FDD Talk: How Much Does a Nékter Juice Bar Franchise Make (Average Revenues and/or Profits)?

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 2021 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 2021 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 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Nékter Juice Bar’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 average, median, highest, and lowest gross sales for the 94 Nékter Juice Bar franchise locations that have been open and operating for at least one full calendar year without any transfers of controlling interest and are a typical Nékter Juice Bar franchised location

Section I – Background Information

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

Experienced Record-Setting Sales Growth

1.  In late June 2021, Nékter Juice Bar emerged an even stronger and resilient company, despite the challenges of the past two years, and in the process experienced record-setting sales growth with year-to-date companywide sales increasing by more than 50% versus 2020. Moreover, Nékter’s comparable store sales grew by nearly 40% compared to 2020 and were up by approximately 8% over the first quarter of 2019.

2.  Steve Schulze, co-founder and CEO of Nékter Juice Bar, said, “By staying true to our mission and never compromising the overall guest experience, Nekter Juice Bar continues to realize tremendous growth across the board. At just the half-way mark in 2021, we are beating pre-pandemic sales metrics, but what’s even more important is that we are strengthening and forging bonds with our guests, who know that at Nekter, we never yield our high-quality standards.”

3.  Schulze also attributes this impressive sales growth to increased operational efficiencies, a best-in-class training platform, strong partnerships with third-party delivery providers, and to its franchise partners, who rallied and adapted quickly to bolster and boost accessibility and convenience. With nearly 1 million users, Nekter’s mobile ordering and rewards app also played a critical role in last year’s achievements.

4.  Schulze added, “Our team was able to leverage proprietary artificial intelligence technology to optimize our menu while improving the overall guest experience too. We have been able to decrease lead times by 62% during the past five years and we expect to improve on that by another 23% this year.”

5.  Now with 170 locations across the country, Nékter continues to be positioned well for continued expansion. In 2020, Nékter opened 14 new locations, many of them in new markets including Billings, Montana; Cincinnati, Ohio; Lake Forest Park and Seattle, Washington; Castle Rock, Colorado; Eastlake and Clovis, California; and Boise, Idaho. Looking forward, Nékter has 200 additional locations in the pipeline with plans to open in major new markets such as Chicago; Northwest Indiana; San Antonio, Texas; and Birmingham, Alabama.

6.  Nekter’s success continues to bring the brand significant awards, including once again being named to Entrepreneur magazine’s 2021 Top Food Franchises list, and earning a spot on the Inc. 5000 Honor Roll, reserved only for companies named to the Inc. 500 at least five times. Since opening its first location in 2010, Nékter has received tremendous recognition from multiple business and restaurant industry authorities, such as Franchise Times, Nation’s Restaurant News, QSR Magazine, Restaurant Business, and more.

Adds Several New Permanent Items to Menu Along with Seasonal Fan Favorites

7.  Nékter Juice Bar pulled out the stops last summer, doubling down on immunity, functionality, and flavor with several new permanent additions to its menu plus the return of two seasonal fan favorites. Now available at all Nékter Juice Bars across the country is a brand new, protein-rich breakfast smoothie, the PB Mocha Smoothie, and two new refreshing fresh juices, Celery Aide and Recovery, each crafted for optimal health benefits with powerful nutrients and antioxidants and anti-inflammatory properties to help boost the immune system.

8.  Nékter has also permanently added its layered Immunity Bowl to its menu, which quickly became one of the brand’s best-selling bowls the previous summer.

9.  If that wasn’t enough, this past summer Nékter also offered several limited-time specials including two new delicious and satisfying plant-based bowls, the Tropical Citrus Bowl and the Pineapple Coconut Bowl, both created to refresh and re-energize. Nékter also brought back its wildly popular, nutrient-dense, and “heart-happy” Watermelon Berry Smoothie and Watermelon Cooler Juice. All four seasonal specials were available until September 9.

10.  According to Steve Schulze, CEO of Nékter Juice Bar, “We’ve spent the past 18 months diving deep into nutrition trends and opportunities, leading to one of the most meaningful and impactful menu upgrades in many years. Just as we did 10 years ago, we continue to drive innovation and fill a gaping hole in our market for nutritious offerings that genuinely and purposefully support the health of our guests. Our new menu is now more essential and relevant than ever and honestly one of our best summer menus yet for those seeking to boost their health and overall wellness.”

11.  Along with dozens of other fan-favorite freshly made juices, Superfood smoothies, acai bowls, cold-press juices, cleanses, and more, Nékter’s offerings for summer included:

• The PB Mocha Smoothie: A functional smoothie with 40 grams of protein and naturally high in fiber, copper, and iron with an abundance of macro and micro nutrients such as vitamins C, B-3, B-6, and K plus calcium, phosphorous, magnesium, zinc, and manganese. Made with Nékter’s proprietary house-made cashew milk that is prepared fresh daily, cold brew coffee, vanilla protein, whey protein, cacao nibs, peanut butter, banana, and agave.

• Celery Aide Fresh Juice: A refreshing and rejuvenating blend of celery, lemon, and green apple serving as an excellent source of potassium and vitamin C. Low in fat and cholesterol for added health benefits.

• Recovery Fresh Juice: A citrusy and earthy blend of beet, celery, kale, ginger, and orange, and high in potassium, vitamins C and K with beneficial amounts of iron, copper, vitamin B-1, and folate, while also being low in fat and cholesterol.

• Tropical Citrus Bowl: A refreshing blend of spinach, pineapple, acerola cherry, banana, and orange juice, and topped with vanilla coconut yogurt, hempseed granola, fresh banana, pineapple, and coconut flakes. High in fiber and vitamins A and C.

• Pineapple Coconut Bowl: An invigorating fusion of pineapple and coconut topped with hempseed granola, fresh pineapple, and coconut flakes. Rich in prebiotics, probiotics, and Vitamin C.

Company History

12.  Nékter Juice Bar was founded in 2010 by Alexis Schulze and her ex-husband Steve in Costa Mesa, California. Alexis Schulze had grown up as a vegetarian, but she admitted that she didn’t actually like the vegetables she ate as a child because she felt forced to eat them. As a young adult, Schulze began making her own juices as part of her fitness regimen. She felt that not only did her juices taste really good, they boosted her overall health. Schulze wanted to share her juices with others and the idea for Néketer Juice Bar was born.

13.  The first Nékter Juice Bar was a hit and franchising was launched two years later. Within a few years, Nékter grew to a few dozen locations along the West Coast. Today, Nékter has locations open in California, Arizona, Nevada, Texas, Utah, Colorado, Washington State, and North Carolina.

14.  The brand has a goal of expanding nationally and opening 425 locations by 2022. Within the next few years, Nékter will open in Atlanta, Central California, Chicago, Florida, Louisiana, New Mexico, South Carolina, Ohio, Tennessee, Tucson, and the Washington D.C.-Maryland-Virginia metropolitan area. Although Schulze and her husband have separated, they still run Nékter together.

Entrepreneur’s Franchise 500

15.  Nékter Juice Bar ranked No. 100 on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of Nékter Juice Bar franchise costs, based on Item 7 of the company’s 2021 FDD.

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

• 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 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  51
• Outlets at the End of the Year:  80
• Net Change:  +29

2019

• Outlets at the Start of the Year:  80
• Outlets at the End of the Year:  116
• Net Change:  +36

2020

• Outlets at the Start of the Year:  116
• Outlets at the End of the Year:  115
• Net Change:  -1

Company-Owned

2018

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

2019

• Outlets at the Start of the Year:  46
• Outlets at the End of the Year:  43
• Net Change:  -3

2020

• Outlets at the Start of the Year:  43
• Outlets at the End of the Year:  33
• Net Change:  -10

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• There were a total of 116 Nékter Juice Bar Stores owned and operated by franchisees as of January 1, 2020. Of these 116, 94 franchise locations have been open and operating for at least one full calendar year without any transfers of controlling interest and are a typical Nékter Juice Bar franchised location. Those 94 franchise locations are the ones included in the averages in the chart below.

Franchised Store Gross Sale Averages and Medians Per Quintile (2020)

Quintile 1

• Average Gross Sales:  $908,906
• Median Gross Sales:  $834,629
• Total Stores in Quartile:  18
• Number and Percent That Met or Exceeded Average:  7/38.89%
• Highest Gross Sales:  $739,446
• Lowest Gross Sales:  $1,333,623

Quintile 2

• Average Gross Sales:  $639,730
• Median Gross Sales:  $635,832
• Total Stores in Quartile:  19
• Number and Percent That Met or Exceeded Average:  9/47.37%
• Highest Gross Sales:  $574,495
• Lowest Gross Sales:  $739,334

Quintile 3

• Average Gross Sales:  $529,415
• Median Gross Sales:  $525,799
• Total Stores in Quartile:  19
• Number and Percent That Met or Exceeded Average:  8/42.11%
• Highest Gross Sales:  $487,137
• Lowest Gross Sales:  $573,396

Quintile 4

• Average Gross Sales:  $417,359
• Median Gross Sales:  $439,434
• Total Stores in Quartile:  19
• Number and Percent That Met or Exceeded Average:  10/52.63%
• Highest Gross Sales:  $330,163
• Lowest Gross Sales:  $486,587

Quintile 5

• Average Gross Sales:  $244,012
• Median Gross Sales:  $252,718
• Total Stores in Quartile:  19
• Number and Percent That Met or Exceeded Average:  12/63.16%
• Highest Gross Sales:  $126,861
• Lowest Gross Sales:  $321,986

• Beginning in March of 2020, the COVID-19 virus had spread across the United States and various state and local government authorities ordered that individuals shelter-in-place and leave their homes only for essential or other limited circumstances.

• Nékter Juice Bar Stores were deemed to be essential businesses and were allowed to remain open, although government orders restricted operations of the Stores to carryout and delivery services only.

• As a result of these orders, however, as well as due to public caution regarding the spread of COVID-19, Stores generally experienced a decline in Gross Sales, in particular during the first half of 2020.

• No state, county, or city in which Nékter Juice Bar’s franchisees are located imposed exactly the same operational or shelter-in-place restrictions, however, and as a result, each Store in the System may have operated only to the extent permitted by law, and each for varying periods of time.

• As a result, then, of the COVID-19 virus, related government orders, and resulting public behavior, Gross Sales of franchisee Stores were impacted.

• Some Stores have sold this amount. Your individual results may differ. There is no assurance that you will sell as much.

• Gross Sales for franchised Stores are those calculated in accordance with the definition included in each respective franchisee’s Disclosure Document and Franchise Agreement, which are the same or similar to the definition in the 2021 Disclosure Document.

• The majority of Nékter Juice Bar’s 116 franchise Stores, including those 94 whose financial information has been disclosed above, are located primarily in California, Arizona, Florida, and Texas, where there are long warm summers and mild winters. Also, with respect to the Stores located in California, the state’s culture places an importance on health and nutrition.

• The financial information is taken from unaudited financial information provided to Nékter by its franchisees and online ordering service providers. It has not been independently audited.

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