In this FDD Talk 2015 post, you’ll learn the following:
- Section I – Background information on the Jamba Juice franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Jamba Juice franchise, based on Item 7 of the company’s 2015 FDD
- Section III – Presentation and analysis of Jamba Juice’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
- 2014 average net sales for the 541 franchised and company-owned traditional Jamba Juice Stores (on the East Coast and the West Coast, respectively) that were owned and operated for the entire 2014 Fiscal Year by either the company or a franchisee and that had been opened and operating for more than one year as of December 30, 2014
- 2014 average net sales for the 80 franchised and company-owned non-traditional Jamba Juice Stores (on the East Coast and the West Coast, respectively) that were owned and operated for the entire 2014 Fiscal Year by either the company or a franchisee and that had been opened and operating for more than one year as of December 30, 2014
- 2014 average cost of sales, labor costs, occupancy costs, store operating expenses, and cash flow margin for the 235 company-owned traditional Jamba Juice Stores that were owned and operated for the entire 2014 Fiscal Year by the company and that had been opened and operating for more than one year as of December 30, 2014
Section I – Background Information
A big boost in Jamba Inc.’s quest to increase its level of franchise-owned Jamba Juice restaurants came when the company announced on April 1, 2015, that it had made an asset purchase agreement with Vitaligent LLC to refranchise 100 company-owned restaurants in markets in the San Francisco, Sacramento and San Diego areas. The agreement brought Jamba Inc. $36 million.
Two weeks later, the company announced plans to be more than 90 percent franchise-owned by the end of fiscal year 2015, and at the end of the month, Jamba Inc. reached a refranchising agreement for seven stores in the Orange County/Los Angeles market and 14 in the Peninsula/San Francisco market.
Jamba Juice in 2015 is continuing a push it made throughout 2014 to accelerate franchise growth. The company finished 2014 with 862 restaurants and expects to add 500 more locations in the next five years.
In October 2014, Jamba Juice secured a market in Taiwan as Jamba Juice Company and Quan Hung Gourmet Company signed a master franchise development agreement to develop 35 Jamba Juice stores over 10 years. The first store was set to open in Taipei.
Jamba Cracks Forbes’ Top 10
Forbes picked Jamba Juice as No. 9 on its list of “The Best Franchises in America” for 2014, listing a 21 percent growth rate and 90 percent continuity rate, as well as an “A” score from franchisees.
The company, headquartered in Emeryville, California, was founded in 1990. It sells healthy specialty food and beverages, such as smoothies, fresh-squeezed juice, sandwiches and wraps. The food line was launched in December 2008.
Jamba Juice added Jamba Colada Fruit Refreshers in May 2015, a year after the beverages were introduced as a limited-time offer. All feature coconut water and are available in three summer flavors: Pina Colada, Tropical Colada and Lime Colada.
In January, the company added Amazing Greens and Greens ‘n Ginger smoothie flavors as part of its “Green Is Good” campaign.
Jamba Juice started to roll out its cold-pressed fruit and vegetable juice line in September 2014, starting with markets in Southern California. The juices are sold in 12-ounce bottles.
Also in September, Jamba did a nationwide launch of its Jamba Juice Energy Bowls. The blend of whole fruit with soy milk or Greek yogurt is topped with fresh fruit and crunchy toppings. Varieties are the Acai Berry Bowl, Acai Primo Bowl, Berry Bowl, Chunky Strawberry Bowl, Mango Peach Bowl and Tropical Acai Bowl.
Kale Orange Power was added as a Fresh Juice Blend in March 2014, featuring orange juice, chopped whole-leaf kale and bananas.
Jamba Juice unveiled its Whole Food Nutrition smoothie line in January 2014 with three flavors: Kale-ribbean Breeze, PB Chocolate Love and Carrot Orange Fusion. The beverages pack in 10 to 14 grams of protein and feature whole-food ingredients like kale, carrots, Greek yogurt and chia seeds.
Jamba Fruit Snacks Hit Market
California-based RedHawk Food Group Inc. in September signed a licensing agreement with Jamba Juice to market Jamba Fruit Snacks, available in bite-size and shreds formats. The fruit snacks are available in Jamba Juice stores and can be found in groceries and other retail outlets.
Apple Pay Added
Jamba Juice in March began offering Apple Pay for customers to make mobile payments with iPhone 6, iPhone 6 Plus and Apple Watch. With apps, customers can use the service with iPhone 6, iPhone 6 Plus, iPad Air 2 and iPad Mini 3.
Customer Rewards Program
Jamba Insider Rewards, a customer loyalty program, was unveiled in February 2014, giving customers the opportunity to earn rewards, get personalized offers and receive free products. Customers can sign in on a touchscreen, so they don’t have to carry a rewards card.
Section II – Estimated Costs
- Please click here for detailed estimates of Jamba Juice franchise costs, based on Item 7 of the company’s 2015 FDD (updated).