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Franchise Costs: Detailed Estimates of I Love Juice Bar Franchise Costs (2015 FDD)

Published on January 30, 2016 by Franchise Chatter Leave a Comment
in Franchise Costs, Juice Franchise, Smoothie Franchise

I Love Juice Bar



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

  • The franchisor relied on its parent’s experience in opening company-owned Stores, as well as the experience of licensees and joint ventures in opening Stores, to compile the following estimates.

1.  Initial Franchise Fee:  $25,000

  • The franchisor does not provide financing for the initial franchise fee.

2.  Leasehold Improvements:  $40,000 to $90,000

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3.  Real Estate Fees:  $6,000 to $12,000

  • Your franchised location must have a minimum of 1,200 square feet of interior space with table and counter seating for at least 12 patrons inside. Outside seating is optional.
  • The franchisor prefers end-cap or free-standing locations in high traffic areas with a patio. The Store should have convenient parking for between 10 and 25 automobiles.
  • Improvement costs for the rental space will also vary widely depending upon the amount of renovation and retrofitting you must perform to transform the space into a store, with improvements for free-standing locations typically costing more.
  • Your leased space may be a pre-existing store that will be retrofit to meet the franchisor’s System Standards.
  • A landlord may finance all or part of the cost of tenant improvements as part of your rent or separately, and may provide a period of free or reduced rent to offset the costs of improvements.
  • You will pay an architect to draft plans and specifications for the improvements and produce blueprints for the landlord and your contractor.

4.  Furniture, Fixtures, and Kitchen Equipment:  $50,000 to $75,000

  • The amounts for furniture, fixtures, equipment, and decor include the cost to purchase the recommended furniture, fixtures, equipment, and movable decor for a standard Store.
  • The amounts exclude the cost of freight, installation, and sales tax (if applicable), which will vary depending on your location.
  • The franchisor requires no specialized equipment except the kitchen equipment necessary to conform to the System Standards in the Operations Manual.

5.  Architects, Blueprints, and Building Permits:  $3,000 to $9,000

6.  Signage and Menu Boards:  $5,000 to $12,000

  • These amounts represent the cost for interior and exterior building signage, ranging from standard exterior signage, monument signs, and up to and including more expensive free-standing signs on high-rise poles or highway signs.
  • The cost of signage may vary significantly depending on the location of the Franchised Business, market conditions, and local ordinances.
  • This line also includes the cost of customer-facing, static menu boards hung on interior walls.

7.  Point-of-Sale System and Office Equipment:  $7,000 to $13,000


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  • The amounts for the Point-of-Sale system include the estimated costs of purchasing an approved Point-of-Sales system, including back office equipment, touch-screen and tablet displays, remote and receipt printers, kitchen video displays, software and licenses, and all other related necessary components and peripherals.

8.  Utility Deposits and Sales Tax Bonds:  $1,000 to $3,000

9.  Opening Inventory and Smallwares:  $7,500 to $12,000

10.  General Manager Expenses While Training:  $1,000 to $6,000

  • These costs are estimated based on six weeks of lodging, meals, and transportation for one individual during training. These costs will vary upon your compensation and expense arrangements with the trainee and the distance from the franchisor’s training site.

11.  Grand Opening Event:  $2,000

12.  Insurance:  $5,360 to $8,805

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13.  Additional Funds (3 months):  $20,000 to $35,000

  • The franchisor recommends working capital of at least 3 months of rent and other operating expenses. You will also incur miscellaneous costs to start the franchised business such as incorporation fees; initial legal and accounting fees; business permit fees; and pre-opening compensation and benefit costs for you and your Store employees.
  • You must begin paying people at their agreed compensation when they begin training.

14.  Total:  $170,860 to $302,805


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