The Jellyfish Jelly Factory is a factory farm that extracts Jellyfish Jelly from jellyfish. It is powered by the energy produced when Mr. Krabs pedals a bicycle.
Its exterior appears strongly industrial-like, as does its interior. Outside shows a crane on top of the roof, a bunch of gears at the upper front of the building, a greenish metal exterior, various exhaust pipes and some railway track with a sort of gold-mine cart for transportation. A garage door and a regular door also appears too.
In the interior, a large amount of pipe formations and robots operate in the factory. The robots in the factory use their various ways of extraction of Jellyfish Jelly from jellyfish, from drying out jellyfish via "milking" the stingers, using a rolling pin to push out the Jellyfish Jelly from the jellyfish, using a citrus squeezer as a person would to lemons, and force-tickling jellyfish to make them sneeze out Jellyfish Jelly. The pipes in the factory move the jellyfish around the factory to the various extraction method areas, pushing the jellyfish in a way like an esophagus. The jellyfish are stored in a large glass storage vault before being sucked up by the pipes.
It had formerly been operated by Mr. Krabs, until he gave up after all of the jellyfish stung him in revenge. The factory is run by the power of an Exercycle, which Mr. Krabs uses to supply the power to the factory processes.
The factory is known for using cruel methods to jellyfish during the Jellyfish-Jelly-making. The known examples include drying out jellyfish of jelly by "milking" them and throwing out dried-out ones into a trash can, using a rolling pin to push out the jelly from the jellyfish, using a citrus squeezer in a way a person may to lemons, and force-tickling the jellyfish, all of which are operated by robots.
The Jellyfish Jelly Factory has so far only ever been shown during a nighttime setting.
Since the entire factory was only powered by Mr. Krabs' bike, this factory would be powered when a spinning piece of metal generates the power on something else (magnet with copper), thus powering the machinery. However, when he isn't using the bike, the voice-activated door of the tank that keeps the jellyfish has power to operate.