Published on 20 Apr 2021 Time 9 min read Last update by 29 May 2024

How Much is a Jamba Juice Franchise? (2024)

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Jamba Juice Franchise, known as Jamba, is an American company that produces blended fruit and vegetable juices and smoothies. All of their products have no artificial flavors, no preservatives, no high-fructose corn syrup, and no artificial sugars.

Alongside Moe’s Southwest Grill, Schlotzsky’s, Carvel, Cinnabon, McAlister’s Deli, and Auntie Anne’s brands, the company is co-owned by Focus Brands, an affiliate of private equity firm Roark Capital Group.

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Jamba Juice Franchise

The group is currently operating over 6,000 restaurants. Jamba was founded in 1990, with the first shop located in San Luis Obispo, CA. The chain now has more than 850 locations operating in 36 U.S. states, as well as Japan, the Philippines, Taiwan, South Korea, Thailand, and Indonesia.

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Jamba Juice Franchise was a “senior project” executed by Kirk Perron, an avid cyclist, and healthy-lifestyle advocate, at CalPoly, San Luis Obispo. Jamba Juice was founded in 1990, by Perron, who opened his first store in SLO. It was incorporated in 1990 as Juice Club, Inc. in SLO.

Jamba Juice acquired Zuka Juice, Inc. stores in 1999. In 2006, Jamba Juice was purchased by Services Acquisition Corp. International for $265 million. A special-purpose acquisition company, Services Acquisition was headed by Steven Berrard, former CEO of Blockbuster Inc. After the transaction, Services Acquisition changed its name to Jamba, Inc. In June 2009, Jamba began to transform the company from a smoothie shop to a food store by integrating wraps, sandwiches, and flatbreads into its menu.

In 2018, Jamba Juice announced that it would be acquired by Atlanta-based Focus Brands.

Food and Beverage Industry

The Food and Beverage industry in the USA accounts for 13% of all manufacturing employment in the country. Around 1.46 million people are employed in this industry.

Food franchises make up to 36% of the total franchise establishments in the USA and it is expected to create 1.6 million more jobs by 2027.

The annual growth rate in the industry is around 2% and the EBITDA multiplier is around 3x for a single restaurant. Multiples can go up to 7x for 5+ restaurants.

How much is a Jamba Juice Franchise?

The initial Jamba Juice Franchise Fee is $25,500. You have to pay this upfront fee when opening a Jamba Juice franchise.

Jamba Juice Franchise Cost

The estimated total investment necessary to begin the operation of a Jamba Juice Franchise ranges from $378,650 to $677,750 if your store does not have a drive-thru and $497,050 to $843,000 if your store has a drive-thru. The following costs are part of the upfront costs included in the initial investment for a Jamba Juice. Many of these are one-time fees that are needed to launch the franchise.

Review the chart below to see how much it costs to buy a Jamba Juice franchise in 2022.

Estimated Initial Investment Without drive-thru:

Type of Expenditure Amount of Expenditure To Whom Payment Will Be Made
Low High
Initial Franchise Fee $ 35,500 $ 35,500 Jamba
Construction and Build Out Costs 194,600 262,250 Contractors
Permitting 500 5,700 Government agencies
Equipment Package 34,000 110,000 Vendors
Millwork 22,000 43,000 Contractors
Furniture 950 2,000 Vendors
Menu Board, Graphics, and Interior Signage 2,000 3,500 Vendors
Exterior Signage 6,500 10,800 Vendors
Computer System 8,600 24,000 Vendors
TV/Music 0 3,500 Vendors
Architect/Engineer 11,000 19,000 Architect
Rent 4,000 10,000 Lessors
Grand Opening Marketing 10,000 12,000 Vendors
Legal and Accounting Fees 5,000 10,000 Lawyers and accountants
Insurance 5,000 15,000 Insurance companies
Misc. Opening Costs/Office Supplies 9,000 14,000 Vendors
Security Deposits 0 15,000 Utility companies; lessors
Training and Support Fees 0 7,500 Jamba
Travel and Living Expenses during Training 10,000 25,000 Airlines, hotels and restaurants
Opening Inventory 5,000 10,000 Vendors
Additional Funds – 3 Months 15,000 40,000 Jamba, employees, vendors, etc.
Total Initial Investment $378,650 $677,750


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Estimated Initial Investment with drive-thru:

Type of Expenditure Amount of Expenditure To Whom Payment Will Be Made
Low High
Initial Franchise Fee $ 35,500 $ 35,500 Jamba
Construction and Build Out Costs 260,000 396,000 Contractors
Permitting 500 17,500 Government agencies
Equipment Package 70,000 90,000 Vendors
Millwork 34,000 42,000 Contractors
Furniture 950 5,000 Vendors
Menu Board, Graphics, and Interior Signage 2,000 3,500 Vendors
Exterior Signage 16,500 50,000 Vendors
Computer System 8,600 24,000 Vendors
TV/Music 0 3,500 Vendors
Architect/Engineer 6,000 17,500 Architect
Rent 4,000 10,000 Lessors
Grand Opening Marketing 10,000 12,000 Vendors
Legal and Accounting Fees 5,000 10,000 Lawyers and accountants
Insurance 5,000 15,000 Insurance companies
Misc. Opening Costs/Office Supplies 9,000 14,000 Vendors
Security Deposits 0 15,000 Utility companies; lessors
Training and Support Fees 0 7,500 Jamba
Travel and Living Expenses during Training 10,000 25,000 Airlines, hotels and restaurants
Opening Inventory 5,000 10,000 Vendors
Additional Funds – 3 Months 15,000 40,000 Jamba, employees, vendors, etc.
Total Initial Investment $497,050 $843,000

Jamba Juice Franchise Requirements

For candidates applying for a single-unit agreement, you should have a credit score of 700+, liquid capital of $100,000 or more, and a net worth of over $300,000. For candidates applying for multiple units, the requirements in terms of both professional backgrounds and skill sets are determined on a case-by-case basis.

Franchise Ongoing Fees

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 CoBranded Stores, which we may increase in our sole discretion up to 7% of Net Sales

Advertising Fee: 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

Local Marketing Requirement: Currently, each calendar quarter, you must spend not less than 1% of Net Sales on local market advertising.

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Jamba Juice Franchise Profit

Since Jamba Juice does not provide separate sales data for the different types of locations, we will take the lowest and highest estimate from all four values and assume it to be the midpoint investment. You should do your own calculations using whichever figures you like once you decide what kind of location you want to open and determine an estimate of your initial costs.

AVERAGE NET SALES BY QUARTILE FOR TRADITIONAL FRANCHISES FOR FISCAL YEAR 2021

Quartiles Average
Net Sales
Number and
Percentage of
Stores Attaining or
Exceeding
Average Net Sales
Median Net
Sales
Lowest
Net Sales
Highest
Net Sales
Top Quartile $ 1,157,600 52/135 (39%) $ 1,113,249 $ 915,125 $ 2,155,922
2nd Quartile 804,256 67/135 (50%) 801,694 708,396 913,039
3rd Quartile 633,981 67/134 (50%) 633,870 551,563 708,088
Bottom Quartile 419,480 76/135 (56%) 432,474 44,663 549,598
Total $754,052 233/539 (43%) $708,396 $44,663 $2,155,922

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2021 Jamba Juice Median Franchise Sales: $708,396

Initial investment (midpoint) %Profit margin of average franchise sales Estimated Profits Time to recoup investment
$610,825 10% $70,839 10 years
15% $106,258 7 years
20% $141,678 6 years

Based on the median sales provided by Jamba Juice’s franchise locations, at an average of a 15% profit margin it will take around 7 years to recoup your investment. This is longer than other franchise opportunities. You may not get a 15% profit margin which would elongate getting a return on your investment.

Many factors affect the sales, costs, and expenses of your Franchised Store. Such as the Franchised Store’s size, geographic location, menu mix, and competition in the marketplace. The presence of other Food and Beverage stores; the extent of market penetration and brand awareness that Jamba Juice stores have attained in your market. Also, the quality of management and service at your Franchised Store are major factors.

Is the Jamba Juice Franchise Profit Worth the Franchise Cost?

To assign a valuation multiple for Jamba Juice franchises, we leverage estimates from DealStats, a database of acquired private company transactions sourced from U.S. business brokers and SEC filings. We reviewed the larger franchise industry as well as selling price multiples for larger systems where more transaction data is available.

Estimated Selling Price = Net Sales * 0.44

When you go to sell a Jamba Juice franchise based on the median multiple of .44 and net sales in 2021 of $708,396, it would sell for $311,694. This is significantly lower than the midpoint investment of $610,825.

The more franchises you own, the more earning potential you have as private equity firms become interested in your business instead of individual owner-operators.

The Average Unit Volume (AUV) for Jamba Juice Franchised Stores is $754,052.

Below you can see a listing of an existing Jamba Juice franchise.

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Jamba Juice stores for sale

Oregon
Asking Price: $2,200,000 Cash Flow: N/A
Gross Revenue: $3,446,877 Inventory: N/A
EBITDA: $497,024 Rent: N/A
FF&E: $0 Established: N/A

Business Description

Here is a rare opportunity to buy your own chain of stores. These are five very successful stores. All have been firmly established 14-24 years.

The above listing is from BizBuySell. When looking at real-world data, we can see that there is a huge variation in the asking price to cash flow ratio or asking price to revenue ratios. As such, you should speak to an accountant, look over the franchise’s financials, and build your own financial projects and valuations before buying an existing Jamba Juice franchise.


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Jamba Juice Income Statement Key Insights

Consolidated statements of operations (In thousands)

For the fiscal years ended: December 26,
2021
December 27,
2020
December 29,
2019
Revenues:
Franchise revenues $ 221,276 $ 166,977 $ 210,226
Total revenues 221,276 166,977 210,226
Fees and expenses:
Management fee to FBLLC 41,654 42,353 44,098
Selling, general and administrative expenses 404 1,793 462
Depreciation and amortization expense 3,030 3,435 3,929
Total fees and expenses 45,088 47,581 48,489
Operating income 176,188 119,396 161,737
Income before income tax expense 176,188 119,396 161,737
Income tax expense 1,565 1,188 1,637
Net income $ 174,623 $ 118,208 $ 160,100

Jamba Juice is a profitable business for the franchisor with retained earnings of $174,623 in 2021. Compared to $160,100 in 2019, they saw an increase of around 8.75% from 2019 to 2021. This is a good indication of growth as a company overall.

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Jamba Juice units opened and closed

Systemwide Store Summary

Store Type Year Stores at the Start of the Year Stores at the End of the Year Net Change
Franchised 2019 719 777 +58
2020 777 762 -15
2021 762 747 -15
Affiliate-Owned 2019 52 2 -50
2020 2 5 +3
2021 5 3 -2
Total Stores 2019 771 779 +8
2020 779 767 -12
2021 767 750 -17

Over the last three years, the company has been in decline. Company-operated stores have decreased. Over the last two years, franchises have closed at a rate of 15 units a year. This is an indicator that the stores are not performing very well. Affiliate-owned stores closed down at an average rate of 17 stores a year for the last three years. In total, the company saw a decline in the number of stores from 771 at the start of 2019 to 750 at the end of 2021. That is a rate of decline of 2.8%.

Conclusion

Altogether, the financial performance of the average Jamba Juice franchise unit and the shrinking of the franchise system show that it is not a reliable franchise system and might not be worth your investment.

The Food and Beverage industry is one of the largest, most diverse, and most established franchise industries. Although it has a high amount of competition at 3.10, on a scale of 0 (low) to 4 (high), it also has a high industry trend multiple at 2.70 on the same scale as above. The Food industry is also relatively marketable at a 2.9 multiple on a 4.0 scale.

Interested in investing in a Jamba Juice franchise, or looking for other opportunities in the Food and Beverage industry? Make sure to check out the Vetted Biz listings page to explore thousands of franchise and business opportunities available to you. While this may be the business for you, make sure also to check out other companies offered in the Food and Beverage Industry.

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