Pure Green Franchise in 2024: Costs, Fee & FDD
Discover why Pure Green is a fast-growing franchise in the health and wellness space. Learn about its strong market position, low investment costs, and potential for success in a booming industry. Explore key insights before investing!
Table of Contents:
Pure Green is a fast-growing franchise in the health and wellness space, founded by Ross Franklin in 2014. Known for its commitment to bringing nutrient-rich, all-natural smoothies, juices, and açaí bowls to the mainstream, Pure Green stands out in the fast-casual food industry for its focus on healthy, vibrant products. Franklin’s vision was to create a brand that promotes healthy living through convenience and taste, and the brand has quickly gained momentum among health-conscious consumers. Pure Green is seen as a leader in the wellness sector, combining taste, nutrition, and quality ingredients to attract both franchisees and customers alike.
At its core, Pure Green offers a wide range of products, including cold-pressed juices, smoothies, açaí bowls, and wellness shots, all made with real, natural ingredients. They cater to a health-focused customer base—think fitness enthusiasts, busy professionals, and families seeking healthier options. Their products are designed to be not only delicious but also packed with nutritional benefits, offering quick yet wholesome meals. The brand’s ancillary offerings, such as superfood snacks and detox programs, allow it to tap into the growing demand for convenient, health-forward eating options. This versatility makes Pure Green popular with customers who want both convenience and a health boost.
As of today, Pure Green has expanded to more than 25 locations in several key markets across the United States, with plans for continued growth. The franchise is focused primarily in major urban centers where demand for quick, healthy food options is particularly high. With a daily customer base in the thousands across its locations, Pure Green is gaining a strong foothold in the competitive fast-casual sector. The brand’s focus on fresh, high-quality ingredients and its mission to promote wellness has helped it grow rapidly in a crowded market.
When it comes to franchise support, Pure Green provides extensive training and resources for franchisees, ensuring that each location maintains the brand’s high standards. They offer a comprehensive training program that covers everything from day-to-day operations to marketing strategies and customer service. In addition, Pure Green’s ongoing support system includes assistance with site selection, supply chain management, and digital marketing. These support systems are designed to help franchisees succeed and grow their business while maintaining the integrity of the Pure Green brand. The franchise’s commitment to both health and business success makes it an appealing option for investors looking to tap into the booming health-conscious market.
Pure Green Franchise Insights
- Pure Green started offering franchises in 2019 and has since grown to 32 U.S. locations, with 23 franchised units and 9 corporate-owned units.
- The franchise requires an initial investment range of $177,000 to $447,000, positioning it as a mid-tier investment in the fast-casual space.
- Franchisees benefit from a strong training program, with over 100 hours of in-store training provided, ensuring operational excellence from day one.
Pure Green Franchise Key indicators
Growth YOY (%)
54%
vs industry 0%
Total U.S. Franchised Units
23
3-Year Failure Rate
9%
vs industry 10%
Sales-to-Investment ratio
2:1
How much does it cost to open a Pure Green franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Pure Green franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Pure Green franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Pure Green below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Leasehold Improvements | $60,000 | $220,000 |
| Real Estate/Rent | $2,000 | $12,500 |
| Utility Deposits | $150 | $400 |
| Furniture, Fixtures & Equipment | $50,000 | $75,000 |
| Initial Inventory | $2,500 | $10,000 |
| Insurance | $300 | $1,500 |
| Signage | $2,000 | $10,000 |
| Office Equipment & Supplies | $250 | $500 |
| Pre-Opening Expenses | $2,500 | $10,000 |
| Computer Equipment (Hardware, Software, POS System, etc.) | $750 | $1,500 |
| Training | $1,500 | $4,000 |
| Licenses & Permits | $1,500 | $3,000 |
| Legal & Accounting | $1,000 | $3,500 |
| Grand Opening Advertising | $1,000 | $5,000 |
| Additional Funds – three months | $12,000 | $50,000 |
| Total Estimated Initial Investment | $177,450 | $446,900 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Pure Green franchise, the required capital involves both the initial investment costs and a net worth requirement set by Pure Green. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $177,450 to $446,900. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid capital Around $75,000 to $150,000. This is an estimate based on industry standards, and it covers initial working capital and startup costs.
- Net worth Typically, franchisors require a minimum net worth of $250,000 to $500,000, depending on the total investment and financial health of the franchisee.
How much does a Pure Green franchise owner make?
Calculating the salary of a Pure Green franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Pure Green franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Pure Green Revenue & Gross Sales
Based on most recent analysis, Pure Green franchises have a median gross sales of $621,076. In general, franchises in this sector that focus on health-conscious, fast-casual dining tend to perform well in urban areas where demand for quick, healthy options is high.
Which key factors impact the average revenue performance of Pure Green franchisees?
The performance of U.S. franchisee median gross sales for Pure Green in recent years is likely influenced by several key factors. First, the growing consumer demand for health-conscious, plant-based options has driven more traffic to wellness-focused brands like Pure Green. Additionally, the post-pandemic shift towards healthier lifestyles has made customers prioritize nutrition, which aligns with Pure Green’s offerings. The expansion into new urban markets also likely contributed to higher sales, as prime locations generate more foot traffic. On the operational side, improved digital marketing strategies and the increased use of delivery apps may have helped franchisees capture a broader customer base, boosting sales compared to the prior year.
Pure Green Franchise Operational Costs
When opening a Pure Green franchise, here are the key primary ongoing operational costs you should consider:
- Labor Costs Hiring and retaining staff is one of the largest ongoing expenses. This includes wages, benefits, training, and any payroll taxes. Depending on your location, labor costs can fluctuate significantly.
- Inventory and Supplies The cost of raw ingredients (fruits, vegetables, superfoods) for the cold-pressed juices, smoothies, and açaí bowls is another significant recurring expense. You’ll also need to account for packaging materials like cups, lids, and straws.
- Lease or Rent If you’re in a prime urban area, rent could be one of the largest ongoing expenses. Ensure to factor in location-specific costs like utilities, property maintenance, and any additional leasing expenses.
- Equipment Maintenance and Utilities Keeping equipment such as juicers, refrigerators, and blenders in good condition is crucial. Regular maintenance and repairs, as well as utility bills for electricity and water, will also contribute to ongoing costs.
- Marketing and Local Promotions While the brand might have national advertising support, local marketing efforts, including promotions, digital marketing, and events, will be crucial to your specific location’s success.
Each of these operational costs can vary based on location, size of the store, and customer demand, but they’re all essential to running a successful Pure Green franchise.
Pure Green Franchise Fees
When considering a Pure Green franchise, it’s important to be aware of the ongoing fees associated with running the business. These fees ensure that you receive ongoing support, marketing, and operational guidance to help grow your franchise.
- Royalty Fee 6% of Gross Revenues, due monthly on the first Friday, after opening and completing six full calendar months.
- National Advertising Contributions 2% of Gross Revenues, also due monthly on the first Friday. This contributes to the national advertising fund.
- Local Advertising 1% of Gross Revenues, spent locally to promote your franchise, incurred as necessary.
- National Advertising Minimum $1,000 per month, whichever is greater, to ensure sufficient contributions to the brand’s national advertising fund.
Additionally, there may be other fees that can arise during the course of business, so it’s always important to review the franchise disclosure document carefully.
Pure Green Franchise Earnings
Based on the most recent data available for a Pure Green franchise, the median gross sales are approximately $621,076, offering a solid revenue stream for franchisees. For an owner-operator, the operating profit earnings are estimated at $93,161 based on industry margins, providing a respectable return on investment, especially when considering the relatively low initial investment compared to other fast-casual franchises.
These earnings give a clear indication of the potential profitability of running a Pure Green franchise, particularly for those actively involved in daily operations. As an owner-operator, being hands-on in the business can often lead to better cost control, customer engagement, and overall success. Keep in mind that actual results can vary based on location, management style, and local market conditions, but these figures provide a strong starting point for your financial expectations.
How to Open a Pure Green Franchise
Here’s an overview of the process and steps to become a Pure Green franchisee, from the initial inquiry to starting operations:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Discovery Call or Meeting After reviewing the FDD, you’ll have a call or meeting with the Pure Green franchise team to discuss the opportunity further. This is your chance to ask more detailed questions about the brand, support, and expectations. They will also assess whether you are a good fit as a franchisee.
- Submit an Application If both parties agree to move forward, you’ll complete and submit a formal franchise application. This involves a deeper look at your finances, experience, and plans for running the franchise.
- Approval and Financial Review Pure Green’s team will review your application and conduct a financial assessment to ensure you meet their minimum financial requirements (liquid capital and net worth). Once approved, you’ll move on to signing agreements.
- Sign Franchise Agreement Once approved, you’ll sign the franchise agreement, which formalizes your commitment. At this point, you’ll also pay the franchise fee (around $40,000 for Pure Green).
- Site Selection and Build-Out Pure Green will assist you in finding the right location for your franchise. After selecting a location, you’ll begin the build-out process, which includes securing permits, designing the store layout, and purchasing equipment. Pure Green’s support team will guide you through this phase to ensure your store meets their standards.
- Training Before opening your store, Pure Green provides comprehensive training. This includes in-store training, operational guidelines, and marketing strategies. You and your management team will be trained on everything from day-to-day operations to customer service.
- Grand Opening and Support Once your location is ready, Pure Green will support you with a grand opening strategy, including local marketing efforts. From this point forward, you’ll receive ongoing support from the franchisor to help your business succeed, including guidance on operations, marketing, and supply chain management.
Pros & Cons
Pros
Growing Health-Conscious Market: Pure Green operates in a booming health and wellness industry, capitalizing on the increasing demand for nutritious, plant-based foods.
Flexible Store Sizes: With a small footprint (500-1,500 sq. ft.), the franchise allows for flexibility in finding affordable, high-traffic locations.
Low Initial Investment: With investment ranges from $177K to $447K, it’s relatively affordable compared to other fast-casual franchises.
Cons
Potentially High Operating Costs: Ongoing operational costs like fresh ingredient sourcing and labor can vary significantly by location, which could impact profitability.
Highly Competitive Industry: The fast-casual health food market is competitive, and franchisees may face challenges in distinguishing their store from other health-focused brands.
Seasonal Fluctuations: Demand for cold-pressed juices and smoothies may vary by season, which could impact sales during colder months.
