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Updated RecentlyOrange Julius of America vs Van Houtte Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Orange Julius of America vs Van Houtte including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $194,200 - $380,600 | $250,000 - $300,000 |
| Franchise Fee | $20,000 - $35,000 | $27,500 |
| Royalty Fee | 6% | 5% |
| Advertising Fee | - | - |
| Year Founded | 1926 | 1919 |
| Year Franchised | 1948 | 1983 |
| Term Of Agreement | 15 years (co-terminus w/lease) | 10 years |
| Term Of Agreement | 15 years (co-terminus w/lease) | 10 years |
| Renewal Fee | $2.5K | - |
Business Experience Requirements |
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| Experience | - | |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/No | No/No |
| Start-up Costs | No/No | No/No |
| Equipment | No/No | No/No |
| Inventory | No/No | No/No |
| Receivables | No/No | No/No |
| Payroll | No/No | No/No |
Training & Support |
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| Training | - | - |
| Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Field operations/evaluations, Purchasing cooperatives | Meetings, Grand opening, Field operations/evaluations, Purchasing cooperatives |
| Marketing | Co-op advertising, Ad slicks | Co-op advertising, Regional advertising |
| Operations |
Number of employees needed to run franchised unit: 10 - 20
Absentee ownership of franchise is allowed. |
5% of all franchisees own more than one unit
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
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| US Expansion | - | - |
| Canada Expansion | No | No |
| International Expansion | Yes | Yes |
Company Overviews
About Orange Julius of America
When Julius Freed opened his first orange juice stand in 1926, he was doing well, but his real estate broker, Bill Hamlin, felt he could do better. Using his chemistry background, Hamlin devised a formula to give the juice a smooth, creamy and airy texture. Once the new drink was unveiled, sales at the stand grew from $20 to $100 a day. As more and more customers began to say, 'Give me an orange, Julius,' the new product got its name.
Hamlin quit his job in real estate and focused on opening Orange Julius stores across the United States. Within three years he had opened 100 stores and the profits for the system, whose only product was a 10-cent drink, approached $3 million. Other drink flavors were added to a menu that now includes nachos, hamburgers and hot dogs.
Orange Julius' parent company, International Dairy Queen, also owns Dairy Queen and Karmelkorn. The three concepts are franchised together at Treat Center stores.
About Van Houtte
Albert-Louis Van Houtte, a French immigrant, set up his first grocery store in Montreal in 1919. Van Houtte stocked the store with specialty products from Europe, including coffee. Each day he would roast small batches of coffee in the back of his shop, and soon Van Houtte had built up a reputation in Montreal for selling quality coffee. In the more than 80 years since its founder began roasting European coffees, A.L. Van Houtte Cafe-Bistro has grown beyond Montreal and has expanded its menu. Today, each cafe-bistro serves a variety of coffee and espresso drinks, as well as teas, soups and sandwiches.