Two Jamba Juice drinks - Intro to Jamba Juice franchise brand

Since it began franchising in 1991, the Jamba Juice brand has grown to include 750 locations across the U.S. It remains an ever-expanding domestic and international (with master development franchising rights) opportunity for those interested in becoming part of a “better-for-you” brand.

As the brand has expanded, so has their menu offering. Known for their blended juice beverages, Jamba Juice now offers a wide selection of smoothies, juices, wraps, flatbreads, and sandwiches. While they’re already well-recognized for their nutritional offerings, the quick-service restaurant has continued to expand their menu in this regard by including items such as Greek yogurt, steel-cut oats, and “drinkable meals.”

So, how does all this translate into a viable opportunity for a potential franchisee? Let’s look at the Jamba Juice franchise offering in more detail.

What's It Going to Cost You?

The best place to start is with the cost, as that’s the first question prospective franchisees always have. Jamba Juice offers traditional, non-traditional and kiosk units, but for the purposes of this article, we’ll include costs associated with a standard, traditional location. Jamba Juice requires its franchisees to have between $80,000 and $100,000 in liquid assets, with a $250,000 to $300,000 net worth per store. They have this requirement in place so each location will be appropriately funded, but it also offers room for growth if a franchisee wants to open additional locations.

There is a $25,000 franchise fee, a base royalty fee of 6 percent (with a 0.5 percent reduction on that fee for franchisees with four or more stores), and a marketing fee of 2 to 4 percent. The total investment for one of the traditional units ranges from just under $350,000 to $619,000 for an average-sized location (1,200 square feet). The term of the franchise agreement is 10 years, with the option to renew twice.

Training and Support

Training for a new Jamba Juice franchisee is extensive, thanks to a full-time training program that lasts four to six weeks, and covers the ins and outs of running a successful location by capitalizing on the franchise’s support and supply chain. Once that initial training is complete, the Regional Franchise Leader will provide ongoing guidance and direction.

Becoming a Jamba Juice Franchisee: The Basics

  • Franchisees must have between $80,000 and $100,000 in liquid assets, with a $250,000 to $300,000 net worth per store
  • There is a $25,000 franchise fee, a 6 percent base royalty fee (0.5 percent waived for franchisees with more than four stores), and a marketing fee between 2 and 4 percent
  • The total investment for a traditional unit ranges from just under $350,000 to $619,000 for an average location of 1,200 square feet
  • The franchise agreement lasts 10 years, with the option of renewing twice
  • Training lasts four to six weeks, and following that, franchisees receive ongoing support from the Regional Franchise Leader

The Brand's Long-Term Growth Strategy

With the celebration of their 25th anniversary last year, Jamba Juice launched an aggressive expansion initiative by offering “a 50% reduction in initial franchise fees and a three-year graduated royalty reduction plan.” Jamba Juice CEO James White says, as reported by Entrepreneur.com, “We thought [this offer] would be a great way for us to launch what we view as the most significant growth-initiative franchising incentive plan in the history of the brand.”

This initiative has been only one part of the brand's long-term growth strategy. The other significant shift they made in recent years, in order to increase their category dominance, was to shift from mainly corporate-owned locations to predominantly franchisee-owned locations.

Good Times Ahead

The Jamba Juice brand is poised for continued growth, both domestically and abroad, and consumer preferences for healthier, fast, and portable food and beverage offerings will ensure that the chain is around for many more years.

To stay up to date on the latest franchise news, to learn more about franchising or a particular franchising opportunity, and to gain access to our complimentary collection of Franchise Disclosure Documents, sign up for your free membership to Birkhoff Research Group»
 

image: Zach Dischner (Creative Commons BY)
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