Cuppy's Coffee
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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