Jamba Franchise FDD, Profits, Costs & Fees (2024)
Jamba Juice, an iconic brand in the smoothie industry, was founded in 1990 in San Luis Obispo, California. Initially known as a small juice shop, the company has since expanded to become a leader in offering freshly blended fruit and vegetable smoothies, juices, and bowls.
The headquarters of Jamba Juice is located in Frisco, Texas. The company began franchising in 1993 and has grown significantly over the years across various states and countries.
Jamba differentiates itself in the market with a focus on health and convenience, offering high-quality, flavorful blends made with real ingredients, such as whole fruits and vegetables, without artificial flavors or preservatives.
The franchise prides itself on its commitment to making eating better both easy and delicious. Their menu is designed to provide quick, healthy options that cater to busy lifestyles.
Jamba Franchise Stats
Jamba
Number of units: 733 franchises
Initial investment: $243,000 - $1,144,000
Average revenue (AUV): $669,000
Initial Investment
How much does it cost to start a Jamba franchise? It costs on average between $243,000 – $1,144,000 to start a Jamba franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property. Jamba offers 3 types of franchises:
| Store Type | Initial Investment Range |
|---|---|
| Traditional Jamba Store | $529,750 to $1,013,050 |
| Non-Traditional Jamba Store | $242,950 to $739,250 |
| Auntie Anne’s Co-Branded Store | $593,575 to $1,143,500 |
We are summarizing below the main costs associated with opening a Jamba franchised restaurant. For more information on costs required to start a Jamba franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $35,500 |
| Construction and Build Out Costs | $260,000 – $463,000 |
| Permitting | $500 – $17,500 |
| Equipment Package | $142,000 – $175,000 |
| Millwork | $35,000 – $50,500 |
| Furniture | $400 – $6,050 |
| Menu Board, Graphics, and Interior Signage | $2,100 – $10,000 |
| Exterior Signage | $17,000 – $60,300 |
| Computer System | $13,400 – $31,300 |
| Smallwares | $4,000 – $5,500 |
| TV/Music | $0 – $3,600 |
| Architect/Engineer | $6,200 – $19,000 |
| Rent | $4,000 – $10,000 |
| Grand Opening Marketing | $10,000 – $12,000 |
| Legal and Accounting Fees | $5,000 – $10,000 |
| Insurance | $1,550 – $8,100 |
| Misc. Opening Costs/Office Supplies | $9,000 – $14,000 |
| Security Deposits | $0 – $15,000 |
| Management Training Program Fee | $0 – $2,500 |
| Travel and Living Expenses during Training | $3,100 – $5,100 |
| On-Site Training Fee | $0 – $6,100 |
| Opening Inventory | $5,000 – $10,000 |
| Additional Funds – 3 Months | $15,000 – $43,000 |
| Total Initial Investment* | $569,000 – $1,013,000 |
Average Revenue (AUV)
How much revenue can you make with a Jamba franchise? A Jamba franchised restaurant makes on average $669,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $603,000 yearly revenue for similar healthy franchises. Below are 10 Jamba competitors as a comparison:
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Jamba Franchise Disclosure Document
Recent Legal Disputes and Litigation
Jamba has faced a few notable legal challenges involving both consumer protection and franchisee concerns in recent years.
One significant legal issue emerged in 2018, when Jamba was accused in a class-action lawsuit of misleading consumers by marketing its smoothies as “whole fruit and vegetable” blends.
The lawsuit, filed in the U.S. District Court for the Northern District of California, alleged that Jamba’s smoothies contained cheaper ingredients like pear and white grape juices, rather than the whole fruits prominently advertised. This deceptive marketing claim became a high-profile case, highlighting concerns over truth in advertising.
On the franchisee side, legal tensions arose in 2019 after Jamba’s rebranding from “Jamba Juice” to simply “Jamba.” Franchisees were required to update their stores, signage, and packaging to align with the new brand identity.
These mandatory updates came at a time when franchisees were already dealing with declining sales, creating financial strain. Some franchisees viewed these changes as an unfair burden imposed without sufficient support from the franchisor.
These legal battles pose risks for Jamba, including the potential for financial damages and reputational harm.
Frequently Asked Questions
How many Jamba locations are there?
As of the latest data, Jamba operates a total of 582 franchised locations and 5 company-owned stores. Over the years, Jamba has transitioned to a primarily franchise-driven model, significantly reducing the number of company-owned outlets.
This shift allows franchisees to play a larger role in the brand’s expansion across various markets, while the company focuses on supporting franchisees with branding, marketing, and operational strategies.
What is the total investment required to open a Jamba franchise?
The total investment required to open a Jamba franchise ranges from $243,000 to $1,144,000.
What are the ongoing fees for a Jamba franchise?
Jamba franchisees are required to pay a 6% royalty fee on gross sales. Additionally, there is a 4% advertising and marketing fee based on gross sales, which covers contributions to both national and local marketing efforts.
What are the financial requirements to become a Jamba franchisee?
To qualify as a Jamba franchisee, you need a minimum net worth of $300,000 and at least $120,000 in liquid assets. These financial requirements ensure that franchisees have the necessary resources to successfully operate their business.
How much can a Jamba franchise owner expect to earn?
The average gross sales for a Jamba franchise are approximately $0.67 million per location. Assuming a 15% operating profit margin, $0.67 million yearly revenue can result in $100,500 EBITDA annually.
Who owns Jamba?
Jamba is owned by Focus Brands, an Atlanta-based company that also owns several other well-known franchise brands, including Cinnabon, Auntie Anne’s, and Moe’s Southwest Grill. Focus Brands acquired Jamba in 2018.
Disclaimer
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