Risk Score
Pending analysis
Investment Range
$251,870 - $647,515
Franchise Fee
$25,000
Total US Locations
6
Business Summary
VARA Juice Franchising, LLC operates a quick-service restaurant concept known as VARA Juice™ Restaurant. These restaurants offer made-to-order fruit and vegetable smoothies, fruit cups, fruit and vegetable juice blends, iced coffee beverages, and ice cream, all prepared with fresh ingredients. Customers can enjoy these products for dine-in or takeout, with locations typically found in free-standing buildings or commercial complexes, shopping centers, or strip malls, some offering drive-thru capabilities. The standard size for a VARA Juice™ Restaurant usually ranges from 900 to 1,200 square feet.
Corporate History
VARA Juice Franchising, LLC was organized in 2023 and conducts business under its company name and "VARA Juice™." While the franchising entity itself is new, its affiliates have been operating VARA Juice™ Restaurants since June 2019. VARA Juice Franchising, LLC began offering franchises for this type of business in June 2023.
Financial Overview
Investment Range
$251,870 - $647,515
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$25,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$97,724
Equipment Costs (High)
$343,690
Working Capital
$79,027
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
VARA Juice Franchising, LLC is a relatively new company, organized in 2023, with a limited operating history. The franchisor's financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. As of December 31, 2023, VARA Juice Franchising, LLC reported negative members' equity of $34,688 and negative working capital, with total current assets of $53,099 against current liabilities of $87,787.
Financing Details
VARA Juice Franchising, LLC does not offer any direct or indirect financing for its franchises. It also does not guarantee any of the franchisee's notes, leases, or other financial obligations. Franchisees are responsible for securing their own funding through third-party sources.
Performance Metrics
Total US Locations
6
Franchised Units
3
Corporate Units
3
Avg Square Footage
1,050
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
VARA Juice Franchising, LLC has no litigation to report.
Bankruptcy History
VARA Juice Franchising, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, VARA Juice Franchising, LLC franchisees and their affiliates must be in good standing, meaning they have no outstanding defaults and have not received two or more notices of default within the last 12 months. They must provide written notice of their intent to renew 6 to 12 months before the current term ends. Franchisees must also prove they can maintain possession of their approved location or secure a suitable alternative within their Protected Area. They are required to make any necessary upgrades to the location's appearance, equipment, and signage to meet current brand standards. All financial and reporting obligations to VARA Juice Franchising, LLC and its affiliates, suppliers, and creditors must be satisfied. Franchisees must complete any additional training, sign a general release of claims, and execute VARA Juice Franchising, LLC's then-current standard franchise agreement, which may have different terms.
Training & Support Program
Franchisor Assistance
Before opening, VARA Juice Franchising, LLC assists franchisees by approving their selected site and reviewing the lease, though franchisees are solely responsible for finding and evaluating the location. It provides written specifications for the restaurant's layout and build-out, and approves all construction plans. The franchisor also provides specifications and supplier information for equipment, fixtures, signs, and initial inventory, and grants access to its Brand Standards Manual. Additionally, VARA Juice Franchising, LLC provides an initial training program for up to two people (a Designated Owner and General Manager) and offers one or more representatives for up to one week to assist with the initial operation around the grand opening. It also provides guidance on product pricing and approves grand opening advertising plans. During operation, VARA Juice Franchising, LLC continually updates the Brand Standards Manual, offers ongoing training, and periodically visits restaurants to evaluate operations and provide advice. It updates specifications for approved products and services, administers the Brand Development Fund, and reviews local advertising. The franchisor also manages modifications to its intellectual property and reviews alternative locations if the initial one becomes unusable, as well as approving proposed transferees.
Initial Training Hours
69
Training Location
Detroit, Michigan
Ongoing Support
After opening, VARA Juice Franchising, LLC provides ongoing support to its franchisees. This includes continuous access to updates for its Brand Standards Manual and other operational specifications. Franchisees will receive ongoing training as specified by VARA Juice Franchising, LLC. Representatives will periodically visit restaurants to inspect and evaluate operations, offering advice and assistance as needed. VARA Juice Franchising, LLC also continuously updates specifications for approved products and services and reviews any new products, services, or suppliers requested by franchisees. The franchisor administers the Brand Development Fund and reviews local advertising plans. Additionally, VARA Juice Franchising, LLC makes modifications to its intellectual property for all similarly situated franchisees. Operational advice is also available via email, internet resources, or telephone upon request.
Franchise Requirements
Ideal Candidate Profile
VARA Juice Franchising, LLC seeks franchisees who, or whose Designated Owner, will preserve and exercise ultimate authority and responsibility over the management and operation of the franchise. The General Manager, who may or may not be the Designated Owner, must commit full-time effort to the day-to-day management and personally strive to market the business and maximize customer satisfaction. Candidates should possess strong character, business experience, financial strength, credit standing, health, reputation, and business ability. These factors are considered, along with management skill and experience, as they can affect start-up costs and overall success.
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
protected
Territory Size Requirements
VARA Juice Franchising, LLC defines its standard territory as a 1-mile radius from the front door of the franchise location. In densely populated areas, this Protected Area might be smaller than a 1-mile radius and will be mutually agreed upon and detailed in the Franchise Agreement.
Staffing Notes
VARA Juice Franchising, LLC requires franchisees to hire and train enough management and other employees to comply with the Franchise Systems. The franchisee is solely responsible for training all employees and ensuring their adherence to operational standards. They must establish and maintain a continuous training program for management and staff. A General Manager must always supervise the restaurant, dedicating full-time effort to day-to-day management and actively marketing the business. If the Designated Owner is not the General Manager, the General Manager must operate under the Designated Owner's direct supervision. Franchisees are solely responsible for their employees' terms and conditions of employment, compensation, and compliance with all applicable labor laws. Employees must wear uniforms and present a clean appearance, providing competent and courteous service.