Updated June 28, 2021.
Detailed Estimates of Jamba Franchise Costs Based on Item 7 (Estimated Initial Investment) of Jamba’s 2021 Franchise Disclosure Document
For a Traditional Store Without a Drive-Thru
1. Initial Franchise Fee: $35,500
2. Construction and Build Out Costs: $101,500 to $227,000
- This estimate includes fees paid to a general contractor you engage to build out the Store to meet Jamba’s Standards.
- Leasehold improvements include, but are not limited to, HVAC, electrical, carpentry, floor covering, and painting.
- In certain major metropolitan markets such as Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C., costs could be significantly higher than the estimates provided here due to local market rates for materials and labor.
- This estimate does not include leasehold improvements for new freestanding buildings or new freestanding buildings with a drive-thru, as the costs for this format may vary significantly.
- You may be able to negotiate tenant improvement allowances from your landlord. The estimate is presented net of estimated tenant improvement allowances.
- For the low estimate, Jamba estimated a tenant improvement allowance of $37,000, which is approximately the average tenant improvement allowance that Jamba’s franchisees have reported to it. For the high estimate, Jamba assumed that a tenant improvement allowance was not available.
3. Permitting: $500 to $5,700
- This estimate includes the cost of acquiring construction permits, including permit fees. Your costs will vary depending upon your Store’s location. In some markets, the costs of required permits may significantly exceed Jamba’s estimates.
4. Equipment Package: $47,500 to $90,000
- You must purchase or lease from an Approved Supplier certain equipment (like kitchen equipment) and machinery that comply with Jamba’s Standards.
- As Jamba expands its menu to offer a broader array of food items, it may require you to purchase additional equipment after opening, such as an oven, cold case storage, and additional juicing equipment.
5. Millwork: $13,000 to $19,600
- You will incur expenses for millwork at the Store, which may include the cost of purchasing and installing cabinets and counters.
6. Furniture: $950 to $2,000
- You must purchase from an Approved Supplier furniture, such as tables, chairs, and office furniture, that meets Jamba’s Standards.
7. Menu Board, Graphics, and Interior Signage: $2,000 to $3,500
- This estimate includes the cost of digital and/or static menu boards and interior signage. The cost will vary based on the size of your Store.
8. Exterior Signage: $6,500 to $10,800
- The cost of your exterior sign will vary depending on the size, color, quantity, and backlit channel letters of the sign and other specifications as Jamba requires.
- If you operate a drive-thru, the cost of your drive-thru menu board and ordering kiosk is included in this estimate.
9. Computer System: $8,600 to $24,000
- You must purchase, lease, and/or license and install at the Store the POS System, computer systems, mobile hardware, software, online ordering platform, associated computer hardware, telephone lines, network connections, communications equipment, high-speed internet access (e.g. DSL or cable), credit card, gift card and loyalty card processing equipment, and other equipment that Jamba requires from time to time (collectively, the “Computer System”).
- You may also be required to purchase training software from a vendor that Jamba designates.
10. TV/Music: $0 to $3,500
- Jamba may require you to install televisions and audio equipment in the Store and to enter into subscriptions for television and audio services.
11. Architect/Engineer: $11,000 to $19,000
- You must engage licensed architects and engineers (for mechanical, electrical, plumbing, and structural) to draft standard construction plans for your Store.
12. Rent: $4,000 to $10,000
- The figures in the table reflect Jamba’s estimates for leasing the Store premises and include only one month of rent. Typical locations include areas with high visibility in high-traffic urban and suburban areas.
- Traditional and Non-Traditional Stores typically occupy 1,000 to 1,500 square feet.
- If you choose to instead purchase real estate, Jamba is unable to estimate the total cost of purchasing suitable premises for your Store or the amount of any down payment that would be required.
13. Grand Opening Marketing: $10,000 to $12,000
- You must conduct a grand opening advertising campaign with the opening of your Store. You must pay all costs of the grand opening, including publicity costs, promotional costs, plus the full cost of any price reductions or other customer inducements.
- Costs may vary depending on your market and the type of advertising used. However, you must spend a minimum of $10,000 on a grand opening advertising program for your Store.
14. Legal and Accounting Fees: $5,000 to $10,000
- This estimate includes the cost of legal and accounting fees that you may incur in establishing your business. Such expenses may include fees payable to attorneys and accountants that you will need to use for the review of the Disclosure Document and the related agreements, as well as for entity formation and lease negotiation.
15. Insurance: $5,000 to $15,000
- You must obtain and maintain during the term of your Franchise Agreement, at your expense, a comprehensive business insurance program, including property, commercial general liability, automobile liability, business property, umbrella, workers’ compensation, employment practices liability, cyber liability, and (if you serve alcohol) dram shop liability insurance.
- This figure estimates the cost of your insurance premiums for your first year of operation based on Jamba’s minimum requirements.
16. Miscellaneous Opening Costs/Office Supplies: $9,000 to $14,000
- This includes office supplies and other miscellaneous opening expenses, such as utility costs, business licenses and permits, opening assistance, and the cost of training your employees.
17. Security Deposits: $0 to $15,000
- This estimate includes the cost of deposit expenses to obtain utility services, which includes deposits to initiate telephone, gas, electricity, water, and other services. These costs will vary due to municipality requirements, local provider requirements, and your creditworthiness.
- These deposits are generally refundable depending on the provider’s policies. This estimate does not include any security deposit under any lease for the Store.
18. Travel and Living Expenses During Training: $10,000 to $25,000
- This estimate is for the cost of three to five people to attend the Initial Training Program for approximately three weeks. There is no charge for your Required Trainees to attend Jamba’s Initial Training Program (unless you are purchasing an existing Store and are not an existing franchisee, in which case the fee shall be $2,500).
- You are responsible for the travel and living expenses, wages, and other expenses incurred by your trainees during the program.
19. On-Site NSO Support: $0 to $5,000
- For your first Store opening, you must pay Jamba a nonrefundable fee of $5,000 for on-site support it will provide to assist you with the opening and initial operations of your Store. This fee is not charged for your second or subsequent Stores.
20. Opening Inventory: $5,000 to $10,000
- You must purchase an opening inventory of beverages, food products, cleaning supplies, paper products, and other products, which will vary in cost based on the size, location, and projected sales of your Store.
21. Additional Funds for 3 Months: $15,000 to $40,000
- This estimates the additional funds you may need to cover expenses you will incur before your Store opens and in its first three months of operation.
- These expenses may include, without limitation, employee salaries, wages and benefits, payroll taxes (including payroll to cover the pre-opening training period for your staff), Royalty Fees, Advertising Contributions, the annual fee for the Learning Management System, additional advertising expenses, additional inventory, miscellaneous supplies and equipment, rent, bank charges, state tax and license fees, deposits, prepaid expenses, and other miscellaneous items.
- You may incur other categories of expenses or expenses in excess of this estimate.
22. Total Initial Investment: $290,050 to $596,600
- These figures are based on Jamba’s experience franchising Stores and its affiliate’s experience opening and operating Stores.
For Traditional Store With a Drive-Thru
- Total Estimated Initial Investment: $511,050 to $741,500
For a Non-Traditional Store
- Total Estimated Initial Investment: $250,500 to $547,500
For a Food Truck
- If you operate a Food Truck, you must purchase a truck from an Approved Supplier and must customize the interior and exterior unit to comply with Jamba’s Standards.
- This estimate includes the cost of exterior signage. This estimate assumes that you are purchasing the truck and do not finance the purchase.
- If you operate a Food Truck, you must rent space for a commissary. In some instances, Jamba may allow you to use your Store as a commissary.
- Total Estimated Initial Investment: $130,300 to $249,000