Key Elements to Expanding your Juice Bar into a Franchise

After operating your business for some time, you may get to a point where you can imagine expanding opening more locations.

You have a strong following, employees that are skilled at retaining customers, and your menu is a hit!

Believing in your business’s potential to succeed is the first step.

​​We have organized some other important factors for you to assess before reaching out to investors and potential partners to initiate your growth.

Key Elements to Expanding your Juice Bar into a Franchise #1: Operational Aspects

  1. Profitability is the main factor in determining whether or not your business is strong enough to become a franchise. Much of your business’s profitability can be measured based on how effectively you operate. Some examples of these internal systems for you to review include your customer service protocols, internal systems, marketing strategy, and employee training, and staff management.
  2. Prepare for franchisement by documenting a detailed account of all methods of operation you have in place. This will offer a clear guide to what makes your business stable and provide guidelines for others to follow when opening a new location.
  3. For example, when documenting your hiring processes and employee management, it is important that you have protocols for hiring, training, evaluating performance, setting expectations, and implementing systems that keep your staff accountable. All of these systems should be made specifically for your business and refined over time.
Key Elements to Expanding your Juice Bar into a Franchise

Key Elements to Expanding your Juice Bar into a Franchise #2: Financial Processes

  1. Investors and potential partners will want to look at the metrics. The efficiency of your business is very much revealed in your gross income. How much are you taking in compared to your gross? Are you within a reasonable or even favorable range in relation to the industry? Numbers reveal how effectively you are selling your concept.
  2. Before gathering numerical data, it could be helpful for you to access where you are putting your efforts to gauge how ready you are for expansion. For example, what is your cost of labor? Ideally, before making your business into a franchise your labor costs should be about 25% of your gross revenue. That is, 25% of outsourced labor, without requiring that you yourself are working within the business. Another good way to measure the strength of your business is to notice where you are putting your energy. Are you making regular runs to the grocery store to get ingredients? If so, it is probably best for you to circle back to perfecting your methods of operation to ensure that your procedures for inventory checks and balances are self-sufficient. Alternatively, if your systems are in place and you are putting real time and effort into establishing partnerships and expanding into different distribution channels, this is a sign that you could be ready to grow.
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Key Elements to Expanding your Juice Bar into a Franchise #3: Branding

  1. When expanding into a franchise, customers should not simply frequent your business in search of a product they desire. Ideally, you have developed your concept enough that customers visit your business to interact with your brand itself. We have entire podcasts and blogs that can help you better understand the power of branding, but here we are speaking specifically about brand development with regard to expansion. Thinking about your brand visually is important for continuity and ultimately a customer’s aesthetic attraction to your brand. It is important to have a strong brand design behind your business, but so is the story of your brand.
  2. A compelling story has a beginning a middle, and in this case- a future. As you expand from a single store front and into a corporate entity you want customers and business partners alike to be in love with your brand itself. The story of how you began, what you value, and what you hope to achieve. Your brand should have a message that people can get behind or take action that is a part of a movement for people to join and be a part of. Having strong brand values and a mission will also inspire investors and partners to choose your business for collaboration over others.
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The Bottom Line

It is extremely exciting when all of the pillars of your business are solid enough that you can imagine expanding.

When things are running smoothly, and the systems you have in place to solve problems and maintain profits are working effectively, it is time to sit down and calculate exactly how many funds were required to get to where you are.

This number, in addition to your collection of methods of operation, your financial data, and your brand concept will help you discern how realistic expansion is for you and your potential partners, enabling you to chart a course towards building your business into a franchise.

Have any questions about your business’s potential?

Reach out to us today for a consultation so we can help advise you on next steps.

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