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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