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Smoothies to the Nth Degree

Jamba Juice got its start in California, where juice “bars” and similar healthful establishments have been part of the scenery for decades.  Founder Kirk Perron began his business career while still in high school, starting out as a real estate investor.  Along with gaining valuable retail sales experience by working in grocery stores throughout the San Francisco Bay area, he actually came up with the Jamba Juice concept while slamming down smoothies at his local health club.  After bringing on board several people with expertise in partnership development (which turned into franchising) and marketing, he was ready to open his first location that sold only fruit-blended drinks.  Originally known as Juice Club, his early success was bolstered by a relationship with a major West Coast venture capital firm, whose principals enjoyed the beverages served at a Juice Club location close to their office.

Jamba Juice Franchise Review

By mid-1996, Jamba Juice had seen its brand expand to 30 stores, with all of them located in California.  A year later, the company signed a deal with grocery retailer Whole Foods to operate Jamba Juice stands inside their stores.  This concept has gradually expanded to include locations in airports and on college campuses.  At the end of 2008, there were 730 locations in 20-plus states plus the Bahamas. These stores accounted for sales upwards of $340 million, an eight percent increase over the previous year’s numbers.  In addition to more than thirty different varieties of blender-based fruit drinks – each given a catchy name, such as “Protein Berry Workout” and “Pacific Passion” – the average store also sells a variety of healthful baked goods and other fruit juices.  Even though close to 500 stores are company-owned, the corporation continues to solicit franchisees in order to help spread the brand nationwide.

Jamba Juice Franchise Information & Costs

The company takes its franchising responsibilities seriously, clearly seeking out a good fit between storeowner and parent company.  Prospective franchisees are required to be of “good moral character and reputation” and should have previous experience in the operation of a food service or specialty retail business.  Unlike other corporate fast-food giants, Jamba Juice rarely allows franchisees to open a single location, at least one that falls into the “traditional store” category.  Their ideal scenario involves signing up owners who will operate at least five locations, either occupying stand-alone buildings or else a single unit in a strip mall.  Not every store needs to be ready to go before you can start serving the thirsty public, however.  In order to qualify as what the company calls a Multi-Unit Area Developer, the franchisee must show a net worth of $3.5 million and liquid assets of a million dollars or more.  It is estimated that the first five franchise locations will set you back somewhere in the neighborhood of $1.8 million.  Single-unit franchisees are given the opportunity to open so-called non-traditional locations, such as an airport kiosk or college snack bar facility.  One’s net worth here must be $250,000 per store, with cash reserves of $100,000 per store.  Other non-traditional locations can be found in such places as military bases, hospitals, and major office buildings.

The Primary Appeal

Jamba Juice has been successful primarily because of its emphasis on healthy drinks that provide a wide selection of vitamins and nutrients.  It is no coincidence that their most popular locations are adjacent to or inside health clubs and gyms.  The corporation continues to expand its offerings, having introduced the Jambola – a high-fiber toasted bread bar – in 1999, and a line of vegetable soups later that same year.  The traditional retail operation has also been stood on its head, where originality has spawned a catering service called Jamba Go Go.  With more ideas on the horizon, Jamba Juice is clearly focused on being both innovative and delicious.

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