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Juice Zone Franchise Cost & Fees

Date of Incorporation: 2001

Franchising Since: 2001

Address: Langley, British Columbia, Canada

Country of Origin: Canada

Business Description: Juice Zone outlets are retail juice and smoothie bars. The Juice Zone product line includes smoothies, pitas, low carb wraps, salads, fortifier blends, wheatgrass, freshly squeezed juices, organic coffee, organic herbal teas, and bottled health drinks. Juice Zone's mission is to provide customers with a healthy alternative to traditional fast food that's great tasting, convenient and nutritious.

Franchise Offer: Juice offers two types of franchises:

  1. Unit Franchisees operate a retail outlet that offers smoothies, fresh juices, wraps, salads and other food items.
  2. Master Franchisees act as the franchisor’s area developer and master franchisee, and assist in establishing, developing and granting unit franchises.

Financial Assistance: Juice Zone does not offer direct or indirect financing nor do they guaranty the franchisee’s note, lease or obligation. However, Juice Zone may require the franchisee to sublease the premises for his or her franchised location from Juice Zone, their affiliates, master franchisee or its affiliates.

Training and Assistance: If the franchisee signs a Unit Franchise Agreement with, Juice Zone will provide training to the franchisee and at least two of his or her employees before the franchised business opens. For Unit Franchisees, Juice Zone will assist franchisees at the franchised location for such period immediately preceding or following the opening as Juice Zone deems reasonable. If the franchisee signs the Master Franchise Agreement, Juice Zone will train the franchisee and up to three of his or her employees. Juice Zone requires that a master franchisee’s management personnel who will actively participate in the ownership and management of the franchised business receive this initial training and complete it to Juice Zone’s satisfaction.

Territory: Unit franchisees receive the right to operate a Juice Zone franchised outlet at a specific location per their Franchise Agreement. An exclusive territory surrounding the specific location will be designated. The exclusive territory will be determined based on the demographics of the area, including population, traffic, competition and available real estate. The exclusive territory for a master franchisee may consist of a portion of a state, an entire state or multiple states, but will contain between two to twenty million in population, depending on the initial fee paid.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If the franchisee is in good standing, a master franchisee can add a renewal term of 10 years. Unit franchisees can add a renewal term of five years.

Obligations and Restrictions: Each unit franchisee must designate "strategic partners" who will actively participate in the management and operation of the franchised business on a full-time basis. Strategic partners are owners, directors or officers of the unit franchisee. Master franchisees are required to designate specific persons who will actively and substantially participate personally in the ownership and management of the franchised business. The designated persons must sign a guaranty of obligations under the Master Franchise Agreement and agree to protect the confidentiality of Juice Zone’s proprietary information. The designated persons (or other specified management personnel) must successfully complete the training program.

Investment Tables:

Initial Investment

Unit Franchise

Name of Fee Low High
Initial Franchise Fee $25,000 $25,000
Real Estate/Rent $5,000 $15,000
Real Estate Construction & Improvements $40,000 $85,000
Mill Work & Furnishings $20,000 $35,000
Equipment $35,000 $45,000
Signs $10,000 $17,000
Misc. Opening Costs $2,000 $5,000
Opening Inventory $2,000 $5,000
Travel & Living Expenses while Training $1,000 $5,000
Advertising Fee - 3 months $2,500 $3,500
Additional Funds - 3 months $4,500 $7,500
Total $147,000 $248,000

Master Franchise

Name of Fee Low High
Initial Franchise Fee $80,000 $400,000
Real Estate Improvements $0 $13,000
Misc. Opening Costs $2,000 $10,000
Opening Inventory $500 $3,000
Vehicle $0 $30,000
Computer Hardware & Software $2,000 $3,000
Travel & Living Expenses while Training $2,000 $5,000
Advertising Fee - 3 months $750 2,000
Legal Fees $5,000 $15,000
Additional Funds - 3 months $2,000 $10,000
Total $94,250 $491,000

 

Ongoing Fees

Unit Franchise

Name of Fee Amount
Royalty 6% of gross sales
Advertising 3% of gross sales
Additional Training $0 to $200 per day
Additional Assistance $0 to $200 per day
Computer and Cash System Upgrades and Updates Approximately $0 to $1,000 per year
Transfer To be determined, but not more than 50% of the standard initial fee then charged for new unit franchises.
Late Charge Interest of 18% per annum from the date due.
Audit Cost of audit
Renewal Fee To be determined, but not more than 25% of the standard initial fee then charged for new unit franchises.
Sublease Varies per location

Master Franchises

Name of Fee Amount
Royalty 2% of gross sales of each unit franchise
Marketing 1% of gross sales of each unit franchise
Additional Training $0 to $200 per day
Additional Assistance $0 to $200 per day
Transfer To be determined, but not more than 25% of the standard initial fee then charged for new master franchises.
Late Charge Interest of 18% per annum from the date due.
Audit Cost of audit
Renewal Fee To be determined, but not more than 25% of the standard initial fee then charged for new master franchises.

Date of FDD: 2009

The above information has been compiled from the FDD of Juice Zone along with online sources.

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