Vara Juice
VARA Juice offers quick-service smoothies, fruit cups, and other beverages using fresh ingredients. Known for made-to-order drinks, it operates in the competitive fast-casual dining sector.
Vara Juice franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a VARA Juice ® Restaurant is estimated between $38,000 and $45,000 that must be paid to the franchisor or its affiliates. However, this amount does not include the broader total investment range of $236,065 to $634,516 mentioned in [p.1].
What is the initial franchise fee?
The initial franchise fee for a VARA Juice ® Restaurant franchise is $25,000 [p.12, p.75]. This fee is payable in full at the time you sign the Franchise Agreement and is not refundable under any circumstances [p.12, p.75, p.20].
What are the ongoing royalty and advertising fees?
The franchisee must pay a weekly royalty fee equal to five percent (5%) of their gross sales or $350, whichever is greater. This payment starts upon the earlier of opening the Franchise Business or seven months after agreement execution, and it is due weekly based on the preceding calendar week's sales [p.75]. Additionally, advertising fees are collected by the company for system-wide marketing efforts, though specific amounts are not detailed in these excerpts [p.214].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not detail the length of the initial franchise agreement or the renewal process beyond stating that a renewal fee must be paid if you elect to renew your franchise at the end of the initial term [p.76].
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit the transfer of your franchise ownership except for good cause. Good cause includes but is not limited to unspecified reasons [p.5]. This restriction does not prevent the franchisor from exercising a right of first refusal to purchase the franchise [p.5].
On what grounds can the franchisor terminate the agreement?
According to [p.5], a franchisor can terminate the franchise agreement prior to its expiration only for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You are protected from competition within a 1-mile radius (or less in densely populated areas) around your location, but this protection is limited to the location and does not grant exclusivity for marketing or customers [p.40].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial program to train the Designated Owner and General Manager [p.78], as well as additional training for management employees at the Franchise Business, including one representative who will train staff for up to one week around the opening of the business [p.83]. Ongoing training programs may also be provided [p.78], but this obligation does not apply on renewal or transfer.
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were a total of 9 franchised VARA Juice ® Restaurant outlets in operation. The excerpts do not specify any closures or terminations of these outlets. [p.54]
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it [p.54]. However, they do not make any financial performance representations except in cases where actual records of an existing outlet are provided to a prospective franchisee purchasing that specific outlet [p.57]. The franchisor can disclose financial records and share them with other franchisees or potential franchisees under certain circumstances [p.103].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the products and providing the services that the franchisor specifies as "Required Products and Services," and you may offer the "Optional Products and Services" with their written approval. You must purchase or lease items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than other options [p.3]. Additionally, you are required to use a designated supplier for your point-of-sale (POS) system and allow automatic polling of sales-related metrics [p.20].