FranchiseVerdict
VARA Juice Restaurant logo
FV-02878·MODERATEExcellent91

VARA Juice Restaurant

Food & Beverage - Full ServiceFranchising since 2023Website
Investment
$236K – $635K
24th pct Full Service
Avg revenue
$647K
8th pct Full Service
Royalty
5.0%
15th pct Full Service
Units
12
45th pct Full Service
SBA default

Bottom line

  • Total investment $236K – $635K including a $25K franchise fee, 5.0% ongoing royalty.
  • Average unit revenue of $647K/year (median $541K).
  • Rated MODERATE with a risk score of 62/100.
  • Emerging franchise — only 3 years of franchising with 12 units. Early-stage systems carry higher risk but may offer better territory availability.

Item 1 · who you're contracting with

The Franchisor

Legal entity
VARA Juice Franchising, LLC
Incorporated in
Michigan
HQ
3231 S. Gulley Road, Suite C, Dearborn, Michigan 48124
Auditor
Etiendem CPA
Audited financials
Franchisor revenue
$74K
vs $484K prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one VARA Juice Restaurant unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $646,862
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $236K–$635K
Working capital
$
FDD reports $44K–$115K

Unlevered ROIC · per unit

20%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$103K
EBITDA margin
16.0%
Total invested
$514K
Payback
60 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 VARA Juice Restaurant units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$1.2M

on $5.8M purchase

Total debt

$4.7M

SBA $2.9M + senior + seller note

Overview

About

VARA Juice Restaurant franchisees operate quick-service beverage and juice bar locations, likely featuring freshly-pressed juices, smoothies, açai bowls, and health-focused beverages. Day-to-day operations include inventory management, POS systems, food safety compliance, staff scheduling, and direct customer service in a high-volume, fast-casual format.

CEO
Ali Albadani
Founded
2023
FDD year
2025
States available
5

Item 7 · what it costs

The Vitals

Total investment
$236K – $635K
All-in to open one unit
Liquid capital
$44K – $115K
Cash you must have on hand
Franchise fee
$25K
Royalty
5.0%
Greater of percentage or fixed weekly amount · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$647K
Per unit, per year
Median gross sales
$541K
Item 19 type
Historical
Sample size
6 units
vs category median 15 · small
Range (low → high)
$467K$1.2M
Cohort dispersion
Transparency
7 / 5
vs category median 4 / 5 · above
Revenue rank8th
vs Food & Beverage - Full Service peers
Investment cost rank24th
Lower investment ranks lower (better)
Royalty rate rank15th
Lower royalty = lower percentile (better)
Unit count rank45th
vs Food & Beverage - Full Service peers
Risk score rank45th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
12
Opened
5
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
3
Corporate units in the system
% franchised
75%
vs corporate-owned
Net growth (yr3)
+125.0%
Net unit change last year
2023
9+5
Franchised units
2024
4
Franchised units
2025
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 13 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 13 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

62
Risk · 0-100
MODERATE62 / 100

Early-stage juice franchise with explosive but unproven growth, no profitability transparency, and franchisor financial concerns—requires deep operational due diligence before commitment.

Score breakdown · what drove the 62 / 100 rating

  1. 01MEDNo Item 19 (Average Unit Volume) disclosed despite $646,862 average revenue claim — unable to verify profitability or unit-level economics
  2. 02HIGHGoing Concern = False indicates potential financial instability at franchisor level, raising sustainability questions
  3. 03MINORAggressive unit growth (125% YoY) from only 12 units suggests early-stage system with unproven scalability and operational controls
  4. 04MEDHigh investment range ($236K-$635K) paired with undisclosed net income creates uncertainty about ROI timeline and break-even point
  5. 05MINORMinimum royalty of $350/month ($4,200/year) on potential low-revenue locations may pressure unit economics
  6. 06HIGHNo litigation disclosure in growing franchise system is statistically unusual and warrants verification

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Michigan

Item 11

Training & Operations

Classroom training
25 hrs
On-the-job training
91 hrs

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

15 numbers

Locked
(217) 782-••••
IL
(517) 335-••••
MI
(608) 266-••••
WI

One-time purchase · CSV download · Validation questions included

FDD download

VARA Juice Restaurant · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above