What You Get for Your Money with Juice It Up!
What is the cost of opening a juice bar? Here’s a look at what you get for what you pay, and why it’s worth it
For some people, especially for new entrepreneurs, the most daunting part of starting a new business is figuring out the financials. That’s one of the many reasons investing in a franchise like Juice It Up! is a smart choice. The cost of opening a juice bar can vary depending on factors from location to the labor market, but our franchise system evens out the broad swings into a predictable arc that is, literally, written into your franchise agreement.
Enter the FDD. That’s short for Franchise Disclosure Document, a filing required by the Federal Trade Commission (FTC) that must be provided to prospective franchisees during the pre-sale process. In layman’s terms, franchises like ours have to fill you in on the details of our business, including our financial picture, so you understand what exactly what you’re getting into.We provide a free copy of our FDD once we verify your qualifications.
However, the most important part of the FDD for the purposes of this article is Item 7. We’ll address some of the most common questions about Juice It Up!’s startup costs below.
What is an Item 7?
Item 7 explains your initial investment and breaks downs your costs, item by item, so you can understand up front how your investment dollars are being spent.
Our most recent FDD estimates an initial investment range of $216,400 to $378,300. Your cost will probably fall somewhere in between. That range accounts for things like the cost of renting commercial real estate in your territory and tenant improvements, since most of our locations are leased.
What is Juice It Up!’s franchise fee, and what is it used for?
Our standard franchise fee is $25,000, which is typical in the juice industry, and we also offer discounts for veterans. Franchise fees are essentially the cost of doing business: They’re the first check you write when you sign the agreement, and it reflects the value we provide to you in terms of our proven business model, ramp-up support and ongoing expertise.
What about royalties?
Like most franchises, we charge royalties, a percentage of your weekly gross income. At Juice It Up!, that percentage is 6%, plus 2% to the national marketing and advertising fund. This is the “we aren’t profitable unless you’re profitable” part of our business proposition, and it reflects all franchisors’ major source of income from franchising our business system.
You’re buying this franchise, ultimately, in the hopes of making money, and we’re selling it for the same reason. That doesn’t mean we aren’t passionate about what we do. But without a winning system, neither one of us would be here.
Are there any hidden costs I should know about?
Technically, no. There are things you might not have thought of, like the cost of staying in a hotel while we train you at our corporate headquarters in Orange County, CA, or the cost of renting a car while you’re visiting for Discovery Day. But we cover all of that in detail in our Item 7.
How will I figure all of this out?
As we mentioned above, many buyers prefer to review our FDD with an attorney or an accountant. But we will have one of our franchise experts go over the FDD with you, too. Frankly, nobody knows how to start a juice bar business better than Juice It Up! Our expert franchising team will walk you through it from start to finish.
As we like to say in franchising, you’ll be in business for yourself, but not by yourself. And that’s probably why you’re here in the first place.
Learn more about Juice It Up!
If you’ve been looking for a healthy juice, smoothie, or bowl franchise to invest in, and would like to learn more about Juice It Up!, please fill out our contact form.