Detailed Estimates of Clean Juice Franchise Costs Based on Item 7 (Estimated Initial Investment) of Clean Juice’s 2018 Franchise Disclosure Document
1. Franchise Fee: $42,500
- The Initial Franchise Fee for the first 4 initial franchisees, existing franchisees that acquire an existing business and convert it to a Franchised Business, multi-unit franchisees, and existing franchisees that enter into additional Franchise Agreements, varies up to $42,500.
2. Leasehold Improvements: $100,000 to $250,000
- You must lease or own the Store. You may pay real estate fees to a broker, consultant, or advisor to assist you in finding and leasing a suitable location for your Store.
- Your Franchised Location must have a minimum of 1,000 square feet of interior space, or such lesser amount agreed to by Clean Juice on a case-by-case basis, with table and counter seating for at least 18 patrons inside.
- Outside seating is required unless restricted by the landlord.
- The amount of monthly rental expenses for your Franchised Location may vary widely and will depend on geographic location, size, visibility, local rental rates, other businesses in the area, other local economic conditions, the site’s market potential, and other factors.
- The Store should have convenient parking for between 15-25 vehicles.
- 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. Your leased space may be a pre-existing store that will be retrofit to meet Clean Juice’s system standards.
- A landlord may finance all or part of the cost of the tenant improvements as part of your rent or otherwise, and may provide a period of free or reduced rent to offset the costs of improvements.
- You will be responsible for paying an architect to draft plans and specifications for the improvements and produce blueprints for the landlord and your contractor.
3. Real Estate Fees: $4,000 to $10,000
4. Security Deposit: $2,500 to $5,000
- Security deposits generally are required by utilities, the landlord, and the equipment lessors.
- Amounts will vary depending on the provisions of various leases, utilities’ policies, and your credit rating.
- The estimated cost includes a 1-month deposit to the landlord; however, the landlord may require additional months’ deposit.
5. Furniture, Fixtures, and Kitchen Equipment (includes cold press): $60,000 to $90,000
- You will be required to purchase a cold press juicer, currently the following model: Good Nature, Model-X-1 cold press juice machine.
6. Insurance: $3,000 to $7,000
- The estimated cost covers the typical first year’s insurance premium for required coverage for general business liability, umbrella, and/or worker’s compensation insurance.
- If you have had prior issues or claims from previous operations unrelated to the operation of a Franchised Business, your rates may be significantly higher than those estimated above.
7. Local Architects, Blue Prints, and Building Prints (“Architect Fee”): $5,000 to $10,000
8. Miscellaneous Pre-Opening Expense (Signage): $5,000 to $12,000
9. Point-of-Sale System and Office Equipment: $2,500 to $5,000
10. Utility Deposits and Sales Tax: $1,000 to $3,000
- The expense will be due to the agency or branch of government to whom a relevant fee is owed or the service provider for whom the expense is incurred.
11. Opening Inventory and Small Wares: $7,500 to $12,000
12. General Manager Expenses While Training: $1,000 to $6,000
13. Grand Opening Marketing: $5,000 to $10,000
14. Additional Funds for 3 Months: $15,000 to $40,000
- Your actual costs for initial start-up expenses during this 3-month period will depend on how closely you follow Clean Juice’s methods and procedures; your management skills, experience, and business acumen; local economic conditions; the local market for your products; the prevailing wage rate; your competition; and the sales level you reach during the initial period.
15. Total: $254,500 to $502,500
- This is an estimate of your initial startup expenses for one Clean Juice franchise. These figures are estimates and Clean Juice cannot guarantee that you will not have additional expenses involved with starting your Clean Juice franchise.