Risk Score
Pending analysis
Investment Range
$66,665 - $97,515
Franchise Fee
$19,900
Total US Locations
160
Business Summary
Just Between Friends offers franchisees the opportunity to host temporary, in-person children's and maternity resale events. At these events, families can shop for gently used clothing, toys, and baby equipment at discounted prices, while also selling their outgrown items for cash. The business aims to serve local communities by providing an affordable way for families to buy and sell items for their growing children seasonally.
Corporate History
Just Between Friends Franchise System, Inc. was formed in Oklahoma on August 26, 2003, with the initial purpose of franchising its concept. The company began offering franchises in August 2003. In April 2023, Just Between Friends converted to a Pennsylvania corporation, establishing its principal place of business in Reading, PA. The company has no predecessors or affiliates and has consistently focused solely on offering franchises for children's and maternity resale events.
Financial Overview
Investment Range
$66,665 - $97,515
Franchise Fee (Low)
$19,900
Franchise Fee (High)
$24,900
Royalty %
3%
Marketing %
1%
Equipment Costs (Low)
$10,000
Equipment Costs (High)
$20,000
Working Capital
$12,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for Just Between Friends Franchise System, Inc. received an unqualified audit opinion for the years ended December 31, 2023, 2022, and 2021, indicating fair presentation in all material respects. The auditor's report noted no conditions or events that raise substantial doubt about the company's ability to continue as a going concern. While cash balances exceeded FDIC coverage, management believes the credit risk is minimal.
Financing Details
Just Between Friends does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any leases, notes, or other obligations. However, Just Between Friends can provide a list of approved vendors who offer financing, although franchisees are not required to use these vendors or obtain financing.
Performance Metrics
Total US Locations
160
Franchised Units
148
Corporate Units
12
Franchising Since
2003
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
Just Between Friends has disclosed three litigation cases. One case, filed in March 2023, involved Just Between Friends suing former franchisees for unlawfully retaining social media pages associated with their former franchises. A temporary restraining order was issued, the defendants complied by transferring the social media pages, and the case was dismissed after a settlement was reached. The other two cases, filed in 2015, did not involve Just Between Friends directly but named Robert Petre, the Fractional Vice President of Finance for Just Between Friends, as a defendant. These cases arose from unsuccessful investments made by the Osage Nation and Osage LLC, where Mr. Petre was CFO of Osage LLC. Mr. Petre denied involvement in the investment decisions, and all claims against him were dismissed in 2016.
Bankruptcy History
Just Between Friends has no bankruptcy information to disclose, and neither the franchisor nor its executives have been involved in any bankruptcy proceedings.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Just Between Friends franchisees must be in good standing, pass a background and credit check, provide timely written notice of intent to renew, and sign a new franchise agreement which may have materially different terms. Franchisees must also update all information with Just Between Friends, including social media accounts and access, comply with current training requirements, pay a $3,000 renewal fee plus the actual cost of background and credit checks, and sign a general release. Additionally, franchisees and their owners must not have any felony convictions or be involved in pending litigation.
Training & Support Program
Franchisor Assistance
Just Between Friends provides franchisees with support both before and after opening. Before opening, the franchisor designates a territory, provides an Initial Training Program for up to two trainees (with franchisees covering travel and lodging expenses), and loans a copy of the Operations Manual. Just Between Friends may also offer advice and suggestions for improvements. After opening, Just Between Friends commits to not granting other franchises in the franchisee's exclusive territory and maintains the brand's website. The franchisor may conduct periodic visits, provide ongoing success coaching via phone or video conference, and offer advice. Just Between Friends pays for initial advertising campaign creations from a National Marketing Brand Fund, and franchisees can use these or create their own with approval. The franchisor maintains a Franchise System Website and may provide franchisees with a webpage. Just Between Friends also specifies the required Computer System components (laptops, printers, scanners, credit card readers, internet access), which franchisees purchase from any compatible retailer, and provides one license to the JBF System Technology (including website, tagging software, point of sale system, and accounting software) as part of the technology fee. Franchisees are responsible for maintaining and upgrading their equipment, but Just Between Friends has unlimited access to data on the system and can establish new technology standards. The Initial Training Program is mandatory, consisting of online, onsite apprenticeship, and post-opening coaching components. A Jump Start Guide, an experienced franchisee providing guidance during the first event, is also mandatory for new owners at a cost of $3,000 to $4,000. Ongoing Success Coaching is required but free, and attendance at the mandatory annual conference is estimated at less than $1,000 per attendee.
Initial Training Hours
188
Training Location
Online and at a JBF Sales Event designated by JBF
Ongoing Support
After opening, Just Between Friends provides ongoing support by maintaining its brand website and ensuring no other franchises open in the franchisee's exclusive territory. The franchisor may conduct periodic visits to the franchise, offering deficiency reports and suggestions for improvements. Just Between Friends also provides ongoing success coaching, typically conducted via telephone or video conference, which franchisees are required to attend at no additional fee. The franchisor may offer or require additional training programs for which a reasonable fee might be charged, and franchisees are responsible for attendee costs. Additionally, attendance at the Just Between Friends annual conference is mandatory if held, with an estimated fee of less than $1,000 for one attendee. The franchisor may also retain public relations consultants to offer general PR advice to the entire system.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Exclusive
Territory Size Requirements
Just Between Friends defines territories by geographic areas with a minimum population of 100,000 people, based on publicly available demographic information. Initially, the maximum territory size will generally not exceed 300,000 people. Factors like zip codes, traffic patterns, household income, and the number of children under 11 are considered in determining territory size. Franchisees are responsible for finding a venue within their territory, with initial venues recommended to be at least 10,000 square feet, and options for 20,000 or more square feet available for growth.
Staffing Notes
Just Between Friends franchisees are solely responsible for hiring, firing, disciplining, training, compensating, and supervising all individuals who assist with their Just Between Friends Consignment Sales Business and events. Franchisees must ensure that each onsite supervisor operates under the direct supervision of a trained franchise owner who possesses sufficient knowledge of Just Between Friends' proprietary consignment procedures. Any person who requires access to Just Between Friends' confidential information must obtain the franchisor's consent and sign a confidentiality agreement. Franchisees are also responsible for ensuring compliance with all local, state, and federal labor laws.