Green Beans Coffee Company, LLC
Date of Incorporation: 2006
Franchising Since: 2007
Headquarters: California
Business and Description: Green Beans Coffee Company, LLC, a California limited liability company, formed on November 2, 2006. Their predecessor and affiliate, Green Beans Coffee Company, Inc., was incorporated in Delaware on April 12, 2001. Green Beans Coffee Company, LLC, is offering franchises for the operation of Green Beans Coffee WorldCafés featuring gourmet specialty coffee, tea, baked goods, and snacks.
Franchise Offer: Green Beans Coffee Company, LLC, is offering franchises for the operation of Green Beans Coffee WorldCafés featuring gourmet specialty coffee, tea, baked goods, and snacks. The franchisee may purchase more then one franchise. If the franchisee is a veteran of any branch of the U.S. military who served in the two current war theaters of operation ("Operation Enduring Freedom or Operation Iraqi Freedom), Green Beans Coffee Company will reduce the initial license fee by 10%. Green Beans Coffee Company LLC expects that the franchisee’s Green Beans Coffee WorldCafé will be operated from a leased premise of 1,000 to 2,000 square feet, although the franchise may purchase the premises in which the WorldCafé will be located.
Financial Assistance: Green Beans Coffee Company does not offer any direct or indirect financing nor do they guarantee any lease, note or obligation.
Training and Assistance: The initial training program consists of three to five days of classroom instruction, and five days of on-the-job training at your Green Beans Coffee WorldCafé, or another WorldCafé. The training program is for up to 4 individuals. The training program will cover general administration and the fundamentals of coffee and brewing.
Territory: The franchisee will be granted an exclusive territory consisting of a radius of two miles around the location of your Green Beans Coffee WorldCafé. Within the exclusive territory (but with the exception of Green Beans Coffee WorldCafés already in existence, if any), the franchisor will not operate a company-owned Green Beans Coffee WorldCafé or grant a franchise for the operation of a Green Beans Coffee WorldCafé or similar business that would sell any items carried by, or similar to those items sold by the franchisee; except with prior written consent.
Renewal and Termination: The term of Franchise is 10 years with additional terms of 10 years each if certain conditions are meet. The franchisor will not terminate without cause. The fee for renewal is 25% of the then current franchise fee.
Obligations and Restrictions: The franchisee or Principal Representative must participate directly in the operation and management of the Green Beans Coffee, WorldCafé, which must at all times be under the franchisee’s direct supervision. The franchisee must sell all products and services as specified by Green Beans Coffee Company. Currently, Green Beans Coffee Company specifies food and beverage items, including exclusive coffee and tea products that must be purchased from Green Beans Coffee Company, Inc.
Total Number of Company Owned Units for 2007: 0
Total Number of Company Owned Units Opened for 2007: 0
Total Number of Company Owned Units Closed for 2007: 0
Total Number of Franchised Units for 2007: 57
Total Number of Franchised Units Opened for 2007: 15
Total Number of Franchised Units Closed for 2007: 9
Investment table:
Estimated Initial Investment for Single Unit Franchise:
| Name of Fee | Low | High |
|---|---|---|
| Initial franchise fee | $22,500 | $25,000 |
| Real estate Locator services | $5,000 | $10,000 |
| Premises Design | $5,000 | $10,000 |
| Real Estate Lease | $12,000 | $20,000 |
| Leasehold improvements, furniture, fixtures and signs | $120,000 | $300,000 |
| Computers and Equipment | $20,000 | $30,000 |
| Initial Inventory | $40,000 | $60,000 |
| Grand Opening Advertising Expenses | $15,000 | $20,000 |
| Initial Training Expense | $1,000 | $5,000 |
| Wages to Employees | $7,000 | $11,000 |
| Insurance | $3,000 | $7,000 |
| Professional Fees | $1,000 | $3,000 |
| Additional Funds (3 months) | $6,000 | $9,000 |
| TOTAL | $257,500 | $510,000 |
Ongoing Costs for Single Unit Franchise:
| Name of Fee | Amount |
|---|---|
| Royalty | 5% |
| National Advertising Fee | 1% |
| Local Advertising Fee | 0.5% |
| Cooperative Advertising Fee | Varies |
| Transfer Training Fee | $4,000 |
| Successor (Renewal) Franchise Fee | 25% of the then-current Initial Franchise Fee |
| Additional and Refresher Training | Then current published rate |
| Point of Sale System Maintenance and Repair | Then current published rate |
| Interest | Lesser of 18% per annum or highest rate of interest allowed by law |
| Administrative Fees | $10 Administrative Fee |
| Costs and Attorneys' fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Audit Fee | Cost of inspection or audit |
| Insurance | Varies |
The above information has been taken from the UFOC/FDD of Green Beans Coffee Company, LLC.
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