Dazbog Coffee Franchising Llc

Date of Incorporation: 2005

Franchising Since: 2005

Headquarters: Colorado

Business and Description:
Dazbog Coffee Franchising Llc. franchise the operation of specialty coffee stores that sell coffee and espresso-based drinks made with specially-roasted DAZBOG brand coffee, gourmet tea, hot chocolate, smoothies, and other hot and cold beverages together with baked goods, confections, pre-packaged sandwiches and salads, plus packaged coffee beans, coffee and tea-related merchandise, and branded retail items.

Franchise Offer: Dazbog Coffee Franchising, LLC is offering franchises for the operation of a retail coffee store that sells coffee and espresso-based drinks made with specially-roasted DAZBOG coffee, gourmet tea, hot chocolate, smoothies, and other hot and cold beverages together with baked goods, sandwiches, salads and packaged coffee beans and related merchandise. The Coffee Stores are typically between 900 and 1,500 square feet (although a kiosk Coffee Store ("Kiosk") may be as small as 350 square feet), in leased or owned retail space that may include a patio or a drive-through window or both.

Financial Assistance: Dazbog coffee franchising Llc does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation.

Training:The franchisee and the Principal Operator must attend and complete to the satisfaction of the franchisor the initial training program for up to 4 individuals. The training program consists of approximately four days of classroom instruction and up to 5 days on the job training

Territory: The franchisee will not be granted a geographic area around their Store Location. Dazbog Coffee Franchising reserve the right to establish and operate, or franchise anyone else to establish and operate, other DAZBOG Coffee Stores at any location outside of the franchisee’ Store Location.

Termination and Renewal: The term of franchise is 10 years and there is an option of renew for an additional 10 years. Requirements for renewal are written notice at least 180 days before expiration, sign then-current form of Franchise Agreement, be in compliance with Franchise Agreement, sign release, pay fee, and renovate (if applicable). The franchisor will not terminate without cause.

Obligations and Restrictions: Under the franchise agreement the franchisee or the designated manager must run the franchise full time. The franchisee may sell only those products and services approved by the franchisor and may not use the Coffee Store or the Store Location for any purposes other than the operation of a DAZBOG Coffee Store.

Total Number of Affiliate Owned Units for 2007: 5

Total Number of Franchised Units for 2007: 1
Total Number of Franchised Units Opened for 2007: 1
Total Number of Franchised Units Closed for 2007: 0

Investment table:

Estimated Initial Investment for Single Unit Franchise:

Name of Fee Low High
Initial Franchise Fee $25,000 $25,000
Leasehold Improvements $50,000 $150,000
Architectural Design and Professional Fees $6,000 $10,000
Furnishings and Equipment $50,000 $90,000
Signs $4,000 $13,000
Computer, Software and Office Equipment $9,500 $18,000
Opening Inventory and Supplies $5,500 $8,500
Security Deposits, Utility Deposits, Business Licenses $5,000 $14,000
Lease Review Fee $1,800 $1,800
Opening Marketing $7,500 $10,000
Additional Funds -3 months $10,000 $40,000
Total $174,300 $380,300


Ongoing Costs for Single Unit Franchise:

 

Name of Fee Amount
Royalty 6% of Net Sales
Coffee and Other Inventory Purchases Current published prices
Marketing and Promotion Fee 1% of Net Sales
Local Advertising Allocation 3% of Store's Net Sales.
Regional Advertising Fee Up to 4% of Net Sales in lieu of Local Advertising Allocation above
Initial Training Program Expense Costs associated with attending the initial training program. The franchisee will also pay tuition of approximately $150 and costs associated with attending a food safety course given by a third party
Gift Card Sales and Program Fees The franchisee must purchase an initial inventory of 500 gift cards for $0.40 each, or $200 as of the date of this Offering Circular. In addition, fees for services related to the Gift Card Program will be approximately $100 a month
POS System Support and Maintenance Fee    $2,000 a year
Management Fee    3% of Net Sales plus direct out-of-pocket costs and expenses
Transfer 25% of the then-current Initial Franchise Fee
Relocation Fee 25% of the then-current Initial Franchise Fee
Additional Training Tuition, if applicable, and costs associated with attending additional training programs
Interest and Late Payment Charges Lesser of 1.5% per month plus a $50 late filing charge or highest rate of interest allowed by law
Renewal Fee 10% of the then-current Initial Franchise Fee
Costs of Inspection and Audit Cost of audit, underpayment amount, late payment charges and interest. Varies according to the location
Costs and Attorneys Fees Will vary under circumstances
Testing Fee Cost of testing
Noncompetition Violation Fee A fee equal to our then-current Initial Franchise Fee for each competitive business and 6% of its Net Sales
Estimated Royalty and Marketing and Promotion Fee Payments Minimum of $450 a week for Royalties and $75 a week for Marketing and Promotion Fees; greater amount if the franchisor reasonably estimate that the Store is generating higher Net Sales
Liquidated Damages $100 per violation
Insufficient Funds Fee $30 per violation
Indemnification Under Franchise Agreement Will vary depending on nature of the claim against the franchisor
Insurance Premiums Will vary depending on the location and insurer
Unapproved Products Gross profit on sales of unapproved products
Site Acquisition Extension Fee $500 for each of the second, third and fourth 90-day extensions up to a total of 3 extensions following the first 90-day extension for which there is no charge.

The above information has been taken from the UFOC/FDD of Dazbog Coffee Franchising Llc.

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