If you’re a new entrepreneur interested in venturing into a profitable business in the food and beverage industry, then you should consider buying a juice franchise. Buying a top juice franchise from a reputable company offers a great starting point in the food and beverage industry. When you buy a juice franchise, you’ll enjoy the support of an established company, a proven business model, and an established customer base. If this sounds captivating to you, then keep reading to learn more about how to start a Juice Lounge franchise, the cost, and the return on investment.
What Is a Juice Lounge or Juice Bar?
A juice lounge or bar is a shop known for selling 100% fresh juice, milkshakes, and smoothies. Juice shops do not require a full kitchen or a large area; the most common juice bar outlets include juice trucks, kiosks, juice carts, and others. The market for a healthy diet is increasingly gaining more popularity, and this has given the juice bar business a fertile ground to grow and expand. In other words, the juice bar business is a profitable business that will constantly have a booming market.
Why You Should Consider Buying A Juice Bar Franchise
Starting a juice bar from scratch on your own requires a lot of effort, resources, and time. However, buying a juice bar franchise is a far simpler and more easy option to launch your juice bar. Consider it this way: When you buy a franchise, the hard work has already been done. The business already has a defined menu, and the business plan understands the market demands and has tested what works and what doesn’t. Everything is in place, including operations, personnel training, and aesthetics.
The franchisor can assist you with everything, including marketing initiatives, location selection, marketing initiatives, offering you advice, and responding to your inquiries. Simply by increasing the company’s market penetration, you are also increasing your potential for substantial financial gain. To start a juice bar franchise, you’ll need to conduct a detailed research about your desired franchisor, plan your budget, and reach out to franchisors to understand better how to apply for their franchise.
The Cost Breakdown Of Buying A Juice Bar Franchise
Starting a juice bar franchise can cost you roughly anywhere from $100k to over $500k, depending on the franchise you’re buying. This initial investment includes franchise fee, royalty fee, location set up, liquidity requirements, and others.
Franchise fees for owning a juice bar franchise often range from $35,000 to $150,000, depending on the franchisor. This payment is made to the franchisor to give the franchisee the right to enter into a franchise contract with the Franchisor. Also, the franchise fee permits the franchisee to use the brand’s logo, name, business model, and other intellectual property.
Franchise fees help you to secure juice bar franchise opportunities and grant you the privilege to own your juice bar. However, before you set out to buy a juice bar franchise from an established juice bar company, you need to plan your expenses. When you’re aware of the expenses you can procure as you venture into franchising, it’ll help you plan properly for franchise purchase.
Royalty fees and ongoing fees
The royalty fee for buying a juice lounge franchise range between 5% to 8% of gross sales, plus an additional 2% of sales for group advertising and marketing, both of which must be paid monthly. The royalty fee gives franchisees the entitlement to software assistance, retraining assistance, marketing assistance, ongoing business development and counseling, and many more.
Liquidity funds are the resources required to run your juice bar franchise business for the first year. It’s more like the funds you need to water your business until it blooms. Franchisors always require franchisees to have between $80,000 to $150,000 liquid funds.
Location lease, equipment purchase, furnishings, interior design, renovations, and more are all included in the juice bar start-up cost. The amount for these expenses varies depending on a number of factors such as location, type of equipment needed, and many more.
Travel and training expenses
The juice bar franchise offers extensive support and training, including a turn-key package such as location research, site selection, store fittings, and more. Some franchisors offer onsite training at the juice bar location of the franchise. Some also require the franchisee to travel to the franchisor’s location for training. The travel expenses will vary based on your location and your choice of accommodation during your trip.
In conclusion, if you’re interested in opening a juice bar franchise, it’ll please you to know that it’s a business worth investing in. The Juice Bar franchise offers a high return on investment, but it requires dedication and passion.