Updated November 29, 2020.
Detailed Estimates of Nékter Juice Bar Franchise Costs Based on Item 7 (Estimated Initial Investment) of Nékter Juice Bar’s 2020 Franchise Disclosure Document
1. Initial Franchise Fee; Development Fee: $45,000 to $145,000
- The Initial Franchise Fee is uniform to all franchisees and due in lump sum when you sign the Franchise Agreement.
- Additionally, the Development Fee is only applicable if you sign an Area Development Agreement and the high range represents the total Development Fee for a total of three Stores to be developed. The Development Fee is due in lump sum when you sign the Area Development Agreement.
2. Real Estate and Rent – 3 Months: $7,500 to $30,000
- If you do not already own or lease adequate store space, you will need to lease the space for the Nékter Juice Bar Store. Nékter requires that the typical franchise location be approximately 800 to 1,400 square feet, with approximately 250 to 600 square feet of front of store (customer) space, with seating for 6 to 10 people, and approximately 550 to 800 square feet of back of store (kitchen/employee) space.
- The above estimate reflects an approximate range of rental costs for a commercial location meeting these specifications.
3. Real Estate Construction and Improvements: $60,000 to $215,000
- Once you have municipality building permits, you must construct, remodel, alter, and improve the Store location to Nékter’s specifications, following its guidelines and assumptions. Any deviation from the approved drawings must be approved by Nékter prior to construction.
- These figures assume that your location will be a leased, unimproved, unfinished retail store-type unit.
4. Architect: $8,000 to $12,000
5. Mill Work: $20,000 to $35,000
- Nékter has certain standards and specification for the types of materials you will need to outfit the interior of your Nékter Juice Bar Store. These specifications include certain types of wood framing, cabinets, and paneling.
6. Fixtures and Furnishings: $4,000 to $15,000
- This range estimates your cost of purchasing all required fixtures and furnishings that conform to Nékter’s specifications and standards.
7. Equipment: $40,000 to $52,000
- This range estimates your cost of purchasing all required equipment including blenders, juicers, three-compartment sink, ice machines, walk-in refrigerator, front-end display refrigerators, and any other equipment that Nékter requires in the operation of the Store.
8. Signage: $3,500 to $13,500
- This range includes both exterior and interior Store signage.
9. POS, Security System, Music, Phones, Gift Card and Loyalty Programs, and Computer Systems: $4,700 to $8,000
- This range includes the initial required hardware and software licensing costs related to the operation of the Store; credit, gift, and loyalty card processing; merchant services; music player, as well as franchisee-supplied phone system; music speakers; Internet provider; IT setup costs; and security system for your Store.
10. Miscellaneous Opening Costs: $500 to $1,000
- Additional expenses you may incur before opening may include food and beverages consumed during training, costs related to job postings, and other miscellaneous pre-opening costs.
11. Opening Inventory: $5,000 to $8,000
- This range includes the estimated cost of stocking your Store with the required inventory for the first two weeks of operation, including cleanses from NJB, produce, snacks, and packaging and paper products.
- On an ongoing basis, some items are replenished daily while others are replenished over a much longer period.
12. Uniforms: $300 to $600
- The cost of uniforms will vary depending on the size of your staff. Nékter will provide you with specifications for uniforms.
13. Training: $2,500 to $6,000
- You must make arrangements for, and pay the expenses of, each individual who attends Nékter’s initial training program. Such expenses will include transportation, lodging, meals, and wages.
- The amount of the expense will depend, in part, on the distance you must travel and the type of accommodation you choose. The figures in the chart represent the estimated cost for two individuals to attend Nékter’s initial training program.
14. Grand Opening Marketing: $8,000 to $10,000
- This range estimates your approved grand opening advertising and marketing expenses for initial approved promotional activities. This may include local media, press, and other media related expenses, certain grass roots marketing, and your soft opening costs and expenses.
- You must spend at least $8,000 on approved initial marketing and promotional activities, but may choose to spend more.
15. Utilities and Permits: $2,500 to $6,000
- Utility providers and equipment lessors typically require payment of a security deposit. This range includes the estimated amount of such deposits, which may vary depending on utility provider policies and your credit rating.
- Some utilities are included in your common area maintenance (CAM) charge.
16. Professional Fees: $2,500 to $6,000
- This range is for the cost of engaging an attorney, accountant, and other business advisors to assist you in reviewing the disclosure document, the Franchise Agreement, your business plan, lease review, and any other contracts or items related to your Franchised Business as well as to assist you in the formation of a legal entity to act as the franchisee.
17. Insurance – 3 Months: $500 to $1,000
- This range includes the down payment on insurance premiums for required coverages before opening and for the first three months of operation of your Nékter Juice Bar Store.
18. Additional Funds for 3 Months: $10,000 to $20,000
- This range does not include managerial salaries or any payment to you, neither does it take into account finance payments, charges, interest, and related costs you may incur if any portion of the initial investment is financed.
- These amounts are the minimum recommended levels to cover operating expenses, including your employees’ salaries for three months. However, Nékter cannot guarantee that these amounts will be sufficient.
19. Total: $224,500 to $551,600
- Nékter relied on its and its franchisees’ experiences in compiling this above chart.