Nekter Juice Bar Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$246,578 - $640,838
Franchise Fee
$25,000
Total US Locations
193
Business Summary
NÉKTƏR JUICE BAR operates retail stores offering fruit and vegetable juices, smoothies, specialty drinks, cleanses, acai bowls, and other health-centric products. These stores are typically located in or near shopping malls, retail strip malls, or urban storefronts, ranging from 700 to 1,450 square feet. Each NÉKTƏR JUICE BAR location is a dedicated brick-and-mortar operation that provides both dine-in and takeout services, offering the brand's full menu of food and beverage items.
Corporate History
Nekter Juice Bar, Inc., the parent company, was formed on May 27, 2010, and owns and operates NÉKTƏR JUICE BAR® stores. This parent company also owns the NÉKTƏR JUICE BAR® trademarks and licenses them to Nekter Franchise, Inc. Nekter Franchise, Inc. itself was formed on July 6, 2012, as a California corporation, and began offering franchises for NÉKTƏR JUICE BAR® stores in June 2012. Nekter Franchise, Inc. does not engage in any other business activities apart from offering and supporting these franchised stores.
Financial Overview
Investment Range
$246,578 - $640,838
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$35,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$128,493
Equipment Costs (High)
$369,380
Working Capital
$27,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Nekter Franchise, Inc. appears to be in good financial health, demonstrating increasing net income and total revenues over the past three fiscal years, with no concerns raised regarding its ability to continue as a going concern. In 2023, Nekter Franchise, Inc. reported a net income of $3,594,961 on total revenues of $7,399,330, an increase from 2022's net income of $3,414,559 and revenues of $6,796,331. The company consistently advances funds to and receives repayments from its parent corporation, with a significant 'Due from affiliate' balance of over $20 million as of December 31, 2023. These advances are non-interest bearing and due on demand. No impairment losses on long-lived assets were recognized in 2023 or 2022, and management has determined there is sufficient evidence to realize all deferred tax assets, indicating a positive outlook on future taxable income.
Financing Details
Nekter Franchise, Inc. does not offer any direct or indirect financing to its franchisees. Additionally, Nekter Franchise, Inc. does not guarantee any note, lease, or other financial obligation for its franchisees.
Performance Metrics
Total US Locations
193
Franchised Units
162
Corporate Units
31
Avg Square Footage
1,075
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
NÉKTƏR JUICE BAR has one litigation case to disclose. In June 2022, Nekter Franchise, Inc. and its parent company, Nekter Juice Bar, Inc., initiated an arbitration action against a former franchisee, Stanley Mark La Ferr, in Orange County, California. The claims involved breach of franchise agreement, breach of oral sublease, failure to pay rent, and promissory estoppel, seeking unpaid rent, amounts due under the franchise agreement, legal fees, and interest. Mr. La Ferr defaulted by failing to appear in the arbitration. In March 2024, the Arbitrator issued a Final Award, finding Mr. La Ferr liable for all claims and damages. Nekter Franchise, Inc. intends to file a petition in state court to have this award confirmed as a judgment.
Bankruptcy History
Nekter Franchise, Inc. has no bankruptcy information to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their NÉKTƏR JUICE BAR franchise, franchisees must notify Nekter Franchise, Inc. in writing 9 to 12 months before the agreement expires. Franchisees must be in good standing, meaning they have no defaults under any agreements with Nekter Franchise, Inc. or its affiliates, have fully complied with all material terms of the franchise agreement, and have satisfied all financial obligations to Nekter Franchise, Inc., its affiliates, and third-party suppliers. The franchisee must also have the right to occupy the store premises or have secured an acceptable substitute, and must renovate, modernize, and refurbish the store to meet Nekter Franchise, Inc.'s then-current image, equipment, and technology standards. Furthermore, franchisees must meet current qualification and training requirements for new franchisees, sign a general release in favor of Nekter Franchise, Inc. and its related parties, and execute Nekter Franchise, Inc.'s then-current form of franchise agreement, which may include different fee structures and advertising obligations. A renewal fee of $5,000 is also required.
Training & Support Program
Franchisor Assistance
NÉKTƏR JUICE BAR provides a comprehensive range of support and assistance to its franchisees. Before opening, Nekter Franchise, Inc. helps with site selection by identifying a Site Selection Area and approving a specific location within 30 days. It also provides an initial training program for up to three individuals, including the Designated Principal and a general manager, lasting three weeks and covering 111 hours, with both virtual and in-store components. Additionally, Nekter Franchise, Inc. offers up to 70 hours of on-site opening assistance and marketing support for the first store, and 36 hours for a second store, as well as pre-opening consultation on store development, layout, equipment, purchasing, and supplier relationships. Ongoing support includes continuous advice and guidance on new product development, store operations and management, advertising and marketing strategies, and financial and accounting matters. Nekter Franchise, Inc. communicates information about approved suppliers and system developments. Franchisees are required to participate in designated online, mobile, or third-party delivery programs. Nekter Franchise, Inc. may also provide or require additional training, such as refresher courses or annual conventions, for a fee. Franchisees must use designated POS and computer systems, contributing to a technology fee for software, website maintenance, and system development. Nekter Franchise, Inc. also conducts quality assurance inspections and may implement mystery shopper programs at the franchisee's expense.
Initial Training Hours
111
Training Location
Virtually for classroom training, and in Southern California and Maricopa County, Arizona for in-store training.
Ongoing Support
NÉKTƏR JUICE BAR offers continuous support through various channels. This includes ongoing consultation and advice on new service and product development, store operation and management, advertising strategies, and financial matters. Nekter Franchise, Inc. communicates updates on approved suppliers and new system developments. Franchisees are required to use and maintain designated POS and computer systems, with a Technology Fee contributing to reporting software, online media account management, email, website development, and application maintenance. An intranet will also be provided for pertinent documents and instructional materials. Nekter Franchise, Inc. may mandate additional training, including annual conventions, for a fee. Franchisees must participate in designated online, mobile, and third-party delivery programs. Nekter Franchise, Inc. also reserves the right to implement mystery shopper programs and quality assurance audits, which franchisees may be required to pay for, to ensure compliance with brand standards.
Franchise Requirements
Ideal Candidate Profile
NÉKTƏR JUICE BAR requires that its franchisees, or an owner with at least a 10% ownership interest, serve as a 'Designated Principal' who actively oversees the business operations. This Designated Principal must successfully complete the initial training program. Additionally, each NÉKTƏR JUICE BAR store must employ a full-time general manager who also successfully completes the initial training and is solely responsible for daily operations, without engaging in other substantial management activities. If a general manager leaves or no longer qualifies, a replacement must be designated and trained within 30 days.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Limited
Staffing Notes
NÉKTƏR JUICE BAR requires franchisees to appoint a 'Designated Principal' (an owner with at least a 10% interest) to actively oversee the franchised business operations. Each NÉKTƏR JUICE BAR store must also employ a full-time general manager who has successfully completed the initial training program and is responsible for day-to-day oversight. This general manager cannot hold other positions requiring substantial management responsibility. If the general manager changes, a new one must be designated and trained within 30 days. Franchisees are responsible for training their own competent and conscientious staff, ensuring employees provide courteous service, adhere to minimum standards, wear designated uniforms, and maintain a neat and clean appearance.