Jamba Franchise Costs $475K (2023 Profits & Stats)
This article was updated with the 2023 Franchise Disclosure Document
With more than 800 stores across the US and abroad, Jamba (previously known as “Jamba Juice”) is one of the most popular smoothie franchises. It’s also quite popular among franchisees thanks to the low required investment of $475,000.
But is this really a good business? How much profits can you make with a Jamba franchise?
In this article we’re looking at Jamba and the information available in its latest Franchise Disclosure Document. More importantly, we will look at how much sales you can make, how much it really costs, and whether you should invest in a Jamba franchise. Let’s find out!
Key stats
| Franchise fee | $35,500 |
| Royalty fee | 6% to 7% |
| Marketing fee | 4.0% |
| Investment (mid-point) | $475,000 |
| Average sales | $679,000 |
| Sales to investment ratio | 1.4x |
| Minimum net worth | $300,000 |
| Minimum liquid capital | $100,000 |
What is Jamba?
Jamba is a leading American restaurant chain that focuses on blended fruit and vegetable juices and smoothies. Today, the chain has over 800 locations in 35 states and 6 countries around the world.
Founded in 1990 by Kirk Perron in California, Jamba offers freshly blended fruit and vegetable smoothies on the go, as well as made-to-order bowls, freshly squeezed juices and shots, boosts, and bites.
The brand started franchising in 1993 and is headquartered in Sandy Springs, Georgia. It is a subsidiary of Focus Brands, which also owns Auntie Anne’s, Cinnabon, Carvel, and McAlister’s Deli.
Jamba franchises pros and cons
Pros
- Real estate and construction: Jamba has an experienced team of real estate experts to help its franchisees build the right Jamba restaurant for their market. It assists with site selection, restaurant design, and construction
- Higher purchasing power: Jamba is owned by Focus Brands, which controls over 6,000 restaurants. Franchisees can leverage the brand’s strength and gain higher purchasing power. They can get all the supplies from one international supply chain at reasonable commercial rates
- Experienced marketing team: Jamba has an experienced and dedicated marketing team to help its franchisees create awareness and market their local stores. Through data-driven marketing plans, review and performance analysis, regional advertising, social media, and email marketing campaigns, franchisees can reach a wide domestic and international market
- Multiple revenue streams: Franchisees get access to customer loyalty apps, delivery and takeout, and online ordering to attract more customers, upsell, and maximize their sales. This gives them income streams to increase revenue.
- Franchise training: One benefit of starting a Jamba franchise is its comprehensive training. It offers 66 hours of on-the-job training and 22 hours of classroom training to franchisees, managers, and employees on how to successfully run a Jamba’s franchise
- Flexible store formats: Jamba offers franchisees the flexibility to operate a format store of their choice. Franchisees can choose a traditional store, a non-traditional store, a food truck, a robotic kiosk, or an Auntie Anne’s co-branded store.
Cons
- No exclusive territory: The franchisor doesn’t offer franchisees exclusive territory. Franchisees face competition from franchises granted by the parent company or from competitive channels that the franchisor controls
- No franchise financing: The franchisor does not offer direct or indirect financing to franchisees. It also does not guarantee any franchisee’s lease, obligation, or note
- No absentee ownership: Franchisees need to be actively involved in the day-to-day operations of their restaurants
- Competition: The juice industry is still growing. Jamba’s franchise faces a lot of competition from Smoothie King and Tropical Smoothie Cafe
Jamba franchise costs
You would invest on average $475,000 to open a Jamba franchised restaurant. This includes the initial franchise fee of $35,500 ($10,500 for a food truck).
The investment presented here is an average for all types of Jamba restaurants, as such it varies. To give you an idea, you would need to invest 3 times as much for a traditional Jamba restaurant than for a Jamba food truck.
So, what are you paying for? Well, the investment covers things like construction and build-out costs, leasehold improvement, equipment, millwork, opening inventory, architectural fees,signage, insurance, business supplies, training expenses, etc.
| Expense | Amount |
|---|---|
| Initial franchise fee | $35,500 |
| Construction and build-out costs | $194,600 – $395,000 |
| Equipment | $34,000 – $148,000 |
| Licenses, permits | $500 – $8,500 |
| Working capital (first 3 months) | $15,000 – $40,000 |
| Initial inventory | $5,000 – $10,000 |
| Other | $82,550 – $193,600 |
| Total | $367,150 – $830,600 |
Jamba franchise fees
The initial franchise fee for a Jamba franchise is $35,500. In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 6% to 7% of revenues.
Jamba franchise revenue
On average, a Jamba franchise makes $679,000 in sales per year. This number is the annual median sales of 543 franchises (only traditional stores) operating in 2022.
Here is a breakdown of 2022 sales by quartile:
Disclaimer
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