Just Between FriendsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Just Between Friends franchise requires a total initial investment of $67K – $98K, including a $25K franchise fee. Per the 2025 FDD, average unit revenue was $376K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 10 loans[1]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $67K – $98K
- 20th pct Education
- Avg gross sales
- $376K
- 18th pct Education
- Royalty
- N/A
- Units
- 151
- 61st pct Education
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Education · color = vs category peers
Green = >15% above Education avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 4.6x in gross revenue, well above the typical 1.5-2.5x range.
Only 0.0% of 10 SBA loans charged off, well below the 16% franchise average.
Bottom line
- Total investment $67K – $98K including a $25K franchise fee.
- Average unit revenue of $376K/year (median $240K).
- Verdict C (Average) with a risk score of 64/100. SBA loan charge-off rate of 0.0% across 10 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- JUST BETWEEN FRIENDS FRANCHISE SYSTEM, INC.
- Incorporated in
- PA
- HQ
- 78 Grandview Blvd., Reading, PA 19609
- Auditor
- Morse & Co.
- Audited financials
- Franchisor revenue
- $2.5M
- vs $2.7M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
Just Between Friends operates consignment-based children's clothing and goods retail locations. Franchisees manage storefront operations including inventory acquisition, customer service, and consignor management. Revenue is generated through commission on consigned items sold, requiring active community engagement and inventory curation.
- CEO
- Tracy Panase
- Headquarters
- PA
- Founded
- 2003
- FDD year
- 2025
- States available
- 30
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $10K | $15K |
| Equipment, build-out, other | $32K | $57K |
| Total initial investment | $67K | $98K |
Source: Just Between Friends 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$60K
16.0% margin
Unlevered ROIC
63%
EBITDA / total invested capital
Payback
19 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $67K – $98K
- Better than avg vs category
- Liquid capital req'd
- $10K – $15K
- Better than avg vs category
- Franchise fee
- $25K – $25K
- Better than avg vs category
- Royalty
- the greater of 3% of actual Gross Sales or annual minimum…
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 4.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $2K |
| Transfer fee | $8K |
| Renewal fee | $3K |
| Total fee load | 4.0% of rev |
A 4.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $376K
- Per unit, per year
- Median gross sales
- $240K
- Item 19 type
- gross_sales
- Sample size
- 140 units
- vs category median 14 · large
- Range (low → high)
- $11K→$2.2M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 237 Education brands
Revenue is 4.6x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Education averages
How Just Between Friends Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 151
- Opened
- 2
- Last reporting year
- Closed
- 2
- Turnover rate
- 1.3%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (yr3)
- +0.7%
- Net unit change last year
- 3-yr CAGR
- +2.1%
- Compounded over last 3 years
3-year detail · Item 20
- Terminated (3yr)
- 6
- Transfers (3yr)
- 12
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 23 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Hawaii
- North Dakota
- Rhode Island
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 10
- Loan volume
- $1.3M
- Median loan
- $93K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Just Between Friends's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 7-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 10 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Minimal franchise system growth, undisclosed profitability metrics, and historical officer litigation present meaningful risk despite protected territories and modest initial investment.
Litigation (Item 3)
6 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · Morse & Co.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 64 / 100 rating
- 01MINORStagnant unit growth (0.7% YoY) suggests market saturation or franchisee dissatisfaction despite 151 existing locations
- 02MEDNet income not disclosed in Item 19 prevents ROI analysis; only average revenue ($376k) provided without profitability context
- 03MINORRoyalty structure with $5,250-$10,500 annual minimums creates fixed cost burden even during slow sales months, reducing franchisee flexibility
- 04HIGHOfficer litigation history (Robert Petre/Osage LLC) raises governance and financial management concerns, though cases dismissed
- 05MEDHigh initial investment ($66.6k-$97.5k) relative to disclosed revenue and unknown profitability creates recovery risk
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Geographic boundaries (zip codes) |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 3 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Pennsylvania |
| Litigation count | 2 |
View Item 3 litigation summary
6 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 179 hrs
- On-the-job training
- 19 hrs
- Training location
- On-site and corporate
- POS system
- JBF System Technology
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: JBF System Technology
Item 20 · call current owners
Franchisee Contacts
88 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Just Between Friends · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Just Between Friends franchise?
The total investment to open a Just Between Friends franchise ranges from $67K – $98K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Just Between Friends franchise owners earn?
According to Item 19 of the Just Between Friends FDD, the average gross sales per unit is $376K. The median is $240K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Just Between Friends's franchise failure rate?
Based on SBA 7(a) loan data, Just Between Friends has a charge-off rate of 0.0% across 10 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Just Between Friends franchise locations are there?
As of their most recent FDD filing, Just Between Friends has 151 total units in the United States, including 146 franchised units and 5 company-owned units. 2 new units were opened in the latest reporting year.
Is Just Between Friends a good franchise to buy?
FranchiseVerdict rates Just Between Friends as a C-grade franchise with a risk score of 64 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.