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Jenny Craig Franchise Cost & Fees

Date of Incorporation: 1983

Franchising Since: 1987

U.S. Headquarters: Carlsbad, California

Country of Origin: Australia

 

Business Description: Jenny Craig Holdings, Inc., through both Jenny Craig, Inc. (JCI), a direct subsidiary, and indirectly through other JCI subsidiaries, owns and operates Jenny Craig Weight Loss and Weight Management Centers; franchises others to own and operate Centers; provides weight-loss and weight management products and services through telephone consultations; procures and supplies food and other products for Jenny Craig Weight Loss Centers; leases Centers; and provides management and information systems services. Nestle Holdings, Inc. is the ultimate parent company.

 

Franchise Offer: The franchisor, Jenny Craig Franchising, LLC, offers the right to operate “Jenny Craig” weight loss and weight management centers (Weight Loss and Weight Management Centers) that provide products and services to customers to help them manage their body weight, under the “Jenny Craig” name and marks.

 

Financial Assistance: The franchisor does not offer direct or indirect financing nor do they guarantee the franchisee’s note, lease or any other obligations.

 

Training and Assistance: The initial training program lasts up to six weeks, and must be completed before the opening of the Center. It includes 104-140 hours of classroom instruction and 40-72 hours of on-the-job training. The franchisee must designate an Operating Partner. The Operating Partner will be the franchisee or, if the franchisee is a corporation, partnership, limited liability company, or limited liability partnership, one of the franchisee's principals. At Jenny Craig’s discretion, the franchisee may also be required to designate (with Jenny Craig approval), one additional employee as Operating Manager. Both the Operating Partner and Operating Manager must attend and successfully complete the initial training program. Jenny Craig will provide periodic assistance at the times and in the manner it determines.

 

Territory: Jenny Craig will approve a specific location for the franchised business. The size and scope of the Territory will be contained in the Franchise Agreement and will be determined by reviewing the latest official Census data and creating a territory of approximately 100,000 by using exclusive zip codes.

 

Term of Agreement and Renewal: The franchise term is for 10 years with one renewal term of an eight years if conditions are met.

 

Obligations and Restrictions: The Franchise Agreement requires the franchisee or the Operating Partner (if the franchisee is a corporation or partnership) to devote full time, energy, and best efforts to the management of the Center. Franchisees may sell and provide only products and services that conform to the franchisor’s standards and specifications and which have been approved. Franchisees must sell all products and services authorized by the franchisor.

 

Estimated Number of Units: 600

 

Investment Tables:

Initial Investment

Name of Fee Low High
Initial Franchise Fee $0 $25,000
Real Property $3,500 $24,250
Site Evaluation Fee $0 $750
Site Acquisition Services $0 $4,000
Leasehold Improvements; Construction Costs $50,000 $150,000
Signage $5,000 $8,000
Furniture and Decor Items $20,000 $30,000
Equipment $25,000 $35,000
Grand Opening Advertising $5,000 $5,000
Pre-Opening Salaries, Travel and Initial Training $5,000 $15,000
Center Computer Systems and Network Infrastructure Systems $20,000 $35,000
Start-Up Supplies and Inventory to begin operating $12,000 $25,000
Insurance $1,500 $2,000
Utilities $500 $8,000
Business Registration $100 $1,000
Space Plan and Architect Design Fee $1,000 $10,000
Professional Fees $1,000 $5,000
Additional Funds - 3 months $20,000 $50,000
Estimated Total $169,600 $433,000

 

Other Fees

Type of Fee Amount
Royalty Fee 0% to 7% of Gross Sales per week.
Interest on Unpaid Fees 1.5% per month on the underpayment.
Computer Systems Upgrades $500 to $5,000 per work station, plus up to $3,000 per server.
$100 to $10,000 for network infrastructure devices.
Transfer Will vary; $2,500 or $5,000 or outside counsel costs incurred by franchisor.
Supplier Testing Will vary.
Renewal of Franchise Agreement $2,500
Computer System Software and System Development and Access Fee The franchisor currently does not charge a fee, although we reserve the right to charge one.
Toll Charges $0 to $190 per month.
Audit Cost All costs and expenses associated with the audit, reasonable accounting and legal costs.
Securities Offering Fee $10,000 or actual expenses, whichever is more.
Additional/ Replacement Training of Highly Trained Personnel Will vary under the circumstances; currently $50 per day per Highly Trained Personnel.
Additional On-Site Training Will vary under the circumstances.
Indemnity Will vary under the circumstances.
Tax reimbursement Will vary under the circumstances.
Legal Fees and Expenses Will vary under the circumstances.

The above information has been taken from the FDD of Jenny Craig. Year of FDD: 2013

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