Boost Juice Franchise Loan
Making juicy, healthy profits through a Boost Juice Franchise
The health food industry is a big business in Australia. If you’re thinking of grabbing a slice of this rapidly growing industry, a Boost Juice franchise loan may be just what you need.
As an accredited franchise, a couple of our lenders can actually help fund the costs of establishing a new Boost Juice store or buying an existing one.
We can even help you borrow up to 100% of the value of the business if you have an existing residential property to secure your loan.
How does a Boost Juice franchise loan work?
Boost Juice is not only Australia’s largest chain of juice and smoothie bars but the largest in the Southern hemisphere.
Some banks recognise Boost Juice’s strong global brand and robust franchise model and are willing offer competitive franchise loan terms for a strong application.
How much can I borrow?
- New or existing juice bar: Borrow up to 50-70% of total business costs or 100% with an existing residential property as security.
- Loan term: 7 years (as per the franchise agreement).
- Loan term with property as security: 25 to 30 years (standard loan term).
- Interest only: Around 2 years or more depending if you’re using property as security.
- Low doc options not available.
- We can help negotiate strong interest rates.
Call us on 1300 889 743 or complete our free assessment form to speak with one of our Boost Juice franchise loan specialists.
Like other commercial loans, franchise finance is negotiable depending on the strength of your application.
If you can show that you have strong business experience with the financial stability to input your own funds into the business, the better the discounts available to you.
Franchise loans are a grey area when it comes approval criteria.
Even though Boost Juice is an accredited franchise, a minimum performance indicator is that an existing store has interest cover of 1.5x earnings before interest, tax, depreciation and amortisation (EBITDA).
This is only a requirement with one of our lenders but it gives you an idea of what banks will be assessing when looking your business financials.
Ultimately, the franchise loan application still needs to make sense so, as a general rule, you’ll have to meet the following requirements:
- Existing store: If you’re buying an existing store from the current franchisee, you’ll generally need to provide 3 years financials for the business in the form business tax returns and profit and loss statements.
- Experience: No matter whether you’re buying a greenfield or existing juice bar, you’d need to show evidence of at least 3 years experience in a similar industry and in a managerial or supervisory role. This shows that you have the skills to keep the business afloat for the long term.
We know exactly what the banks are looking for in an application so get in touch and we can help you!
Buying a Boost Juice franchise
Boost Juice has been one of the most popular franchise systems in Australia for more than a decade and for good reasons.
With a business model and image built around youth and energy, it may be just the new business venture you’re looking for.
Why Boost Juice?
Boost Juice was first established in 2000, the exact same time that the health and wellbeing craze hit the Australian market.
Across the fruit juice and smoothie industry, the total revenue is well over the $360.7 million as at 2016.
To this day, Boost Juice dominates the market and is actually acting as a barrier to independent and competing chain entrants.
How much revenue can I make?
It’s impossible to provide an exact dollar figure on what you can stand to make because it depends on things like store location and your business acumen.
However, once you sign up you’ll actually be provided with historical sales turnover figures once you sign Boost Juice’s confidentiality agreement.
This will give you some indication at least.
What's the application process?
Like other franchise businesses, the application process usually involved both a phone and face-to-face interview before Boost will accept you as a franchisor.
As per Boost Juice’s franchise kit, the application process involves:
- Completing the expression of interest on the Boost Juice franchise page.
- Filling out their application form and sending it back along with a refundable $2,200 deposit.
- This is be followed by an interview over the phone.
- If you’re successful, you will then be given a confidentiality agreement to sign and a Deed of Undertaking and Acknowledgement.
- At this point, you’ll be provided with sales figures along with a financial planning guide and an operational questionnaire.
- This is followed by a face-to-face interview with one of their franchise business development managers.
- A day of work experience in a real store.
- You’ll then be given a franchise kit which contains an example of the disclosure document and franchise agreement. Ask if you can see this up front before providing your deposit or undertaking training!
How much will it cost?
For a 20sqm store, you’re looking at a total investment of $240,000 to $300,000.
Bear in mind that each new site has different requirements. Some sites might require specific construction and design work that will affect the fixed price contract
You will also need to provide some working capital to get the business up and running.
The amount required will vary but the bank won’t simply approve your franchise loan if you’re not contributing anything to the business (hurt money).
Other upfront and ongoing costs of a Boost Juice franchise loan include:
- Deposit of $2,200 (refundable).
- Royalty fee: 4-6% of monthly turnover.
- Advertising and marketing: 3% of gross monthly turnover.
How will Boost Juice support me?
- A 4-week training program in Melbourne covering smoothie and juice preparation, operational health and safety requirements and sales training.
- You’ll have a dedicated business development manager assigned to you.
- Access to Boost’s national and local area marketing capabilities.
- Shop fit-out and site selection.
- As part of a head lease agreement, Boost Juice will handle initial negotiations and ongoing management of the lease agreement between you and the landlord.
- You’ll be able to leverage Boost Juice Bar’s buying power with suppliers meaning cheaper outgoings than running an independent store.
Boost Juice franchise loan FAQs
Buying a franchise can be an exciting decision but it’s important to go into the application process with your eyes wide open.
Speak with financial and legal professionals before signing the dotted line so you can avoid many common traps.
How long is the franchise agreement for?
It’s important you understand that the agreement is for 7 years (plus 2x 7-year options).
This is significantly lower than the standard 10 years you get with most other franchise systems.
Essentially, you have a shorter time frame to get a business up-and-running and producing a healthy profit.
When should I apply for finance?
If you think it’s the right franchise system for you and you’ve sought out legal and financial advice, you can apply for a Boost Juice franchise loan right away.
Specifically, do this before signing the franchise agreement. It’s essential that your loan has been approved before signing on completely.
What's the turnaround time on approvals?
Turnaround times on Boost Juice franchise loan is around 3-4 days depending what financials the bank wants to see from you.
The best thing you can do is be prepared with your financials and a solid business plan to really impress the bank.
The will give you a better chance of getting approved the first time around and even qualify for great discounts.
Can you open multiple stores?
This will be decided by Boost Juice based on the performance of your current store.
As a general requirement, you’ll need to be operating your current store for a minimum of 12 months before being considered for additional stores.
If Boost is satisfied, they’ll agree to allow you to open a certain number of stores over a set period of time.
We can help you qualify for a multi-site franchise loan!
When should I ask for a franchise kit?
Ideally, you should be provided with a franchise kit upfront and it should contain an example franchise agreement.
A company like Boost Juice relies almost entirely on its franchise model for profits so you’re in the driver’s seat so ask to see this first.
Apply for a franchise loan today
Do you need a Boost Juice franchise loan so you can start realising your business goals?
Call us on 1300 889 743 or fill in our online enquiry form to discover if you qualify and how we can you a great deal.