Juice Franchises: Profit or Not?

fruit franchiseFruit juice franchises provide the business-savvy crowd with a great option for small business that has relatively low startup costs with the potential for high profits in a short amount of time. In addition to the business aspect, owners can also enjoy the fact that they are providing great drinks and food such as apple juice for health-conscious consumers and exercise enthusiasts (also see Healthier Consumerism: Low Fat Milk or Whole Milk?). As with any franchise, however, there are some important considerations to make, some of which are unique to this specific industry. Here is a look at the basics of these franchises as well as how they vary from all other franchises.

 

What Sets the Franchise Model Apart

Franchises have become one of the most revolutionary business models in the world as they dramatically changed the landscape for both business owners and consumers. Where a single individual or a group of like-minded professionals may not have had the wherewithal to create their own business from scratch, franchises provide the option for lower start-up expenses, immediate access to suppliers, free international advertising, and a pre-defined business model.

With a juice franchise specifically, this can be a major boon to the entrepreneur. Unlike many other businesses, these companies often require supplies from all over the world that must be rigorously tested before being made into the final product. They will also be catering to a very well-informed demographic that will most likely collect a massive amount of information on the company and its products before finally making a purchase.

 

The Rights of the Franchisee

While the potential for profit is there for the hard working entrepreneur, there are also some huge risks associated with opening up a fruit juice franchise. Most notably is the fact that many franchises require the franchisee to sign a number of documents that waive quite a few rights. Whether it is their ability to dip into profits, limited options for altering their products, or any other number of fines, fees, and expenses, most of the power is in the hands of the franchise itself.

 

Creating a Business Model for Success

Even those that will be using their own seed money should create a comprehensive and robust business model. Business models are created with huge amounts of information including local competition, supplier costs, insurance, legal fees, rent, royalty fees, encroachment, and even independence clauses from the franchise itself. Instead of going with a guess or even hearsay, this information should be carefully considered by any and all investors including parties that have supplied any small business loans.

 

Making the Final Decision

In the end, if there is good access to seed money, a perfect location, and an impeccable franchise name, these small businesses can become exceptionally profitable. They are also one of the leading franchise options for those that would like to engage in ethical business practices by provide high-quality and healthy products to their customers.