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FDD Talk 2021: Jamba Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

Last updated on April 29, 2022 by Franchise Chatter Leave a Comment in FDD Talk: Food Franchises , Franchise Earnings , Juice Franchise , Smoothie Franchise

In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Jamba franchise opportunity, including relevant news updates
• Section II – Estimated initial investment for a Jamba franchise, based on Item 7 of the company’s 2021 FDD
• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Jamba franchise, based on Items 5 and 6 of the company’s 2021 FDD
• Section IV – Number of franchised and company-owned Jamba outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD
• Section V – Presentation and analysis of Jamba’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:
• 2019 and 2020 average, median, highest, and lowest net sales and weeks open for the 531 franchised traditional Jamba stores that were active franchises throughout the entire fiscal year 2019, and the 570 franchised traditional Jamba stores that were active franchises throughout the entire fiscal year 2020
• 2019 and 2020 average total gross sales, cost of goods sold, personnel expenses, advertising expenses, operating expenses, occupancy expenses, general and administrative expenses, and EBITDA for the 304 franchised traditional Jamba stores that were open for all weeks of fiscal year 2019 and fiscal year 2020 and that provided Jamba with complete financial information sufficient for it to complete the average profit and loss statement

Section I – Background Information

19 things you need to know about the jamba franchise.

Evolution Helps Company Weather COVID Storm

1.  Near the end of August 2020, QSR Magazine posted a feature about how the changes Jamba has made over the past few years have helped the brand weather the difficulties of the ongoing COVID-19 pandemic. Following a $200 million sale to Focus Brands in late 2018, the 30-year-old brand set off on a broad refresh. Jamba wanted to present an image that encompassed a wider array of offerings. In this case, Jamba brought the tagline “Smoothies, Juices and Bowls” into play and placed the focus on a renewed commitment to balanced ingredients, plant-based options, and reduced sugar selections.

2.  The change went live June 6, 2019, and included a host of updates. Perhaps the most visible was a fresh prototype, complete with new logo, and enhanced design elements, like light wood, “freshness cues,” and colorful and expressive elements. The menu transformed to spotlight clear categories and guide consumers into tiers – Power (enhanced smoothies), Classic favorites, and expanded Plant-Based items. Yet less outward changes were brewing behind the curtain, too. And while the chain didn’t realize it then, these have turned out to be Jamba’s COVID-19 lifeboats.

3.  Brand President Geoff Henry, named to the role January 2019 from Coca-Cola, where he led lifestyle and beverage business growth in the water, tea, and coffee divisions, points to Jamba’s digital accessibility and stack investments. Among the changes, it’s really the one that’s lifted the brand through historic challenges. In the last 15 months (prior to the release of the article), Jamba rolled out a new point-of-sale across its stores, launched a new mobile app and integrated rewards loyalty program, fresh ecommerce-enabled website, and expanded partnerships with third-party aggregators. Today, online transactions are running 300-plus percent higher, year-over-year.

4.  Henry said, “To be frank, even without the crisis, we had plenty of bumps in the road when we launched our new programs. It took a few weeks to work through that last summer. But fortunately, we were in a great spot by the middle of last year and we could really accelerate with the crisis in terms of making sure the guest knew about it.”

5.  Jamba has enjoyed the luxury of turning its COVID-19 attention to awareness in recent months instead of infrastructure. It integrated order ahead in Q1 – pre-virus – and synched third-party delivery with POS terminals. Jamba also introduced first-party delivery via Olo’s Dispatch in February, which Henry says has “taken off” during the crisis. The main change was, before February, customers could open the app, order ahead, and pick up. It’s evolved to where guests can access delivery from the app as well. Jamba offers third-party delivery and direct, via its site and app. The key is, given the ample challenges COVID-19 presents, having avenues to get food to customers. Henry added, “We were fortunate to have a variety of ways to get our product to the guest.”

6.  Henry says average ticket sizes have risen significantly – like they have for many quick-serves – as solo occasions slide in favor of group orders. It’s been more than double-digits, he says. The 2019 refresh helped in other ways as well. The store designs unlock updated features, like grab-and-go coolers that support digital convenience and access. Customers pull up and grab and go without needing to enter the store. Other units have taken a makeshift drive-thru approach, especially in non-traditional venues. Operators purchased signs and cones, tables, tents, and set up an operation out front for consumers to pickup food. This helped a lot of Jamba’s restaurants remain open from day one forward. Henry says more than 95 percent were up and running, and the majority avoided temporary closures throughout.

7.  COVID inspired model innovation. Jamba launched its first food truck in Atlanta – providing franchisees with a lower-cost-to-entry opportunity. Henry says it’s also helped Jamba get the brand to more places and deliver food in new ways, an important lever as lockdown behavior limits travel patterns. “If you were a franchisee and you were interested in a food truck, I think the best combination would be if you already had a store, the food truck would help you extend the reach in the marketplace and help build the brand and get the product in more places, and perhaps unexpected places,” Henry said.

8.  He continued, “Obviously, time will tell what the ultimate impact of COVID-19 will be on behaviors and habits. But, certainly, I think the food truck and its capabilities are highly relevant for urban locations. I could also see it in suburban or more coastal locations.” Consider it an extension of a new-look Jamba. The brand tapped a local Atlanta artist to create a mural and, like all food trucks, it’s serving as a roaming billboard for Jamba.

9.  Looking ahead, Henry said there’s been a steady increase in franchisee interest. He believes COVID-19 and shelter-in-place mandates inspired a lot of people to start thinking about their future from angles they hadn’t before. And the helplessness of the situation, in many ways, shoved entrepreneurial-centric options in the spotlight.

10.  Franchising fits the bill, as the pandemic’s impact on the workplace leads professionals to reevaluate what they want to do and why they do it. “The industry is getting more attention from folks who have been looking at it for a while and now see it as potentially the right opportunity to step in or step in and learn before they expand,” he said.

11.  Jamba’s inclusion in Focus Brands’ seven-unit portfolio (Moe’s, Schlotzsky’s, McAlister’s Deli, Cinnabon, Carvel, and Auntie Anne’s) stirs some unique possibilities. Jamba touts co-branding activations with Auntie Anne’s, but there’s also some tri-branding taking form with Cinnabon included. “One, they’re small footprint,” he said. “Two, they’re designed for on-the-go. So there’s a lot of synergies, at least from an operations and design standpoint, relative to Jamba, which can make for a very efficient build-out, which is great for a guest experience. While we have different product offerings and different frequency of loyal guest visits, it can certainty be the same guest but perhaps at different times.”

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12.  In more recent days with dine-in coming back, Jamba witnessed digital transactions hold after March and April spikes. Henry doesn’t believe customers’ sudden affinity for convenience and accessibility are going to fade when COVID-19 cases do. Consumers will continue to turn on the channels they leaned on during the pandemic, especially at brands built around speed and convenience to begin with (like a smoothie-focused chain). Henry also sees a chance for wellness brands to progress forward with immunity-boosting options and balance their menus with made-to-order products that meet evolving consumer demand. In Jamba’s small footprint, customers see the entire restaurant once they walk through the door. There’s zero mystery, which is becoming essential given the invisible enemy in the room.

Launches New Breakfast Items

13.  In mid-April 2021, Jamba launched new fuel-good food menu items for breakfast with in-store and delivery options perfect for any commute. The new items include two Handwiches – Jamba’s take on the classic breakfast sandwich designed to pack flavor into a small package to fit in one hand for eating on-the-go – and a delicious Veggie Egg Bake.

• Impossible Handwich (SRP $3.79): With Impossible Sausage made from plants, and made for people who love and crave meat, with fewer calories and less fat than traditional sausage. Crafted with your busy lifestyle in mind, each handwich is layered with melty white cheddar cheese between toasted sprouted grain buns, boasting 12 grams of protein and only 220 calories.
• Classic Sausage, Egg & Cheese Handwich (SRP $3.49): Made with all-natural pork sausage, egg, and melty white cheddar cheese layered between toasted sprouted grain buns. The perfect size for a grab-and-go breakfast whether at home or on the move, each handwich has five layers of deliciousness that pair perfectly with your smoothie or juice. An excellent option for kickstarting your day, it’s packed with 12 grams of protein and contains 320 calories.
• Spring Veggie Egg Bake (SRP $3.99): Light, fluffy, and bursting with red bell peppers, spring leeks, and artichoke hearts. Under 200 calories and free of gluten ingredients, it’s a portable good source of protein and calcium to help you stay on track.

15.  Danielle Fisher, vice president of marketing for Jamba, said, “At Jamba we pride ourselves in offering our guests a wide selection of menu items that meet all lifestyles. For years we’ve been a go-to morning stop with our freshly blended smoothies, juices, and bowls. Now, the Impossible Handwich, featuring delicious sausage made from plants, along with our Classic Handwich and Egg Bake, deliver guests flavor-packed, hand-held options that bring even more variety as they kickstart their day.”

Company History

16.  Jamba, formerly Jamba Juice, was founded in 1990 by Kevin Perron in San Luis Obispo, California. Perron, who was an avid cyclist and an advocate for a healthier lifestyle, developed the idea for Jamba (initially called Juice Club) as his senior project while attending California Polytechnic State University. From the beginning, Perron’s juice bar was a hit and by the end of his second year in business, Perron was ready to expand. After failing to secure a small business loan, Perron decided to expand through franchising. The first franchised location opened in Irvine, California and by the end of 1994, there were 16 Jamba locations.

17.  Also around that time, Perron and his juice club business had attracted the attention of venture capitalist Bob Kagle as well as Howard Schultz, who was the chairman and CEO of Starbucks at the time. Perron was able to raise tens of millions of dollars to invest in Jamba and continue growing the business. In 1995, Perron changed the company’s name from Juice Club to Jamba Juice. Over the next few decades, Jamba Juice continued to grow around the country, and even acquired Zuka Juice in 1999.

18.  In 2006, Jamba was acquired by Services Acquisition Corp. International for $265 million. A few years later, around 2009, Jamba began expanding its offerings beyond juices and smoothies. Wraps, sandwiches, and flatbreads were added to the menu. Jamba continued its growth into the 2010s and in 2018, the company was acquired by Atlanta-based Focus Brands, which also owns Schlotzsky’s, Carvel, Cinnabon, Moe’s Southwest Grill, McAlister’s Deli, and Auntie Anne’s. Today, there are Jamba stores all across the United States and internationally in Japan, the Philippines, Taiwan, South Korea, Thailand, and Indonesia.

Entrepreneur’s Franchise 500

19.  Jamba did not rank on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Jamba franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Jamba’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

• Outlets at the Start of the Year:  739
• Outlets at the End of the Year:  719
• Net Change:  -20
• Outlets at the Start of the Year:  719
• Outlets at the End of the Year:  777
• Net Change:  +58
• Outlets at the Start of the Year:  777
• Outlets at the End of the Year:  762
• Net Change:  -15

Company-Owned

• Outlets at the Start of the Year:  53
• Outlets at the End of the Year:  52
• Net Change:  -1
• Outlets at the Start of the Year:  52
• Outlets at the End of the Year:  2
• Net Change:  -50
• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  5
• Net Change:  +3

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• This Item 19 presents information about the financial performance of certain franchised Traditional Stores during the fiscal year ended December 29, 2019 (“Fiscal Year 2019”) and the fiscal year ended December 27, 2020 (“Fiscal Year 2020”).
• Jamba has not made permanent, material changes to its concept as a result of the COVID-19 pandemic.
• Jamba has not included in this Item 19 any data related to Non-Traditional Stores and affiliate-owned Stores, because certain aspects of their operations can vary significantly from the Traditional Stores that are represented in this Item 19.
• “Net Sales” includes all revenues generated by a Store or conducted from or with respect to a Store, whether the sales are evidenced by cash, check, credit, charge, account, barter, or exchange, but does not include (a) the initial sales or reloading of gift cards, (b) discounts, (c) the sale of food or merchandise for which refunds have been made in good faith to customers, (d) the discounted portion of employee meals, (e) sales, meals, use, or excise tax imposed by a governmental authority directly on sales and collected from customers, provided that the amount for the tax is added to the selling price or absorbed therein and is actually paid by you to a governmental authority, (f) the sale of equipment used in the operation of the Store, or (g) tips.
• The Fiscal Year 2020 data includes 570 franchised Traditional Stores that were active franchises throughout the entire Fiscal Year 2020 (out of 762 franchised Stores that were active franchises as of the end of Fiscal Year 2020). An “active franchise” is a franchise that has opened a Store and has not permanently closed such Store.
• The data includes franchised Traditional Stores that were temporarily closed for periods of Fiscal Year 2020 for any reason, which could include, for example, temporary closures for renovations, repairs, or personal reasons, as well as temporary closures due to the COVID-19 pandemic and related government restrictions on the operation of Stores.
• The Fiscal Year 2019 data includes 531 franchised Traditional Stores that were active franchises throughout the entire Fiscal Year 2019 (out of 777 franchised Stores that were active franchises as of the end of Fiscal Year 2019).
• It includes franchised Traditional Stores that were temporarily closed for periods of Fiscal Year 2019 for any reason, which could include, for example, temporary closures for renovations, repairs, or personal reasons.
• These sales figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

Part 1 – Average Net Sales by Quarter for Certain Franchised Traditional Stores for Fiscal Year 2019 and Fiscal Year 2020

Fiscal year 2020 – franchised traditional stores (570 locations).

• Average Net Sales:  $144,683
• Percentage Change from 2019:  -2%
• Number and Percentage at or Above Average Net Sales:  248/44%
• Median Net Sales:  $137,170
• Lowest Net Sales:  $24,350
• Highest Net Sales:  $386,681
• Average Weeks Open:  12.94
• Median Weeks Open:  13
• Lowest Weeks Open:  12
• Highest Weeks Open:  13
• Number Open All Weeks:  537
• Average Net Sales:  $152,151
• Percentage Change from 2019:  -20%
• Number and Percentage at or Above Average Net Sales:  247/43%
• Median Net Sales:  $142,993
• Lowest Net Sales:  $0
• Highest Net Sales:  $513,634
• Average Weeks Open:  12.21
• Lowest Weeks Open:  0
• Number Open All Weeks:  501
• Average Net Sales:  $198,209
• Percentage Change from 2019:  8%
• Number and Percentage at or Above Average Net Sales:  257/45%
• Median Net Sales:  $185,953
• Highest Net Sales:  $586,592
• Average Weeks Open:  12.85
• Number Open All Weeks:  556
• Average Net Sales:  $142,203
• Percentage Change from 2019:  10%
• Median Net Sales:  $133,590
• Highest Net Sales:  $470,454
• Average Weeks Open:  12.83
• Number Open All Weeks:  560
• Average Net Sales:  $637,247
• Median Net Sales:  $597,028
• Lowest Net Sales:  $42,787
• Highest Net Sales:  $1,957,362
• Average Weeks Open:  50.84
• Median Weeks Open:  52
• Lowest Weeks Open:  13
• Highest Weeks Open:  52
• Number Open All Weeks:  494

Fiscal Year 2019 – Franchised Traditional Stores (531 Locations)

• Average Net Sales:  $147,741
• Number and Percentage at or Above Average Net Sales:  227/43%
• Median Net Sales:  $140,039
• Lowest Net Sales:  $32,867
• Highest Net Sales:  $385,669
• Average Weeks Open:  12.99
• Number Open All Weeks:  527
• Average Net Sales:  $189,399
• Number and Percentage at or Above Average Net Sales:  229/43%
• Median Net Sales:  $176,391
• Lowest Net Sales:  $40,751
• Highest Net Sales:  $514,924
• Average Weeks Open:  13
• Number Open All Weeks:  531
• Average Net Sales:  $183,522
• Number and Percentage at or Above Average Net Sales:  241/45%
• Median Net Sales:  $176,649
• Lowest Net Sales:  $39,896
• Highest Net Sales:  $466,528
• Number Open All Weeks:  529
• Average Net Sales:  $129,354
• Median Net Sales:  $122,892
• Lowest Net Sales:  $21,718
• Highest Net Sales:  $346,980
• Average Weeks Open:  12.97
• Lowest Weeks Open:  5
• Number Open All Weeks:  525
• Average Net Sales:  $650,017
• Number and Percentage at or Above Average Net Sales:  238/45%
• Median Net Sales:  $620,514
• Lowest Net Sales:  $147,249
• Highest Net Sales:  $1,696,376
• Average Weeks Open:  51.96
• Lowest Weeks Open:  44
• Number Open All Weeks:  519

Part 2 – Profit and Loss Statement for Fiscal Year 2019 and Fiscal Year 2020 for Franchised Traditional Stores Open Continuously Throughout Fiscal Year 2019 and Fiscal Year 2020

• This financial performance representation reflects the average Fiscal Year 2019 and Fiscal Year 2020 Gross Sales, Cost of Goods Sold, Personnel Expenses, Advertising, Operating Expenses, Occupancy Expenses, General and Administrative Expenses, and EBITDA, as Jamba describes those terms below, for franchised Traditional Stores that were open continuously during both Fiscal Year 2019 and Fiscal Year 2020 and that provided Jamba with complete financial information sufficient for it to complete this profit and loss statement (“P&L Statement”).
• Jamba did not use any reports that were submitted late, included incomplete or illegible financial information, involved unique circumstances, or for which the information was presented in a manner that prohibited Jamba from applying the information to one of the categories in the P&L Statement.
• The data for both Fiscal Year 2019 and Fiscal Year 2020 includes average financial performance for 304 (70%) of the 434 franchised Traditional Stores that were open for all weeks of Fiscal Year 2019 and Fiscal Year 2020.
• While there were 762 franchised Stores that were active franchises at the end of Fiscal Year 2020, 178 were excluded because they were Non-Traditional Stores, 107 franchised Traditional Stores were excluded because they were not open for all weeks of Fiscal Year 2019 and Fiscal Year 2020, 43 franchised Traditional Stores were excluded because they were refranchised by Jamba in Fiscal Year 2019 or Fiscal Year 2020, and 130 franchised Traditional Stores were excluded because they did not submit complete data.

Fiscal Year 2020 – Franchised Traditional Stores (304 Locations)

• Average Total Gross Sales:  $731,285 (100.0%)
• Average Cost of Goods Sold:  $152,546 (20.9%)
• Average Personnel Expenses:  $231,196 (31.6%)
• Average Advertising Expenses:  $58,239 (8.0%)
• Average Operating Expenses:  $104,510 (14.3%)
• Average Occupancy Expenses:  $76,743 (10.5%)
• Average General and Administrative Expenses:  $18,913 (2.6%)
• Average EBITDA:  $89,137 (12.2%)

Fiscal Year 2019 – Franchised Traditional Stores (304 Locations)

• Average Total Gross Sales:  $751,825 (100.0%)
• Average Cost of Goods Sold:  $151,858 (20.2%)
• Average Personnel Expenses:  $229,894 (30.6%)
• Average Advertising Expenses:  $78,196 (10.4%)
• Average Operating Expenses:  $100,041 (13.3%)
• Average Occupancy Expenses:  $78,195 (10.4%)
• Average General and Administrative Expenses:  $11,476 (1.5%)
• Average EBITDA:  $102,165 (13.6%)
• “Total Gross Sales” is calculated as total Net Sales, plus the amount of any discounts from redemptions of coupons or other reductions made to calculate Net Sales.
• “Cost of Goods Sold” (“COGS”) includes the cost of food, beverages, merchandise, packaging, and other products included in the preparation and sale of food, beverages, and other products to customers. The Cost of Goods Sold may vary considerably based on whether a Store is located within the geographical area serviced by Jamba’s Approved Suppliers and distributors.
• “Personnel Expenses” includes wages paid to management and employees of a Store, including managers and shift supervisors, management bonuses, payroll taxes, health insurance, workers’ compensation, vacation, other employee benefits, and associated payroll taxes paid to employees.
• “Advertising” includes Advertising Contributions, contributions to Co-ops, local marketing, discounts, coupons, and sponsorships.
• “Operating Expenses” includes costs for supplies, including smallwares, paper supplies, cleaning supplies; waste removal; controllable expenses like employee uniforms, repairs and maintenance on the equipment and Store premises, service contracts, computer expenses, office supplies, utilities, janitorial services, and Royalty Fees.
• “Occupancy Expenses” includes base rent, percentage rent, common area maintenance, real estate taxes, equipment lease expenses, and other miscellaneous expenses.
• “General and Administrative Expenses” includes non-controllable expenses like credit card fees, payroll processing fees, accounting and other professional fees, employee recruiting costs, general liability insurance, business licenses and fees, and bank service charges.
• “EBITDA” means Store level earnings before interest, taxes, depreciation, and amortization. In addition to those items, this category does not include pre-opening expenses and other miscellaneous expenses a franchisee may incur. Jamba does not include costs for interest and other debt service costs, taxes, depreciation, or amortization, because they vary considerably depending on the particular organization and typically are excluded when calculating the free cash flow from a Store’s operation.
• There may be other expenses in operating a Store that are not identified in the P&L Statement. You should consider these costs, as well as other costs and expenses you may incur, when creating a business plan for your Store.
• Some Stores have sold or earned this amount. Your individual results may differ. There is no assurance that you will sell or earn as much.
• Jamba calculated the figures in the tables in these financial performance representations using financial reports submitted by franchisees. Jamba has not audited or independently verified these financial reports nor has it asked questions of the submitting franchisees to determine whether they are in fact accurate and complete, although Jamba has no information or other reason to believe that they are unreliable. No certified public accountant has audited these figures or expressed his or her opinion concerning their content or form.

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The Untold Truth Of Jamba Juice

Most of us have gotten used to seeing a Jamba Juice — now renamed to Jamba, by the way — on every corner over the last 30 years or so. The bright colors and tropical smoothies on the chain's menu have become a staple in popular culture and Jamba oftentimes seems to be sort of the big brother of all juice and smoothie places.  The signature swirl of its logo is recognized anywhere in the country, too, since Jamba now has hundreds of locations nationwide. The delicious smoothies are suspiciously sweet, sure, but we all love to grab one on the go at least every once in a while, don't we? 

Aside from whipping up smoothies in a flash, what do you know about this widespread franchise of smoothies and snacks? Do you know how to order from the super-secret menu? Do you ever wonder how this smoothie giant even got started and when? And what's up with the recent name change that dropped the seemingly important "juice" from storefronts everywhere? Well, we've got you covered on all fronts with the untold truth of the fast food smoothie chain known as Jamba Juice.

Jamba Juice started out as a college senior project

It all started in 1990 in San Luis Obispo, California. 26-year-old Kirk Perron created a juice shop as his senior project at California Polytechnic State University, according to Inside Cal Poly . The avid cyclist and health enthusiast decided to create his own healthy juice shop which he named "Juice Club" but as it grew, the name soon changed to Jamba Juice. 

Jamba Juice grew immensely over the next thirty years, reaching over 800 locations  nationwide. The original location is still going strong in the quaint downtown district of San Luis Obispo. Many more innovative businesses have come from the students of California Polytechnic State University since the '90s. Jamba Juice isn't the only beverage business to come out of Cal Poly seniors. Guayakí Yerba Mate, those yellow cans you see at the grocery store, was a 1996 senior project from Cal Poly as well. Notably, one Cal Poly student recently started a successful business selling convertible high heels, as seen on Shark Tank . 

The idea was inspired by another juice shop

So how did Perron come up with the idea for a juice shop business of his own way back in the 1990s? He told The Tribune that, after his workouts, he used to frequent a different juice shop in downtown San Luis Obispo called Blazing Blenders. He said that his quest for a healthy and active lifestyle led him to start his own business in the health food industry. That appears to have been a pretty smart move overall, considering that smoothies and juices continued to grow in popularity over the next few decades. Blazing Blenders ended up closing its downtown San Luis Obispo doors in 2006, so it appears the super fan beat out the inspirational competition. 

Some of those successful business steps that helped Jamba Juice get where it is today included partnering with Starbucks' Howard Shultz, according to the Silicon Valley Business Journal . He also snagged a licensing agreement with Whole Foods in 1997 (via San Francisco Business Times ). He later went on to acquire a large number of other smoothies shops that helped to catapult his business forward.

Jamba Juice acquired almost 100 juice shops in the '90s

When you want to become the Starbucks of the smoothie industry, you have to squeeze into every market you can and knock out the competition — or simply buy it out. Nine years after launching, Jamba Juice had laid a solid foundation with its growing popularity and business plan. Determined to keep growing, Jamba Juice acquired a competing business, Zuka Juice, in 1999 (via Phoenix Business Journal ). Zuka Juice was a smoothie shop franchise based in Salt Lake City at the time, with nearly 100 locations throughout Utah, Arizona, Colorado, and other states. This acquisition helped Jamba Juice further expand its already growing market into more and more states with practically ready-made locations.

Jamba founder Kirk Perron once referred to the acquisition of Zuka Juice as a "perfect marriage" because of the philosophies and values the two companies shared, according to Beverage Online . Interestingly enough, Zuka Juice's logo was a piece of fruit that had been stylized into a simple swirl, an image that rather closely resembles the current Jamba Juice whirl.

Jamba Juice isn't as healthy as you think

Smoothies are a great way to sneak healthy ingredients like veggies into your diet and make them more palatable to some picky eaters. But, when we're talking about fast food spots, it still comes at a cost. Jamba Juice's smoothies and other juices contain large amounts of sugar . So, while some of those drinks may look healthy (especially the green ones) and they certainly taste good, you may want to take a look at the nutritional information first. 

To make their drinks taste as sweet as they do, Jamba Juice adds a lot of fruit into the mix. In some cases, that includes "fruit blends," which is really just a fancy term for juice concentrates, according to the Center for Science in the Public Interest . Concentrates and blends typically contain all the natural sugars found in fruits, but way less of the fiber, vitamins, and minerals from the whole fruit. 

At Jamba Juice, you do at least have the option to add in nutritious items such as whey protein and vitamins, but you also have the option of adding more tempting but less healthy ingredients like frozen yogurt and sherbet. In 2019, Jamba Juice actually updated its menu to include more health-conscious options, cutting out high fructose corn syrup and artificial flavors and coloring. Check out the new and improved  menu  and see if you can't make your next trip to Jamba as healthy as possible. 

They have a super secret menu

Most of us know by now that most fast food restaurants have a secret menu, with some truly great gems to be found if you ask employees nicely (and some seriously overhyped secret menu items , too). But Jamba keeps theirs especially hidden, with nary a mention of such a thing placed anywhere on their website. 

Yet, if you do some digging, you'll find some secret smoothie names that are incredibly fun and creative (via Hack the Menu ). Some are named after classic desserts like Strawberry Cheesecake, Apple Pie, and Chocolate Covered Strawberries. Others are named after candies we all know like Skittles , Sour Patch Kids, and Starburst . Sure, some like the Raspberry Shortcake and Peanut Butter and Jelly require frozen yogurt, while plenty others feature candy, meaning that they aren't strictly the healthiest thing you can snag from Jamba Juice (via Cosmopolitan ). Still, the thrill of ordering from a secret menu may be enough to justify a small treat every once in a while.

The most popular of them all surely has to be a version named the "White Gummi," which originally featured gummi bears, per Hack the Menu. The peach and pineapple smoothie proved to be so popular that Jamba has now made part of their permanent menu .

Jamba recently rebranded

Jamba isn't just short for Jamba Juice, at least not anymore. It's now the new official name of the franchise. Yep, they dropped the word " juice " from their name, and, if you were to ask company executives, it's all for a good reason. In an effort to stay relevant in today's health-conscious culture, Jamba decided the word and its sugary connotations weren't serving them anymore, CNN reports. 

Along with the name change, Jamba updated and revamped its whole image. With a new logo sporting only the signature whirl, Jamba also updated its storefronts to include an emerald shade and a more simplified, modern look. In addition to all of that, Jamba upped its e-commerce game by making its website more mobile-friendly and launching a brand new app . These updates came at the perfect time, in 2019 right before because we're betting this e-commerce update must have been nice to have during the pandemic the following year. 

The menu got a makeover as well. Working with a registered dietician, the franchise updated the menu by removing artificial sweeteners, artificial flavors, and artificial colors. They have also brought in some healthy add-ons like blue spirulina , a type of microalgae, along with chia seeds and vitamin boosts. Lastly, as if all of this wasn't enough to convince you to frequent Jamba again, they now serve steel-cut oatmeal and ginger shots (via Jamba ).

The founder of Jamba Juice died in 2020

On June 20th, 2020, Jamba founder Kirk Perron died of a heart attack in Palm Springs California at 56 years old. Yet, Perron wasn't then in charge of the company. The California native sold Jamba Juice in 2006 for a whopping $265 million, according to the Silicon Valley Business Journal . The company was pivoting towards public ownership. In that same year, Perron resigned from the board of Jamba Juice, later telling The Tribune that "Nothing would make me happier than to see Jamba outlive me. I'm rooting from the sidelines for them."

After Perron's death, Jamba honored his memory on Facebook by promising to "continue to carry on his dream" and announcing that they would be making a donation to the Jamba Juice/Kirk Perron Scholarship Endowment Fund, a scholarship for incoming business students at his alma mater of Cal Poly San Luis Obispo (via Cal Poly ).

You can visit a drive-through mashup of Jamba and Auntie Anne's

In Wylie, Texas, married couple Shawn and Crystal Bowling decided to bring together Jamba Juice and Auntie Anne's for a combo they described as "Smoothies and pretzels. Salty and Sweet," according to QSR . As such, they opened the first mashup of the two stories in May 2021.

Jamba Juice and Auntie Anne's are both under the same parent company after all, which made starting this franchise combo a little smoother for the Bowlings. Focus Brands is the parent company of both the smoothie giant and the pretzel joint, as well a handful of other restaurants that include Cinnabon , Schlotzsky's, Moe's Southwest Grill , and those ever-popular Carvel ice cream cakes.

The Bowlings told QSR that their combo drive-through location in Texas has met all sales expectations and beyond in the first few months of launching. Perhaps that's in part because the pair focused on the drive-thru aspect of their enterprise, a component they had already seen prove to be useful for other restaurants during the COVID-19 pandemic. Clearly, their customers' love for the salty and sweet combo of Jamba and Auntie Anne's has helped the Bowlings make their unique idea highly successful so far.

They now serve a breakfast "handwich"

In early 2021, Jamba decided to dry and appeal to all of the customers who were finally commuting to work again as, in many place, coronavirus restrictions began to change and lift. They did this by introducing a new breakfast item  called a "handwich". The handwich comes with a pork sausage meat patty or, for vegetarians, an Impossible Foods patty. It's a new and unique addition to a chain that's more often known for fruity drinks than more substantial meal items.

The two options both include melted cheddar cheese and a sprouted grain bun, deployed here in alignment with Jamba's new health-conscious vibe. And what of the idea behind the handwich and its name? According to Jamba , the menu item gained the moniker because you should be able to hold the sandwich in one hand and eat it on the go. This is Jamba's debut in the breakfast sandwich space, where there is plenty of competition from other fast food chains that have heavy morning traffic.

You can have your Jamba made by a robot

What if you could get a fresh smoothie from a vending machine? One Walmart location in California now sports a Jamba inside the store. But not just any Jamba, considering that this one has no employees present. It is a co-branded kiosk with Blendid , a robotics company that specializes in contactless food kiosks and aims to help food companies scale their businesses for faster and easier operations. 

In this particular Jamba kiosk, a robotic arm makes your smoothie in a mere 3 minutes, according to Insider . But, unlike a human employee, the robot in question can make 9 smoothies simultaneously. This is the first partnership of its kind between Blendid and Jamba, but there is a plan in place to add many more such kiosks in the future. So, be on the lookout for more robot restaurants. Blendid is already planning to expand by adding more  locations in California and Georgia.

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Jamba juice company.

Based in San Francisco, Jamba Juice Company has more than 350 company and licensed stores spread across 23 states and the District of Columbia that serve some 20 varieties of smoothies, 24 to 32 ounce drinks that the company positions as healthy meal replacements. Most of the blenderized concoctions rely on frozen or fresh fruit, supplemented with such optional "boosters" as bee pollen, ginseng, brewer's yeast, and wheat grass. In addition, Jamba sells vegetable soups, breads, and gourmet soft pretzels. The bulk of the chain's outlets are located in California, where juice bars have long been a staple. In order to expand rapidly across the United States, Jamba has taken on regional franchise partners, although the company has been reluctant to initiate overseas franchising.

Pursuit of a Dream: 1989

The individual behind the founding of Jamba Juice was Kirk Perron, who at an early age harbored a desire to start his own business. "I was inspired because my parents never owned their own home," he told QSF Magazine in a 1999 profile. "My parents both worked at blue collar jobs and I knew that wasn't the way to get ahead. So, I started developing ideas about retail business--the wheels started turning pretty early on." Rather than engaging in high school sports, he began investing in real estate, accumulating a $12,000 down payment by turning to the adults he knew from school, including his bus driver, a librarian, and a guidance counselor. At the age of 16, he also began working at supermarkets--bagging groceries at Vons and ultimately becoming an assistant store manager at Safeway--and in the process he gained ten years of valuable retail experience. Perron was 25 in 1989 when he quit his management position at Safeway, electing to spend his days working out and bicycling, supported by his real estate ventures and a late-night job stocking grocery shelves. Often after exercising, he bought a smoothie at his health club, a drink he found far more nutritious and satisfying than a frozen drink he might buy at a convenience store after one of his long bicycle rides. Still looking to realize his childhood dream of running his own business, Perron soon decided to open a store to sell smoothies.

With a determination bordering on evangelical zeal, Perron recruited people to help him launch the business that would one day become Jamba Juice. He met his future director of research and development, Joe Vergara, at a Safeway store. Vergara was already involved in the juice bar business, managing a handful of stores in San Luis Obispo, California. He often went shopping for good deals on overripe bananas and was buying a dozen cases at a Safeway when Perron struck up a conversation that ultimately led to Vergara's involvement in the new venture. Another person impressed by Perron's passion was Kevin Peters, who helped him scout for the location of his first store and would become director of partnership development. A fourth person who would be credited with cofounding Jamba was Linda Ozawa Olds, the later head of marketing.

Although his colleagues believed in his vision of a healthful fast-food restaurant that relied on the sale of smoothies, Perron was less successful with the bankers, who quickly dismissed such a concept. To fund the business, Perron had to sell a small apartment building and borrow money from his mother and her boyfriend, in all scraping together $115,000. He then secured a 700-square-foot location in San Luis Obispo and in April 1990 launched his smoothie business, originally called Juice Club. During the first weekend the store was extremely busy, serving some 1,600 customers, but Juice Club was far from an overnight success. During the first year, daily sales hovered around the $500 level, and it was not certain that Juice Club would succeed, although some people already began to inquire about obtaining a franchise. Gradually, the store built up a loyal base of customers, many of whom visited several times a week to buy the store's unique menu of smoothies, which were given such exotic names as Pacific Passion, Boysenberry Bliss, and Protein Berry Pizazz.

By the end of the second year, Juice Club was turning a profit and Perron was ready to expand. After failing to secure a Small Business Administration loan, he decided to grow through franchising. The second Juice Club opened in Irvine, California, and by the autumn of 1994 there were 16 franchises. Already, however, Perron recognized that franchising was not the best way to grow the Juice Club concept. Not only did he risk losing quality control--and it was the quality of the product that created customer loyalty--he lacked the necessary funding to make a franchise chain profitable. The franchisees had to foot the entire bill for land and facilities, resulting in a franchise fee too modest to allow the parent company to provide the necessary management training or monitor the quality of the product. For Perron, choosing profit over quality was simply not an option. Clearly what Juice Club needed was sufficient capital to own and operate all of its outlets--to bankroll its own destiny. Rather than seek out investors, however, investors sought out Perron. In September 1994, he received a telephone call from venture capitalist Bob Kagle, a general partner in Technology Venture Investors (TVI) and Benchmark Capital. By chance, Kagle had come upon the recently opened Juice Club in Palo Alto while on his way to lunch, attracted by the long line that stretched outside the store. He was struck by the zeal of the customers, later telling the Los Angeles Times, "It seemed like everyone had a tremendous sense of affirmation about buying this smoothie." He canceled his appointments in order to conduct some impromptu research, asking questions and taking notes, and ultimately concluding that there was a growing market for healthy drinks like the smoothie and that Juice Club had a chance to define the category in a way similar to what Starbucks had done with coffee. In fact, Kagle enlisted Starbucks' chairman and CEO, Howard Schultz, to participate in an initial $3 million round of funding for Juice Club. After meeting with Perron and finding that they shared similar values, Schultz subsequently agreed to join the board. Perron also turned to Starbucks' real estate brokers to co-locate some outlets with Starbucks, since the two franchises were not in direct competition. With Schultz's blessing, Juice Club was able to raise a further $19 million from seven venture groups, one of which was Microsoft cofounder Paul Allen's Global Retail Partners. A wider group of investors would ultimately invest an additional $44 million in the business.

From Juice Club to Jamba Juice: 1995

Perron was now well positioned to take his business to a new level. He moved his corporate headquarters to San Francisco, increased the staff from 17 to 40, and changed the name of Juice Club to Jamba Juice Company. With a lot of imitators entering the business, all of whose names began with the word "juice," Perron wanted to distinguish the company from the pack. Moreover, Jamba Juice became a store concept that offered a hipper, festive, more Starbuck-like quality, a decided move away from a bland health store look. The word "jamba" means "to celebrate" in Swahili, and in turn Jamba Juice celebrated a healthy lifestyle. The brightly colored decor of the new stores and the smoothie names contributed to the effort to brand the Jamba Juice sensibility. Perron was also quick to recognize infringements and displayed a willingness to go to court to prevent rivals from copying Jamba's store layout, packaging, or drink names.

While Juice Clubs gradually made the transition to the Jamba Juice concept over the next two years, Perron initiated a site acquisition and development plan to roll out new Jamba Juice outlets at an accelerated pace, with a goal of reaching the 1,000 mark in a few years. He believed it was important to stake a claim in the fast-growing juice segment of the restaurant industry. By mid-1996, the chain had 30 stores, all located in California, 18 of which were company owned. A year later that number would virtually double, and California would top the 300 mark in total juice bars, with any number of competitors cropping up. In August 1997, Jamba took an initial step in expanding outside the state when it signed a licensing deal with Whole Foods Market of Austin, Texas, a major natural and organic foods grocery chain. Whole Foods' staff, trained by Jamba personnel, were to operate juice stands under the Jamba name and logo. The agreement allowed for Jamba outlets in four supermarkets, two of which would be established in California. Whole Foods supermarkets in Boulder, Colorado, and Tempe, Arizona, were chosen as the first non-California Jamba Juice locations, with the ultimate goal of placing juice bars in all of the Whole Foods 75 supermarkets spread across 17 states and the District of Columbia. In addition to tapping into the organic and natural food store sector, Jamba targeted two other locales that management believed were fertile territories for its concept: universities and airports.

Jamba's infrastructure evolved along with its menu. In order to retain them for an extended period, store managers were treated as quasi-owners. Not only did the company pay managers a percentage of a store's profits as an incentive, Jamba developed a retention plan, which it labeled "J.U.I.C.E." In essence, a percentage of a store's cash flow was placed in a retention bonus account, which would be awarded after three years. Should managers agree to another three-year term, they would be granted a three-week paid sabbatical. Moreover, employees in managerial positions received stock options. Jamba workers also received considerable training before being allowed to work alone, and were encouraged to make decisions in order to address customer problems without the need to seek managerial approval. It was Jamba's focus on the needs of its customers that led to changes on the menu. While they waited for their smoothies to be prepared, many customers were known to visit neighboring shops to buy a bagel. The drinks may have been adequate meal replacements from a nutritional point of view, but they lacked what was called the "chew factor." Jamba turned to the research and development firm of Mattson & Co., which produced a number of new food options. After much fine tuning, the chain introduced the results of that effort in 1998: the Jambola, a four-ounce, high-nutrient bread that was toasted and, accompanied by a smoothie, created a "Power Meal." Rather than deal with the difficulties of a fresh-baked product, Jamba chose to have the Jambolas produced by a third party and delivered frozen to stores, where they would be prepared in a conveyor toaster oven.

Over the next two years, Jamba added to its food offerings, all the while introducing new smoothie concoctions. In 1999, a line of vegetable soups, Souprimos, was launched. Because customer feedback indicated that the product fell short on taste, Jamba decided to improve flavor and consistency by including some fat to the recipes. In early 2000, the chain added gourmet soft pretzels to its menu. In addition to the traditional salted pretzel, Jamba offered two exotic flavors, Apple Cinnamon and Sourdough Parmesan. Smoothies and soups were then combined with either the breads or pretzels to produce what the chain now called Jamba Meals.

Acquisition of Zuka Juice: 1999

The Jamba chain boasted some 125 outlets in early 1999 when Perron negotiated a merger with one of Jamba's main competitors, Zuka Juice, which totaled nearly 100 stores, 25 of which were company owned. Zuka had been launched in Provo, Utah, in 1995 by Dave Duffin, who now elected to join forces with Perron rather than battle over the same territory and see the smoothie business degenerate into something like the 1990s bagel wars, which resulted in overexpansion and the bankruptcy of several aspiring chains. The addition of Zuka gave Jamba a presence in the Northwest as well as in Texas and Nevada. Only in Utah, where the brand was well entrenched, would the Zuka name be retained. To further accelerate growth, Jamba also began opening stores with major franchising partners. Jamba Hawaii Partners looked to open outlets in Hawaii, while a joint venture called Heartland Juice Company was created to bring Jamba Juice to Illinois, Minnesota, and Wisconsin. Although there would be some concern about the success of smoothies in cold climes, doubts would be eased considerably when the first store that opened in Chicago quickly developed into one of the most profitable units of the entire chain. Although there was already some interest at this time in franchising Jamba Juice overseas, the focus remained on the domestic market.

Perron was eager to take Jamba public, a move that would allow his equity partners a chance to realize a return on their sizeable investments in the company. In preparation for such a move, in January 2000 he brought in a seasoned fast-food executive, Paul Clayton, to take over as the chief executive officer. Clayton had 16 years of experience at Burger King as well as some time with McDonald's in Germany. Thoughts of an initial public offering (IPO), however, would have to be postponed due to the poor results of most restaurant stocks in 1999. Under Clayton, Jamba continued to focus on internal growth while it waited for market conditions to improve. It introduced a catering service, which it called Jamba Go Go, and became involved in delivery by teaming up with Waiter.com, an Internet ordering and delivery service (with a minimum order of $60). To build on Jamba's strong West Coast presence, Clayton continued to look for suitable development partners in order to enter new markets. The Jamba concept was also undergoing constant tweaking, with decor changes and an ongoing search for foods to complement smoothies in order to appeal to consumers who were less likely to view a smoothie as a desirable meal replacement.

By the summer of 2001, the Jamba chain had grown to some 330 units, far short of the 1,000 that Perron had envisioned yet still a significant increase over the 75 units the chain numbered just three years earlier. Sales were growing significantly, and there appeared to be a significant upside to the number of outlets the company could expect to open in the coming years. Whole Foods Markets was enjoying success with its 25 Jamba Juice stands and expected to expand the concept to its other 50 stores. In addition, Jamba began testing similar outlets inside California health clubs, which if successful offered great future growth potential. A major reason behind the success of the Chicago store, in fact, was its proximity to a large health club. Clearly, Jamba needed to be located close to its core customers, primarily college campuses, health food stores, and health clubs, as well as airports where travelers were receptive to the idea of a smoothie as a quick nutritious meal replacement. Clayton hoped to add 60 to 70 new stores each year for the next several years. This plan was given a significant boost in early 2002 when Jamba signed a licensing agreement with Sodexho, a major foods and facilities management company. Sodexho already ran Jamba outlets at Loyola Marymount University and the University of Nevada, but in addition to opening Jamba Juice stores at additional colleges it was considering the possibility of transferring the idea to its healthcare and corporate services divisions.

Prospects appeared bright for Jamba. There remained ample room for growth, both in the United States and overseas. Moreover, the category was not yet dominated by any major players and the Jamba concept was attractive enough to provide a competitive edge. What remained uncertain was investor response to Jamba's seemingly inevitable IPO. Would they view Jamba and its smoothies as the next Starbucks? Or would they simply dismiss smoothies as a fad?

Principal Subsidiaries: Zuka Juice.

Principal Competitors: Planet Smoothie Franchises, LLC; Smoothie King Franchises, Inc.

Source: International Directory of Company Histories , Vol. 47. St. James Press, 2002.

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How To Open/Start/Launch a Jamba Juice Franchisee Business in 9 Steps: Checklist

By alex ryzhkov, resources on jamba juice franchise.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan

Welcome to the World of Jamba Juice Franchisee Business!

Are you ready to dive into the thriving world of healthy living and delicious smoothies? Look no further than becoming a Jamba Juice franchisee! With the health and wellness industry growing at an astonishing rate, there has never been a better time to join this vibrant community.

According to recent statistics, the global smoothie market is projected to reach a value of $24.65 billion by 2025 . This exponential growth is fueled by an increasing number of health-conscious individuals who prioritize their well-being and seek out options that support an active and rejuvenating lifestyle.

By becoming a Jamba Juice franchisee, you can tap into this booming market and create a hub where people can gather for nourishing smoothies and tasty treats. With our comprehensive checklist of 9 essential steps, you'll be well-equipped to open your own Jamba Juice franchise and embark on a rewarding venture.

So, let's jump right in and explore how you can turn your dreams into reality!

9-Steps To Start a Jamba Juice Franchisee Business

Starting a Jamba Juice franchisee business requires careful planning and execution. Before launching your venture, there are several essential steps you need to take to ensure a successful start. Here is a comprehensive checklist to guide you through the process:

Conduct Market Research

Before embarking on the journey of opening a Jamba Juice franchisee business, conducting thorough market research is crucial. This step will provide valuable insights into your target audience, competitors, and local market conditions, helping you make informed decisions for a successful venture.

Start by analyzing the demographics of the area where you plan to open your franchise. Determine if there is a demand for healthy and delicious smoothies among health-conscious individuals in the community. Identify specific demographics, such as age groups, interests, and lifestyles, that are most likely to be interested in your offerings.

Next, thoroughly research your competition. Identify other smoothie or juice bars operating in the area and evaluate their offerings, pricing, and customer base. This will help you identify gaps in the market that you can capitalize on and establish your unique selling proposition.

Key points to consider during your market research:

• Demand for healthy beverages in the local community
• Competitor analysis and identifying their strengths and weaknesses
• Market trends and preferences
• Identifying potential partnerships or collaborations with local businesses or fitness centers
• Utilize online platforms and industry publications to gather market data and insights.
• Visit other Jamba Juice locations or similar establishments in different areas to observe their operations and customer interactions.
• Engage with local health-conscious individuals and seek their feedback and preferences.

Develop A Comprehensive Business Plan

Developing a comprehensive business plan is crucial for the success of your Jamba Juice franchisee business. A well-crafted plan will serve as a roadmap, outlining your goals, strategies, financial projections, and marketing initiatives.

• Conduct market research: Start by conducting market research to gain insights into the local market, identify your target audience, and understand the competitive landscape. This research will help you make informed decisions and tailor your business plan accordingly.
• Define your vision and mission: Clearly articulate your vision and mission statements, highlighting your commitment to offering nourishing smoothies and tasty treats that promote a health-conscious lifestyle.
• Set achievable goals: Define your short-term and long-term goals, such as sales targets, customer retention targets, and expansion plans. These goals will help you stay focused and measure your progress.
• Determine your pricing strategy: Analyze the local market and your target audience to determine an appropriate pricing strategy that balances customer affordability and profitability.
• Outline your marketing initiatives: Develop a comprehensive marketing strategy that includes online and offline tactics to raise awareness, attract customers, and build brand loyalty. Consider incorporating social media campaigns, partnerships with local fitness centers, and community events.
• Forecast your financials: Project your financial performance by estimating costs, sales, and expenses. This will help you determine the profitability and feasibility of your business.

Tips for developing a comprehensive business plan:

• Be realistic and avoid overestimating sales or underestimating expenses.
• Seek professional help if needed, such as a business consultant or accountant, to ensure accuracy and validity of your financial projections.
• Regularly review and update your business plan to reflect changes in the market or business environment.

By developing a comprehensive business plan, you will have a clear roadmap to guide your actions and make informed decisions as you embark on your Jamba Juice franchisee journey.

Calculate Startup Costs And Create A Financial Model

Before diving into the exciting world of owning a Jamba Juice franchise, it is crucial to take a step back and carefully assess the financial aspects of your venture. Calculating startup costs and creating a financial model will provide you with a solid foundation for your business plan and future decision-making.

Here are a few essential steps to consider:

• Research and estimate initial investment: Begin by researching the initial franchise fee and any other costs associated with opening a Jamba Juice franchise. Factors to consider include equipment, leasehold improvements, inventory, marketing expenses, and working capital. Properly estimating these costs will allow you to determine the total investment required.
• Create a detailed financial plan: Develop a comprehensive financial plan that outlines your projected revenue and expenses for the first few years of operation. Include all sources of income, such as smoothie sales, food items, and catering services. Take into account fixed costs like rent, utilities, insurance, and personnel expenses. By creating a financial model, you can forecast profitability and identify potential challenges.
• Explore financing options: Once you have a clear understanding of your startup costs and financial projections, explore various financing options available to you. These options may include personal funds, business loans, or partnerships. Consult with financial institutions or seek advice from a financial advisor to determine the best financing solution for your Jamba Juice franchise.
• Be realistic when estimating your startup costs and factor in unexpected expenses to avoid financial surprises.
• Research ways to reduce initial investment, such as exploring used equipment options or negotiating favorable lease terms.
• When creating a financial model, consider various scenarios, including best and worst-case scenarios, to gauge the potential impact on your business.
• Keep detailed records of all financial transactions and regularly review your financial plan to ensure you stay on track.

By meticulously calculating startup costs and creating a comprehensive financial model, you can set realistic expectations and ensure the financial stability and success of your Jamba Juice franchise.

Secure Necessary Funding or Financing Options

Securing the necessary funding or financing options is an essential step in opening a Jamba Juice franchise. This will ensure that you have the financial resources to cover the initial investment and ongoing operational costs of your business. Here are some crucial steps to consider:

• 1. Determine your financial needs: Calculate the total investment required to open your Jamba Juice franchise, including the franchise fee, equipment costs, leasehold improvements, and working capital. Consider working with a financial advisor or consultant to accurately assess your financial needs and develop a realistic budget.
• 2. Explore financing options: Research various financing options available to you, including traditional bank loans, Small Business Administration (SBA) loans, and personal savings. Consider reaching out to lenders who specialize in franchise financing to increase your chances of securing the funds you need.
• 3. Prepare a business proposal: Create a comprehensive business proposal that outlines your financial needs, projected revenue, and repayment plan. This will help you convince potential lenders or investors of the profitability and viability of your Jamba Juice franchise.
• 4. Seek partnerships or investors: Consider seeking partnerships or investors who can provide additional funds and expertise to support your Jamba Juice franchise. Look for individuals or organizations that share your passion for the health and wellness industry.
• 5. Leverage franchisor support: Jamba Juice offers support to franchisees in securing funding and financing. Take advantage of their resources and guidance throughout the process. Contact Jamba Juice's franchise development team to discuss financing options and learn about any available incentives.
• Consider obtaining multiple financing options to increase your chances of securing the necessary funds.
• Prepare a strong financial plan and demonstrate your commitment and expertise in the industry to attract potential investors.
• Explore government-backed loan programs, such as SBA loans, which can offer favorable terms for franchise businesses.
• Be proactive in researching and approaching potential lenders or investors, and be prepared to answer any questions they may have about your business.

Securing the necessary funding or financing options may require time and effort, but it is a critical step towards realizing your goal of becoming a Jamba Juice franchisee. With a solid financial foundation, you'll be well-positioned to establish a successful business and provide nourishment to health-conscious individuals in your community.

Identify And Secure A Suitable Location For The Franchise

Choosing the right location for your Jamba Juice franchise is crucial for its success. A suitable location will attract a steady flow of health-conscious individuals and ensure maximum visibility for your business. Here are some key steps to help you identify and secure the perfect location:

• Research the demographic: Look for areas with a high population of health-conscious individuals who are likely to be interested in Jamba Juice's offerings. Consider factors such as age, income level, and lifestyle choices to determine the target market.
• Evaluate foot traffic and visibility: Look for locations with high foot traffic, such as shopping malls, fitness centers, or busy downtown areas. A visible location will attract more potential customers and increase brand exposure.
• Consider proximity to competitors: While competition can be healthy, it’s important to find a location that allows you to stand out. Avoid setting up too close to other smoothie or juice bars to ensure your franchise has a unique selling proposition.
• Assess the accessibility: Make sure the location is easily accessible for your target audience. Consider factors such as parking availability, public transportation access, and nearby pedestrian paths.
• Consult with Jamba Juice: Jamba Juice has extensive experience and knowledge regarding suitable locations for their franchise. Reach out to their franchise support team for guidance and recommendations based on market research.
• Negotiate lease terms: Once you have identified a potential location, negotiate the lease terms with the property owner or landlord. Determine the length of the lease, rental costs, and any additional fees or conditions. Seek legal advice if necessary to ensure a favorable agreement.
• Consider expansion opportunities: While selecting a single location is your initial goal, it's important to consider the potential for future expansion. Secure a location that allows room for growth and potential openings of additional franchises in the future.
• Visit potential locations at various times of the day to analyze foot traffic and customer behavior.
• Consider conducting a survey or gathering feedback from potential customers in the area to understand their preferences and expectations.
• Research local zoning regulations and restrictions to ensure your chosen location complies with all necessary rules and regulations.

By carefully considering these factors and following the proper steps, you can secure a suitable location that will attract a steady stream of health-conscious customers, positioning your Jamba Juice franchise for success.

Apply For Permits And Licenses Required To Operate The Business

Before you can officially start your Jamba Juice franchise, it is crucial to obtain the necessary permits and licenses to operate your business legally. This step ensures that you comply with all the local, state, and federal regulations.

Here are the essential permits and licenses you need to apply for:

• Business License: Apply for a general business license through your local city or county government. This license allows you to legally operate your Jamba Juice franchise within the designated area.
• Health Department Permit: Obtain a permit from the local health department to ensure that your franchise meets all the health and safety standards for food preparation and storage.
• Food Handler's Permit: If you or your staff members will be directly involved in handling food, you may need to obtain individual food handler's permits. Check with your local health department for specific requirements.
• Alcohol License (if applicable): If you plan to serve alcoholic beverages at your Jamba Juice franchise, you will likely need to apply for an alcohol license. Remember to research and comply with all the laws and regulations governing the sale of alcohol in your area.
• Research local regulations: Each jurisdiction may have specific requirements for permits and licenses. Make sure to thoroughly research and understand the regulations governing your area.
• Apply early: The process of obtaining permits and licenses can sometimes take time. It is advisable to apply well in advance to avoid any delays in opening your Jamba Juice franchise.
• Seek professional assistance: If you are unsure about the application process or have any questions, it may be beneficial to consult with a local business attorney or seek guidance from organizations specializing in franchise operations.

By completing this step, you will have taken the necessary measures to ensure the legal compliance of your Jamba Juice franchise. It will allow you to operate with peace of mind while providing your customers with a healthy and enjoyable experience.

Obtain Necessary Equipment And Supplies For Smoothie Preparation

When starting your Jamba Juice franchisee business, acquiring the necessary equipment and supplies for smoothie preparation is crucial to your success. Here is a step-by-step guide to help you obtain everything you need:

• Identify the essential equipment: Make a list of all the equipment required for smoothie preparation, such as blenders, refrigerators, freezers, and storage containers. Ensure that the equipment meets Jamba Juice's standards and specifications.
• Research suppliers: Look for reputable suppliers who specialize in providing equipment and supplies for smoothie businesses. Compare prices, quality, and customer reviews to find the best option for your franchise.
• Obtain quotes: Contact the suppliers and request quotes for the equipment and supplies you need. Consider factors such as cost, warranty, and delivery time when making your decision.
• Consider leasing options: If purchasing the equipment outright is not feasible, explore leasing options with the suppliers. Leasing allows you to access the necessary equipment without making a significant upfront investment.
• Place your orders: Once you have decided on the supplier and equipment, place your orders for the required items. Ensure that you order everything in advance to avoid any delays or complications in the setup process.
• Set up the equipment: When the equipment arrives, follow the manufacturer's instructions to set it up correctly. Ensure that all equipment is in proper working condition and meets the required safety standards before starting operations.
• Stock up on supplies: In addition to equipment, stock up on essential supplies such as fresh fruits, vegetables, yogurt, and other ingredients necessary for making Jamba Juice's signature smoothies. Establish relationships with reliable vendors to ensure a steady supply of high-quality ingredients.
• Consider purchasing backup equipment to avoid any disruptions in your business operations if a piece of equipment breaks down.
• Regularly maintain and clean the equipment to ensure optimal performance and hygiene.
• Train your staff members on the proper use and maintenance of the equipment to avoid accidents and equipment damage.

By obtaining the necessary equipment and supplies, you are setting yourself up for a smooth and efficient smoothie preparation process, enabling you to provide customers with the high-quality products they expect from Jamba Juice.

Recruit And Hire Qualified Staff Members

One of the key factors in running a successful Jamba Juice franchise is having a team of qualified and enthusiastic staff members who can deliver exceptional service to customers. Here are some steps to help you recruit and hire the right individuals for your business:

• Define Job Roles and Responsibilities: Clearly outline the roles and responsibilities of each position within your Jamba Juice franchise. This will help you create accurate job descriptions and ensure that each staff member understands their role.
• Create an Attractive Job Listing: Craft an enticing job listing that highlights the benefits of working at your franchise, such as flexible hours, employee discounts, and opportunities for growth. Post the listing on job portals, social media platforms, and local community boards to reach a wide pool of potential candidates.
• Screen Resumes and Conduct Interviews: Review the resumes of applicants and shortlist candidates who possess the necessary qualifications and skills. Conduct thorough interviews to assess their experience, passion for the industry, and customer service skills.
• Check References: Contact the references provided by the candidates to verify their employment history and performance. This will help you gain insights into their work ethic and reliability.
• Offer Training and Development: Once you have selected your staff members, provide comprehensive training on Jamba Juice's standards, policies, and procedures. Offer ongoing development opportunities to enhance their skills and keep them motivated.
• Promote a Positive Work Environment: Foster a positive and inclusive work culture by encouraging open communication, recognizing and rewarding employees' achievements, and providing a supportive work environment.
• Look for candidates with previous experience in the food and beverage industry, preferably with a focus on customer service.
• Consider conducting group interviews to observe how candidates interact and collaborate with others.
• Provide opportunities for staff members to suggest menu ideas or participate in taste tests to boost their engagement and ownership in the business.
• Regularly evaluate staff performance and provide constructive feedback to help them improve and grow within the franchise.

By following these steps and tips, you can assemble a team of qualified individuals who are dedicated to delivering exceptional service and upholding the values of your Jamba Juice franchise.

Implement Marketing And Promotional Strategies To Attract Customers

Now that you have set up your Jamba Juice franchise, it's time to focus on attracting customers and building a loyal customer base. Effective marketing and promotional strategies will help create awareness about your franchise and entice customers to give your smoothies and treats a try. Here are some steps to consider:

• Utilize social media platforms: Create social media accounts for your franchise and regularly post engaging content that highlights your menu offerings, promotions, and upcoming events. Engage with your audience by responding to comments and messages promptly.
• Partner with local gyms and fitness centers: Collaborate with nearby gyms and fitness centers to offer discounts or special deals to their members. This partnership will allow you to tap into a health-conscious customer base and boost brand visibility.
• Host community events: Organize events such as health and wellness workshops, smoothie-making demonstrations, or free tastings at local community centers or farmer's markets. This will provide an opportunity to showcase your products and establish a positive presence in the community.
• Offer loyalty programs: Implement a loyalty program to reward repeat customers. Provide incentives such as discounts, free upgrades, or exclusive offers to encourage customer retention.
• Collaborate with influencers: Identify local influencers or health-conscious individuals with a significant online following and partner with them to promote your franchise. This can be done through sponsored posts, reviews, or giveaways. Their endorsement will help generate buzz and attract new customers.
• Invest in eye-catching signage and displays to grab the attention of passersby and create curiosity about your offerings.
• Consider offering samples of your smoothies at busy locations or during community events to give potential customers a taste of what you have to offer.
• Collect customer feedback and reviews to improve your offerings and address any concerns promptly.
• Create partnerships with local businesses, such as spas or wellness centers, to cross-promote each other's services and products.

Remember, effective marketing requires consistent effort and creativity. Continuously evaluate and adapt your strategies based on customer feedback and market trends to ensure your Jamba Juice franchise stands out from the competition and remains a go-to destination for health-conscious individuals in your community.

Opening a Jamba Juice franchisee business can be an exciting opportunity to be a part of a vibrant and health-conscious community. By following these 9 steps, you can set yourself on the path to success and create a thriving establishment that offers nourishing smoothies and tasty treats to health-conscious individuals.

• Conduct thorough market research to understand the demand and competition in your chosen location.
• Develop a comprehensive business plan that outlines your goals, target market, and marketing strategies.
• Calculate your startup costs and create a financial model to ensure you have sufficient funding.
• Secure necessary funding or financing options to cover your initial investment.
• Identify and secure a suitable location for your franchise that is easily accessible and attracts your target audience.
• Apply for the permits and licenses required to operate your Jamba Juice business.
• Obtain the necessary equipment and supplies for smoothie preparation, ensuring you have high-quality ingredients and modern equipment.
• Recruit and hire qualified staff members who share your passion for health and customer service.
• Implement effective marketing and promotional strategies to attract customers and create a loyal customer base.

By following these steps, you can navigate the process of opening a Jamba Juice franchisee business with confidence and set yourself up for success in the health and wellness industry.

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Jamba Juice Global Business Plan - Research Paper Example

Introduction

Welcome to The Knowledge Nest, your premier source for insightful articles and research papers in the field of community and society. In this article, we present a comprehensive analysis of the Jamba Juice global business plan. By delving into Jamba Juice's strategies, objectives, and future plans, we aim to provide you with valuable insights into their success in the global market.

Company Background

Jamba Juice, a renowned global franchise specializing in healthy smoothies and juices, was founded in 1990 with a mission to inspire healthy living. With an initial focus on the United States market, Jamba Juice quickly gained popularity, thanks to its wide range of delicious and nutritious offerings.

Global Expansion Strategy

Recognizing the potential for growth beyond the domestic market, Jamba Juice embarked on an ambitious global expansion plan. Their strategy involved carefully evaluating target markets, conducting thorough market research, and establishing strategic partnerships with local entities.

Market Analysis

Prior to entering new markets, Jamba Juice conducted in-depth market analyses to understand the cultural preferences, health trends, and consumer behaviors of each target market. By identifying these key factors, Jamba Juice was able to tailor its products and marketing strategies to suit the needs and demands of diverse global audiences.

Franchising Model

To facilitate their expansion, Jamba Juice opted for a franchising model, partnering with local entrepreneurs who possessed a deep understanding of the target markets. This approach allowed Jamba Juice to leverage local expertise while ensuring consistency in quality, customer experience, and brand image.

Objectives and Milestones

At the core of Jamba Juice's global business plan were clear objectives and well-defined milestones. By outlining specific targets for market penetration, revenue growth, and brand recognition, Jamba Juice established a roadmap for success in each new market.

Innovative Product Development

To stay ahead in the competitive global market, Jamba Juice invested heavily in product development and innovation. By introducing new flavors, incorporating trending health ingredients, and catering to diverse dietary preferences, Jamba Juice continuously attracted and retained customers worldwide.

Strong Branding and Marketing Campaigns

Jamba Juice prioritized building a strong brand presence in each new market. Their marketing campaigns utilized a mix of traditional and digital channels to create awareness, drive foot traffic, and engage with local communities. A consistent and appealing brand image helped Jamba Juice establish itself as a trusted and beloved brand globally.

Operational Efficiency

Operating globally requires a robust infrastructure and operational efficiency. Jamba Juice excelled in streamlining its supply chain, optimizing logistics, and ensuring consistent quality across all locations. Their commitment to excellence in operational processes further enhanced customer satisfaction and brand loyalty.

Future Plans

Looking forward, Jamba Juice aims to continue its global expansion while staying true to its core values of promoting health and wellness. With a focus on sustainable practices, community involvement, and continuous innovation, Jamba Juice strives to be a leader in the global beverage industry.

In conclusion, the Jamba Juice global business plan exemplifies a successful expansion strategy in the competitive global market. With a meticulous approach to market analysis, strategic partnerships, clear objectives, and continuous innovation, Jamba Juice has established itself as a global phenomenon in the healthy beverage industry. For more information and detailed insights, browse through The Knowledge Nest's extensive collection of articles and research papers.

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As CEO of Jamba Juice, I Took Charge of DEI. Here’s Why It Worked.

My interview for the job of CEO at Jamba, Inc., couldn’t have come at a more troubled time in the company’s history. It was November 2008, and the Great Recession had begun to hit hard — but even before the financial crisis blew up the U.S. economy in September of that year, Jamba had started bleeding cash. Its net losses for the previous year had been $113 million, against revenue of $400 million. I wasn’t the board’s first choice for the job. I arrived at 6:00 p.m., their last interview on the schedule. And after having spent much of the day interviewing a slate of candidates, they had already decided on a top choice. I sat down with only one board member, Ramon Martin-Busutil, an operating partner from New River Capital, the firm that had led the IPO of Jamba Juice in 2006 . This was apparently just a courtesy interview. I’d done my research and told him the plan I had for transforming the brand and the company. I told him that a cultural transformation was central to what I believed needed to happen — a cultural change consistent with the way I always led, seeking a staff with diverse lived experiences and a wide variety of perspectives. They asked me to come back and meet with other board members.      

So in my follow-up interview, I faced a highly accomplished group of men (all white). My plan included making DEI an essential part of the company’s DNA. The board wanted to know how I would restore profitability and get the company on a sustainable growth trajectory that would boost the value for shareholders rather than create a culture of DEI, but my approach has always been that an intentionally inclusive organization is essential to solving problems and creating innovations in the real world. 

When you’re a leader, one of your most important roles is to develop other leaders.

So they hired me. Now I had to live up to my words and turn the company’s fortunes around. You can’t separate culture from a company’s financial fundamentals. Revenues, valuation and all other numbers stem from the company’s values, expectations and mission. All operations are built around the people in the company and the way they work together and align around the mission.

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CEO-Driven Change

To start initiating change, I put together cross-functional action-learning teams (ALTs), striving for diversity not just in ethnic and gender balance but also across functional disciplines. Powerful things happen when you bring together diverse talents to learn from one another. And when you’re a leader, one of your most important roles is to develop other leaders who can make decisions and initiate the required changes in their area.

ALTs can make a big difference when it comes to innovation and problem-solving, but to actually make them a part of the cultural transformation, I purposely chose previously overlooked employees to be part of the teams. As a result, the teams were far more diverse than the company’s workforce as a whole. 

Typically, middle-level managers are the ones who decide who gets these high-profile assignments, and if most of the middle-level managers are white men, they will often pick the junior staffers they most relate to. Even if there is a chief diversity officer to encourage diversity hires, that person has little control over who gets these coveted assignments — unless the CDO is also the CEO or is working closely with the CEO.

The underpinning of all of this is a CEO who sets the tone and requires that all senior managers and middle managers make DEI one of their business priorities — not just because it’s the right thing to do, but because more-diverse teams are going to transform the way the company solves problems and expands.

When I became CEO, most Jamba shops were in strip and shopping malls and urban commercial centers. Our diverse ALTs came up with the idea that we should reach out to more consumers on their own turf. So we opened Jamba Juice stores on college campuses, and we went into K-12 schools, including many in underserved neighborhoods, honing a role for the company as a solution provider in schools looking for healthier food and beverage options.

Just as notable as the redesign of Jamba Juice’s business strategy was the purposeful culture that we created. Our action-learning team members brought insights on social and environmental initiatives that they cared about, and we developed a few programs that helped make Jamba Juice more of a company that mattered in the lives of people.

These projects served an additional purpose: They made Jamba an exciting, cool place to work, and helped create bonds within a diverse pool of employees.

More From Built In Corporate Innovators How to Become an Inclusive Leader: A Step-by-Step Approach

CEOs Need to Take Charge of DEI

Now, when you take the helm at a troubled company and announce that you’re going to be making big changes, inevitably there are going to be people who don’t want to see things change. I let everyone know from the start that we are going to treat all people in the organization with respect, we are going to unbias our systems, we are going to educate ourselves about unconscious biases and we are going to be more inclusive in our hiring and assignments. If you find these conditions problematic, you probably need to go, but otherwise give transformation a try.

In resetting the culture at Jamba Juice,  I changed about a third of the leadership team within the first six months. For the most part, we mutually agreed that it was time for them to go.

It’s equally critical to have diversity at the top; that way you not only show all stakeholders what a true meritocracy looks like but you also populate the board and management with people who are likely to support the structural changes you want to accomplish. 

In resetting the culture at Jamba Juice,  I changed about a third of the leadership team within the first six months.

In my first year at Jamba Juice we brought two women onto the board, one of whom was African American. 

When I started at the company, management was 80 percent white men; by the end of my first year, half of the managers were women and people of color. 

Within three years the company’s market cap soared by 500 percent.

A diverse culture performs better because the more variety you have in thinking and expertise, and the greater the variety of people you have in a room, the more innovation you’ll have, along with better awareness of trends, markets and risk. I am confident that the new range of voices on our board changed the way the company thought about its people and its business. With a less diverse board, my overall plan for structural changes might not have been supported in the same way.

Reprinted by permission of Harvard Business Review Press. Excerpted from Anti-Racist Leadership: How to Transform Corporate Culture in a Race-Conscious World by James D. White with Krista White. Copyright 2022 James D. White. All rights reserved.

Built In’s expert contributor network publishes thoughtful, solutions-oriented stories written by innovative tech professionals. It is the tech industry’s definitive destination for sharing compelling, first-person accounts of problem-solving on the road to innovation.

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Food is serious business. Now, on The Main Course, host Barbara Castiglia will invite insiders on the front lines of food to share their expertise, strategies, and forecasts for navigating the ever-changing restaurant industry.

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Creating a (Jamba) Juicy Future

Food is serious business. Now, on The Main Course , host Barbara Castiglia will invite insiders on the front lines of food to share their expertise, strategies, and forecasts for navigating the ever-changing restaurant industry.

Whether a business model is successful or not, sometimes revamping just makes sense. For instance, Netflix moved from just distributing content digitally to become a leading producer of award-winning original content, exponentially multiplying its profits while increasing its stock CAGR. With that in mind, a purpose-driven business model transformation, or even a name change, can propel a company to new heights, offering consumers more to choose from and easier ways to obtain its products.

Beginning in 1990 as just a little juice shop that based its business model around the idea that eating better should be easy, for almost 30 years, Jamba Juice led the way in creating and defining the smoothie and juice category as we know it. But last year, the company dropped “Juice” from the brand’s name while adding the tagline ‘Smoothies, Juices and Bowls’, reflecting a wider array of offerings and more balanced ingredients. As Jamba , the company also launched new store designs, improved its digital platforms, upgraded their in-store experience, and more recently, introduced food trucks into its business model.

On today’s episode of The Main Course , host Barbara Castiglia sits down with Jamba President Geoff Henry —a veteran of the food & beverage sector with stints that include leadership roles for some of the world’s most recognized brands (Coca-Cola, Dunkin’ Donuts, etc)—to discuss the reasons and details behind the brand’s extraordinary evolution, the importance of consumer engagement via social media platforms, what gives them a leg up on the competition, how they’ve fared during the pandemic, and the partnerships and plans (food trucks!) for the future that will help to keep pushing Jamba forward.

“On the food truck side, obviously that’s a fun space—lots of brands looking at food trucks. For us, we see it as one more access point. We’re trying to make sure that we can serve the guests wherever they are, whenever they’re looking for a Jamba.” Henry continued, “To help increase the brand awareness and touchpoints in many of our markets, we’re working with existing franchisees to add food trucks to their portfolio of stores. And then also, in certain geographic locations, starting with a store and a food truck so that they can have more penetration for the brand and build awareness in that market makes a ton of sense.”

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