Not sure if Jamba is right for you?
Take our 1-minute franchise matching quiz to get in touch with a Franchise Advisor that can match you with your perfect franchise based on your goals, experience, and investment range.
Take the Quiz & Get MatchedJamba Juice
How much does Jamba Juice cost?
Initial Investment Range
$243,425 to $1,133,000
Franchise Fee
$35,727 to $125,369
You will operate a Jamba branded store featuring a wide variety of fresh, blended-to-order smoothies and other cold or hot beverages and offering fresh squeezed juices and portable food items for snacks and meals.
Enjoy our complimentary free risk analysis below
Unlock the full risk analysis to access 9 more categories covering 100+ risks.
Jamba Juice March 28, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: July 16, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The franchisor, Jamba Juice Franchisor SPV LLC (Jamba LLC), is a special purpose vehicle. The provided financials for its guarantor, GoTo Systems LLC, show positive net income and member equity. However, the ultimate parent company, GoTo Foods LLC, has a significant member's deficit of over $759 million as of year-end 2024. This complex structure and the parent company's large deficit may introduce financial uncertainty and could potentially impact long-term support and system stability.
Potential Mitigations
- Your accountant should carefully analyze the complete financial statements for the franchisor, the guarantor, and the parent company to assess the overall financial health.
- Discuss the implications of the special purpose vehicle (SPV) structure and the parent company's deficit with your franchise attorney.
- It is advisable to ask the franchisor about its capitalization and how the parent company's financial position might affect the Jamba brand's resources.
High Franchisee Turnover
High Risk
Explanation
The FDD's Item 20 tables show a consistent net decrease in the number of franchised stores over the last three years. In 2024 alone, there were 46 terminations and 3 non-renewals out of a starting base of 733 units. This level of churn, where a significant number of franchisees are leaving the system for reasons other than a standard transfer, may indicate potential issues with franchisee profitability, satisfaction, or systemic challenges within the brand.
Potential Mitigations
- A thorough analysis of the Item 20 data with your business advisor is crucial to understand the rate and reasons for franchisee exits.
- It is highly recommended that you contact a significant number of former franchisees listed in Exhibit E to discuss their reasons for leaving the system.
- Your accountant can help you model the potential financial impact if your store performs similarly to those that may have struggled.
Rapid System Growth
Low Risk
Explanation
This specific risk was not identified in the FDD package. Rapid system growth can be a risk if a franchisor's support infrastructure does not keep pace, leading to diminished quality of service for franchisees. While Jamba LLC is part of a large system, the Jamba brand itself has seen a net decrease in stores over the last three years, not rapid growth, which presents a different set of potential concerns covered in other risks.
Potential Mitigations
- A business advisor can help you evaluate whether the franchisor's current support systems are adequate for the existing number of franchisees.
- Speaking with both new and established franchisees can provide insight into the quality and consistency of franchisor support.
- Your attorney should review the franchisor's contractual support obligations outlined in the Franchise Agreement.
New/Unproven Franchise System
Low Risk
Explanation
This risk was not identified. Jamba has a long operational history dating back to 1991, with an experienced management team as described in Item 2. The system is mature and well-established, not a new or unproven concept. Therefore, the specific risks associated with an emerging franchise system do not appear to apply here.
Potential Mitigations
- It is still prudent to have your business advisor review the experience of the current management team listed in Item 2.
- Your attorney can review the franchisor's history as disclosed in Item 1 to understand its corporate evolution.
- An accountant's review of the financial statements in Item 21 can confirm the stability of the mature system.
Possible Fad Business
Low Risk
Explanation
This risk was not identified. The business concept, centered on smoothies and juices, has demonstrated long-term consumer demand since the brand's inception in the 1990s. While the health food market is competitive and subject to trends, the core product offering is not typically considered a short-term fad. The brand has a long operational history, indicating a level of sustained market relevance.
Potential Mitigations
- A business advisor can still help you analyze the long-term consumer trends in the health food and beverage market.
- Questioning the franchisor about their strategy for product innovation and staying relevant is a valuable exercise.
- Your accountant can assist in modeling financial projections that account for market competition and potential shifts in consumer preferences.
Inexperienced Management
Low Risk
Explanation
This risk was not identified in the FDD. Item 2 details the business experience of the executive team. The key officers appear to have extensive experience in the restaurant and franchise industries, many with long tenures at Jamba's parent company, GoTo Foods, or other major brands. This suggests a management team familiar with the complexities of managing a large franchise system.
Potential Mitigations
- Your business advisor should still review the backgrounds of the key executives listed in Item 2.
- In discussions with current franchisees, it is useful to ask about their direct experiences with the management team's support and strategic direction.
- Your attorney can help you understand the roles and responsibilities of the management team as they relate to franchisee support.
Private Equity Ownership
Medium Risk
Explanation
Jamba LLC is part of the GoTo Foods portfolio, which is controlled by private equity funds managed by Roark Capital Management. Private equity ownership can create a focus on maximizing short-term investor returns, which may not always align with the long-term health of franchisees. This could potentially lead to increased fees, reduced support, or a sale of the brand, for which the Franchise Agreement gives you no right of consent.
Potential Mitigations
- It is advisable to have your business advisor research the reputation and track record of the private equity owner, Roark Capital, with its other franchise brands.
- Discuss the implications of the franchisor's right to sell the system without your consent with your franchise attorney.
- Asking current franchisees about any changes in system focus or support since the private equity acquisition can provide valuable insight.
Non-Disclosure of Parent Company
Medium Risk
Explanation
This risk appears to be present. The franchisor is part of a large, complex corporate structure under its parent, GoTo Foods LLC. Item 21 provides audited financial statements for GoTo Foods LLC and for the guarantor, GoTo Systems LLC. This level of disclosure appears to meet the requirement, but the complexity of the structure, with different entities providing services and guarantees, requires careful review to understand the complete financial picture and dependencies.
Potential Mitigations
- Your accountant must carefully review the financial statements of all disclosed parent and guarantor entities to understand their specific roles and financial conditions.
- Your attorney should analyze the 'Guarantee of Performance' in Exhibit A to determine the actual strength and enforceability of the backing for the franchisor's obligations.
- Asking the franchisor to clarify the roles of each affiliate and parent company is a prudent step for your business advisor.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified. Item 1 of the FDD clearly discloses the history of the business, including predecessors like Jamba Juice LLC. The document appears to provide the required historical information regarding the brand's lineage. No obvious attempt to obscure negative history related to predecessors was noted, though due diligence is always recommended.
Potential Mitigations
- An attorney should still review the predecessor disclosures in Items 1, 3, and 4 to ensure completeness.
- Engaging a business advisor to research the history of the brand and its predecessors can provide additional context.
- It is wise to ask long-tenured franchisees about their experiences under any previous ownership structures.
Pattern of Litigation
Medium Risk
Explanation
Item 3 discloses litigation involving affiliated franchisors (Arby's, Dunkin') related to no-poaching agreements and a data breach. While Jamba LLC is not a direct party, these actions involve companies under the same ultimate parent ownership. This suggests a corporate environment that has faced regulatory scrutiny. Such history, even with affiliates, could be a concern for a prospective franchisee regarding system-wide policies and potential compliance risks.
Potential Mitigations
- Your attorney should carefully review the details of the litigation involving affiliates to understand the nature of the allegations and the terms of the settlements.
- Discuss the potential implications of these affiliate issues on Jamba's own policies and culture with your business advisor.
- It is wise to ask the franchisor what steps have been taken across the entire brand portfolio to prevent similar issues from arising.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems