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 2020 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 2020 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 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of Clean Juice’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- 2019 average, median, high, and low gross sales and gross profit for the top 10%, top 25%, top 50%, top 75%, bottom 10%, bottom 25%, bottom 50%, bottom 75%, and all 35 franchised Clean Juice stores that were open for the entire 2019 calendar year and did not change ownership within the 2019 calendar year
- 2019 average, median, high, and low gross sales and gross profit for the top 10%, top 25%, top 50%, top 75%, bottom 10%, bottom 25%, bottom 50%, bottom 75%, and all 5 affiliate-owned Clean Juice stores that were open for the entire 2019 calendar year and did not change ownership within the 2019 calendar year
Section I – Background Information
22 Things You Need to Know About the Clean Juice Franchise
Launches New Mobile App
1. In July 2020, Clean Juice launched its new branded consumer app in partnership with Lunchbox, the rapidly growing omnichannel platform for restaurants based in New York City. The new Clean Juice app was created as part of the company’s dedicated and continued commitment to offer a superior, simple, and engaging guest experience unified across in-store and digital channels.
2. The new Clean Juice app features a centralized hub for:
- Pre-ordering menu items for curbside pick-up and for the first time, delivery;
- Earning, tracking, and redeeming loyalty points in an enhanced rewards platform, with more incentives to its Very Important Guests (VIGs);
- Accessing nutritional and educational information on the importance of eating organic, including a direct link to the company’s popular Be Organic podcast;
- Catering offerings and donating to local causes.
3. B. Quick Chadwick, vice president of marketing for Clean Juice, said, “The new Clean Juice guest app is built on a superior technological platform that not only engages and empowers our guests, but it will also help us offer more services and opportunities to get healthy certified-organic products into their hands. It’s more than just a rewards app; it’s a ‘Cultural Hub’ with a suite of services focused on providing educational content on the benefits of eating organic and accessing our healthy superfoods.”
4. In less than 30 days, the new Clean Juice app had more than 72k+ downloads, improved its consumer ranking to a 4.9 out of 5 on the Apple app store, and has equaled or surpassed sales levels from the previous platform. The company is generating dozens of delivery orders per day with a $45 average ticket through its app, all incremental dollars to the business.
5. Nabeel Alamgir, co-founder and CEO of Lunchbox, said, “Clean Juice is a dream partner. They are a crew of skilled operators and sharp-minded marketers that have a clear vision for redefining what it means to educate and interact with guests. We’re pumped to see this partnership flourish!”
6. This new app offers a centralized ordering and delivery process to ensure guests can enjoy the full range of the company’s menu while social distancing. The app features an enhanced rewards program (with more changes to continuously come) that gives guests more opportunities to earn and redeem rewards while keeping them within Clean Juice’s digital real estate.
7. Chadwick added, “Frankly, the best is yet to come with this app. We cast a vision for this app, and what guests see now is just the beginning of a continuous focus on building on what we have.”
8. Clean Juice partnered with Lunchbox to be able to orchestrate all these services and seamlessly integrate with strategic partnerships like Toast point-of-sale system, DoorDash third-party delivery, GatherUp review management, and several more. Lunchbox offers a competitive standard fee based on the services restaurants would like to include. This allows restaurants to benefit from the value these services provide while also keeping operational costs down.
Appoints New Chief Operating Officer
9. In late August 2020, Clean Juice welcomed Amanda Hall as its new chief operating officer. Hall will be in charge of operational business development, leading Clean Juice’s massive expansion plans across the United States. She is a veteran business development professional with noted experience in franchise expansion. Hall most recently served as the senior vice president of franchise operations for Burn Boot Camp in Huntersville, North Carolina.
10. Since 2016, she led the Burn Boot Camp team in laying the foundation toward massive growth. Hall created and launched a scalable and efficient model for growing the brand from 16 to 270 gyms. During her tenure, Burn Boot Camp awarded approximately 400 new gyms across 38 states.
11. Hall said, “As an avid believer in health and wellness programs personally and professionally, and accustomed to working with an emerging franchise, I am super excited to join the Clean Juice team. The Clean Juice mission of ‘Healthy in Body, Strong in Spirit’ is a core value I share with the brand and the amazing staff, and I am passionate about sharing the health benefits of consuming clean, organic, immunity-boosting foods with communities across this nation.”
12. From a leadership development standpoint, Hall will be tasked with re-imagining the foundational structure to support the implementation of scalable and efficient models, ushering in an exciting era of massive growth for the Clean Juice brand. Already at more than 100 open stores in less than four years of franchising, Hall envisions hundreds of units and beyond based on her professional experiences and drive. Her goals not only focus on location growth but mentoring and creating a team of health-minded professionals to take Clean Juice into the next era of its amazing story.
13. Landon Eckles, CEO of Clean Juice, said, “Kat, I, and the entire Clean Juice family are thrilled to have Amanda join us as our new Chief Operating Officer. Amanda brings a dynamic energy to an already passionate team of professionals, and we look forward to working with her as we enter an exciting new era of growth.”
Launches ‘Quarters for Kids’ Program
14. In late October 2020, Clean Juice announced the launch of its latest cause marketing program called Quarters for Kids, a nationwide initiative to help underprivileged children become “healthy in body and strong in spirit.” In partnership with the Make an Impact Foundation (MAIF), the Quarters for Kids program aims to serve children in all communities in which Clean Juice operates through a project platform. The projects will aim to educate and provide access to nutrition, organic food, and other related health and wellness initiatives.
15. The Quarters for Kids program invites millions of Clean Juice guests to contribute by adding a quarter to their final check at the point of sale. Quarters can be added in-store or through the Clean Juice app.
16. According to Kat Eckles, co-founder of Clean Juice, “Clean Juice is more than a restaurant for us. It is an investment in the communities where we live, work, play, and raise our families. Our mission is to provide tangible community impact programs one quarter at a time to enrich the lives of children and create educational opportunities to learn and grow.”
17. The first Quarters for Kids project involved the development of a children’s playground and renovation of a community sports field/courts at the Huntington Green neighborhood in Huntersville, a suburb of north Charlotte. Team members from the Clean Juice corporate office visited the site on several occasions to personally contribute to the buildout.
18. Clean Juice plans to allow its franchise partners to submit project proposals for Quarters For Kids that directly impact their local community and organizations. This allows passion projects all over the country to come to fruition thanks to the funds raised by the program.
19. Eckles added, “Your environment is just as important to your health as your food. We want to be hands-on in showing care for the children of our community, ensuring they have a safe and healthy space to grow and learn.”
20. Deborah McKee, account executive with MAIF, said, “We are proud to partner with the Clean Juice family toward enhancing children’s lives and creating programs that promote the education and well-being of children. Healthy in body and strong in spirit is a shared value of the Make an Impact Foundation and Clean Juice, and we are excited to strengthen communities across the nation built on the generosity of Clean Juice guests and staff.”
21. The Make An Impact Foundation, a nonprofit 501(c)(3), partners with businesses to extend their corporate philanthropy goals by developing projects for kids and communities nationwide. MAIF is partnering with Clean Juice to help underprivileged children in the community not only survive but thrive in ways they never thought possible. The Quarters for Kids program launched nationwide on November 1, 2020, in the spirit of Thanksgiving.
22. Clean Juice was founded in 2014 by husband and wife team, Landon and Kat Eckles, in Charlotte, North Carolina. After spending years traveling together, the Eckles were ready to settle down and wanted to start their own business. Kat Eckles had been making her own smoothies and juices for years and felt that there was an opportunity to open a juice bar in the Charlotte area. The Eckles opened the first Clean Juice bar on June 5, 2015, the couple’s 8th wedding anniversary.
23. Following the success of the first Clean Juice location, the Eckles opened a second location in South Carolina in early 2016. By that summer, the Eckles were ready to start franchising the Clean Juice concept and quickly signed several franchising agreements. By 2018, Clean Juice had over 100 franchise units in operation or in development. Today, there are Clean Juice bars in more than 16 states.
Entrepreneur’s Franchise 500
24. Clean Juice ranked No. 154 on Entrepreneur’s 2021 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 2020 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 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 13
- Net Change: +13
- Outlets at the Start of the Year: 13
- Outlets at the End of the Year: 47
- Net Change: +34
- Outlets at the Start of the Year: 47
- Outlets at the End of the Year: 71
- Net Change: +24
- Outlets at the Start of the Year: 4
- Outlets at the End of the Year: 6
- Net Change: +2
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 7
- Net Change: +1
- Outlets at the Start of the Year: 7
- Outlets at the End of the Year: 12
- Net Change: +5
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
- The following charts include data from all of Clean Juice’s franchised and affiliate-owned (“corporate”) stores that were open for the entire 2019 calendar year that did not change ownership within the 2019 calendar year.
- There were 40 outlets open for the entire fiscal year that did not change ownership. Of these 40 stores, 35 of them were owned by franchisees and 5 were owned by Clean Juice’s affiliates.
A. Franchised Units