Franchise Description: Jamba Juice Franchisor SPV LLC is the franchisor. The franchisor is an indirect, wholly-owned subsidiary of Focus Brands Inc. Jamba stores feature a wide variety of fresh blended-to-order smoothies and other cold or hot beverages, and offer fresh squeezed juices, and portable food items to customers who come for snacks and light meals, including breakfast, lunch, dinner, and dessert. There are five types of stores: a traditional store, a non-traditional store, a food truck, a robotic kiosk, and an Auntie Anne’s co-branded store.
- A “traditional store” is a store located in urban in-line locations, free-standing buildings, and other locations that exist primarily as a Jamba store.
- A “non-traditional store” is a store located in a non-traditional location, which include limited access and captive audience facilities, concession departments, and other types of institutional account locations.
- A “food truck” is a store located in a mobile food truck in which franchisees will produce and sell a limited range of Jamba products.
- A “robotic kiosk” is a store operated using an autonomous, self-contained robotic food kiosk system known as “Blendid,” which shall make and sell a limited selection of approved products designated by us and will be installed in a non-traditional location.
- An “Auntie Anne’s co-branded store” is a traditional store where franchisees produce and sell a range of Jamba products in conjunction with those products authorized to be sold under the Auntie Anne’s franchise system.
Training Overview: For all stores other than robotic kiosks, the required trainees (including two managers (who may be franchisees or their primary contact) and any other people that the franchisor designates) must attend and successfully complete to the franchisor’s satisfaction the management training program before they may be involved in the operation of the store. For robotic kiosks, one of the owners or the primary contact must attend and successfully complete a management training program provided by the franchisor and a training program provided by Blendid relating to the proper operation and maintenance of the Blendid kiosk. If franchisees operate an Auntie Anne’s co-branded store, they will also need to attend the initial training program provided by the co-branded franchisor. All or certain portions of the management training program may, in the franchisor’s discretion, be conducted online or in person at (i) the franchisor’s corporate headquarters in Atlanta, Georgia, (ii) a store which has been certified as an authorized training facility (which may be located outside of the franchisee’s state), and/or (iii) other locations authorized by the franchisor. The management training program will last between two to five days.
For the first store (including stores owned by affiliates of the franchisee, but excluding co-branded stores and robotic kiosks), the franchisor will one or more representatives to provide on-site opening training and assistance for six to nine working days concurrent with the opening of the store (for a co-branded store, the franchisor will send a representative for at least two days). For robotic kiosks, the franchisor will not provide any on-site opening training or assistance. The primary contact, manager(s), owners, and supervisory personnel must attend any conferences, conventions, programs, or additional or refresher training sessions that the franchisor specifies.
Territory Granted: The store may only be operated at the accepted location. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. If franchisees operate a traditional store, while they will not receive an exclusive territory, they will receive a territory with limited protected rights (an area of protection). This means that, during the term of the Franchise Agreement, the franchisor will not establish or operate, nor license any other person to establish or operate, a store operating under the proprietary marks and the system at any location within the area of protection, except in non-traditional locations, in delivery kitchens, in robotic kiosks, and as otherwise provided in the Franchise Agreement. The size and scope of the area of protection will be in the Franchise Agreement and will be determined on a case-by-case basis. If franchisees operate a non-traditional store, food truck, or robotic kiosk, the Franchise Agreement does not give them any territorial rights or protections in any geographic area. Accordingly, franchisees will not receive an area of protection. Except for catering services and delivery services that the franchisor may allow or require, franchisees may only sell approved products at retail to customers who are physically present at the accepted location.
Obligations and Restrictions: Franchisees (if they are an individual) and their owners (if they are an entity) are not required to participate in the actual operation of the store but may serve as the primary contact and/or a general manager. However, the franchisor does not recommend an investment in a store for investors interested in an absentee management business. Franchisees must appoint a primary contact who will be responsible for, and have decision-making authority regarding, the store and its operation. Franchisees may offer in the store to customers only the approved products that the franchisor has approved in writing. Franchisees must produce and sell all approved products the franchisor specifies, including all menu items, trademarked product lines, and other products and services that the franchisor require franchisees to sell, as stated in the manuals or otherwise, which are all part of the system.
Term of Agreement and Renewal: The length of the initial franchise term is 20 years for traditional stores and non-traditional stores, and five years for food trucks and robotic kiosks. One 20-year renewal term for traditional and non-traditional stores is available if franchisees comply with the renewal requirements. If franchisees operate a food truck or robotic kiosk, the franchisor may, in its sole discretion, offer them one additional five-year renewal term.
Financial Assistance: The franchisor does not offer any direct or indirect financing. The franchisor does not guarantee a franchisor’s note, lease, or other obligation. The franchisor may refer franchisees to leasing or financing companies not affiliated with the franchisor. The franchisor and its affiliates receive no fees or other financial benefits from any lender for the franchisee’s financing. In certain, limited cases, the franchisor or its affiliates may sublease a location to a qualified franchisee.
Year Business Began: 1991
Franchising Since: 1991
Headquarters: Atlanta, Georgia
Estimated Number of Units: 815
Investment Tables:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,500 | $35,500 |
| Construction and Build Out Costs | $93,000 | $463,000 |
| Permitting | $500 | $17,500 |
| Equipment Package | $29,000 | $105,300 |
| Millwork | $12,100 | $49,000 |
| Furniture | $0 | $5,850 |
| Menu Board, Graphics, and Interior Signage | $1,500 | $3,500 |
| Exterior Signage | $3,000 | $58,500 |
| Computer System | $8,600 | $24,000 |
| TV/Music | $0 | $3,500 |
| Architect/Engineer | $9,000 | $17,500 |
| Rent | $2,000 | $10,000 |
| Grand Opening Marketing | $10,000 | $12,000 |
| Legal and Accounting Fees | $5,000 | $10,000 |
| Insurance | $1,500 | $7,800 |
| Misc. Opening Costs/Office Supplies | $9,000 | $14,000 |
| Security Deposits | $0 | $15,000 |
| Training and Support Fees | $0 | $7,500 |
| Travel and Living Expenses during Training | $10,000 | $25,000 |
| Opening Inventory | $5,000 | $10,000 |
| Additional Funds (3 months) | $10,000 | $40,000 |
| ESTIMATED TOTAL* | $244,700 | $934,450 |
*Range is for a non-traditional store up to a traditional store with a drive-thru. For the ranges for a food truck, robotic kiosk, or co-branded store, please see FDD.
| Type of Fee | Amount |
|---|---|
| Amount | |
| Royalty Fee | 6% of total net sales, except: (i) 7% of net sales for robotic kiosks and (ii) 6% of net sales for Auntie Anne’s co-branded stores, which the franchisor may increase in its sole discretion. |
| Advertising Contributions | Currently, 3% of net sales, except 1% of net sales for robotic kiosks. |
| Advertising Cooperative Contribution | An amount set by the franchisee’s advertising cooperative. |
| Local Marketing Obligation | Each calendar quarter, franchisees must spend not less than 1% of net sales on local market advertising. |
| Promotions | Costs to purchase, lease and install all materials necessary for promotional campaigns, including counter cards, posters, banners, signs, photographs, give-away items, loyalty cards, and gift cards. The may charge franchisees its costs plus a reasonable administrative fee. |
| Insufficient Funds Fee | The franchisor’s out-of-pocket costs and an administrative fee. |
| Interest | 1.5% per month or maximum legal interest rate. |
| Late Reporting Fee | The then-current fee. Currently, $50 per day. |
| Taxes and Other Payments | The franchisor’s cost. |
| Subsequent/Additional Trainee Initial Training Fee | Currently, up to $500 per day per trainee. |
| On-Site Training and Assistance Fee | A reasonable fee, currently up to $500 per trainer per day, plus trainers’ travel and living expenses. |
| Additional Support/Consulting Fee | A reasonable fee, currently up to $500 per day, plus travel and living expenses, including transportation, lodging and meals. |
| Conference/ Program Fee | A reasonable fee, which will vary by program. |
| Training Cancellation Fee | The franchisor’s out-of-pocket costs. |
| Learning Management System License Fee | The then-current fee. Currently, $170 per year. |
| Plan Review Fee | $1,000 per set of drawings. |
| Sublease Administration Fee | $200 monthly. |
| Lease Renewal/Extension Review Fee | The then-current fee. Currently, $2,000. |
| Lease Documentation Late Fee | $500 per month (or partial month) until delivered. |
| Relocation Fee | 10% of the then-current initial franchise fee. |
| Relocation Extension Fee | $1,500 per year that the term is extended. |
| Refresh/Remodel Site Survey and Design Fee | The then-current fee. Currently, such fee is approximately $1,200 to $6,000 depending on the scope of the required changes. |
| Systems Administration Fee | The then-current fee, which is currently estimated to be between $1,500 to $2,000. |
| Transfer Fee | 50% of the then-current initial franchise fee if it is a control transfer; if it is a transfer to a related party or a non-control transfer, 10% of the then-current initial franchise fee. If franchisees operate a robotic kiosk, the transfer fee is $4,375 for a control transfer and $3,500 for a transfer to a related party or a transfer that is not a control transfer. |
| Renewal Fee | 20% of the then-current initial franchise fee, except for food trucks and robotic kiosks. For Food trucks: 20% of the then-current initial franchise fee for food trucks. For robotic kiosks: 50% of the then-current initial franchise fee for or robotic kiosk. |
| Computer Systems Fee | A reasonable fee, which will vary based on the services provided. |
| POS System Support Fee | Currently, estimated to be between $100 and $250 per month. |
| Non-Focus Brands Portfolio POS Menu Setup | A reasonable fee, currently estimated to be $500 per day. |
| Back Office and Polling Software Fee | Currently, not charged. Estimated to be between $100 and $200 per month. |
| Credit Card Fees | Transaction fees estimated to be from 2.5% to 5.0% of transaction amounts. Other fees may apply depending on the vendor used for credit card processing. |
| Information Security and Compliance Fees | Currently, estimated to be between $42.50 and $150 per month. Currently, not charged for robotic kiosks. |
| Blendid Service Fee for Robotic Kiosks | Choice of (i) 16% of net sales, (ii) 7% of net sales and $1,700 per month, or (iii) a negotiated amount between (i) and (ii). |
| Gift Card and Loyalty Program Fees | Amount of administrative fees. |
| Loyalty App Fee | Currently, $51 per month. |
| Online Ordering Fee | Currently, $45 per month, plus a per transaction fee (estimated to be less than $0.02 per transaction) and additional charges based on services subscribed to. |
| Ordering Support Fee | A reasonable fee, which will vary based on the services provided. |
| Purchasing Program Fee | Reasonable membership fees assessed by the purchasing program. |
| Supply Chain Fee | Currently $0.25 to $0.30 per case purchased through certain appointed distributors. |
| Master Insurance Policy Fee | Currently not charged. |
| Insurance | Amount of unpaid premiums and the franchisor’s costs. Payable only if franchisees fail to maintain required insurance coverage and it elects to obtain coverage for them. |
| Guest Relations Fee | Currently, $30 for each guest complaint or other contact request that franchisees do not timely respond to or for each excessive guest complaint. |
| Non-Compliance Fee | Currently, $25 to $500 for a single violation, but may vary based on the severity of violations, number of violations, and repetition of violations. |
| Failure to Comply with Standards or Law Fee | The franchisor to a $5,000 fee plus the franchisor’s reasonable expenses connected with any inspection, examination, or analysis of products or the store. |
| Development Deadline Extension Fee | $2,500 per missed deadline. |
| Repeated Inspection Fee | Cost of inspection. |
| Audit | Cost of audit. |
| Reimbursement of Services After Default | All costs and expenses that the franchisor reasonably incurs. |
| Liquidated Damages | The average monthly amount of royalty fee that the franchisee owed the franchisor during the past 36 months times the lesser of remainder of term of Franchise Agreement or 36 months. |
| Appraiser’s Fee | 50% of appraiser fee. |
| Indemnification of Franchisor | The franchisor’s cost. |
| Attorneys’ Fees | The franchisor’s cost. |
| Reinstatement Fee | 10% of the amount of the then-current initial franchise fee, plus royalty fees that would have been payable in period between termination and reinstatement. For robotic kiosks, $3,500, plus royalty fees that would have been payable in period between termination and reinstatement. |
| De-identification Fee | The franchisor’s actual costs, plus interest and an administrative fee equal to 15% of the franchisor’s actual costs. |
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