Dive Brief:
- Brix Holdings, the parent company of Friendly’s and several other brands, is buying 75-unit Clean Juice. Brix expects the deal to close in the coming weeks, and terms of the deal were not disclosed.
- Consumer interest in the alleged health benefits of juices has driven a large expansion of the segment in recent years, making such brands a potential target for investors looking for a growth opportunity.
- Clean juice has been shrinking — the brand’s 2023-2024 Franchise Disclosure Document lists 135 open units at the end of 2022, while the press release announcing its acquisition puts the brand’s size at over 75 units.
Dive Insight:
Clean Juice hasn’t benefited from the same tailwinds as its category competitors. Franchise Times reported in December that changes to the brand’s business model led dozens of franchisees to seek an out from their franchise agreements after a shift from cold-pressed to bottled juices led to staggering losses.
The FDD lays out a lengthy list of fees charged to franchisees: 6% royalty rate, 2-3% brand marketing fee, 3% local advertising fee and a 2% regional advertising cooperative.
“In 2023 due to a variety of economic and franchisee issues, the Clean Juice system did experience a drop in overall store count. However, those issues are now mostly resolved,” Sherif Mityas, Brix CEO, wrote in an email to Restaurant Dive. Remaining franchisees, Brix said, were focused on growth.
Mityas said the brand “will maintain the faith-based attributes upon which it was founded,” and that Brix, while having secular leadership, said its values were consistent with those espoused by Clean. On its website, Clean cites the New Testament: “rooted in the ‘healthy body and a strong spirit’ (3 John 1:2) scripture, Clean Juice offers organic cold-pressed fresh and bottled juices, smoothies, wraps, sandwiches, açaí bowls, toasts, salads, and other healthy foods.”
But, according to the press release, Brix generally targets brands with unique identities for its acquisitions.
“Each has a unique and differentiated position in their sector with loyal guests and fans,” Mityas, said of the company’s brands. “Clean Juice fits right into that mold with a strong foundation of beloved and certified organic offerings that effectively extend our spectrum of ‘better-for-you’ options.”
Brix has made something of a niche for itself acquiring struggling brands and trying to return them to growth. The company has been trying to grow Friendly’s since buying it out of bankruptcy in 2020, and the brand recently began looking for franchisees in Texas.
