How Much is a Juice Bar Franchise? - Pure Green Juice Bar
Fresh-pressed juice and healthy foods are all the rage right now. The juice and smoothie bar industry’s total revenue is bringing in 2.6 billion as of 2020. So it’s no wonder you want to purchase a juice bar franchise! There is ahuge potential for income. But how much will it cost you to get your juice bar up and running?
Here is everything you need to know about total costs, what expenses you can expect, and potential profit for opening up your first juice bar franchise.
WHY OPEN A JUICE BAR FRANCHISE?
Starting a juice bar by yourself from the ground up takes a lot of work, time, and money. But there’s actually a much easier, straightforward way to get started with your own juice bar - By purchasing a juice bar franchise. Think of it like this: When you purchase a franchise, the heavy lifting has been done for you. The company already has tested what works and what doesn’t, understands the demands of the market, and has a set menu. Everything from employee training to operations to aesthetics is in place.
The franchisor can help you from start to finish. Everything from selecting your location, to marketing efforts, to giving you suggestions and answering your questions. The business plan is there. You’re just expanding that company’s reach and in the meantime, giving yourself the possibility of making significant income.
It’s no secret that a juice bar franchise can bring in some serious profit. If you operate a successful juice bar franchise, your annual income can range on average from $100k to upwards of $300k if you operate a successful location. And that’s after all expenses are paid. A pretty significant amount of money! One of the best parts about the profit potential with a juice bar is the ability to raise your income even more. When you own a juice bar franchise, you can choose to purchase additional franchises. This can help you really raise your income to the next level.
FACTORS THAT AFFECT PROFIT
When you purchase a franchise, there are a few factors that can affect your juice bar’s profit. And one major factor is location. The location where you choose to open your store can mean the difference between a profitable, successful franchise or a complete financial headache. One question you can start by asking your franchisor is, are there a lot of juice bars already in the area? If there are some immediately around, that could make for stiff competition. It doesn’t necessarily mean you should look elsewhere for a location though. But it does mean you might need to increase your marketing budget and maybe even your ingredients (think organic versus standard). When there are a lot of juice bars in your area, you’ll need to make your business stand out.
Of course, if your franchise is located in an area where it’s the only one within miles, that means less competition. And that could be great! Maybe it means you are the first to tap into a juice goldmine! But before selecting your location, you’ll want to make sure it’s a place where there is a demand for your juice bar. Again, this is something your franchisor should be able to help you figure out.
EXPENSES TO CONSIDER
Starting a juice bar franchise can cost you roughly anywhere from $130k to more than $500k.
The amount needed to open a juice bar franchise depends on the specific franchise you’re purchasing. But one thing that is important for all potential franchise owners to know is your expenses. By knowing all your expenses upfront, you can prevent any surprise costs. It also means you can effectively plan and prepare for your juice bar purchase. Being informed about any and all costs will save you money in the long run.
Generally, the total cost to open up your own juice bar franchise involves these fees:
Leasehold improvements: These are expenses to renovate your storefront if it’s a pre-existing building.
Real estate fees: This can include rental fees for your storefront.
Legal Fees: You should meet with an attorney who specializes in franchises before making your purchase.
Working Capital: The amount of cash you’ll need available for your juice bar to conduct business in the first several months you open. Your franchisor will be able to tell you this amount.
Kitchen equipment: Costs associated with required items to prepare menu items. To successfully run a juice bar, you will need to purchase high tech pieces of equipment, including;
Refrigeration – As you can imagine, most of your products are perishable and do not have a long shelf life. A walk-in fridge with temperature control is a must, not only to pass food inspection but also to keep your inventory at its freshest. Nothing will kill your reputation like spoiled goods.
Blenders and juicers – These items are the core of your business, so you want high-quality, commercial-grade equipment. Pure Green prides themselves in their quality cold-pressed juice, so a hydraulic press is crucial. Centrifugal juicers won’t cut it – they are not up for the task and leads to oxidation of otherwise quality juice.
Ice machine – Let not forget about them either. You will need one that is easy to clean to prevent mold and mildew.
Sinks and dishwashers – Dishwashers clean at a high enough temperature to sanitize all your equipment, so it is another must-have. In addition, you will need a few sinks to wash your produce and an easy-accessible sink for employee hygiene.
Prep equipment – This includes, you guessed it, everything you need to prepare your delicious smoothies, juices, and bowls. It includes cutting knives, scales, chopping boards, disposable gloves, and the like.
Build-Out Costs: This includes a wide range of costs related to your retail space. Specifically, it’s the costs for furniture, fixtures, insurance, signage fees, and the security deposit.
Inventory and Supplies: You’ll need to purchase the ingredients required for making your juice bar menu items. You’ll also need to make sure you have the supplies available for serving customers their orders, such as plates and silverware. Your franchisor will provide you with the complete list of items needed.
Architects: You might need to hire an architect to help with blueprints and planning if your juice bar retail space needs it.
Office Equipment: This includes point of sale items, such as a computer and cash register. Essentially, this is any equipment required to actually sell your juice bar menu items.
Marketing fees: Promotional efforts for announcing your store opening.
Training Expenses: Costs required to train your General Manager.
Staff Expenses: You may need to employ the following professionals;
General staff like cashiers and juice makers
Human resources and/or admin manager (in some cases, the owner can take up the mantle)
Sales and marketing manager
Miscellaneous Expenses: These costs can result in small things related to the opening costs of your juice bar.
There are two additional fees that are important to know about:
Royalty Fee: The franchisor gets a percentage of your gross sales, known as the royalty fee. They’ll also get a percentage of marketing fees and an upfront franchise fee. Royalty fees range from 6% to 10%.
Franchise Fee: The franchise fee is due before you open your store. It generally ranges from $30k to $50k. The franchise fee is all about the legal documents and training costs to get your franchise up and running.
BEFORE YOU GET STARTED
There are a few steps you should take before purchasing a franchise. Skipping steps and making a rushed decision could end up drastically increasing your costs for a juice franchise purchase.
Get To Know Your Franchisor: Before you buy a juice bar franchise, you should make sure to speak with your franchisor. Get to know them. After all, this is the person you’re essentially going into business with. The franchisor is the one who will explain all the steps to you for setting up your franchise, tell you the exact cost, and will make sure you can financially pay for it. The franchisor should be able to tell you all these details and answer all your questions. If a franchisor doesn’t communicate well or is lacking with information, or proving to not be helpful, it’s probably going to be a headache of an investment and you should look into a different franchise.
Do Your Research: It’s also recommended to do your research. By visiting other franchises and talking with the owners, you can ask them questions, too. How has their experience been? What advice do they have for you? Talking with other franchises associated with your store can really help teach you tips and tricks, which might be able to reduce your overall costs of getting started.
The Risks of an Incorrect Budget
While the black and white answers of writing down estimates on paper help give you a ballpark figure of your initial expenses, it doesn’t account for your unique situation. You need to consider all the different factors for your budget to be effective, and ideally leave a bit of a safety net for the unforeseen costs that may have slipped through the cracks. You need a realistic breakdown of all the essential variables of your budget, and how you will go about financing it.
Working with vague figures will only be detrimental to your business. It will lead to under-budgeting, which will push back your opening date, dump you in extra, unforeseen debt as you try and find more funding, or in the worst case, bring your long awaiting launch to a complete standstill.
The beauty of buying into a franchise means that you won’t go in blind. You will get guidance to help you set up a successful store every step of the way.
CHOOSING THE RIGHT JUICE BAR MATTERS
When choosing a juice bar franchise, it’simportant to choose a business with an updated menu, flexible business plan, and the highest-quality ingredients. It also makes a big difference when you work with a franchisor who is willing to help you with the opening process from start to finish.
At Pure Green, we’re on a mission to help people achieve their optimal nutrition. Customers can choose from 12 cold-pressed juice flavors, 6 cold-pressed juice shot flavors, smoothies, acai bowls, and pitaya bowls. All ingredients are sourced with optimal health and sustainability in mind. Started by Ross Franklin, Pure Green is ahead of the curve.
Expand your potential by partnering with the Pure Green Franchise team!
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