bannerFranchise News

Is Jamba Juice a Good Investment?

The health food and smoothie giant says eating better should be easy, but is it profitable?

Jamba Juice, a leading health food brand, has been serving up made-to-order smoothies, juices and bowls since 1990 when the first location opened in San Luis Obispo, CA. Now, with more than 850 locations in 35 states and six countries, it’s clear the brand’s motto of “eating better should be easy” has caught on.

But is a Jamba Juice franchise a good investment?

According to the brand’s 2019 FDD, the average net sales across all 527 traditional stores (those in strip malls or free-standing buildings) was $657,733. 

The total investment for a traditional Jamba Juice store ranges from $273,000 to $504,300, including a $35,000 franchise fee. There is also a 6% royalty fee and a 3% advertising fee due annually.

According to Jamba Juice’s 2019 Profit & Loss statement, the average net income across all stores was $93,510. Assuming an initial investment on the high end of $504,300, this would be over an 18% profit. Those who invested less but saw average or above-average returns would have a greater profit margin.

Considering a quality ROI in the franchise industry is around 15%, a Jamba Juice franchise (on average) is a sound investment. However, as with any franchise, there is a wide range in performance.

The highest-grossing location in 2019 brought in $1,691,742 in net sales, translating to $539,738 in net operating income. The lowest-grossing location brought in $186,142, which comes out to a loss of $90,418. 

Jamba Juice requires single-unit franchise applicants to have a credit score of 700+, liquid capital of $100,000 or more, and a net worth of over $300,000. Those looking to invest in multiple units are evaluated on a case-by-case basis.

The brand is comparable in initial investment to its smoothie competitors. Smoothie King, for example, ranges from $268,900 to $858,900. Tropical Smoothie Cafe ranges from $257,500 to $560,500. And Nektar Juice Bar ranges from $224,500 to $551,600.

Considering the quick service and health food industries are both expecting to see a profitable 2021, Jamba Juice is well-positioned for a successful year.