Seattle’s Best Coffee
Date of Incorporation: 1972
Franchising Since: 1994
Headquarters: Washington
Business and Description: Seattle’s Best Coffee LLC is a Washington limited liability company and was formed on March 2, 1972 as Wet Whisker, Inc. Seattle’s Best Coffee LLC are a subsidiary of Seattle Coffee Company, a Georgia corporation, which in turn, is a subsidiary of Starbucks Corporation, a Washington corporation. Seattle’s Best Coffee Cafés and Kiosks specialize in the sale of proprietary Seattle's Best Coffee brand coffee beverages and related products.
Franchise Offer: Seattle’s Best Coffee LLC is offering a License Agreement to operate a Seattle’s Best Coffee Café and/or Kiosk. The license fee for 1 to 4 Seattle’s Best Coffee Cafes or Kiosks is $25,000 per cafe. The license fee for 5 to 9 Seattle’s Best Coffee Cafes or Kiosks is $20,000 per café. The license fee for 10 or more SBC Cafes or Kiosks is $15,000 per cafe.
Financial Assistance: Seattle’s Best Coffee LLC does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation.
Training and Assistance: The franchisor and the manager for the first licensed Seattle’s Best Coffee Unit that is developed must successfully complete the required Seattle’s Best Coffee Cafe Manager Training Program. The franchisee must maintain a minimum of 1 Seattle’s Best Coffee Certified Manager in each Cafe and/or Kiosk. The Initial Café training program consists of up to 2 days of workshops and seminars. The Café Manager Training Program consists of learning experiences conducted in a Seattle’s Best Coffee Certified Training Cafe.
Territory: The franchisee will not receive an exclusive territory under the License Agreement. Seattle’s Best Coffee LLC affiliates may establish other licensed or company-owned Seattle’s Best Coffee Units and/or Seattle’s Best Coffee Licenses that may compete with the location. The franchisee may only operate the Seattle’s Best Coffee Unit from or at the location that has been accepted and may not relocate the Seattle’s Best Coffee Unit without prior written consent.
Renewal and Termination: The term of License is 5 years from the date of commencement of operation of the Seattle’s Best Coffee Unit with a renewal option of an additional 5 years or a shorter term as the parties have agreed upon. The License Agreement may be terminated without cause at any time upon mutual agreement of both parties. Seattle’s Best Coffee LLC can terminate the License Agreement if the franchisee is in default.
Obligations and Restrictions: The franchisee must purchase all coffee beans and coffee products only from Seattle’s Best Coffee Products or a manufacturer designated by the franchisor. The franchisee must spend at least $5,000 for a grand opening advertising plan for any Seattle’s Best Coffee Cafe or Seattle’s Best Coffee Kiosk during the first 2 months of the Unit's operations.
Total Number of Company Owned Units for 2007: 11
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: 517
Total Number of Franchised Units Opened for 2007: 170
Total Number of Franchised Units Closed for 2007: 6
Investment Table:
Estimated Initial Investment for Single Café Franchise:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise fee | $25,000 | $25,000 |
| Real Estate and Leasehold Improvements | Variable | Variable |
| Equipment, Furniture and Signs | $80,000 | $150,000 |
| Opening Supplies and Inventory | $10,000 | $15,000 |
| Initial Promotional Materials | $2,000 | $3,000 |
| Security Deposits | $5,000 | $12,000 |
| Business Licenses and Professional Fees | Variable | Variable |
| Point-of-Sale System | $5,000 | $35,000 |
| Grand Opening Promotion | $5,000 | $10,000 |
| Initial Training | $5,000 | $9,000 |
| Utility Deposit | $2,000 | $3,000 |
| Insurance | $2,000 | $5,000 |
| Additional Funds-3 Months | $30,000 | $35,000 |
| Total Investment | $171,000 (excluding Real Estate and Improvements) | $306,000 (excluding Real Estate and Improvements) |
Estimated Initial Investment for Single Kiosk Franchise:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Real Estate and Leasehold Improvements | Variable | Variable |
| Equipment, Furniture and Signs | $80,000 | $170,000 |
| Opening Supplies and Inventory | $10,000 | $15,000 |
| Initial Promotional Materials | $2,000 | $3,000 |
| Security Deposits | $3,500 | $12,000 |
| Business Licenses and Professional Fees | Variable | Variable |
| Point-of-Sale System | $5,000 | $35,000 |
| Grand Opening Promotion | $5,000 | $10,000 |
| Initial Training | $5,000 | $9,000 |
| Utility Deposit | $2,000 | $3,000 |
| Insurance | $2,000 | $5,000 |
| Additional Funds-3 Months | $25,000 | $30,000 |
| Total Investment | $164,500 (excluding Real Estate and Improvements) | $317,000 (excluding Real Estate and Improvements) |
Ongoing Costs for Single Unit Franchise:
| Name of Fee | Amount |
|---|---|
| Royalty | 7% |
| Advertising Fee | 1% of Gross Revenue of each SBC Store |
| Self-Spend Marketing | Not less than 1% of Gross Revenue on a quarterly basis. |
| Transfer | Full License Fee |
| Renewal | Upon the franchisor’s approval, the franchisee may renew for one 5-year period. |
| Insurance | Costs and premiums |
| Audit | Cost of audit |
| Interest on Understated Sales | 12% per annum or the maximum rate permitted by law, whichever is less. |
| Interest on Overdue Payments | 12% per annum or the maximum rate permitted by law, whichever is less |
| Costs and attorneys’ fees | Will vary under circumstance |
| Indemnity | Will vary under circumstance |
| Payments of goods and services | Cost of goods and services |
The above information has been taken from the UFOC/FDD of Seattle’s Best Coffee LLC.
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