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.
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.
My intention is to share some information with 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?
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. 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.
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?
Franchise fees
Depending on the company that you are attempting to buy into, franchise fees can be up to $100,000 or more.
This is just to gain access to utilize the brand trademark. 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.
Beyond these upfront fees, franchises charge a monthly or quarterly royalty. This can range from 4-6% or more.
There may also be a 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.
Their menu may be good, but it is not likely to be perfect.
Their systems may be good, but they are not likely to be perfect.
It is hard to imagine improving upon any element of a business that is franchising, but the truth is most of these companies have a lot of room to improve.
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 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.
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.
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 to be perfect.
Their systems may be good, but they are 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 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.
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.
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. 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 tomorrow and if you can’t adapt, you are in trouble.
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 business.
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.
Our agency can help you create an original concept.
Our team has helped over 100 entrepreneurs all over the world launch profitable juice bars for nearly a decade.
We can support you with everything from start to finish.
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Branding
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Menu Creation
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Finding Your Ideal Location
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Equipment
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Establishing Vendor Relationships
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Marketing Strategies
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On-site Staff Training
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..And everything in between.
We will 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 customized approach.
Similar to a franchise, we have time-tested production systems and production templates.
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 90% of our clients are still in business.
