In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Clean Juice franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Clean Juice franchise, based on Item 7 of the company’s 2018 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Clean Juice franchise, based on Items 5 and 6 of the company’s 2018 FDD

• Section IV – Number of franchised and company-owned Clean Juice outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD

• Section V – Presentation and analysis of Clean Juice’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:

• 2017 actual weekly gross sales, annual gross sales, cost of goods sold (food, paper and packaging, retail, and apparel), payroll expenses (wages and taxes), prime cost, and gross profit for the company-owned Birkdale Village Store in Huntersville, NC; the company-owned StoneCrest Store in Charlotte, NC; the company-owned Mayfaire Store in Wilmington, NC; and the franchised Carrollwood Store in Tampa, FL

Section I – Background Information

11 Things You Need to Know About the Clean Juice Franchise

Launches New Loyalty and Digital Engagement Program

1.  At the end of May 2018, Clean Juice announced the launch of its new app, which features a loyalty program, fresh menu, and an easily navigable home screen. Clean Juice partnered with LevelUp, the growth engine for restaurants, to design the new digital experience. The Clean Juice app allows customers to browse the menu, customize drinks and order ahead, pay, earn loyalty points, and redeem rewards.

2.  Coby Kraft, vice president of marketing for Clean Juice, said, “Our new app fully represents Clean Juice’s fast-growing, health-centric and innovative brand. LevelUp has been an exceptional partner in crafting a custom digital experience, and they continue to innovate on new ways to engage our guests. With this new app, we are now able to reward customers for their loyalty and turn new visitors into lifelong fans, which will only further our rapid growth.”

3.  Clean Juice says that it worked with LevelUp to develop the loyalty program from the ground up. As customers purchase their favorite juices, smoothies, bowls, and bites via the app, they earn progress towards green, black, gold, or platinum status. Each status level comes with lifestyle rewards tailored to the customer, including a free one-day cleanse; a gift card to Clean Juice, Stubhub, or various hotels; and free fitness classes. To celebrate the launch of the app and loyalty program, Clean Juice offered its users $10 for the first $100 spent via the app.

Awarded 50 Franchise Units

4.  Clean Juice has only been franchising since 2016 but the brand is already expanding rapidly across the U.S. In early May 2017, the brand announced that it had awarded 50 franchise units. The brand’s first franchise location opened earlier in 2017 in Tampa, Florida and Clean Juice said it had plans to open in seven additional states by the end of last year. Clean Juice planned to expand in Texas, North Carolina, South Carolina, Florida, Louisiana, Pennsylvania, Arizona, and Michigan through the end of 2017 and early 2018.

5.  Clean Juice predicted that it would award close to 100 units by the end of its second year in business. Clean Juice said that the rapid growth is a result of the brand’s popularity within the communities its stores are located in. Landon Eckles, co-founder and CEO of Clean Juice, said, “Developing Clean Juice with my wife has been the most rewarding experience. As we continue to grow, we’re thrilled to bring the benefits of organic produce to communities across the country.”

Celebrates Fourth of July with Free Smoothies

6.  To celebrate the Fourth of July, Clean Juice invited customers to have a free smoothie. Participating Clean Juice locations offered two of the brand’s most popular smoothies – the So Basic and the Tropical – free of charge all day. In addition to the free smoothies, each location hosted an in-store party all day, complete with raffle prizes and giveaways, music, and fun for the entire family. Clean Juice also unveiled each location’s new and respective Instagram communities on the Fourth of July and offered $10 off all juice cleanses from July 5 to 31.

7.  Kat Eckles, co-owner and co-founder of Clean Juice, said, “We’re all so blessed to live in this free country and we want our guests to feel the celebration of that when they come into our stores. We hope it’s an opportunity to honor and thank the guests who have supported us, as well as provide an opportunity for people who have been wanting to try Clean Juice to experience what we are all about.”

Company History

8.  The idea for Clean Juice was developed by Kat and Landon Eckles in 2014. Landon, whose previous work had him traveling internationally, was looking for a career change and wanted to settle down and start a family with Kat. Meanwhile, Kat had been making her own juices and smoothies and had the idea of opening a juice bar in the Charlotte, North Carolina area. The couple moved to Lake Norman and opened the first Clean Juice location in Birkdale Village on their 8th wedding anniversary on June 5, 2015.

9.  The first Clean Juice store was a success and two more corporate locations followed later that first year. The Eckles launched a franchising platform in 2016 and the first franchised location opened a year later. According to Clean Juice, it is the first and only USDA certified organic juice bar franchise. The company’s mission is to become the world’s most plentiful juice bar that offers easy access to on-the-go organic food, while making the nutritional benefits that come from consuming organic, unprocessed produce more accessible.

10.  Today, Clean Juice has locations in development in 16 states and it plans to continue growing across the country.

Entrepreneur’s Franchise 500

11.  As a new franchise, Clean Juice has yet to appear on Entrepreneur’s annual Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Clean Juice franchise costs, based on Item 7 of the company’s 2018 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Clean Juice’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2016

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  25
• Net Change:  +25

2017

• Outlets at the Start of the Year:  25
• Outlets at the End of the Year:  83
• Net Change:  +58

Company-Owned

2015

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2016

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  4
• Net Change:  +3

2017

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  6
• Net Change:  +2

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

Part 1 – Birkdale Village Store

• Clean Juice opened the first company-owned Store, the Birkdale Village Store, located at 16815 Cranlyn Rd., Suite B, Huntersville, NC 28078, in April of 2015.

• Presented below is a Statement of Income following the format of the Uniform System of Accounts for Restaurants showing the Store’s historical results from January 1, 2017 to December 31, 2017.

• This Statement of Income has not been audited, reviewed, or verified by an independent accountant.

• Although this outlet reported these results for this period, there is no assurance you’ll do as well. If you rely upon these figures, you must accept the risk of not doing as well.

• Clean Juice anticipates that variances between your Store and the Birkdale Village Store may exist with respect to geographic location, length of time the Store is open, and in the size of the Store.

• For the period of January 1, 2017 to December 31, 2017, the most recent full year of operation:

Birkdale Village Store, Huntersville, NC