Juice Bar Franchise Cost and Profitability

Clean Juice Franchise

Juice Bar Franchise Cost and Profitability

Why open a juice bar franchise

Although building a new juice bar brand from scratch can be a rewarding and profitable business model, it carries a high level of risk and requires long term commitment to navigate the challenges of running a food and beverage business. It can take a long time to establish your brand, configure your recipes, and document your policies and procedures to a point where the business is operating efficiently. If you would prefer to partner with an established brand that has been through the process already and has a proven business model, you can choose to open a franchise.

The franchisor (company offering the franchise stores) will offer you guidance throughout the entire business plan, startup process and beyond. A good franchisor will help you with everything from choosing a retail location, setting up the kitchen, training your staff, marketing, and more (if the franchisor isn’t offering you these things, you may want to consider choosing a different franchise). In return, the franchisor will ask for a percentage of gross sales (royalty), marketing fees, and an up-front franchise fee.

Royalties and fees vary between businesses. Generally you can expect to pay 5% – 10% of gross sales as a royalty and marketing fee, and an up-front franchise fee of $25K – $50K to get started. This franchise fee is generally what it costs the franchisor to on-board a new franchisee. All that training, legal documentation, and human resource time costs the company significant money.

Investment required

My favorite franchise juice bar is Clean Juice (a Goodnature client), which has grown quickly since 2016 with over 100 franchises sold, opening a couple of new stores every month. They are currently the only 100% organic certified franchise—offering bottled cold-pressed juice, smoothies, custom juices, acai bowls, and other food and beverage products. For a behind-the-scenes look into their business, check out episode three of Behind the Juice: 

Behind the Juice | Ep. 3 - Clean Juice
Behind the Juice | Ep. 3 – Clean Juice

Their team was nice enough to share some investment costs with me. Here’s what you could expect as a total investment for opening a Clean Juice franchise location, which would be somewhat in line with other franchises as well.

Each item here shows a range of cost from “low amount” to “high amount.” Flat fees don’t have a range, so the amounts are the same in each column.

Description Low Amount High Amount
Franchise Fee $42,500 $42,500
Leasehold Improvements $100,000 $250,000
Real Estate Fees $4,000 $10,000
Security Deposit $2,500 $5,000
Furniture, Fixtures, Kitchen Equipment $60,000 $90,000
Insurance $3,000 $7,000
Local Architects, Blueprints, Building Prints $5,000 $10,000
Miscellaneous Pre-Opening Expenses $5,000 $12,000
Point of Sale (POS) and Office Equipment $2,500 $5,000
Utility Deposits and Sales Tax $1,000 $3,000
Opening Inventory and Smallwares $7,500 $12,000
General Manager Expenses While Training $1,000 $6,000
Grand Opening Marketing $5,000 $10,000
Additional Funds (3) Months $15,000 $40,000
Total $254,000 $502,500

Profit and revenue

According to Clean Juice documentation, each store can bring in an estimated $700K – $1M in revenue per year. Out of the total revenue dollars, you can expect about $250K – $400K in gross profit. These gross profit calculations include payroll expenses but not overhead like rent and utilities, which will vary depending on location. I would expect about half of gross profit to be left after paying overhead, leaving the owner with $125K – $200K in net profit per location.

Although owning one franchise store may bring in enough profit to support the owner’s living expenses and take a salary, most franchisees get into the business with plans of opening multiple locations. Owning five, ten, or even twenty locations of a franchise has the benefit of multiplying the revenue and profit, setting the owner up for a very successful business venture in the long term. Of course, there are no guarantees in business and there are risks in opening franchise stores just like any other business.

How to choose the best franchise

Choosing the right business partner will be the most important decision you will make, so spend the time to do your research. Most franchisors will be happy to discuss the opportunity with you and provide you with all the details associated with the process. They will have basic qualifications they look for in new franchisees. They will require that you have the financial means required to open a new business, and they generally look for franchisees located in areas with a high likelihood of succeeding.

Besides speaking to the franchisor, I would recommend also reaching out to some of their current franchisees and asking them about their experience. Don’t be shy, you will find that most franchisees will be happy to spend ten minutes to share their experience with you. They remember being in your position not too long ago.

Have any questions for the juicing community? Leave a comment below.

Charles 's profile image

About The Author

Instagram: @cwjuice

I’ve been around juicing all my life. My Dad built his first hydraulic juice press in 1976 and founded the company Goodnature Products, Inc. I have incredible memories of having “cider parties” when we would invite all the people in our rural neighborhood over to make apple juice. To this day, when I taste apple juice made on a Goodnature press, a rush of nostalgia runs through my body.

I pride myself on guiding our clients into the world of cold-pressed juice and showing them how much fun this industry can be. I love talking business, technology, and marketing.

22 Responses

  1. Love Clean Juice, & super excited to watch their successes! I love that the article gives great info on buying into an existing franchise and what to expect. Is there any advice you would give on franchising your existing business? Our juice bar has been open almost a year and we’re currently working on our second location thanks to the success of our first shop. We’re looking to start franchising soon but would love any advice from our juice community <3

    Reply

    1. What I’ve seen in successful franchises is a high level of organization and training for the franchisees. The systems and policies need to be in place in order to allow the business to scale without too much friction. I’m sure other people may have some advice as well!

      Reply

  2. Interesting article, curious about there numbers on gross sales and profitability. Are numbers based on a single store in a market with no competition? What are the numbers for franvhiiseess when there are other juice bars in the same market.

    Reply

    1. Great question! I’m sure the saturation of the local market has an effect on sales. In my experience, juice bars that are new to an area without much competition tend to do very well since there is usually high demand. Juice bars that open in an area already saturated with other juice bars have a harder time.

      The gross profit range Clean Juice gave me as a typical range is about 30% – 40% of revenue including labor cost but not overhead like rent and utilities. A busy store with high revenue will end up turning more of the gross profit into net profit, since the overhead is spread out over more sales revenue. So if a competitive market is driving down sales, that will not affect the gross profit percentage, but would definitely affect the gross profit actual dollars, meaning there would be less left over at the end as net profit for the owners to take home or reinvest.

      Reply

  3. This is a wonderful, informative article! Thank you! I got into the 3 Natives juice bar franchise a year ago, and really didn’t know what to expect; but it’s going well! I would’ve loved to have seen this before I got started, but a great read nonetheless.

    Reply

    1. Thanks for reading! Good luck

      Reply

  4. Nice article! Very helpful

    Reply

  5. Thank you for this information article,I have been desiring going into jucie bar franchise but I don’t now how to start or the risk involved. So how can I get your franchise where I live,in ABA,Abia State of Nigeria,in West Africa. What’s the capital range of getting a franchise. Thank you.

    Reply

    1. I wish I had more information about franchises outside of the US, but unfortunately I’m unaware of any in Africa. Are there any in West Africa that you’re aware of?

      Reply

  6. I opened an organic cold pressed juice bar about 16 months ago. We have a core group of customers who return again and again. I have another business which has been established over 30 years and cannot continue to do both businesses. Does a company such as Clean Juice ever buy out an existing juice bar, especially in an area where they do not currently have any locations?

    Reply

    1. Usually the business model of a franchise is to have outside people / entities open their new franchise stores, and not open or own them directly. So maybe you could find someone that would want to buy the business from you and turn it into a franchise.

      That being said, you could always try contacting Clean Juice and ask if they would be interested.

      Reply

    2. Hey there! This is Staci from Clean Juice. I’m here in California for a few days and I’d love to connect. Please call me at (704) 449-9262. I look forward to speaking with you.

      Reply

  7. Hi Charlie,
    I always enjoy your informative articles and thank you so much for sharing your knowledge with us.
    Do you know of any top notch consultants for juice franchising?

    Reply

    1. Yes, I know a few. I’ll follow up with an email. Thanks!

      Reply

  8. I intend to open a fruit juice outfit in Nigeria and will like to partner with an existing franchise.

    Reply

  9. I currently have a whole foods cafe/juice bar. We have been in operation for 2 years. we are currently looking to sell the business hook line and sinker. This is a great opportunity for anyone wishing to open a like business or to focus on juicing aspect alone. Please contact me with any questions or interest.

    Jill Check

    Reply

  10. I love what I just watch in the Episode 3 of Clean Juice. I am in Nigeria where we have abundant organic fruits and vegetable and where the is great awareness of the goodness of nature. I have started the juice business and my choice of name is Divine Natural Juice. I have of recent been thinking that I should contact Goodnature to know if it is possible for him to establish one in Nigeria and I in partner with Goodnature run the business or he chose otherwise. I love to have it in Nigeria, there is very big market for it in Nigeria but not many eyes are opened to the business. Only a few exist in Nigeria at local level. Please I need your comment on whether it is possible to establish in Nigeria where there is enough raw material and market especially in Lagos.

    Reply

  11. I wish someone would help us franchise our concept. We have the best menu!

    Reply

    1. I know some people that could help. Let me know if you want introductions to a couple consultants.

      Reply

  12. Charlie, please send me an email as well to a couple of seasoned, reputable Juice/Smoothie bar business consultants as well. I found a couple online, but would certainly like to see whom you recommend. Contemplating doing a start up vs. franchise.

    Thanks a bunch.

    Reply

  13. I intend to open a juice bar in Mannheim/Germany. Any idea how to start? I love your website.

    Reply

    1. Hi Phillip, you could try starting with one of our consulting packages:

      Reply

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