fbpx

Healthy Food & Beverage Franchise: Jamba Review (2020 FDD)

Source: 2020 Jamba Franchise Disclosure Document (FDD)

What is Jamba?

 

Jamba branded stores have a wide variety of fresh, blended-to-order smoothies and other cold or hot beverages and offering fresh squeezed juices and portable food items for snacks and meals. There are three types of Stores: A Traditional Store, a Non-Traditional Store and a Food Truck.

The CEO is James Holthouser and Jim has been the Chief Executive Officer since February 2020. Jamba is a wholly owned subsidiary of Focus Brands LLC, a Delaware limited liability company (“Focus Brands”).

The company offered franchises under the Jamba Juice® trademark from October 2018 to June 2019. In June 2019, we began offering franchises under the Jamba® trademark.

As of December 31, 2019, there were about 777 franchised Stores in the United States and 62 franchised Stores outside the United States.

Initial Franchise Fee:

Traditional / Non-Traditional Store: $35,000

Food Truck: $10,000

Jamba Juice Franchise Cost:

Traditional / Non-Traditional Store: $290,450 – $560,500

Food Truck: $164,750 – $301,500

Additional Cost Breakdown:

This is an example of costs for a traditional store which ranges from $290,450 – $560,500

  • Initial Franchise Fee: $35,000
  • Construction and Build Out Costs: $101,500 – $204,000
  • Permitting: $500 – $1,000
  • Equipment Package: $47,500 – $90,000
  • Millwork: $13,000 – $15,000
  • Furniture: $950 – $2,000
  • Menu Board, Graphics, and Interior Signage: $2,000 – $4,500
  • Exterior Signage: $7,500 – $17,000
  • Computer System and Software Training: $8,500 – $17,500
  • TV / Music: $0 – $3,500
  • Architect / Engineer: $11,000 – $15,000
  • Rent: $4,000 – $10,000
  • Grand Opening Marketing: $10,000 – $12,000
  • Legal and Accounting Fees: $5,000 – $10,000
  • Insurance: $5,000 – $10,000
  • Opening Costs / Office Supplies: $9,000 – $14,000
  • Security Deposits: $0 – $15,000
  • Travel and Living Expenses during Training: $10,000 – $25,000
  • Opening Inventory: $5,000 – $10,000
  • Additional Funds: $15,000 – $45,000

Ongoing Franchise Costs and Fees:

 

Royalty Fee: 6% of net sales (monthly)

Advertising Contribution: 3% of Net Sales

Local Marketing Obligation: 1% of Net Sales on local market advertising

Jamba Sales Figures:

The company included a Profit and Loss Statement for traditional stores operated under the Jamba name.

Key Highlights from Sales Figures:

The chart above shows a profit and loss statement for the traditional stores and shows the strength of these individual stores based on their aggregate statistics.

The average net operating income was $93,510 and if you invested in the middle range of the total investment which was $290,450 – $560,500 it would take about 4.5 years to payback your initial investment (if you do not take out a loan).  However, these calculations are just based on the average net income and average total investment cost.

Highest Net Operating Income: $539,738

Lowest Net Operating Income: ($90,418)

Focus Brand Systems LLC and Subsidiaries Income Statement:

Income Statement Key Insights:

 

The parent company of Jamba Juice made over $115 million in net income which is about a $2 million increase from the previous year. The company has healthy financials and is shown also in item 19 as they allow potential franchisees to see exact profit and losses of current storefronts.

Competition:

The market for smoothies, alternative healthy choices for meals and snacks is developing in the United States and globally. You will compete with restaurants, sandwich and salad stores, juice bars, and other businesses which offer health food products, smoothies, juice, frozen yogurt, or similar products, as well as other food service businesses.

Conclusion:

Jamba is in a growing market of healthy foods on the go. While this may be the business for you, make sure to also check out other businesses offered on Vetted Biz and in food and beverage industry.

Analysis Provided by: Brooks Gammill Data Analytics Intern 

Download our industry guide today to see how Jamba franchise compares to others in the food and beverage industry!


vetted-biz-cover-food-beverage

Latest Articles

Red Effect Infrared Fitness Review 2019

Red Effect Infrared Fitness Review 2019

Le Macaron Review 2019

Le Macaron Review 2019

Which Wich Review 2019

Which Wich Review 2019

The spice & Tea exchange Review 2020

The spice & Tea exchange Review 2020

ARTeVINO Franchise review 2020

ARTeVINO Franchise review 2020