|
Below is an in-depth analysis and side-by-side comparison of Orange Julius of America vs Gloria Jean's Gourmet Coffees including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
||
Investment | $194,200 - $380,600 | $299,000 - $494,000 |
Franchise Fee | $20,000 - $35,000 | $15,000 - $25,000 |
Royalty Fee | 6% | 6% |
Advertising Fee | - | 2% |
Year Founded | 1926 | 1979 |
Year Franchised | 1948 | 1986 |
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 | 1/2 of current franchise fee |
Business Experience Requirements |
||
Experience | ||
Financing Options |
||
In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/Yes |
Start-up Costs | No/No | No/Yes |
Equipment | No/No | No/Yes |
Inventory | No/No | No/Yes |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
||
Training | - | On-The-Job Training: 80 hours Classroom Training: 80 hours |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Field operations/evaluations, Purchasing cooperatives | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform |
Marketing | Co-op advertising, Ad slicks | Ad Templates Regional Advertising Social media SEO Website development Email marketing Loyalty program/app |
Operations |
Number of employees needed to run franchised unit: 10 - 20
Absentee ownership of franchise is allowed. |
50% of all franchisees own more than one unit Number of employees needed to run franchised unit: 6 - 12 Absentee Ownership Allowed |
Expansion Plans |
||
US Expansion | - | Yes |
Canada Expansion | No | No |
International Expansion | Yes | Yes |
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.