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

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

• Section II – Estimated initial investment for a Nékter Juice Bar 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 Nékter Juice Bar franchise, based on Items 5 and 6 of the company’s 2019 FDD

• Section IV – Number of franchised and company-owned Nékter Juice Bar 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 Nékter Juice Bar’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, cost of goods sold, labor costs, occupancy costs, and EBITDA for the 43 Nékter Juice Bar Stores owned and operated by franchisees during the full 2018 calendar year and submitted the needed financial information

Section I – Background Information

21 Things You Need to Know About the Nékter Juice Bar Franchise

Accelerates Nationwide Expansion and Receives Three Major Awards

1.  At the end of May 2019, Nékter Juice Bar, bolstered by several new top industry awards, announced that it was continuing to grow its national footprint by bringing its unique and inspiring healthy dining brand to more communities across the United States.

2.  In the first few months of 2019, Nékter has opened stores in Minnesota, Tennessee, Pennsylvania, and Kansas, and opened its first location in partnership with Whole Foods Market in Southern California, bringing its growing restaurant count to more than 130 restaurants (at the time of the press release) across 15 U.S. states.

3.  As Nékter Juice Bar continues to grow, the company has also received substantial recognition from within the restaurant and business communities including its recent top 5 ranking on FastCasual.com’s annual Top 100 Movers and Shakers list. The annual award honors the top 75 brands and top 25 executives across a wide selection of fast casual restaurant concepts. This year, 17 of the top 25 brands fell into the healthy dining category, underscoring a consistent and growing trend among Americans seeking better-for-you dining options.

4.  Nékter was also recognized as one of the strongest brands in the “Top Food Franchises of 2019” list by Entrepreneur magazine, and was praised by Restaurant Business magazine in its 2018 Top 500 Chain Restaurant Report as one of the nation’s leading health-focused concepts with double-digit sales increases and restaurant counts.

5.  Steve Schulze, co-founder and CEO of Nékter Juice Bar, said, “More and more Americans are exploring and embracing healthier lifestyles, and at Nékter we take great pride in being at the forefront of this movement. Being recognized as not only one of the top restaurant brands, but as a leader in the healthy dining revolution by our peers, is a true honor. It also speaks to the intensifying popularity of Nékter as we expand across the country.”

6.  With 175 restaurants in development, Nékter is on track to open several additional franchised and corporate-owned restaurants in 2019, including more within Whole Foods Market locations as part of the Friends of Whole Foods Market program.

7.  Nékter’s growth is supported by innovative new menu introductions and transformative marketing campaigns that engage loyal fans and inspire new guests to incorporate healthy eating into their daily lives, starting with fresh, delicious, clean, plant-based, and nutrient-rich juices, superfood smoothies, acai bowls, and healthy snacks.

8.  Schulze added, “Some copycat juice bar concepts may try to emulate Nékter and our success, but they lack our unrelenting focus on ingredient quality and integrity combined with delicious flavor, affordability and accessibility. Consumers who are trying to improve their lifestyles deserve a truly authentic experience, and that’s what makes Nékter stand above the rest.”

Opens First Whole Foods Market Location

9.  At the end of April 2019, Nékter Juice Bar announced that it was opening its first location within a Whole Foods Market on May 22, in Porter Ranch, California, about 30 miles north of Los Angeles. Nékter is partnering with Whole Foods Market as part of the Friends of Whole Foods Market program, which provides the opportunity for innovative businesses aligned with Whole Foods Market’s mission and quality standards to establish their own independent retail spaces inside Whole Foods Market stores.

10.  Nékter is also working with the Whole Foods Market team to open more locations inside additional, new Whole Foods Market stores. These locations will be announced as plans are finalized in the coming months.

11.  In celebration of the partnership, Nékter debuted a new signature coffee menu at the Whole Foods Market in Porter Ranch featuring local partner Coffee Manufactory, which is setting a new standard for sustainability in specialty coffee by tracking key supply chain metrics, sourcing top quality, seasonal coffees, and helping to empower sustainability to become producer-led.

12.  Steve Schulze, co-founder and CEO of Nékter Juice Bar, said, “Aligning with Whole Foods Market, a brand that is synonymous with high quality and uncompromising standards, underscores our commitment to providing a best-in-class and authentic juice bar experience. We take great pride in elevating the juice bar experience to one that is rooted firmly in ingredient integrity and menu transparency. At Nékter Juice Bar, we are passionate about nourishing the lives of our guests and that starts and ends with making healthy food options – made with real ingredients – accessible, affordable, and that always taste great.”

13.  Patrick Bradley, president of Whole Foods Market’s Southern Pacific region, added, “We’re thrilled to partner with Nékter Juice Bar, a company that shares Whole Foods Market’s commitment to offering high quality, fresh, and delicious products, while satisfying and delighting customers. We constantly look for new ways to elevate the customer experience through access to new brands, products, and in-store concepts, and are confident that Nékter will be an incredible addition to the Whole Foods Market family.”

Launches Third-Party Delivery

14.  In mid-September 2018, Nékter Juice Bar launched delivery services through partnerships with three of the top third-party delivery providers, Grubhub, DoorDash, and Postmates. For several years, customers have been able to order their favorite Nékter menu items in the way that suits them best: in-store, by phone, or via Nékter’s user-friendly mobile app. Now they can have their menu selections delivered right to their home, office, school, park, or wherever they want to enjoy a refreshing, nutritious, and delicious healthy dining or snack option.

15.  Customers simply login to the Nékter app, or the app of one of the three delivery partners that service their neighborhood. Nékter Juice Bar is also exploring additional ordering options, such as kiosks and A.I. voice ordering, for even more convenience and accessibility.

16.  According to Steve Schulze, co-founder and CEO of Nékter Juice Bar, “At Nékter Juice Bar, we understand that a healthy lifestyle begins with how we nourish our bodies to be the best that we can be. We also remain committed to affordability without compromising ingredient integrity, and to accessibility to make it as easy as possible for our guests to make healthy choices. Adding delivery to our menu of ordering options is yet another way we continue to innovate and bring the Nékter Life to more communities across the country.”

17.  In the same press release, Nékter Juice Bar also announced that gift cards are now available through the brand’s mobile app. Customers can now buy a gift card directly on the app, use it to pay for online and in-store orders, then easily reload the balance at their convenience.

18.  To celebrate the app’s new features, Nékter offered a free $5 bonus card when customers purchased $25 in gift cards on the app through September 23, 2018.

Company History

19.  Nékter Juice Bar was founded in 2010 by Alexis and Steve Schulze in Costa Mesa, California. Alexis Schulze was inspired to open her own juice bar after she began juicing and often had to tweak recipes to make them more appetizing. She also did not like the taste of the pressed juices available at local health food stores. Additionally, Schulze said that juicing made her feel better and she recognized that more everyday people needed access to pressed juices, which were primarily available to intense fitness and health practitioners at the time.

20.  After developing recipes that were well-received by family and friends, Schulze decided to open her own juice bar with her husband Steve. Following the success of the first Nékter Juice Bar, the Schulzes began franchising the concept in 2012. By 2016, Nékter Juice Bar had grown to over 50 locations, primarily in the West and Southwestern regions of the United States. Currently, Nékter Juice Bar has plans to expand nationally to 425 locations by the end of 2020.

Entrepreneur’s Franchise 500

21.  Nékter Juice Bar ranked No. 214 on Entrepreneur’s 2019 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Nékter Juice Bar 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 Nékter Juice Bar’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:  14
• Outlets at the End of the Year:  21
• Net Change:  +7

2017

• Outlets at the Start of the Year:  21
• Outlets at the End of the Year:  51
• Net Change:  +30

2018

• Outlets at the Start of the Year:  51
• Outlets at the End of the Year:  81
• Net Change:  +30

Company-Owned

2016

• Outlets at the Start of the Year:  38
• Outlets at the End of the Year:  43
• Net Change:  +5

2017

• Outlets at the Start of the Year:  43
• Outlets at the End of the Year:  50
• Net Change:  +7

2018

• Outlets at the Start of the Year:  50
• Outlets at the End of the Year:  46
• Net Change:  -4

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

Average Gross Sales, Cost of Goods Sold, Occupancy Costs, and EBITDA for Franchised Locations

• There were a total of 50 Nékter Juice Bar Stores owned and operated by franchisees during the full 2018 calendar year. Of these 50, only 43 franchisees submitted the financial information needed for the chart below. Those 43 franchised locations are the ones included in the averages in the chart below.

• The seven Stores whose financial information is missing are located in North Carolina, Florida, and California.

• The following table shows past performance actual average Gross Sales, Cost of Goods, Labor Costs, Occupancy Costs, and EBITDA information for the 43 franchised Stores described above.

• The 43 Stores in the below averages are located in Arizona, California, Colorado, Nevada, Texas, and Washington.

Part 1 – Franchised Store Gross Sale Averages and Medians Per Quartile (2018)

Quartile 1