How much does it cost to open a store?
There are different costs involved in opening a store: real estate improvements, equipment, business licenses and permits, initial franchise fee, and other costs that are disclosed on the Franchise Disclosure Document (FDD).
Store Startup Capital*: $339,000 – $482,000 (excludes the franchise fee and working capital)
The Franchise Fee is $48,000 for one location, $40,000 for the second location and subsequent locations.
Working Capital: at least $50,000 is recommended when opening a new store.
*There might be some variances depending on the conditions of the specific location, and the specific overall situation of the store.
Who chooses the location of the store?
The franchisee chooses the location under certain guidelines listed on the FDD and during training. However, the location must be approved by the Franchisor.
How long does it take to open a store?
Generally, it takes 6 to 9 months depending on the building requirements of the city and the complexity of the project. The buildout of the store may take from 3 to 4 months, but there are other factors to consider, such as licenses and permits, inspections, operations training, staff hiring, and so on, which could take another 3 to 5 months to complete. Overall it may take 6 to 9 months to open a store.
How much would I have to pay on royalties?
*Royalties are based on the Adjusted Gross Revenues (AGR).
What are the Marketing Fees?
There is a marketing fund contribution of 2% of the AGR. This fund is used to market and promote the Movita Juice Bar brand so all stores will benefit. At the end of each fiscal year, the Franchisor will disclose a report with detailed information on the expenditures of the marketing fund.
How often do the royalties get paid?
It can vary. We find it efficient to pay royalties weekly or biweekly.
Can I do my own marketing?
Yes. In fact, the Franchisor recommends that franchisees do local marketing to promote a specific store or location. This may include flyer and coupon distribution, community outreach, events, social media, Yelp, etc. The Franchisor will provide guidance and support to the franchisee. Any marketing done by franchisees requires prior approval from the Franchisor.
What are the typical sales of a single store?
Store sales depend on various factors such as location, store operation, shopping center traffic, etc. To get a better idea of store sales, we can introduce you to one of our franchisees.
How much are the profit margins?
It depends a lot on how well the store is managed. There are certain costs that you must control, including labor costs, cost of goods sold (COGS), and administrative expenses.
For example, labor costs should be less than 30%, COGS about 35%, and the remainder goes towards overhead and profits. During training, we will teach you on how to run a lean store operation so you have a better profit margin.
How many employees would I need?
Staffing levels are determined by sales. The minimum to operate a store is 2 employees per shift. This will also be part of the training you will get before opening your store.
Who does the hiring of the employees?
The franchisee has full control of their staff, and therefore, all hiring and firing is at the franchisee’s discretion.
What type of training do you provide?
We will provide you with comprehensive training and guidance for the different phases and needs of the store. Pre-opening: location finding, general leasing guidelines, etc. Construction: plans, layouts, equipment, set up, etc. Ongoing Operations: managerial, scheduling, ordering, inventory, etc.
If for any reason it does not work out for me, can I sell the store?
Yes, you can sell the store under certain conditions that are disclosed on the FDD. The new potential franchisee has to be approved by the Franchisor.
How long is the franchise for?
The term for a Movita Juice Bar is 10 years, or the length of the lease or sublease, as applicable, whichever is shorter.
Do you do out-of-state franchising?
Initially, our focus is to open stores in Southern California, but we are open to other cities and states depending on the number of stores someone might be interested to open.
Do you guys do financing?
We don’t do direct financing. However, there are multiple types of financing to choose from, such as SBA loans being one of the mostly used by small businesses.
If I become a Franchisee, am I required to be physically at the store and if so, how many hours per day?
There is no rule regarding how many hours a franchisee owner has to be at the store. It is strongly recommended, however, to be personally involved in the operations of the store, especially in the first stages. The better the store is run, the less time required from you in the future.
Are we open to nontraditional locations in malls, airports, schools?
Yes, on a case-by-case basis, and with prior approval from the Franchisor.
Is there any support from the Franchisor during the opening period?
Yes, there is support and training prior to opening, during opening, and post-opening.