Franchise Costs: Detailed Estimates of Jamba Juice Franchise Costs (2018 FDD)

Updated October 14, 2018.

Detailed Estimates of Jamba Juice Franchise Costs Based on Item 7 (Estimated Initial Investment) of Jamba Juice’s 2018 Franchise Disclosure Document

For a Traditional Store

1.  Initial Fee:  $0 to $35,000

2.  Background/Credit Check:  $100

3.  Real Estate and Leasehold Improvements:  $101,000 to $180,000

4.  Location Selection Services:  $5,000

5.  Furniture and Fixtures:  $15,000 to $30,000

6.  Equipment:  $53,000 to $85,000

7.  Drive-Thru Equipment:  $0 to $35,000

8.  Signage:  $6,000 to $15,000

9.  Computer System (includes POS System and Software):  $8,500 to $17,500

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

11.  Smallwares:  $6,000 to $7,700

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

13.  New Store Marketing Obligation:  $10,000

14.  Training:  $5,000 to $25,000

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

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

17.  Total:  $238,600 to $504,300

For a Non-Traditional Store

1.  Initial Fee:  $10,000 to $35,000

2.  Background/Credit Check:  $100

3.  Real Estate, Leasehold Improvements, and Construction-Related Costs:  $98,000 to $155,000

4.  Location Selection Services:  $5,000

5.  Furniture and Fixtures:  $16,000 to $55,000

6.  Equipment:  $37,000 to $70,000

7.  Signage:  $5,000 to $15,000

8.  Computer System (includes POS System and Software):  $8,500 to $17,500

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

10.  Smallwares:  $3,000 to $7,000

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

12.  New Store Marketing Obligation:  $10,000

13.  Training:  $5,000 to $25,000

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

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

16.  Total:  $226,600 to $458,600

Explanatory Notes

• Initial Fee. No portion of the Initial Fee is refundable. The standard Initial Fee for Traditional Stores and Non-Traditional Stores in a Shopping Mall or Grocery Store depends on the number of Stores you are purchasing, as follows:

• 1 Store:  $35,000
• 2 Stores:  $65,000
• 3 Stores:  $85,000
• 4 Stores:  $100,000

• The standard Initial Fee for Non-Traditional Stores in places other than a Shopping Mall or Grocery Store is $10,000, and there is no development incentive for these types of Stores.

• When you sign a development agreement, you must pay the company a Development Fee, which it calculates based on the number of Stores you agree to open.

• If you qualify for the company’s 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 high visibility in high-traffic urban and suburban areas. Traditional and Non-Traditional Stores 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. For your first opening, and subsequent openings at the company’s sole discretion, it will provide Optional NSO Support, which means it sends one person who is experienced in the Jamba Juice System to assist you in the opening and initial operations of your Store for $5,000 per person.

• 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.

• You will not be charged for the initial training that takes place in a Company-owned Certified Training store unless you are purchasing an existing Store from a franchisee, in which case you will be charged an Initial Training fee of $2,500 per week. The company does not charge you a course fee for its Initial Training if the training is conducted at its Company Support Center in Frisco, Texas.

• The estimates provided above for Traditional and Non-Traditional Locations contemplate the training of 3 people for approximately 3 weeks.

• Miscellaneous Costs to Begin Operations. You may wish to hire professionals, such as attorneys and accountants, to assist you with such things as a review of the disclosure document, your Franchise Agreement, and setting up your books and records. The amount you will pay depends upon the fees charged by the professionals you select.

• You can obtain information from your local, county, and state authorities (as well as your legal counsel) regarding the required licenses and related types of expenses in your local area. This expense may be higher in metropolitan areas.

• 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.