Should You Buy Into A Juice Bar Franchise Or Start Your Own?

You are considering a Juice Bar Franchise....which is why I want to share some crucial information with you before you do. I guarantee that by the time you are finished with this article, you will never think about franchises the same way every again.

First, let me introduce myself. My name is Andrew McFarlane, founder of the Start A Juice Bar  Consulting Agency.

I have been in the Juice Bar Industry for nearly a decade. I have successfully run my own original Juice Bar concept and helped many hopeful juice bar entrepreneurs successfully launch their own businesses all over the world. 

Before I launched my business, I strongly considered buying into a franchise.

Let’s be honest, when you first have the inspiration to start a juice bar, you don’t have any idea of what you need to do. If it wasn’t for the fact that there are people out there who are willing to hold your hand through the process, most people would be crippled by their lack of knowledge and experience. 

This article is actually not pro or con franchising. I truly believe that starting an original concept or potentially buying into a franchise both have their benefits. 

My intention is to share some information with so you to help you understand your options and the implications of your potential decisions. From there you can decide what is best for you.

Why do most people choose franchises?

1. Brand Awareness

It is clearly a benefit to any business owner to be able to run a business that your prospective customer is already aware of. 

The degree of value your prospective franchise's brand awareness is going to offer will vary based on the exact business. The long-term value that you are gaining in this respect is going to grow or diminish over time based on the actual success of that specific franchise.

2. Creative Equity.

When I refer to creative equity, I am referring to all of the creative elements that have been done for you.

Logos, store design etc. 

These are all things that have taken the franchise owners a lot of time, emotional and financial energy to develop and you will benefit by not needing to recreate these elements ever again.

3. Systems and Training

This is usually the big one that most prospective franchisees are aware of and the major reason that ultimately most people buy into franchises. When it comes to launching any business, having proven business models is a huge advantage. 

It takes a lot of energy to create much of the necessary paperwork and systems from scratch. Not to mention, the actual understanding of what you need to do.

There is also a lot of risks because, without any experience or guidance, it is almost guaranteed you will make some costly mistakes.

What are some of the downsides of buying into a franchise?

1. Costs.

Clearly, to gain the advantages mentioned above, it is not going to be free.

Sometimes it is far from it, depending on the company that you are attempting to buy into. I have heard of franchise fees of up to $100,000 or more.

This is just to gain access to utilize the brand trademark and the other elements mentioned above. On top of this, you will still have to invest in your build out equipment and other standard start up expenses.

This is valuable money that could potentially be used elsewhere.

Beyon these upfront fees, franchises charge a monthly or quarterly royalty. This can range from 4-6% on average.

There may also be a small percentage required that will go towards their corporate marketing expenses. 

Between both of these elements, this could add up to roughly  10% of your total yearly income.

If your business grosses 1 million dollars in a given year, this would account for $100,000 that would not end up in your pocket. 

Not an amount to scoff at.

2. Creative Limitations

Not all franchise systems are created equal.

It is important to understand that even though a franchise has created a proven concept... It does not mean that they are a perfect business by any means.

Their menu may be good. but it is not likely perfect.

Their system may be good, but it is not likely to be perfect.

It is hard to imagine improving upon any element of a business, when you are In a place where just the thought of running this kind of operation might be overwhelming you.

Overtime, you may begin to notice many things that you would want to do differently, but be trapped in an agreement that prevents you from making these improvements.

Let's hope that isn't case

Let’s also hope that you love the creative aspects of the brand you are buying into, because if you don’t, you can not change these things. 

You don’t love the logo, name or any other creative aspect of the brand you have franchised? Well, you are not going to be able to change much if not any of it.

When you start your own business, you have the flexibility to adapt and change any element that you deem necessary without having to ask anyone.

Let’s say you discover the customers in your environment prefer a certain product, well your ability to change anything on the menu, might be possible, but very difficult and time-consuming to accomplish.

This leads me to the next point.

3. Lack of Specialization.

Franchises are generally designed to be broad representations of the needs of a customer segment. 

This is good and not so good in my perspective. It is important to realize that customers that drink juice in different parts of the world have different preferences.

Some markets have a preference for specific ingredients.

Some markets have a preference for specific ways of processing juice.

Do you cold press? Make to order?

It is also important to be aware that these trends and preferences for customers in specific environments change over time.  In an industry that is expanding rapidly a business model that works today, may not work 5 years from now.

Not being able to adapt the products and services you offer could potentially prove to be a huge long-term disadvantage and ultimately put you out of busienss.

4. Violation Of Franchise Contract

Franchises usually have very specific terms that are strongly enforced so that you stay in compliance with their business guidelines. 

Make a mistake and violate one of these guidelines, you could risk losing the right to utilize that brand license.

This would mean that you might end up back at the drawing board.

What are your other options?

A lot of prospective juice bar owners don’t really know that they have another option outside of buying into a franchise or venturing on this potentially treacherous journey alone. 

Well, the good news is, you have another option. You can hire a juice bar consulting agency.

Our team at Start A Juice Bar has been helping numerous prospective juice bar owners successfully launch Juice Bars Nationwide for nearly a decade.

We help remove the fear and risk of launching this business on your own and give you simple proven strategies to help you succeed.

We specialize in a proven and customized approach.

Similar to a franchise, we have time-tested production systems and production templates that we will work together to customize for your business.

We will also take time to learn more about your specific goals and help you build a roadmap to help you achieve your goals. 

Find out why our clients have a 90% success rate. 

Fill out this form to speak with one of our team members to find out how we can help you launch your Juice Bar business.

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andrew mcfarlane