Jamba Juice Franchise Cost, Profit & Failure Rate 2024

The Jamba Juice franchise is an exciting business opportunity for entrepreneurs who want to enter the health and fitness industry.

This business has something for everyone from smoothies and juices to healthy snacks. But before diving in, it’s essential to clearly understand what it takes to become a successful Jamba Juice franchisee.

This article will provide all the information you need, from Franchise Fees and Profit Potential to Training Requirements and Investment Costs.

With this knowledge in hand, you’ll be able to decide whether or not franchising with Jamba Juice is the right fit for your business goals.

So, read on to learn more about one of America’s most popular health-oriented franchises!

Jamba Juice Franchise

About Jamba Juice

Jamba Juice started as a small juice shop. Thirty years later, Jamba Juice became a market leader, providing customers with premium, delicious smoothies, juices, bowls, and snacks.

They continue to work tirelessly in their test kitchen to perfectly combine flavor, nutrition, and innovation on their expanding menu- from smoothies and juices to better-for-you snacks.


History Of Jamba Juice

History Of Jamba Juice

In 1990, the company started as a small, family-run business in San Luis Obispo, California, with just one original store.

However, it quickly expanded across the United States over the next decade.

The name Jamba came from an African word that means “celebrate life,” The founders wanted to bring people together through the flavor, creativity, and healthful living. They created smoothies and other healthy food options that were never seen before.

In 1995, Jamba Juice launched its first franchised location in Pleasanton, California. Soon after this launch, they began expanding rapidly throughout California and the entire West Coast.

By 1997, Jamba Juice had 100 stores and went public in 2006 on the NASDAQ stock exchange. With its growing success, it expanded to other states, including Texas, Illinois, Ohio, and Florida.

They opened their 1000th store in 2009 and even created a new line of products called “Boosts” that could be added to any smoothie for extra nutrition.

Today, Jamba Juice has over 800 locations across the United States and continues expanding into international markets such as Canada, Mexico, Costa Rica, and Japan.


Ideal Candidate

  • Strong business management background
  • Retail management
  • Strong willingness to learn
  • Local Market knowledge
  • Must have leadership qualities

Jamba Juice Franchise Model

Cost Or FeesAmount
Initial Investment$238,600-$504,300
Franchise-Fee$35,000
Royalty-Fee6%
Liquidity Capital$120,000
Area RequirementN/A
Total Outlets900 Units

Jamba Juice Franchise Revenue & Profit

The revenue and profit of Jamba Juice franchise owners can differ based on the location of their store, the demand in the area, the store’s size, the number of employees, etc.

However, as per the median sales of 543 franchise operating in 2022, Jamba Juice franchise owner makes $679,000 in sales per year on average.

If we assume a profit margin of 15% then we can calculate that a Jamba Juice franchise owner make $87,150 in net profits on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%581000.00
Rent10.63%(61731.25)
Insurance5.31%(30865.63)
Salaries21.25%(123462.50)
Franchise Royalty Fees5.31%(30865.63)
Utilities2.13%(12346.25)
Cost of Goods Sold (COGS)26.56%(154328.13)
Labor (Variable)13.81%(80250.63)
Total (Expenses)85.00%(493850.00)
Net Profit15.00%87150.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Payback Period Of Jamba Juice

The median sales of Jamba Juice in 2021 is $679,000, and at an estimated 15% profit on the average net sales, the yearly profit would be $87,150.

So, based on the yearly profit and investment of $504,300, we can calculate the payback period.

To find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $504,300 / $87,150 = 5.74 years

Based on these figures, it will take approximately 5 years to pay back the initial investment for Jamba Juice. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of Jamba Juice

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2020777762-15
2021762747-15
2022747735-12

For the Franchised outlets:

  • In 2020, the failure rate was (15)/777×100≈1.93%
  • In 2021, the failure rate was (15)/762×100≈1.97%
  • In 2022, the failure rate was (12)/747×100≈1.61%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
202025+3
202153-2
2022330

For the Company-Owned outlets:

  • In 2020, the growth rate was (3)/2×100≈150%
  • In 2021, the failure rate was (2)/5×100≈40%
  • In 2022, the failure rate was (0)/3×100≈0.00%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2020779767-12
2021767750-17
2022750738-12

For Total outlets:

  • In 2020, the failure rate was (12)/779×100≈1.54%
  • In 2021, the failure rate was (17)/767×100≈2.22%
  • In 2022, the failure rate was (12)/750×100≈1.60%

According to the above-mentioned data, we can see that the franchised outlets for Jamba Juice declined from 2020 to 2022, showing a failure rate between 1.93% and 1.61%.

On the other hand, In 2020, the company started with positive net change, showing a growth rate of 150%. But in the following years of 2021-2022, the failure rate of Jamba Juice was lying in the range between 40% and 0.00%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Jamba Juice franchise has declined in the years 2020-2022 showing a total failure rate between 1.54% and 1.60%.


Training Of Jamba Juice

Jamba Juice Provides at least two weeks of Training programs to the franchisors.

The initial Training consists of an onboarding and immersion program. The training period is divided into two-phase phases.

The first phase consists of 10 days, and the second is five days. In the first phase, the First franchisor has to complete ten days of Training.

Then after the franchisor’s satisfaction, the trainee will be deemed a “Certificate manager.”

In the second phase, comprehensive Training covers everything from recipes, preparation, ordering, layout, manager training, team member training, and sales.


Term And Agreement Of Jamba Juice

The franchise term is 20 years for traditional and non-traditional stores and five years for the food truck.

If franchisees comply with the renewal requirements, the term will renew for another 20 years for traditional and non-traditional stores.

And, for a food truck, the franchisor may, in its sole discretion, renew the term for another five years.

If opening a juice franchise appeals to you, consider Playa Bowl, and Clean Juice franchise as viable options.


Jamba Juice Comparison

CompanyJamba JuicePlaya Bowl
Founded In19902014
Initial Investment$238,600-$504,300$168,675-$435,058
Franchise-Fee$35,000$35,000
Total Outlet900140
Annual Revenue$75 Million$3.65 Million

FAQ

Is Jamba Juice profitable?

Jamba Juice made approximately $229 million in annual revenue.

Does Jamba Juice Offer franchising?

Yes, Jamba Juice offers franchising. It started as a small juice shop and now has a comprehensive market of 900 units across the U.S.

How much does a Jamba Juice franchise cost?

The total investment required to begin the operation of the Jamba Juice franchise ranges from $238,600-$504,300, and it also requires a franchise fee of $35,000.

Who founded Jamba Juice?

Jamba Juice was founded by Kirk Perron in 1990. Perron, a California business executive, wanted to create a healthier alternative to fast food and developed the concept of Jamba Juice.

The first store opened in San Luis Obispo, California, and has since grown into an international franchise with over 800 locations worldwide.

Where is Jamba Juice headquarters?

The headquarters of Jamba Juice is located Atlanta, Georgia, United States.

Leave a Comment