property, Business Interruption, Workers’ Comp):  $5,000 to $15,000

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 $35,000

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

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

15.  Total:  $342,600 to $521,100

Table C – For Non-Traditional Kiosks

1.  Initial Fee:  $2,500 to $15,000 (including Shopping Malls)

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 $35,000

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

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

14.  Total:  $198,600 to $286,100

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. The low range of the Initial Fees in Table A assumes that the Store is eligible for the Store Incentive Program and 2015 Development Incentive Program. The low range of the Initial Fees in Tables B and C assumes that the Store or Kiosk is eligible for the Multi-Unit Program and 2015 Development Incentive Program. If you qualify for the Veterans Incentive Program, the Initial Fee is subject to a maximum reduction of 75%.
  • 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 your Managing Owner and other persons who must complete the company’s Immersion Program and Initial Training Program, including transportation, lodging, meals, and wages. The estimates provided above for Traditional and Non-Traditional Locations contemplate the training of 3 people for approximately 6 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. Additional working capital may be required if sales are low or fixed costs are high.
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