In this FDD Talk post, you’ll learn the following:
- Section I – Estimated initial investment (franchise costs) for a Jamba franchise, based on Item 7 of the company’s 2022 FDD
- Section II – Initial franchise fee, royalty fee, and marketing fee for a Jamba franchise, based on Items 5 and 6 of the company’s 2022 FDD
- Section III – Number of franchised and company-owned Jamba outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD
- Section IV – Background information on the Jamba franchise opportunity, including relevant news updates
- Section V – Presentation and analysis of Jamba’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:
- 2021 average, median, highest, and lowest net sales, by quartile for the 539 traditional Jamba franchises that reported sales in all 52 weeks of fiscal year 2021 and were owned by the same owner throughout fiscal year 2021
- Section VI – Key ratios, comparables, computations, and analyses for the Jamba franchise opportunity (exclusive content for Platinum subscribers)
Section I – Jamba Franchise Costs
- Jamba franchise costs (traditional store without a drive-thru), based on Item 7 of the company’s 2022 FDD:
- Initial Franchise Fee: $35,500
- Construction and Build Out Costs: $194,600 to $262,250
- Permitting: $500 to $5,700
- Equipment Package: $34,000 to $110,000
- Millwork: $22,000 to $43,000
- Furniture: $950 to $2,000
- Menu Board, Graphics, and Interior Signage: $2,000 to $3,500
- Exterior Signage: $6,500 to $10,800
- Computer System: $8,600 to $24,000
- TV/Music: $0 to $3,500
- Architect/Engineer: $11,000 to $19,000
- Rent: $4,000 to $10,000
- Grand Opening Marketing: $10,000 to $12,000
- Legal and Accounting Fees: $5,000 to $10,000
- Insurance: $5,000 to $15,000
- Miscellaneous Opening Costs/Office Supplies: $9,000 to $14,000
- Security Deposits: $0 to $15,000
- Training and Support Fees: $0 to $7,500
- Travel and Living Expenses During Training: $10,000 to $25,000
- Opening Inventory: $5,000 to $10,000
- Additional Funds for 3 Months: $15,000 to $40,000
- Total Estimated Jamba Franchise Costs: $378,650 to $677,750
Section II – Jamba’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Jamba’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:
- Initial Franchise Fee: $9,250 to $35,500
- Royalty Fee: 6% of Net Sales for all Stores, except: (i) 7% of Net Sales for Robotic Kiosks and (ii) 6% of Net Sales for Auntie Anne’s Co-Branded Stores, which Jamba may increase in its sole discretion up to 7% of Net Sales
- Advertising Contribution: 3% of Net Sales, which Jamba may increase in its sole discretion up to 4% of Net Sales for all Stores, except 1% of Net Sales for Robotic Kiosks
- Advertising Cooperative Contribution: an amount set by your Advertising Cooperative
- Local Marketing Obligation: each calendar quarter, you must spend not less than 1% of Net Sales on local market advertising
Section III – Number of Franchised and Company-Owned Jamba Outlets
- Outlets at the Start of the Year: 719
- Outlets at the End of the Year: 777
- Net Change: +58
- Outlets at the Start of the Year: 777
- Outlets at the End of the Year: 762
- Net Change: -15
- Outlets at the Start of the Year: 762
- Outlets at the End of the Year: 747
- Net Change: -15
- Outlets at the Start of the Year: 52
- Outlets at the End of the Year: 2
- Net Change: -50
- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 5
- Net Change: +3
- Outlets at the Start of the Year: 5
- Outlets at the End of the Year: 3
- Net Change: -2
Section IV – Background Information on the Jamba Franchise
19 Things You Need to Know About the Jamba Franchise
Debuts Robotic Smoothie Kiosk
1. In early October 2021, Jamba and Blendid announced the opening of the second Jamba by Blendid pilot location, now open at the Stonewood Center in Downey, CA. Building on the successful 2020 opening of the first Jamba by Blendid in Dixon, CA, this is the next step in the effort to open Jamba by Blendid kiosks in additional types of venues – from big box retailers and shopping malls to gyms, hospitals, and college campuses.
2. Geoff Henry, president of Jamba, said, “After a successful launch of our first Jamba by Blendid kiosk, we’re excited to open a second test kiosk at the Stonewood Center, bringing freshly blended smoothies to mall shoppers. Jamba by Blendid provides an opportunity for our local franchisees to make smoothies more accessible to Jamba fans, while leveraging the latest in technology to deliver contactless food.”
3. Blendid offers an innovative, autonomous, and contactless food automation platform that leverages machine learning, robotics, and artificial intelligence to create food options made on-demand and customized to meet the lifestyle and taste preferences of individual consumers.
4. In partnering with Jamba, a global lifestyle brand leader known for serving on-the-go freshly blended smoothies, juices, bowls, and shots, the success of the first Jamba by Blendid location demonstrated the increasing industry and consumer demand for fresh, contactless food options on-the-go. New locations like the Stonewood Center will help the companies fully leverage the latest advances in consumer robotics to continue to drive the future of dining.
5. According to Vipin Jain, co-founder and CEO of Blendid, “At Blendid, we are working to make delicious and customized food accessible to all through robotics and AI. It is thrilling to see our vision become a reality as we build out our Jamba by Blendid footprint and expand into new types of venues like shopping malls. Our first Jamba by Blendid pilot location in Dixon, CA allowed us to prove that, working together with Jamba, our platform can provide the quality guest experience, amazing smoothies and reliability that live up to the Jamba brand. Seeing families and friends engage with the Jamba by Blendid kiosk at Walmart at all hours of a day has been very satisfying for us. Now, we’re ready to accelerate our growth plans and open even more successful locations in the months and years ahead.”
6. At launch, the kiosk in Stonewood Center will offer seven delicious plant-forward smoothies, as well as Jamba’s popular Boosts. They are available in 14 oz. servings and can include one boost for no additional charge. The second Jamba by Blendid test kiosk is located inside the Stonewood Center at 215 Stonewood Street, Downey, CA 94021. It will be open seven days a week following the Stonewood Center mall hours, which vary by day of the week. Guests can place orders in person at the kiosk or they can order ahead with the Blendid app on Android or iOS.
Offers New Plant-Based Options
7. At the beginning of January 2022, Jamba introduced a new plant-based smoothie, The Go Getter. The citrus and tropical flavored beverage is blended with matcha green tea, a vegetable and fruit juice blend, mangoes, kale, and orange juice. With at least three full servings of vegetables in each smoothie, The Go Getter provides an excellent source of vitamins A and C, which are both antioxidants that help to support immunity.
8. Danielle Fisher, vice president of marketing for Jamba, said, “For some, it’s natural to be motivated to start the new year fresh, but the challenge is staying committed to a sustainable plan that will help us reach our goals long-term. With The Go Getter, Jamba fans can jumpstart their 2022 routines in a way that’s easy, convenient, delicious, and portable. While consumers often think green drinks can’t be delicious, The Go Getter tastes great and is packed with immunity boosting vitamins A and C, which are especially important during the winter months.”
9. The Go Getter was available for purchase in-store, via the Jamba app, or through third-party delivery, through April 11, 2022. Along with The Go Getter, Jamba guests have a variety of options to help them on their wellness journey including ready-to-drink shots featuring Ginger, Turmeric, and Wheatgrass, and free functional boosts that can be added to the smoothie of their choice, which help to support overall wellness needs like immunity, protein, and energy.
10. In addition to helping its fans on their wellness journeys in 2022, Jamba is also expanding its list of beverage choices. Now back by popular demand, the Gotcha Matcha and Bold ‘n Cold Brew iced beverages topped with a plant-based sweet cloud whip foam topper, will be featured on the menu permanently. Paired with Jamba’s Handwiches, including the Impossible Handwich, and Spring Veggie Egg Bake, Gotcha Matcha and Bold ‘n Cold Brew give Jamba fans a complete breakfast offering at Jamba locations nationwide.
Expands Pilot Launch of Robotic Smoothie Kiosks to Colleges and Universities
11. In mid-February 2022, Jamba and Blendid announced the addition of two new Jamba by Blendid autonomous robotic kiosk locations. The new locations at Georgia College in Milledgeville, Georgia and Kennesaw State University in Marietta, Georgia mark the first Jamba by Blendid openings on college campuses, expanding beyond the current pilot locations in a shopping mall and big box retailer. This is a significant step as Jamba and Blendid continue to explore opportunities to open more Jamba by Blendid kiosks in a variety of non-traditional venues, including gyms, hospitals, airports, and more.
12. Geoff Henry, president of Jamba, said, “Since the beginning, we have wanted to test the Jamba by Blendid kiosks on college campuses. We know there is increasing demand for more ways to access our products and by introducing our robotic kiosks at colleges and universities across the country, we are making it even easier for consumers to enjoy smoothies 24/7. It has been rewarding to see guests engage enthusiastically with our kiosks, and we are looking forward to speaking with future operators who are interested in testing with us and learning more about the opportunity.”
13. As a global lifestyle brand leader known for serving on-the-go freshly blended smoothies, juices, bowls, and shots, Jamba has witnessed increased demand for additional ways to access everything that the brand has to offer. Using Blendid’s innovative, autonomous, and contactless food automation platform, Jamba by Blendid leverages machine learning, robotics, and artificial intelligence to create easily accessible nutritious food options made on-demand and customized to meet the lifestyle and taste preferences of individual consumers. Adding Jamba by Blendid kiosks on college campuses gives on-the-go students, staff, and faculty members easy access to get high-quality, fresh smoothies in a way that seamlessly fits in to their busy schedules, no matter the time of day.
14. Vipin Jain, co-founder and CEO of Blendid, said, “By utilizing robotics and AI technology, we can achieve our team’s mission to make delicious and customized food accessible to all. We’re thrilled to have accomplished this at the first two Jamba by Blendid pilot locations, and the positive guest feedback validates the potential of our robotic kiosks at a variety of different locations across the country. We look forward to learning how these new campus communities utilize the kiosks as we pursue additional opportunities in similar settings.”
15. Jamba, formerly Jamba Juice, was founded in 1990 by Kevin Perron in San Luis Obispo, California. Perron opened a juice shop as his senior project while attending California Polytechnic State University. The juice bar was a hit from the start and by the end of the second year in operation, Perron wanted to expand. Initially, Perron wanted to open additional company-owned stores but he was unable to secure a loan. So, he pivoted to franchising and the first franchise opened in 1994 in Irvine, California.
16. Not long after he began franchising Jamba, Perron met venture capitalist Bob Kagle as well as Howard Schultz, who was the chairman and CEO of Starbucks at the time. Through these connections, Perron was able to raise tens of millions of dollars to invest in Jamba. Over the next few decades, Jamba Juice continued to grow around the country, and even acquired Zuka Juice in 1999.
17. Over the next decade, Jamba continued to grow around the U.S. In 2006, Jamba was acquired by Services Acquisition Corp. International for $265 million. Under the new leadership, Jamba expanded its offerings beyond smoothies and juices. The company added food items like sandwiches, wraps, and salads to its menu.
18. Jamba continued its growth into the 2010s and in 2018, the company was acquired by Atlanta-based Focus Brands, which also owns Schlotzsky’s, Carvel, Cinnabon, Moe’s Southwest Grill, McAlister’s Deli, and Auntie Anne’s. Today, there are Jamba locations in more than 36 states and internationally in Japan, the Philippines, Taiwan, South Korea, Thailand, and Indonesia.
Entrepreneur’s Franchise 500
19. Jamba ranked No. 189 on Entrepreneur’s 2022 Franchise 500 list.
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Jamba Franchise (Item 19, 2022 FDD)
- This Item 19 presents information about the financial performance during Fiscal Year 2021 (the fiscal year ended December 26, 2021) of certain Traditional Franchises that were eligible franchises in Fiscal Year 2021.
- A “Traditional Franchise” is a Traditional Store that is operated by a franchisee.
- An “eligible franchise” is a franchise that reported sales in all 52 weeks of Fiscal Year 2021 and was owned by the same owner throughout Fiscal Year 2021.
- This Item 19 does not include data related to (i) Non-Traditional Stores; (ii) Food Trucks; (iii) Robotic Kiosks; (iv) Co-Branded Stores; (v) affiliate-owned Stores; and (vi) Traditional Franchises that were not eligible franchises in Fiscal Year 2021.
- The financial performance and operations of these excluded Stores can vary significantly from the performance and operations of the Traditional Franchises that are represented in this Item 19.
Average Net Sales by Quartile for Traditional Franchises for Fiscal Year 2021
- Average Net Sales: $1,157,600
- Number and Percentage of Stores Attaining or Exceeding Average Net Sales: 52/135 (39%)
- Median Net Sales: $1,113,249
- Lowest Net Sales: $915,125
- Highest Net Sales: $2,155,922
- Average Net Sales: $804,256
- Number and Percentage of Stores Attaining or Exceeding Average Net Sales: 67/135 (50%)
- Median Net Sales: $801,694
- Lowest Net Sales: $708,396
- Highest Net Sales: $913,039
- Average Net Sales: $633,981
- Number and Percentage of Stores Attaining or Exceeding Average Net Sales: 67/134 (50%)
- Median Net Sales: $633,870
- Lowest Net Sales: $551,563
- Highest Net Sales: $708,088
- Average Net Sales: $419,480
- Number and Percentage of Stores Attaining or Exceeding Average Net Sales: 76/135 (56%)
- Median Net Sales: $432,474
- Lowest Net Sales: $44,663
- Highest Net Sales: $549,598
- Average Net Sales: $754,052
- Number and Percentage of Stores Attaining or Exceeding Average Net Sales: 233/539 (43%)
- Median Net Sales: $708,396
- Lowest Net Sales: $44,663
- Highest Net Sales: $2,155,922
- As of December 26, 2021, there were 593 Traditional Franchises. Of those 593 locations, 539 (90.9%) Traditional Franchises are represented in this table.
- This table does not include (i) 15 Traditional Franchises that did not report sales in all 52 weeks of Fiscal Year 2021, (ii) 13 Traditional Franchises that transferred ownership during Fiscal Year 2021, (iii) 22 Traditional Franchises that opened during Fiscal Year 2021, and (iv) four Traditional Franchises that were Co-Branded Stores (including one Traditional Franchise that converted to a Co-Branded Store during Fiscal Year 2021).
- This table also does not include 15 Traditional Franchises that permanently closed during Fiscal Year 2021, all of which had been open for at least 12 months prior to closing.
- No Traditional Franchises were reacquired by Jamba in Fiscal Year 2021.
- Some Restaurants have sold or earned this amount. Your individual results may differ. There is no assurance that you’ll sell or earn as much.
- “Net Sales” includes all revenues generated by a Store or conducted from or with respect to a Store, whether the sales are evidenced by cash, check, credit, charge, account, barter, or exchange, but does not include (a) the initial sales or reloading of gift cards, (b) discounts, (c) the sale of food or merchandise for which refunds have been made in good faith to customers, (d) the discounted portion of employee meals, (e) sales, meals, use, or excise tax imposed by a governmental authority directly on sales and collected from customers, provided that the amount for the tax is added to the selling price or absorbed therein and is actually paid by you to a governmental authority, (f) the sale of equipment used in the operation of the Store, or (g) tips.
- These sales figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the Net Sales figures to obtain your net income or profit.
- Jamba calculated the figures in the tables in these financial performance representations using financial reports submitted by franchisees. Jamba has not audited or independently verified these financial reports nor has it asked questions of the submitting franchisees to determine whether they are in fact accurate and complete, although it has no information or other reason to believe that they are unreliable. No certified public accountant has audited these figures or expressed his or her opinion concerning their content or form.