Nekter Juice Bar Franchise: $603K Revenue (+ 2023 Costs)

Nekter Juice Bar is one of the few recent successful franchises in the healthy foods and drinks industry in the US. Indeed, since it started franchising in 2012 the chain now has 177 stores scattered across the US.

Beyond the hype, Nekter franchises have also some strong financials: you would make on average $603,000 in turnover per year.

But is this worth the startup costs of about $455,000 you would need to pay for as the franchisee?

In this article we’re looking at how much profits you can make with a Nekter Juice Bar franchise and whether you should buy one. Let’s find out!

Key stats

Franchise fee	$35,000
Royalty fee	6.00%
Marketing fee	4.00%
Investment (mid-point)	$455,000
Average sales	$603,000
Sales to investment ratio	31.0x
Minimum net worth	$350,000
Minimum liquid capital	$125,000

What is Nekter Juice Bar?

Nekter Juice Bar is an American casual fast food chain of vegan juices that serves a variety of freshly made, clean, and nutrient-rich juices, superfood smoothies, acai bowls, cold-pressed cleanses, and a variety of healthy snacks.

It was founded in 2010 by Steve and Alexis Schulze in Santa Ana, California, where it is based today. The chain began franchising in 2012, and today has more than 184 stores in the US.

Nekter Juice Bar franchise pros and cons

Pros

• Exclusive territory protection: Nekter Juice Bar provides its franchisees with an exclusive development market to operate in. The franchisor does not license any other franchise or operate a competing channel in the protected area.
• Absentee ownership allowed: The franchisor provides its franchisees with a passive investment opportunity. Franchisees may not actively be involved in the daily operations of the business.
• Extensive franchise support: The brand supports its franchisees right from inception to ensure they establish and operate successful restaurants. It provides them with helpful top management guidance, P&L management, operational reviews, and data-driven analyses of the restaurant’s performance.
• Comprehensive training: Nekter Juice Bar has in place a comprehensive initial training program to equip its franchisees with a basic foundation about the brand’s procedures and prepare them for a successful grand opening. Its training program consists of 80 hours of on-the-job training and 17 classroom hours.
• Marketing support: The Nekter Juice franchise gives its franchisees a dedicated marketing platform to create awareness and publicize their local stores. Also, it provides them with efficient promotional campaign tools such as national media, regional advertising, digital marketing, social media, email marketing, and loyalty programs.
• Simple business model: The brand’s business model does not necessitate franchisees to use fryers or vent hoods. This makes the franchise easy to establish, lowering startup costs and allowing franchisees to focus on product quality. 

Cons

• No financing: The franchisor does not directly or indirectly finance its franchisees. Franchisees must approach third-party lenders to finance the franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll.
• Not a part-time business: The Nekter Juice Bar franchise is not a part-time business. It requires franchisees to follow the parent company’s scheduled operating hours.
• Competition: Nekter Juice Bar faces stiff competition from other brands in the juice and smoothie industry, such as Tropical Smoothie Cafe, Smoothie King and Jamba.

Nekter Juice Bar franchise costs

You would need to invest around $455,000 to open a Nekter Juice Bar restaurant on average.

As the investment amount is an average, it depends on several factors like location, restaurant size, etc. For example, a big restaurant, or a restaurant in a big city needs higher rent than a small restaurant.

According to the latest FDD, the investment amount can be as low as $226,000 and as high as $684,600. 

Startup costs

This amount is meant to cover all the startup costs needed to open a restaurant business. Meaning you do not need to pay any additional fees after the initial investment. In addition to the initial franchise fee of $30,000, as the initial investment you will also pay for

• Formation costs: real estate construction & improvements, architect, millwork, fixtures, furnishings, equipment, signage, POS, security system, music, professional fee, training, etc. 
• Initial marketing: grand opening marketing costs
• Operating costs: opening inventory, 3 month’s rent, 3 month’s insurance, utilities, first 3 months working capital, etc.

Startup cost	Low	High
Initial Franchise Fee	$35,000	$130,000
Formation Costs	$151,700	$434,600
Initial Marketing	$8,000	$10,000
Operating Costs	$31,300	$110,000
Total	$226,000	$684,600

Nekter Juice Bar franchise fees

Nekter Juice Bar franchise revenue

On average, a Nekter Juice Bar franchise makes $603,000 in sales per year. (Annual Unit Volume)

The sales number is the annual median sales of 113 franchised restaurants operating in 2022. Although there were a total of 128 restaurants as of January 1st, 2022, only 113 restaurants were open and operating for at least one full calendar. Note that this 2022 AUV is 80K less than the 2021 AUV, which represents a -12% revenue growth.

Approximately half of the restaurants generate more than $630K in revenue per year (see the breakdown by quartile below).

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.