Human Bean
Date of Incorporation: 2002
Franchising Since: 2002
Headquarters: Oregon
Business and Description: Casey Hawkins, Inc business includes the offer and sale of The Human Bean franchises. A The Human Bean franchise is a license to operate a The Human Bean store. The franchisor conducts business under their corporate name, Casey Hawkins, Inc., and The Human Bean.
Franchise Offer: The franchise offered is to operate a The Human Bean espresso drive-thru, which specializes in the preparation and sale of coffee and related products and services. The initial franchise fee ranges from $55,000 to $90,000. The Human Bean outlet may be a freestanding or attached structure, but it must have at least one drive-thru lane.
Financial Assistance: Casey Hawkins, Inc does not offer direct or indirect financing and does not guarantee any of its notes, leases or other obligations.
Training and Assistance: Casey Hawkins, Inc provides training to two designated persons, such as the franchisee and their store manager. Training is offered on an as-needed basis to new franchisees, and is conducted before the opening of a new outlet. Training is mandatory for the franchisee and store manager. Training occurs over 120 hours during a period of about three weeks. Additional training may also be requested by the franchisee.
Territory: During the term of the Franchise Agreement, the franchisee will be granted an exclusive territory within a 1 mile radius of the location of the drive-thru. The location must be a site approved by the franchisor.
Termination and Renewal: The term of the franchise agreement is 10 years with the option to renew for an additional 10 years on payment of $ 1,000 renewal fee on terms of then current franchise agreement. Neither the franchisee nor the franchisor can terminate without cause. The franchisee is not required to participate personally in the direct operation of your drive-thru; however, the drive-thru must always be under the franchisee’s direct supervision or that of the designated manager.
Obligations and Restrictions: Although not required to purchase or lease real estate from the franchisor, the franchisee must obtain their approval for the location of the The Human Bean outlet. The franchisee must purchase coffee and espresso beans for use in the store solely from the franchisor or their approved supplier.
Total Number of Company Owned Units for 2007: 10
Total Number of Company Owned Units Opened for 2007: 1
Total Number of Company Owned Units Closed for 2007: 0
Total Number of Franchised Units for 2007: 29
Total Number of Franchised Units Opened for 2007: 11
Total Number of Franchised Units Closed for 2007: 0
Estimated Initial Investment for a Single Unit Franchise:
| Name of Fee |
Low |
High |
|---|---|---|
| Initial Franchise Fee |
$20,000 |
$20,000 |
| Training Expenses |
$3,600 |
$6,500 |
| Real Property (purchased or leased) Lease payment |
$750 |
$6,000 |
| Equipment, fixtures, other fixed assets, construction, remodeling, leasehold improvements, and decorating costs, whether purchased or leased |
$99,500 |
$530,000 |
| Inventory |
$8,000 |
$10,000 |
| Security deposits, utility deposits, business licenses and other prepaid expenses |
$4,000 |
$9,000 |
| Site evaluation fee |
$1,000 |
$1,000 |
| Working capital |
$l,000 |
$5,000 |
| Advertising and promotion |
$2,500 |
$5,000 |
| Additional funds - [Initial period] |
$13,000 |
$25,000 |
| Total Estimated Investment |
$153,350 |
$617,500 |
Ongoing Costs for a Single Unit Franchise:
| Name of Fee | Amount |
|---|---|
| Renewal fee |
$1,000 |
| Costs and attorneys' fees for breach |
Will vary |
| Audit fee |
Cost of audit |
| Transfer Fee |
$2,000 |
The franchisor does not currently charge a royalty fee or an advertising fee. Their business model calls for them to derive an ongoing revenue stream, directly or indirectly, from the franchisees through the sale of coffee beans and certain other supplies. The franchisee may begin charging an advertising fee, not to exceed 1% of the gross sales revenues, in the future.
The above information has been taken from the UFOC/FDD of Casey Hawkins, Inc, The Human Bean.
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