Junbi Franchise in 2024: Costs, Fee & FDD

Junbi is a vibrant and growing franchise in the [Restaurants & Food > Coffee, Tea, & Drinks] category, specializing in high-quality matcha tea. Founded by a group of passionate entrepreneurs who wanted to share their love for matcha with the world, Junbi has quickly become a beloved name in the industry. The founders, inspired by traditional Japanese tea culture, have created a modern and accessible brand that resonates with both matcha enthusiasts and newcomers alike. Their mission is to energize people to be ready for anything, much like the meaning behind the name ‘Junbi,’ which translates to ‘prepare’ in Japanese.

At its core, Junbi offers premium matcha-based beverages, but it’s not just about the tea. The menu includes a variety of drinks, from classic matcha lattes to creative matcha-infused concoctions, as well as a selection of healthy snacks and treats that pair perfectly with their beverages. The brand caters to a health-conscious, trendy, and often younger demographic, though its appeal extends to anyone looking for a nutritious and delicious alternative to coffee. The emphasis on quality ingredients and a vibrant, Instagram-worthy experience makes Junbi a hit among millennials and Gen Z, particularly in urban areas where the wellness trend is booming.

As of now, Junbi has expanded its footprint impressively, with locations not just across the U.S. but also in select international markets. The franchise boasts a growing number of outlets, each designed to offer a cozy yet modern atmosphere that encourages customers to unwind and enjoy their matcha moment. Junbi’s locations are strategically placed in high-traffic areas, allowing them to serve a broad customer base daily, with thousands of cups of matcha being served each day. This widespread popularity speaks to the brand’s ability to scale effectively while maintaining the quality and ethos that made it successful.

For franchisees, Junbi offers a comprehensive support system that includes detailed training programs, marketing support, and operational guidance. Whether you’re new to the world of franchising or a seasoned pro, Junbi ensures you’re well-prepared to run your business. The training covers everything from the art of making the perfect matcha drink to managing daily operations and engaging with customers. Additionally, Junbi provides ongoing support, ensuring that franchisees have the tools and knowledge needed to thrive in this competitive market. This commitment to franchisee success is a cornerstone of Junbi’s growth strategy, making it an attractive option for potential investors.

Junbi Franchise Insights

High Growth Potential: Junbi has shown impressive growth with a 50% increase in franchise units over the past year, significantly outpacing the industry median of 1%.

• Low Failure Rate Remarkably, Junbi boasts a 0% failure rate both in the past year and over the past three years, making it a resilient and reliable franchise investment.
• Affordable Entry With a franchise fee of $30,000 and an initial investment range between $269K and $576K, Junbi offers a relatively accessible entry point for potential franchisees.
• Unique Market Position Positioned in the popular and growing matcha tea market, Junbi caters to a health-conscious and trendy customer base.

Junbi Franchise Key indicators

How much does it cost to open a Junbi franchise?

Understanding the potential investment size and capital requirements is crucial when considering opening a Junbi franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.

Min & Max Investment

Opening a Junbi franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Junbi below from the most recent Item 7 below:

Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.

Required Capital

To open a Junbi franchise, the required capital involves both the initial investment costs and a net worth requirement set by Junbi. Let’s take a closer look below:

• Initial Investment As shown above, the total estimated initial investment ranges from $268,750 to $576,250. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
• Liquid Assets The minimum liquid capital required is $69,125. This figure is necessary to ensure that franchisees have sufficient funds to cover initial expenses and operate the business during the start-up phase.
• Net Worth While the exact net worth requirement isn’t provided, for franchises in this investment range, a typical net worth requirement might be $300,000 to $600,000. This estimate helps ensure that franchisees have the financial stability to support the business.

How much does a Junbi franchise owner make?

Calculating the salary of a Junbi franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Junbi franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.

Junbi Revenue & Gross Sales

Unfortunately, the specific median gross sales figures for Junbi aren’t provided in the available data. It’s important to note that Junbi does not include Item 19 in their Franchise Disclosure Document (FDD), which means they haven’t disclosed financial performance representations, such as gross sales or profit margins, to potential franchisees.

However, based on the rapid growth rate and the 0% failure rate, it’s reasonable to infer that the performance of Junbi locations is solid, especially compared to industry medians. The brand’s appeal to a trendy, health-conscious demographic, coupled with its strong market positioning in the popular matcha tea segment, suggests that successful locations likely enjoy a steady and loyal customer base.

For exact figures, though, it would be best to discuss directly with existing franchisees or during discovery day meetings, where more detailed financial insights might be shared.

Which key factors impact the average revenue performance of Junbi franchisees?

The performance of Junbi franchisees in the U.S. over the past year has likely been influenced by several key factors. The growing popularity of matcha and other health-focused beverages has driven customer interest, positioning Junbi as a trendy and appealing choice. Additionally, the franchise’s emphasis on high-quality ingredients and a modern, inviting atmosphere resonates well with younger, health-conscious consumers, who are a significant part of the market. The strategic location of Junbi outlets in high-traffic urban areas further boosts customer footfall and sales. Moreover, the brand’s effective use of social media marketing and community engagement has likely contributed to consistent and possibly increased sales performance compared to the previous year. These factors combined have created a strong foundation for franchisee success.

Junbi Franchise Operational Costs

When opening a Junbi franchise, several key ongoing operational costs should be carefully considered:

• Ingredient and Supply Costs Given Junbi’s emphasis on high-quality matcha and other premium ingredients, maintaining a steady supply of these can be a significant recurring expense. Costs will vary based on supplier agreements and seasonal availability.
• Labor Costs Staffing is a crucial ongoing expense, including wages, benefits, and training for employees. The need for well-trained staff who can maintain the brand’s service standards and customer experience is essential, and labor costs can vary depending on location.
• Rent and Utilities Operating in high-traffic, urban areas, which are prime locations for Junbi, typically involves higher rental costs. Additionally, utilities such as electricity, water, and internet services are necessary to keep the store running smoothly.
• Marketing and Promotions While some marketing might be covered by the brand’s ad fund, local marketing efforts, community events, and promotions are often additional expenses. These are critical for driving foot traffic and maintaining customer engagement.
• Maintenance and Equipment Regular maintenance of equipment, store interiors, and other assets is essential to uphold Junbi’s standards. This includes costs for repairs, replacements, and periodic upgrades to match new offerings or brand updates.

These costs are essential to factor into your business plan to ensure the long-term success and sustainability of your Junbi franchise.

Junbi Franchise Fees

When considering the ongoing fees associated with opening a Junbi franchise, it’s important to understand the financial commitments required to maintain brand standards and support operations. Below are the key ongoing fees that you’ll need to account for:

• Royalty Fee 6% of gross sales, which is debited weekly. This fee supports the overall brand and ongoing operational support provided by the franchisor.
• Brand Development Fund Up to 2% of gross sales, currently set at 0.5%. This contribution is also collected weekly and is used to fund national and regional marketing campaigns, helping to maintain and grow the brand’s presence.
• Franchisee Directed Local Marketing 2% of gross sales. This fee is directed towards local marketing efforts and must be spent monthly on pre-approved marketing activities within your designated area to drive traffic to your store.
• Additional Fees There might be additional fees for services such as technology support, training, and renewal, which can vary depending on specific franchise agreements and needs.

Understanding these fees will help you better plan your financial strategy and ensure that your franchise remains profitable while adhering to the brand’s standards.

Junbi Franchise Earnings

Unfortunately, specific data on median gross sales or exact earnings for Junbi franchises isn’t publicly disclosed. However, as an owner-operator, your earnings would typically depend on a combination of factors including gross sales, operational costs, and the franchise’s performance in your specific location. Given Junbi’s solid growth rate and low failure rate, franchisees operating in high-traffic areas with strong local marketing efforts could expect positive financial returns.

As an owner-operator, managing the day-to-day operations yourself could further improve profitability by reducing labor costs and increasing operational efficiency. For a more accurate estimate, speaking directly with current franchisees or the franchisor would be advisable.

How to Open a Junbi Franchise

Becoming a Junbi franchisee involves a series of well-defined steps, ensuring that both the franchisor and franchisee are aligned for a successful partnership. Here’s an overview of the process:

• Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
• Application and Evaluation Once your interest is registered, you’ll be asked to complete a formal franchise application. The franchisor will review your financial qualifications, business experience, and overall suitability as a franchisee.
• Discovery Day You may be invited to a Discovery Day, where you’ll visit Junbi’s headquarters, meet the leadership team, and gain deeper insights into the business model. This is an opportunity for both parties to assess fit and build a relationship.
• Signing the Franchise Agreement If both you and the franchisor agree to move forward, you’ll sign the franchise agreement. This formalizes your commitment and grants you the rights to operate a Junbi franchise.
• Site Selection and Lease Negotiation After the agreement is signed, the next step is to select a suitable location for your store. Junbi will provide guidelines and support in finding and securing a prime location.
• Training Program You’ll undergo a comprehensive training program that covers all aspects of operating a Junbi franchise, from product preparation to customer service, marketing, and business management.
• Build-Out and Setup With the location secured, you’ll proceed with the build-out of your store, following Junbi’s design and branding guidelines. This includes interior design, equipment installation, and other preparations to get your store ready for opening.
• Pre-Opening Marketing As your store nears completion, you’ll engage in pre-opening marketing activities to generate buzz and attract customers from day one. Junbi’s marketing team will guide you through this process.
• Grand Opening and Operations Finally, once everything is set up and approved, you’ll host a grand opening event to launch your business. From this point, you’ll begin daily operations, with ongoing support from Junbi to ensure your success.

Pros & Cons

Pros

Growing Market: Junbi operates in the rapidly expanding health and wellness sector, specifically the popular matcha tea market, which attracts a health-conscious and trendy customer base.

Strong Brand Identity: The franchise has a modern, Instagram-worthy brand appeal that resonates well with millennials and Gen Z, which can drive consistent customer traffic.

Proven Growth: With a 50% growth rate over the past year and a 0% failure rate, Junbi has demonstrated its ability to expand effectively while maintaining quality.

Reasonable Initial Investment: The initial investment range of $269K to $576K is competitive within the Coffee, Tea, & Drinks category, making it accessible for many potential franchisees.

Cons

Limited Disclosure on Financial Performance: Junbi does not provide Item 19 in the FDD, which means potential franchisees won’t have access to detailed financial performance data like median gross sales or profit margins.

Market Saturation Risk: While the brand is growing, expanding into highly competitive urban areas could pose challenges, especially with the increasing number of similar health-oriented beverage options.

Relatively New Franchise System: Founded in 2019, Junbi is still relatively new compared to other more established franchises, which may present some risks related to long-term stability and brand recognition.