Clean Juice
Clean Juice offers retail stores with fruit and vegetable juices, smoothies, and other health-focused products. Known for its commitment to fresh, nutritious offerings, it operates in the competitive health and wellness beverage market.
About Clean Juice
Clean Juice is an American restaurant franchise that primarily serves smoothies, juices, acai bowls, wraps, and sandwiches. Landon and Kat Eckles started Clean Juice in 2016 as the first USDA-certified organic juice bar franchise, claiming to be the only franchise of its kind in 2016.
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Clean Juice franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a CLEAN JUICE Traditional Store ranges from $243,000 to $419,000, while for a Non-Traditional Store, it ranges from $176,500 to $311,500. These figures include the initial franchise fee that must be paid to the franchisor or an affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee is uniform for all new franchisees and is typically $15,000, though military veterans may receive a discount. This isn't specified in the excerpts for non-veteran franchisees. [p.12]
What are the ongoing royalty and advertising fees?
The franchisee pays continuing royalty and other fees on a weekly basis based upon a percentage of their gross sales [p.205]. Additionally, all costs associated with advertising and marketing are expensed in the period incurred [p.193, p.206].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement generally provides for a 10-year initial term for traditional stores and a 5-year initial term for non-traditional stores, with the option to renew for two additional 5-year terms [p.205]. Subject to the Company's approval, you may renew the franchise agreement upon its expiration [p.192].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires the written consent of the franchisor [p.132, p.167]. The buyer must also meet the standards for new or renewing franchises as specified by the franchisor and comply with the transfer conditions outlined in the franchise agreement. Failure to obtain such consent will result in a null and void transfer and may constitute a material breach of the agreement [p.132, p.167].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if you fail to comply with any lawful provision of the franchise agreement and do not cure such failure within a reasonable period, which cannot exceed 30 days [p.5]. Additionally, the franchisor may terminate the agreement on any grounds available by law [p.63].
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisee must demonstrate sufficient equity capital to operate the Franchised Business, but specific net worth or liquid capital figures are not provided [p.95, p.148]. You should conduct an independent investigation of the costs and expenses you will incur in operating your CLEAN JUICE Store for detailed financial requirements [p.55].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by Clean Juice, and other channels of distribution or competitive brands controlled by them [p.38]. Additionally, third-party delivery services can establish zones that may overlap with your territory [p.39].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs on an as-needed basis but no less than once per year, subject to certain conditions. This training is directed by approved personnel with at least one year of experience in the Clean Juice business. Ongoing support includes services such as site selection and training, which are considered separate performance obligations from the franchise rights. Revenue for these ongoing services is recognized on a straight-line basis over the contractual term of the franchise agreement. [p.33, p.206]
How many franchised outlets are there, and how many have closed or been terminated?
As of December 29, 2024, there were 63 franchised outlets in operation [p.190]. The FDD does not specify the exact number of closed or terminated outlets, but it provides information on franchisees who have ceased operations under their franchise agreement; this can be found in Exhibit F [p.60].
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of an existing store if purchased, but generally does not make representations about future financial performance. The franchisor may share historical revenue and expense information with prospective franchisees, as it may be in the best interest of the franchise system to do so [p.54, p.91]. However, any such information provided is based on unaudited reports from franchisees and has not been independently verified [p.55].
What am I restricted to selling, and where must I buy supplies?
You are restricted from operating a retail business that specializes in the sale of fruit and vegetable juices, smoothies, coffees, teas (including matcha), acai bowls, and other related supplemental products and services, except for CLEAN JUICE Stores. This restriction applies within one mile of your former franchise location or any other store under the Clean Juice system for two years after ceasing to be an Owner [p.114, p.162]. You must buy or lease items from the franchisor or a limited group of suppliers designated by them, which may include more expensive options than those available elsewhere [p.3, p.81, p.24].