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Updated RecentlyOrange Julius of America vs Tea Lounge Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Orange Julius of America vs Tea Lounge 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 | $140,750 - $243,750 |
| Franchise Fee | $20,000 - $35,000 | $25,000 |
| Royalty Fee | 6% | 5% |
| Advertising Fee | - | 1% |
| Year Founded | 1926 | 2000 |
| Year Franchised | 1948 | 2012 |
| Term Of Agreement | 15 years (co-terminus w/lease) | - |
| Term Of Agreement | 15 years (co-terminus w/lease) | - |
| 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 | -/Yes |
| Start-up Costs | No/No | -/Yes |
| Equipment | No/No | -/Yes |
| Inventory | No/No | -/Yes |
| Receivables | No/No | -/Yes |
| Payroll | No/No | -/Yes |
Training & Support |
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| Training | - | - |
| Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Field operations/evaluations, Purchasing cooperatives | - |
| Marketing | Co-op advertising, Ad slicks | - |
| Operations |
Number of employees needed to run franchised unit: 10 - 20
Absentee ownership of franchise is allowed. | - |
Expansion Plans |
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| US Expansion | - | Yes |
| Canada Expansion | 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.