Orange Julius of America

Founded: 1926 Franchising since: 1948
When Julius Freed opened his first orange juice stand in 1926, he was doing well, but his real estate broker, Bill Hamlin, felt he could do better. Using his chemistry background, Hamlin devised a formula to give the juice a smooth, creamy and airy texture. Once the new drink was unveiled, sales at the stand grew from $20 to $100 a day. As more and more customers began to say, "Give me an orange, Julius," the new product got its name.

Hamlin quit his job in real estate and focused on opening Orange Julius stores across the United States. Within three years he had opened 100 stores and the profits for the system, whose only product was a 10-cent drink, approached $3 million. Other drink flavors were added to a menu that now includes nachos, hamburgers and hot dogs.

Orange Julius' parent company, International Dairy Queen, also owns Dairy Queen and Karmelkorn. The three concepts are franchised together at Treat Center stores.

P.O. Box 39286 Minneapolis, Minnesota 55439-0286

Phone: (952)830-0200

Franchisor is a privately-held company with 320 employee(s); 33 employee(s) in franchise department.

Franchise Growth

Year	U.S. Franchises	Canadian Franchises	Foreign Franchises	Company Owned
2007	124	68	4	0
2006	133	9	70	0
2005	--	--	--	--

Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, United states, Utah, Virginia, Vermont, Washington, Wisconsin, West virginia, Wyoming

Total investment: $194.2K-380.6K Franchise fee: $20K-35K

Ongoing royalty fee: 5% Term of agreement: 15 years (co-terminus w/lease), renewable

Type of Financing Available

	In-House	Third Party
Franchise Fee	No	No
Startup Costs	No	No
Equipment	No	No
Inventory	No	No
Accounts Receivable	No	No
Payroll	No	No

Qualifications
Net worth requirement: $200K
Cash liquidity requirement: $175K
Business Experience:

• Industry experience
• General business experience

Operations

• Number of employees needed to run franchised unit: 10 - 20
• Absentee ownership of franchise is allowed.

Training

• Available at headquarters: 1-1/2 weeks
• At franchisee's location: Pre- & post-opening
• At existing location : 4 days+

Ongoing Support

• Newsletter
• Meetings
• Toll-free phone line
• Grand opening
• Internet
• Field operations/evaluations
• Purchasing cooperatives

Marketing Support

• Co-op advertising
• Ad slicks

Other marketing support

• Local promotions

Franchise 500® rank:
#397 (2005);