Perhaps you plan to try your hand at a business but don’t have the expertise or technical know-how. In that case, a franchise opportunity might be a suitable option worth considering. If a Clean Juice Franchise Opportunity has been on your radar, this post is for you. First, you need an understanding of the costs and requirements for starting and operating such a franchise. Let’s briefly look at what you’re getting into before delving into the finer details.
Clean Juice was first established in 2014 and has franchised more than 170 units across America. The Clean Juice franchise is registered in all states except North and South Dakota. The company accepts leads in all states except in areas such as Arizona, Texas, South California, and Louisiana.
Clean Juice is a USDA-certified organic juice bar. Such certification implies that the company’s processes are constantly under government scrutiny. Plus, Clean Juice’s transparent approach to business keeps customers informed about what they’re ingesting.
The firm also fills prospective investors in on all the upfront costs of establishing a unit. That way, you can make an informed choice and not have to deal with surprises later.
Costs and Requirements
These are upfront fees eligible investors need to pay the franchisor (Clean Juice). Expect to pay $45,000 as franchise costs for one franchise unit. The firm also provides a 10% discount on the franchise fee to veterans. The fee grants you access to the company’s training program, including relevant tutorial material to set up your Clean Juice location. You also get insider tips from the firm’s experts to guide you. Generally, training involves ten days split between class and in-store learning sessions. Plus, you get to enjoy corporate training on-site before opening your doors.
Besides the franchise fee, 6% of your monthly gross sales are payable to Clean Juice. Additionally, you’ll need to chip in by paying 2% of your sales as a brand marketing fee. Clean juice channels a lot of resources to develop innovative advertising materials to help its partners reach out to prospective customers.
Such expert marketing might be out of reach to firms that aren’t part of the Clean Juice franchise. Fortunately, investing in this juice bar lets you make the most of such marketing material and tools.
Total Start-up Costs
According to Clean Juice, you can expect to spend about $280,000 and up to $523,000 to open a franchise business. This figure factors in franchise fees but does not cover royalties as these are computed monthly, as explained before. The initial costs also vary by location.
Besides the outlined costs to open your doors, you’ll need to consider regular operating expenses such as rent, utilities, inventory, local marketing, salaries, and more. These are the general overheads that most businesses incur continually.
For instance, a Clean Juice franchise has an average of 20 employees- most of these are part-timers. Thus, having money set aside for such recurring expenses could mean the difference between keeping your franchise running and finding yourself backed into a financial corner. This point explains the need for the following sub-sections:
Running a business requires you to plan. In short, having your finances in order by having cash in hand can ensure your business’s financial stability. Along the same lines, liquidity can help you overcome setbacks that might come along as you conduct business.
Liquidity provides quick access to funds, which can also be critical at the formative stages, or when you need to grow your franchise. Plus, you are more likely to access financing for growth if you possess more liquidity.
In that regard, Clean Juice requires you to have at least $120,000 as a cash investment. You’re also required to actively take part in the day-to-day operations of your franchise business. But, Clean Juice is open to discussing a passive ownership opportunity with the ‘right’ candidate.
Net Worth Requirement
To start a Clean Juice franchise, you should have a net worth of at least $500,000. What’s the significance of net worth in franchising? Well, your net worth indicates your money management skills. In short, it shows how well your franchise business is likely to perform and, in turn, build the overall brand. If you have a high net worth, it’s safe to assume that you make smart financial choices. Franchisors are keen on your net worth as they hope that you can replicate similar traits as you run a franchise business and expand it over time.
There you have it- an inside scoop on what it takes to start a Clean Juice franchise. Consider requesting the firm’s Franchise Disclosure Document for an in-depth look at Clean Juice’s liquidity requirements or other costs. If you need more information or intend to partner with Clean Juice and be part of the growing family, please contact the firm.