Moby's Coffee
Date of Incorporation: 2006
Franchising Since: 2007
Headquarters: North Carolina
Business and Description: Moby’s Coffee Franchise Company offers a franchise to run a store that specializes in private label specialty coffees, cold-blended drinks, smoothes, specialty pastries, desserts and related merchandise. Mini or Express Mobys are either kiosks within enclosed malls or in airports, subway stations, or other retail locations. A Traditional Mobys and a Mega Mobys will each have 1,500 to 2,500 square feet. A Mega Mobys will have additional ovens and will offer fresh breads, pies, cakes and soups.
Franchise Offer: The franchise offered is for the right to own and operate a Mobys Coffee Shop, which will be a Mini or Express Mobys, a Traditional Mobys or a Mega Mobys. The initial franchisee fee is $10,000 for each Mini or Express Mobys, $15,000 for each Traditional Mobys and $20,000 for each Mega Mobys Coffee Shop
Financial Assistance: Mobys Coffee Franchise Company does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation.
Training and Assistance: The Franchisee and Manager must attend and complete the initial training program and it will last for approximately 2 weeks. The training consists of both classroom and on the job training and will cover an introduction to Mobys Coffee Company, the employee/employer relationship, café station etc.
Territory: The Franchise Agreement grants the Franchisee the right to operate a Mobys Coffee Shop only at the approved site. The Franchisor will grant the Franchisee an exclusive territory the size of which can be as small as a few city blocks to as large as an entire city.
Renewal and Termination: The Franchise Agreement term is 7 years with three 7 year renewals if the Franchisee meets certain requirements. The renewal fee is 50% the then initial franchise fee.
Obligations and Restrictions: The provisions of each Franchise Agreement signed prohibit the franchisee from offering or selling any product or service that has not been approved by Mobys Coffee Franchise Company in writing.
Total Number of Franchised Units for 2006: 3
Total Number of Franchised Units Opened for 2006: 0
Total Number of Franchised Units Closed for 2006: 0
Investment Table:
Estimated Initial Investment for Single Unit Franchise:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $10,000 | $20,000 |
| Computer Equipment | $5,000 | $10,000 |
| Leasehold Improvements | $15,000 | $75,000 |
| Furniture, Fixtures, and Equipment | $15,000 | $50,000 |
| First Month's Rent | $1,500 | $6,000 |
| Opening Inventory and Supplies | $3,000 | $10,000 |
| Signage | $1,000 | $3,000 |
| Training Expenses | $2,500 | $5,000 |
| Grand Opening Advertising | $3,000 | $3,000 |
| Miscellaneous Opening Costs | $2,000 | $5,000 |
| Additional Funds—3 months | $15,000 | $30,000 |
| Total Estimated Initial Investment | $112,500 | $252,000 |
Ongoing Costs for Single Unit Franchise:
| Name of Fee | Amount |
|---|---|
| Royalties |
5% |
| Transfer Fee |
$5,000 |
| Renewal Fee |
50% of the current franchise fee |
| Audit Expenses |
$495 - $4995 |
| Refurbishment |
$4,000 - $7,000 |
| Interest |
Highest legal rate or 2% above prime rate |
| Costs and Legal Fees |
Will vary depending on circumstance |
| Indemnification |
Will vary depending on circumstance |
| Marketing Fund Contribution | 2% of gross revenue |
| Local Advertising |
1% of gross revenue |
| Insurance Costs |
Reimbursement of costs and premiums |
| Initial Training | Attendees' expenses in attending initial training; training fee for any new Mobys Coffee Shop manager hired after the Mobys Coffee Shop opens, not to exceed $3,000. |
| Additional Manager |
No expensive for training additional manager |
The above information has been taken from the UFOC/FDD of Moby’s Coffee Franchise Company.
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