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Considering a Jamba Juice Franchise? Don’t Overlook These 25 Important Franchise Fees

by Franchise Chatter on November 3, 2016

in Franchise Fees, Smoothie Franchise



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Jamba Juice Photo by oceanlab

If you are considering a Jamba Juice franchise, don’t get blindsided by these 25 important franchise fees (from the initial franchise fee, to the royalty fee, to 23 other fees found in Items 5 and 6 of Jamba Juice’s 2016 FDD).

1.  Initial Fee:  $5,000 to $25,000

  • Except as described below, you must pay Jamba Juice an initial fee (the “Initial Fee”) of $25,000 for each Traditional Store or each Non-Traditional Store located in a Shopping Mall; $15,000 for a Kiosk; $15,000 for each Non-Traditional Store located anywhere other than a Shopping Mall or on a college or university campus; $5,000 for each Non-Traditional Store located on a college or university campus; and $25,000 for a Co-Brand Store. Exceptions are:
  • (a) if you are signing your franchise agreement under an existing development agreement, your Initial Fee may be modified to conform to the Grandfathered Provisions, if any, in your development agreement.
  • (b) Jamba Juice currently offers an incentive program to franchisees who either own or commit to develop 4 or more Traditional Stores, Non-Traditional Stores, or Co-Brand Stores located in Shopping Malls (“Store Incentive Program”). Under this program, franchisees pay an Initial Fee of $20,000 instead of $25,000.
  • (c) Jamba Juice currently offers an incentive program to franchisees who open a Store to the public during the 2016 fiscal year ending January 3, 2017 (the “2016 Development Incentive Program”). Under this program, your Initial Fee may be reduced by 50%. If you fail to open the Store on or before January 3, 2017, the incentive will no longer apply and you must immediately pay Jamba Juice the full amount of the Initial Fee.
  • (d) Jamba Juice currently offers an incentive program to qualified franchisees who are veterans of the U.S. military (the “Veterans Incentive Program”). Under this program, your Initial Fee may be reduced by 50%. This incentive is in addition to any other incentives currently offered; however, the Initial Fee is subject to a maximum reduction of 75%.
  • These incentive-based reduced fees are only available to those who are in full compliance with all terms and conditions of Jamba Juice’s agreements. Jamba Juice reserves the right to cancel, modify, or withdraw any incentive program or discount at any time for any reason.
  • In the future, it may offer these or other special incentives to existing and/or new franchisees in certain markets, such as new and developing markets. Those incentives may include reduced, waived, or deferred Initial Fees.
  • The Initial Fee is not uniform for all franchises and varies based on the programs described above and on the negotiations between the parties. During the fiscal year beginning December 31, 2014 and ending December 29, 2015 (“2015 Fiscal Year” or “Fiscal Year 2015”), franchisees paid Initial Fees ranging from $0 to $40,000. For franchisees who acquired existing or closed company-owned Stores in Fiscal Year 2015, the consideration for such Store(s) may have been a combination of the asset purchase price, lease payment subsidy, and/or royalty relief.
  • The Initial Fee is due when you sign the franchise agreement and is not refundable. However, if you fail to obtain acceptance of a site within 90 days of signing the franchise agreement, Jamba Juice may terminate your franchise agreement.
  • If you sign a development agreement, you will pay a Development Fee of one half of the Initial Fee per Store multiplied by the number of Stores to be opened under the development agreement. Each time you execute a franchise agreement for a Store, Jamba Juice will credit the amount paid for that Store as part of the Development Fee against the amount of the Initial Fee for the Store. You must also pay the balance of the Initial Fee at that time.
  • The Development Fee is fully earned by Jamba Juice when paid and is not refundable under any circumstances.
  • The Development Fee for Traditional Stores is determined uniformly and does not vary based on negotiations between the parties.
  • If you sign a Co-Brand Addendum, you will pay the Initial Fee for the Jamba Juice Store as well as the initial fee required under the Bruegger’s Bagels franchise disclosure document for the Bruegger’s Bagels bakery-café.

2.  Continuing Royalty:  5% to 8% of total Net Sales

  • For Traditional Stores, Non-Traditional Stores (excluding those in campuses and universities, Transportation Hubs, and Entertainment Venues), and Kiosks: 6% of total Net Sales if you own 3 or fewer Stores; 5.5% of total Net Sales if you own 4 or more Stores or if you sign a development agreement for 4 or more Stores
  • For Non-Traditional Stores on college or university campuses: 8% of total Net Sales
  • For Non-Traditional Stores in Transportation Hubs and Entertainment Venues: 5% of total Net Sales
  • When payable:  All royalty amounts are payable no later than 30 calendar days after the end of each accounting period. Jamba Juice has the right under the franchise agreement to require that you pay the Continuing Royalty on a weekly or other basis.
  • If you or your affiliates own 3 or fewer Traditional Stores or Non-Traditional Stores in a shopping mall, and you or your affiliates open a 4th Traditional Store or Non-Traditional Store in a shopping mall, the royalty rate for your 4th and subsequent Stores will be reduced.
  • Existing franchisees pay Continuing Royalty payments at varying rates. If you are signing a franchise agreement pursuant to an existing development agreement, your Continuing Royalty may be modified to conform to the Grandfathered Provisions, if any, in your development agreement.
  • Jamba Juice may require that all Royalty payments be automatically processed and debited via the ACH (Automated Clearing House) system and/or via a valid credit card.
  • Continuing Royalty Rates for Co-Brand Stores are the same as the Continuing Royalty Rates for Traditional Stores; Co-Brand Stores pay the same fees as Traditional Stores as those fees appear in Item 6.
  • Co-Brand Stores will be responsible for paying fees under both the Jamba Juice franchise agreement and the Bruegger’s Bagels franchise agreement. The fees required by Bruegger’s Bagels are detailed in Item 6 of the Bruegger’s Bagels franchise disclosure document.

3.  Marketing Program Contributions:  Maximum 4% of Net Sales for Traditional Stores, Non-Traditional Stores (excluding those in campuses and universities, in Transportation Hubs, and in Entertainment Venues), and Kiosks; 0% for Stores in campuses and universities, Transportation Hubs, and Entertainment Venues



  • When payable:  Same as Royalty fee.
  • Your Marketing Program Contributions will be contributed to the Marketing Program.
  • Jamba Juice does not collect a Marketing Program Contribution for any Non-Traditional Stores except those located in Shopping Malls.
  • As of the date of the 2016 Disclosure Document, the Marketing Program Contribution rate is 3% (the “Current Marketing Contribution”).
  • Marketing Program Contributions are used, in part, to pay for materials like posters and menu boards. If you do not make a separate Marketing Program Contribution (for example, if your Store is located in a Transportation Hub), Jamba Juice may require you to pay for these marketing materials.
  • Jamba Juice reserves the right to vary the Marketing Program Contribution on a case by case basis in the future and the right at any time, in its sole discretion, to increase the contribution rate to as high as 4%.
  • Jamba Juice has the right to require that all Marketing Program Contributions be automatically processed and debited via the ACH (Automated Clearing House) system and/or via a valid credit card.

4.  Local Advertising/Advertising Co-ops:  For Traditional Stores and Non-Traditional Stores in Shopping Malls:  0.5% of Net Sales

  • When payable:  Every 3rd accounting period.
  • Currently, you must spend 0.5% of Net Sales each fiscal quarter on local advertising. If Jamba Juice establishes a regional Co-op for your region, you must contribute to the Co-op the amount determined by vote of the Co-op (not to exceed 0.5% of Net Sales). You may credit this amount against your local advertising obligation.
  • Jamba Juice has designated Pacific Standard Print as the vendor for local marketing materials using their online fulfillment center.
  • All franchisees order local marketing materials using a web-based system and are charged for the cost of the materials ordered in addition to a $7.00 handling charge.
  • Franchisees who do not contribute to the Marketing Program may also be charged for the cost of national program materials they order.

5.  New Store Marketing Obligation:  For Traditional Stores and Non-Traditional Stores in Shopping Malls: $10,000

  • When payable:  Within a reasonable period of time surrounding the Store opening.
  • You must spend not less than $10,000 on local “grand opening” advertising and promotion of the Store. The Grand Opening Marketing Program is subject to Jamba Juice’s prior review and approval.

6.  Interest:  1.5% per month or the highest legal rate, whichever is greater, for each month any payment remains delinquent

  • When payable:  Continues to accrue until paid.
  • Payable only if any sums due Jamba Juice are not paid promptly when due. Interest begins from the date of the underpayment.

7.  Jambacard® (refillable gift card):  varies

  • When payable:  As invoiced.
  • For new franchisees, NCR Corp. charges a $250 initiation fee per Store. For existing franchisees, there is no initial charge for Jambacards®.

8.  Late Charge – Bad Check:  $30 bank charge, plus Jamba Juice’s costs and expenses from your non-payment

  • When payable:  On demand.
  • Payable only if any check or draft, electronic or otherwise, is unpaid because of insufficient funds or otherwise.

9.  Music Service Subscription:  $27 monthly service charge, plus tax and standard equipment installation fee of $195

  • When payable:  As invoiced.
  • Provider currently offers equipment rental option at franchisee’s preference.

10.  Computer-Based Training (CBT) Program:  currently, $300 per Store per year

  • When payable:  As invoiced.
  • Currently, you must pay an annual fee of $300 per Store directly to Jamba Juice’s approved vendor in order to access its CBT.

11.  Additional Training Courses:  As established by Jamba Juice (currently, none)

  • When payable:  On demand.
  • If Jamba Juice offers additional training courses, you must pay a fee for optional training courses you choose to attend, or for additional training which Jamba Juice may require. Fees will be uniform for all franchisees.

12.  Additional Assistance:   Jamba Juice’s then-current training charges based on the wage rates of the trainers provided (currently $10.75 – $18 an hour depending on the position), plus Jamba Juice’s lodging and travel and a per person per diem (currently $30) for meals for its personnel

  • When payable:  On demand.
  • If you request Jamba Juice to provide training at your Store, you must reimburse it for its costs in providing training and supervisory personnel (including all wages and transportation and living expenses of its representatives).

13.  Indemnity:  varies



  • When payable:  On demand.
  • You must indemnify Jamba Juice when certain of your actions result in loss to it.

14.  Insurance:  amount of unpaid premiums

  • When payable:  On demand.
  • Payable only if you fail to maintain required insurance coverage and Jamba Juice elects to obtain coverage for you.

15.  Renewal:  one half of the then-current Initial Fee that Jamba Juice charges new franchisees, or $2,500 under the University Addendum

  • When payable:  Before renewal.
  • Payable only if you renew your franchise.
  • There is no renewal fee for Non-Traditional Stores (excluding those based in Shopping Malls) under the Multi-Unit Program if you meet your development target. Failure to meet the development target voids any discount, waiver, or deferral, and the full renewal fee will then become due and payable for future units.

16.  Transfer:  $10,000 per Store, plus Jamba Juice’s out-of-pocket costs associated with the transfer

  • When payable:  Before transfer.
  • Payable if you sell or transfer your franchise to another person.

17.  Relocation Fee:  $5,000

  • When payable:  On demand.
  • Payable if you are permitted to relocate your Store.

18.  Interim Management Fee:  10% of Net Sales

  • When payable:  On demand.
  • Payable only if you default and Jamba Juice assumes interim management of the Store after you default on or cause the termination of the franchise agreement.

19.  Computer Systems and Specified Software Fees:  as established by Jamba Juice

  • When payable:  On demand.
  • If Jamba Juice supplies computer equipment and software to you, you may be required to pay fees to Jamba Juice for the installation and maintenance of Computer Systems and Specified Software for the Store. Fee will be uniform for all franchisees.
  • Currently, Jamba Juice does not supply any computer hardware or software to Jamba Juice franchisees.

20.  Security Software Fee:  currently, $67 per month per Store

  • When payable:  As invoiced.
  • You must use security services software to protect sensitive data and help ensure brand security.
  • Provider currently charges $550 for activation fee, in addition to $67 per month.

21.  POS Change Out Fee:  varies based on Jamba Juice’s actual cost

  • When payable:  On demand.
  • If Jamba Juice changes the information in your POS system, you must reimburse it for its costs, including labor.

22.  Supplier Approval:  as established by Jamba Juice

  • When payable:  On demand.
  • You may be required to pay fees and reimbursable costs to Jamba Juice for requests to approve new suppliers or for more than customary time spent in the approval process with the new supplier. Fee will be applied uniformly for all franchisees.

23.  Default Reimbursement:  Jamba Juice’s costs and expenses arising from your default

  • When payable:  Within 5 days after you cure your default.
  • Payable only if you default on your obligations under a franchise or development agreement.

24.  Audit:  cost of audit plus 18% interest (or the highest rate allowed by law, whichever is greater) on any underpayment

  • When payable:  On demand.
  • Payable only if an audit shows an understatement of at least 5% of Net Sales.

25.  Jamba Juice Helpdesk Support:  $650 per Store per year

  • When payable:  On receipt of invoice for each fiscal period.
  • Traditional Stores must use Jamba Juice’s internal help desk support organization.

Other Fees:  Design Support, Initial Training, and Opening Assistance

  • Jamba Juice gives you on-line access to its standard schematic designs, decor, and layout plans. If you ask it to provide additional support in adapting its standard plans to your location, it may charge you a reasonable support fee.
  • Jamba Juice does not charge you a course fee for Initial Training if the training is conducted at its Company Support Center. If you elect to receive Initial Training at a Certified Training Store or an approved franchise location, Jamba Juice may charge you a course fee. Currently, you must pay $750 per trainee per week directly to the Certified Training Store (which may be a Company-owned or franchised Store) or the approved franchise location.
  • Jamba Juice also charges a fee for the cost of training materials. Currently, you must pay Jamba Juice $100 for each trainee, regardless of where training takes place.
  • You are responsible for all out-of-pocket expenses for those of your employees attending Initial Training.
  • If Jamba Juice trains anyone in addition to the standard number of employees for whom Initial Training is provided, it may require you to pay a fee. If it does, the fee will be the same for all similarly situated franchisees.
  • At your request, and in Jamba Juice’s sole discretion, it will send 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 week (“Optional NSO Support”).
  • If you request additional assistance beyond the Optional NSO Support, you must reimburse Jamba Juice for the actual costs that it incurs to send its representative to assist you on-site.

If you are looking for information on the estimated initial investment for a Jamba Juice franchise, check out this post:   Franchise Costs:  Detailed Estimates of Jamba Juice Franchise Costs



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