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How to become a Boost Juice franchisee
Read on to give yourself the best chance at landing a Boost Juice franchise
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Boost Juice was established in 2000 in Adelaide and now has over 500 stores through Australia, Asia, Europe, the UK and South Africa. It is one of the most popular juice and smoothie bars in Australia, and one of the largest juice bar franchises in the world.
Find out how to apply for a Boost Juice franchise, how much it may cost and compare your franchise finance options below.
How do I apply for a Boost Juice franchise?
If you want to open a juice bar but lack the necessary business experience, a Boost franchise will give you initial and ongoing support and training to help you run the store. Franchise locations are limited, so you will first need to consult the Boost Juice website to see if there is a franchise opportunity nearby that is appropriate for you.
Application process
Once you have found a suitable location, you can apply for a Boost Juice franchise by completing the following 12 steps:
- Complete an Expression of Interest form on the Boost Juice website.
- You then receive an email with more information and can complete your application.
- Once Boost receives your application, you will need to submit a $2,200 fully-refundable deposit.
- You will need to take part in a phone interview with the franchisor.
- If your application is successful, you are issued with a Confidentiality Agreement and a Deed of Undertaking and Acknowledgment.
- You will then receive the Network Sales Figures, Financial Planning Guide and Operational Questionnaire.
- You then have a face-to-face interview with Boost.
- You'll spend an experience day in an existing Boost store.
- You'll then receive the Franchise Kit and an example Disclosure Document and Franchise Agreement.
- Boost will contact your references (personal and professional).
- You'll receive your Company Kit to learn how to register your business.
- You take part in a final panel interview.
Boost Juice estimates that the application process typically takes between 8 and 10 weeks from the point of initial contact. At what point, then, should you apply for finance? The ideal time for this to occur is prior to signing the franchise agreement. Spend time during the first eight steps gathering your financial information and carefully choosing the lender to approach for your loan.
Once you have received the franchise agreement, now is the time to approach your chosen lender for finance. Depending on the lender, and provided you have all the necessary financial information to hand, the franchise loan approval process could take as little as three or four days.
What to consider when applying for a Boost Juice franchise
Understanding leasing and locations
While you are free to suggest a franchise location, Boost Juice will have to assess and approve the location before it can be opened as a franchise. Even if you are the one to suggest a site that is then approved, you are not guaranteed to be awarded the franchise, and the Boost franchising team will instead offer it to the potential franchisee they believe is suitable.
It is this retail leasing team that will negotiate lease terms directly with the landlord and will seek to obtain the longest lease term at every renewal. Since you have the freedom to sell your Boost franchise at any stage, even part way through the lease term or the term of your franchise agreement, Boost Juice seeks to maintain the continuity of the store by negotiating back-to-back lease agreements and ensuring the Boost Juice store is operational at all times, even if in the middle of being sold.
The level of training and support provided
Boost Juice runs a compulsory training program for all new franchisees, which takes place in Melbourne over a three-week period at a cost of $14,000 plus GST. Note that many lenders will not include the cost of the training program in the amount of the loan, making this an additional expense that must be budgeted for at the outset.
Once you're working in your new franchise, you will have access to support from the learning and development team at the outset, and then access to support staff located around the country and in the head office for ongoing inquiries related to IT, leasing, product supply and marketing.
The length of the franchise term
A Boost Juice franchise agreement has a seven-year term, with the option of two additional seven-year renewals. While this is the case for a new Boost Juice store, keep in mind that if you purchase an existing, established store, you will still be bound by the original franchisee's franchise agreement. Check this carefully because you could unintentionally purchase a franchise with only one or two years left on the franchise term.
Your role in the business
New franchisees are contractually required to work full-time in the business themselves for at least the first six months and to work a minimum of 20 hours per week thereafter. Boost Juice is not interested in franchisees seeking to open a new store for investment purposes only.
How much does it cost to start a Boost Juice franchise?
There are a number of upfront and ongoing costs you will need to pay to start your Boost Juice franchise. While the initial franchise costs cover the design and fit out of your store, as well as equipment and training, you will also need to have working capital to cover initial stock, marketing and other operational costs.
Initial costs
- Application deposit of $2,200. This is refundable if you choose not to go ahead with the purchase, but is used to cover legal costs if you proceed to purchase a Boost Juice franchise.
- Franchise fee of $41,000 plus GST.
- Franchise cost of between $280,000 and $450,000 plus GST for a new Boost Juice store (including the $41,000 franchise fee). If purchasing an existing Boost Juice business, the sale price will be negotiated directly with the seller. You will still need to pay the application deposit and training fee directly to Boost Juice in addition to the purchase price to the seller.
- Training fee of $14,000 plus GST.
- Working capital will vary depending on your store, but Boost recommend about 10% of your franchise purchase price.
Ongoing costs
The following are the ongoing costs of owning a Boost Juice franchise:
- Royalties paid directly to the franchisor equalling 8% of gross sales.
- A compulsory marketing levy paid to the franchisor of 3% of gross sales.
- Rent and utilities.
- Loan repayments.
- Wages.
- Other ongoing costs applicable to your circumstances.
You will also need to provide a bank guarantee, similar to a rental bond, to the landlord at the start of your lease term.
How profitable are Boost Juice franchises?
As with any other franchise, the Boost Juice franchisors are unwilling to provide an estimate as to expected turnover or profit for a new franchisee. This is partly because the franchisor does not want to be held responsible should an individual franchisee fail to reach an estimated profit level, and partly because the profitability of a Boost Juice franchisee – or any business – cannot be predicted, and depends on a number of factors including the location of the business and the time, effort and experience the franchisee is willing to bring to the business.
However, in the case of a Boost Juice franchise, the franchisor will provide potential franchisees with historical sales figures and a guide to preparing a business plan partway through the application process once the confidentiality agreement has been signed. These figures should provide a reasonable guide to the general profitability of a Boost Juice franchise, but the success of the business will largely come down to the experience and effort expended by the franchisee.
Finding finance
How much do I need to borrow?
Boost Juice requires that all potential franchisees provide at least 50% of the purchase price of the business by way of personal savings, cash provided by friends or family, or equity in a business or residential property. This means that even if you were able to find a lender to provide more than 50% finance in an unsecured loan, Boost Juice would be unlikely to approve your application as they want to see potential franchisees committing a significant portion of their own funds or equity to the venture, rather than using finance to fund the entire cost of the franchise.
What finance options are available?
Boost Juice is an approved franchise with NAB, Westpac and Commonwealth Bank. If choosing to approach a bank for a business loan, franchisees may have more success with banks that have an existing relationship with the franchisor.
If applying for a secured business loan, franchisees will need to provide residential or business property with a sufficient amount of equity as security for the loan.
If applying for an unsecured business loan, franchisees will only be able to borrow up to 50% of the amount required, since Boost Juice requires new applicants to contribute at least 50% of the amount in personal savings, equity or in cash contributed by a friend or family member.
How can I get approved for finance?
In order to have the best chance of being approved for finance for a Boost Juice franchise, be prepared to provide the following to the lender:
- Financial information. You will need to provide your personal financial information for at least the last two years, including tax returns and financial information of any businesses you have owned or managed within the past two years. In addition, if purchasing an existing Boost Juice store, you will need to provide full audited financial documents for the business, including profit and loss statements, for at least the last two years.
- Proof of experience. Think of a finance application like a job application. The lender wants assurance that you have the business experience necessary to be able to run a successful business. Update your CV to highlight any experience you have had in a managerial role or in running a similar type of business.
- Business plan. As part of the application process, Boost Juice will provide a guide to formulating a business plan. Follow this guide and seek advice from your accountant to devise an appropriate business plan to assist your finance application.
Compare finance options
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