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Cuppy's Coffee Franchise Cost & Fees

Date of Incorporation: 2003

Franchising Since: 2007

Headquarters: Washington

Business and Description: Cuppy's Coffee & More, Inc. offers franchises to operate a quick service coffee restaurant which sells branded coffee and related espresso beverages, fresh beverages and other related items including fruit smoothies and bottled waters.

Franchise Programs:  Cuppy's Coffee & More, Inc offers the opportunity to franchise a Cart Unit, Mobile Unit, Kiosk Unit, Drive-up Unit, Full Service Café, Embedded Full-Service Unit, and Stand Alone Full-Service Unit.

Financial Assistance:
If a Kiosk Unit, Drive-Up Unit, Full-Service Cafe Unit. Embedded Full Service Cafe Unit or Stand Alone Full Service Cafe Unit is purchased and the franchisee is unable to obtain third party financing, the franchisor’s approved vendors may offer direct or indirect financing. The Franchisor does not guarantee any note, lease, or obligation.

Training and Assistance: Training consists of 5 days for up to 3 people, including the franchisee and a dedicated manager. Training consists of a discussion of the System, drink preparation, techniques, procedures, and methods of operation, hiring employees, customer service, ordering, sales, procedures, accounting, support procedures and instructions on quality standards and practical experience. For Fixed Units, the franchisor will provide 3 days of on-site assistance prior to the grand opening of the Restaurant.

Territory: A Cart Unit or Mobile Unit will not have a Protected Territory. A Cart Unit or a Mobile Unit will not operate within 441 mile of any Fixed-Unit location unless the Fixed-Unit location is currently owned by the franchisee or they receive prior written permission from the operator of the Fixed-Unit location and from the franchisor. For Kiosks, In-Line Full-Service Cafe Units, or Embedded Full-Service Cafe Units located in or upon properties designed for pedestrian mobility rather than vehicular traffic, such as shopping malls, lifestyle centers, or office buildings, the Protected Territory for the franchise will be limited to the actual boundaries of such properties. If you operate a Fixed-Unit, your Protected Territory may be delineated by streets, highways, city or county boundaries, or zip codes. You may only operate the Restaurant at one Premise.

Renewal and termination: The term of franchise is 10 years and the right to renew for an additional 10 years. The franchisee may terminate if the franchisor is in default. The renewal fee is $5,000 for Mobile, Kiosk, Drive-through and Full Service Cafe Units and $2,500 for the Cart Unit.

Obligations and Restrictions: The franchisee or a fully trained and qualified manager who has completed the training program to the franchisors satisfaction must participate personally and full-time in the Business. The franchisee may offer for sale to the public only those products and services that have been authorized and approved by the franchisor.

 

Total Number of Franchised Units for 2006: 9
Total Number of Franchised Units Opened for 2006: 1

Investment Table:
Estimated Initial Investment for Cart Unit and Mobile Unit Franchise:

Name of Fee
Cart Unit Low
Cart Unit High
Mobile Unit Low
Mobile Unit High
Initial Franchise Fee
$2,500
$2,500 $5,000
$5,000
Travel and Living Expenses
$1,000
$3,000
$1,000 $3,000
Site Rent or Real Estate
$500
$2,000
$500 $1,500
Unit
$18,900
$65,900 $59,500
$59,500
Furniture & Fixtures
Included in Cart Unit
Included in Cart Unit Included in Mobile Unit
Included in Mobile Unit
Signage
Included in Cart Unit Included in Cart Unit Included in Mobile Unit Included in Mobile Unit
Miscellaneous Opening Costs
$1,000
$2,500
$1,000 $3,000
Advertising (3 months)
$1,000
$1,500
$1,500 $3,000
Computer Equipment and Software
$300
$500 $300 $500
Additional Funds for Initial 3 Months
$2,500
$10,000
$2,500
$10,000
Total
$27,700
$56,900
$71,300
$85,500


Estimated Initial Investment for Kiosk Unit and Drive-up Franchise:

Name of Fee
Kiosk Unit Low
Kiosk Unit High
Drive- Up 10'x26'
Low
Drive- Up 10'x26' High
Initial Franchise Fee
$10,000
$10,000 $25,000
$25,000
Travel and Living Expenses
$1,000
$3,000
$1,000 $3,000
Site Rent or Real Estate
$500
$5,000
$500 $5,000
Site Preparation & Permitting Costs
$2,500
$5,000
$19,000
$55,000
Unit
$99,500
$115,500
$179,500
$179,500
Furniture & Fixtures
Included in Kiosk Unit
Included in Kiosk Unit Included in Drive-Up Unit
Included in Drive-Up Unit
Signage
Included in Kiosk Unit Included in Kiosk Unit Included in Drive-Up Unit Included in Drive-Up Unit
Miscellaneous Opening Costs
$1,000
$3,000
$1,000 $3,000
Advertising (3 months)
$1,500
$5,000
$1,500 $5,000
POS, computer system and Software
$500
$1,500
$500
$1,500
Additional Funds for Initial 3 Months
$7,500
$20,000
$7,500
$20,000
Totals
$149,000
$193,500
$235,500

              $297,000


Estimated Initial Investment for Inline Full Service Unit, Embedded Full service Unit and Stand Alone Full Service Unit Franchise:

Name of Fee
Inline Full Service Unit
1,200 sq ft
(Low-High)
Embedded Full Service Unit
(Low – High)
Stand Alone Full Service Unit
40' x 60'
(Low – High)
Initial Franchise Fee
$25,000
$25,000 $25,000
Travel and Living
Expenses
$1,000-$3,000
$1,000-$3,000
$1,000-$3,000
Site Rent or Real Estate
$1,200-$5,000
Typically, a
percentage of your
gross sales
$1,500-$5,000
Store Build-Out/
Construction
$209,500
$139,500-$259,500
$589,500
Furniture & Fixtures
Included in build-out cost
Included in build-out cost
Included in build-out cost
Signage Included in build-out cost Included in build-out cost Included in build-out cost
Miscellaneous Opening Costs
$1,000-$5,000
$1,000-$5,000 $1,000-$5,000
Advertising (3 months)
$5,000-$10,000
$5,000-$10,000 $5,000-$10,000
Computer Equipment and Software
$500-$1,500
$500-$1,500 $500-$1,500
Additional Funds for Initial 3 Months
$10,000-$25,000
$10,000-$25,000 $10,000-$25,000
Totals
$253,200 -$284,000
$182,000-$329,000 +
(percentage of your
gross sales)
$633,500 -$664,000


Ongoing Costs for a Single Unit Franchise:

Name of Fee Amount
Royalty Fee
3% of Gross Revenue with the following minimum monthly requirements:
$25.00 Cart Unit
$50.00 Mobile Unit,
$200.00 Mobile Unit if operated at location longer than 30 consecutive days.
$100.00 Kiosk Unit
$200.00 Drive-Up Unit
$300.00 In-Line, Embedded or Stand Alone Full-Service Cafes
National Marketing Fund
+2% of your Gross Revenue if operating a Fixed-Unit.
Initial Training for Additional Persons
$200 per person per day
Additional Assistance at Your Location
Location    $500 per day plus travel & living expenses for our representatives
Transfer Fee
$0- $5,000
Audit
Cost of audit plus 1 % interest per month on understatement
Interest
1% per month or the maximum interest rate allowed by applicable law, whichever is less.
Franchise Renewal Fee
Then-current renewal fee or $5,000 for Mobile, Kiosk, Drive-Up and Full Service Cafe Units and $2,500 for the Cart Unit.
Cost of Deficiency
Fee for our expenses in correcting any deficiency.

 The above information has been taken from the UFOC/FDD of Cuppy's Coffee & More, Inc.

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