Smoothie Investors Savor Franchising’s Many Flavors

It’s probably not the most popular reason people give when asked why they became an owner of a smoothie franchise. However, being able to offer his children access to an American university education is what one Chinese national had top-of-mind when he recently snapped up a JuiceBlendz franchise.

Other investors, from Venezuela, Colombia, and Mexico, have made similar JuiceBlendz investments, with the coveted by-product being eligibility for a green card under the U.S. government’s EB-5 immigrant investors program.

According to Adam Ogden, CEO of JuiceBlendz as well as its sister brand YoBlendz (think self-serve yogurt), the middle-market firm’s investor-class franchise owners aren’t exactly getting their hands all sticky.

“For these high net worth investors, it gives them the opportunity to invest in a company and not be responsible for running the day-to-day operations of the business, so we run and operate the businesses for the investor and charge a management fee,” explains Ogden, whose 8-year-old firm based in Weston, Florida appears to wield its fair share of global financial smarts despite a footprint that has only recently breached the borders of southern Florida after adding two locations in Oklahoma.

With management fees being accrued and foreign investors cuing up, the firm’s management says annual sales have leaped beyond $10 million as it sets a growth path for JuiceBlendz (18 sites) and YoBlendz (14 sites) that routinely strays from traditional franchise models.

Says Ogden: “We’re not looking to aggressively open stores. It’s a market that we will continue to service, but the way the economy has recovered has led franchisors to rethink big inland stores, and they are looking for investments with lower risk.”

So far, JuiceBlendz and its sister brand have introduced four variations to the firm’s original franchising model: a cobranding concept that incorporates both brands into a single store, an arena-style concept that helps franchisees open their shops in sports arenas, a university concept whereby Ogden foresees franchisees located at major universities across the country, and a convenience store concept that can be energized at the gas pump.

“There’s a big push in the ‘C store’ market to get people at the pumps to go inside the store, and we think that offering them a free cup of yogurt every time they fill up is a great way to do that,” says Ogden, who quickly changes gears to tout his cobranding strategy.

“If someone wants to open a Jamba Juice — a major competitor of ours in the smoothie category — they are stuck with that brand, whereas our JuiceBlendz franchises now have the opportunity to bring in our yogurt offering,” Ogden explains.

As for the opportunity a university franchise would enjoy, Ogden says that the upfront investment is less than for a store, while a college food court can be a advantageous selling environment. “It’s a captive audience that very often requires no marketing, and there’s a consumer with disposable income that is often available through meal programs that use cards,” he explains.

Counted among the early campus domiciles of JuiceBlendz is the food court at Western Kentucky University, in Bowling Green, Kentucky, where the university offers an extended menu of smoothies, salads, and sandwiches.

“We’re seeing a big push from the faculty as well as the students for better food options,” says Ogden, who adds the firm first piloted the program at Nova Southeastern University in southern Florida 2 years ago.

Regardless of their concept or place, it’s clear that Ogden’s investors are counting on a smooth path to profits.