Landon and Kat Eckles started franchising Clean Juice in 2016 in Charlotte, North Carolina.
Organic juice franchise Clean Juice closed numerous stores last year and was on the receiving end of a few arbitration filings from franchisees who claim the business model doesn’t work. Now, Brix Holdings, is determined to give the franchise a brighter future.
“Clean Juice has gone through a bit of troubled waters lately with a group of franchisees that, for a variety of reasons, struggled in making their units work,” Brix CEO Sherif Mityas said. “At this point, most of those troubles are behind the brand.”
Brix will acquire 75-unit Clean Juice, the portfolio company announced today. The transaction is expected to close in a few weeks. Brix owns Friendly’s, Red Mango and Orange Leaf, among others. The deal brings Brix Holdings’ eight-brand portfolio to more than 300 units.
Landon and Kat Eckles founded Clean Juice in 2014 with an entirely organic menu and their Christian values at the forefront of the business. It started franchising in 2016. The brand is ranked No. 387, up from No. 406, on the Franchise Times Top 400 list. The company did $64.5 million in sales with 132 units in 2022.
Brix Holdings CEO Sherif Mityas
“The folks that didn’t want to be part of the brand are no longer part of the brand, which is why the store count is definitely lower than it was a couple years ago,” Mityas said.
What Brix purchased, though, is a brand with strong operators who are passionate about Clean Juice’s mission to provide healthy, organic options to customers, Mityas said.
“The model works, but you have to have committed, engaged franchisees that understand the brand, understand what it takes to locally market the brand, understand what it takes to serve guests and create a great experience,” he said. “When you do that, the Clean Juice model is a very profitable model.”
Now, Brix plans to grow Clean Juice to 300 units in the next three to four years. “We’re really going to be pushing the gas pretty hard on accelerating the development of this brand,” he said.
The investment required to open a Clean Juice franchise ranges from $279,000 to $685,500. The company reports closing 20 franchised stores and one company store from January to October 1, 2023, bringing its total down to 113 at that time.
Average unit volume across 101 stores in 2022 was $580,445, with an overall range of $244,325 to $966,309, according to its franchise disclosure document.
Other fees, based on gross sales, include a 6 percent royalty fee, a 2-3 percent brand marketing fee and a 3 percent local advertising fee.
Clean Juice’s commitment to selling organic was a major selling point for Brix because of its unique positioning in the juice and smoothie market. Franchisees who’ve stuck with the brand are passionate about it, Mityas said, which gave Brix the confidence it needed to feel good about the acquisition.
At the center of franchisee complaints last year was Clean Juice’s shift to bottled juices rather than juice fresh pressed in stores. Landon Eckles said in November that the company switched to make operations easier, as franchisees were apparently complaining about the complications of making juice on site. Some franchisees claimed their stores weren’t profitable even before the change.
“We do not regret the change,” Eckles said last year. “Anytime you roll out a new system, there’s going to be tweaks and kinks. … Our owners who are doing well, who are working hard, they actually love the change.”
Mityas said consumers appreciate the convenience of the “grab and go” nature of the bottled juices. “We believe from an operations perspective, from a guest perspective, that’s the correct model,” he said.
Clean Juice’s namesake offerings make up just 12 percent of sales, with the bulk of sales coming from its food offerings, such as sandwiches and acai bowls.
Landon Eckles didn’t immediately respond to request for comment on the sale to Brix.