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FDD Talk 2019: Clean Juice Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

Last updated on September 8, 2019 by Franchise Chatter Leave a Comment
in FDD Talk: Food Franchises, Franchise Earnings, Juice Franchise



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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 2019 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 2019 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 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD
  • Section V – Presentation and analysis of Clean Juice’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:
  • 2018 average, median, high, and low gross sales and gross profit for the top 25%, top 50%, top 75%, and all 16 franchised and affiliate-owned Clean Juice stores that were open for the entire 2018 calendar year

Section I – Background Information

13 Things You Need to Know About the Clean Juice Franchise

Continues Explosive Growth with National Expansion

1.  In mid-April 2019, Clean Juice stated in a press release that it has continued to experience high growth after opening 5 new stores, adding 3 new markets, being recognized by several industry publications and associations, and increasing same-store sales by 2.1% in the first quarter of 2019.

America's Most Lucrative Franchises of the Year

2.  Landon Eckles, co-founder and CEO of Clean Juice, said, “Our success and growth has been and continues to be fueled by the growing demand for healthier fast food options – specifically food that is organic and non-GMO – among Millennials and on-the-go Moms. By singularly focusing on delivering the highest quality organic products in the warmest and most inviting retail experience, Clean Juice, I believe, will continue to succeed each year. We are blessed to be in this position and it certainly goes without saying, Clean Juice wouldn’t be here without the dedication of our family members – the Franchise Partners and our staff!”

3.  Earlier this year, Clean Juice opened its 50th store in Nashville, Tennessee. Since then, the franchise opened in several other markets including first-time markets in Chicago, Illinois (Naperville) and Baltimore, Maryland. At this pace, the company expects to have more than 100 stores open by the end of December 2019.

4.  In terms of accolades, Clean Juice received recognition from several trade publications including Franchise Gator (Top Emerging Franchises), Fast Casual (Top 100 Movers & Shakers), and Entrepreneur (2019 Top New Franchises), among others.

5.  Other highlights from Clean Juice’s fiscal first quarter of 2019 include:

  • Increased same-store sales by 2.1%. Same-store sales growth reflects the change in year-over-year sales for the comparable store base, which Clean Juice defines as the number of stores open for at least one full fiscal year;
  • In addition to celebrating its 50th store, Clean Juice celebrated the two-year anniversary of its first franchised location – Clean Juice Carollwood – in Tampa, Florida in late March;
  • Sales were fueled by a “Spring Cleaning” juice cleanse promotion and the launch of Clean Juice’s new Spring menu, featuring The Carrot Cake Bowl made from organic acai, in March;
  • Selected by Franchise Gator, the online franchise directory, as its 44th Top Emerging Franchise for 2019, an award created to help identify developing franchises with 50 or fewer units that have shown promising signs of strong growth;
  • Listed #103 on Entrepreneur’s 2019 Fastest Growing Franchises list;
  • Chosen by FastCasual.com as one of the top brands in its 2019 list of Top 100 Movers & Shakers; and
  • Selected as the top-ranked Fast 50 company by Charlotte Business Journal.

6.  On industry recognition and accolades, Eckles said, “Our company was founded on 10 core values that guide everything we do as a company, every single day. At the top of the list is the most important core value in ‘God is in all of us and is using us in all that we do,’ and one of the other core values is ‘We aren’t stopping here, we are starting here.’ We are humbled by the attention and the growth, but truly I say to you, we’re just getting started.”


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Fuels West Coast Expansion

7.  In mid-January 2019, Clean Juice announced a multi-unit agreement with its newest franchise partner Tyler Jeffrey (T.J.) Dillashaw, a mixed martial artist currently signed with the Ultimate Fighting Championship (UFC). Dillashaw, an avid juicer and organic food advocate, recently agreed to a multi-unit Franchise Agreement that will bring additional stores to the California and Colorado markets under his ownership. Dillashaw is known to many as a fervent consumer, maker, and evangelist of cold-pressed juices, smoothies, and other organic foods.

8.  Landon Eckles, co-founder and CEO of Clean Juice, said, “Having T.J. become a part of our family is not only exciting for all of our franchise partners and our employees, but also for me personally. Even before I knew he was a juice connoisseur, I was a big fan of his because of his relentless pursuit of excellence, his meticulous attention and commitment to detail and his overall scrappiness. Funny enough, these are all traits we look for in our franchise partners! We are thrilled to continue our westward expansion with T.J. on our team…a true ambassador to eating healthy and living well.”

9.  Currently the reigning Bantamweight champion, Dillashaw has appeared on many mainstream outlets, such as the Joe Rogan Experience podcast, sharing his passion for juicing and eating healthy to prepare for his training and fighting schedule. According to Dillashaw, “I juice like crazy and sometimes, with my training schedule, it’s hard to do it myself. So, it just made sense to be a part of a franchise organization that I 100% believe in and support.”

Company History

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10.  Clean Juice was founded in 2014 by husband and wife team Landon and Kat Eckles in North Carolina. After spending years traveling internationally, Landon was looking for a career change so that he could be closer to home with his growing family. Kat had been making smoothies and juices at home for years and brought up the idea of opening her own juice bar in the Charlotte area. Landon liked the idea and the Eckles opened the first Clean Juice store in 2015 in Huntersville, North Carolina.

11.  In the spring of 2016, the Eckles opened a second location in South Carolina followed by a third Clean Juice in North Carolina. By the summer of 2016, the Eckles were ready to launch their franchising program and had signed the first 5 Clean Juice franchise agreements. The first franchised Clean Juice store opened in 2017 in Carrollwood, Florida.

12.  In 2018, Clean Juice began using mobile payments and launched a loyalty rewards program. By the end of that year, Clean Juice had 100 franchise units either in development or in operation in 16 states.

Entrepreneur’s Franchise 500

13.  Clean Juice did not rank on Entrepreneur’s 2019 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 2019 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 2019 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2016

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

2017

  • Outlets at the Start of the Year:  0
  • Outlets at the End of the Year:  13
  • Net Change:  +13

2018

  • Outlets at the Start of the Year:  13
  • Outlets at the End of the Year:  47
  • Net Change:  +34

Company-Owned

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

2018

  • Outlets at the Start of the Year:  6
  • Outlets at the End of the Year:  7
  • Net Change:  +1

Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis

  • The following charts include data from all of Clean Juice’s franchised and affiliate-owned stores that were open for the entire 2018 calendar year.

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