Bad Ass Coffee Company of Hawaii
Date of Incorporation: 1997
Franchising Since: 1998
Headquarters: Utah
Business and Description: The Bad Ass Coffee Company of Hawaii has an affiliate Bad Ass Coffee Distributors, Inc. The Bad Ass Coffee Company purchased The Bad Ass Coffee Co. trademark and certain other assets from their predecessor, Royal Aloha Coffee, Tea & Spice Company, Inc. in 1997. The Bad Ass Coffee Company of Hawaii are offering a retail coffee store that will provide a variety of coffee beverages, coffee beans and related food items, accessories, gifts and other related products to the general public. A similar drive-through franchise is also being offered.
Franchise Offer: The Bad Ass Coffee Company offers two types of franchise agreements; a standard Bad Ass Coffee Company store franchise and a smaller drive-through franchise. The franchise agreement for both is the same except for the estimated investment. The franchise will provide the marketing, preparation, merchandising and sale of gourmet coffee items and other products and services. The Bad Ass Coffee Company also offers a Multi Unit Development Agreement.
Financial Assistance: The Bad Ass Coffee Company does not offer direct or indirect financing and does not guarantee any of its notes, leases or other obligations.
Training and Assistance: The management training program is provided no later than 2 weeks before opening of the business. The length of the training depends on prior experience but should last at least five days. The Bad Ass Coffee Company provides the training without an additional fee for up to 2 people, provided that the cost of travel, meals, lodging and wages must be paid by the franchisee. The training consists of at least 29 hours in class and 19 hours on the job. The training will cover policies and procedures, product identification, marketing and financial procedures. In addition to the management training program, the franchisor will provide 2 days of assistance before the opening and 3 days after the opening at no additional charge.
Territory: The standard or drive-thru franchisee will be assigned a limited territory and will have the right to operate from a single location within that territory. The Bad Ass Coffee Company does not provide an exclusive territory and the franchisee may face competition from other franchises, channels of distributions or competitive brands which The Bad Ass Coffee Company may control.
Renewal and termination: The initial term of franchise is five years. It is possible to renew the agreement for an additional ten years up to twenty-five years. There is a $2,500 renewal fee. The term for the Multi-Unit Development Agreement is the negotiated development period between 5 and 10 years. The franchisee can not terminate the agreement without cause. The franchisor can only terminate if the franchisee is in default of the agreement. The franchisee can transfer the franchise with the approval of The Bad Ass Coffee Company with a charge of $2,500.
Obligations and Restrictions: The franchisee can only carry products that are approved by The Bad Ass Coffee Company and must strictly follow the policies, procedures, specifications, methods and techniques concerning all of The Bad Ass Coffee Company products, services and recipes. The franchisee will also be required to purchase specialized equipment and supplies, coffee, clothing, mugs, t-shirts and other accessory items from our affiliate, Bad Ass Coffee Distributors, Inc. The franchisee must personally participate in the running of the franchise. Both the franchisee and other managers must complete the training programme and The Bad Ass Coffee Company requires that the franchisee or a dedicated manager supervise the store.
Total Number of Franchised Units for 2007: 48
Total Number of Franchised Units Opened for 2007: 0
Total Number of Franchised Units Closed for 2007: 0
Total Number of Company Owned Units for 2007: 1
Total Number of Company Owned Units Opened for 2007: 1
Total Number of Company Owned Units Closed for 2007: 0
Investment Table:
Estimated Initial Investment for a Single Unit Franchise:
| Name Of Fee | Coffee Store Low | Coffee Store High | Drive through Low | Drive through High |
|---|---|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 | $25,000 | $25,000 |
| Travel/Living Expenses While Training | $4,500 | $7,500 | $4,500 | $7,500 |
| Real Estate & Improvements | $100,000 | $150,000 | $ 20,000 | $50,000 |
| Equipment | $30,000 | $43,000 | $ 30,000 | $ 40,000 |
| Signs | $5,000 | $15,000 | $ 5,000 | $15,000 |
| Misc. Opening Costs | $2,000 | $4,000 | $ 2,000 | $ 4,000 |
| Opening Inventory | $10,000 | $25,000 | $10,000 | $25,000 |
| Advertising- 3 Months | $8,000 | $11,000 | $8,000 | $11,000 |
| Additional Funds-3 months | $20,000 | $25,000 | $10,500 | $15,000 |
| Prefab Drive Through | $ 60,000 | $ 60,000 | ||
| TOTAL | $204,500 | $305,500 | $175,000 | $252,500 |
Ongoing Costs for Single Unit Franchise:
| Name of Fee | Amount for Bad Ass Coffee Store |
|---|---|
| Royalties | 6% of gross sales weekly |
| Advertising/Marketing | 2% of gross sales weekly plus 1% spent locally |
| Additional On-Site Assistance | $500 per day plus Travel/lodging Expenses |
| Transfer | $2,500 |
| Late Charges | $25.00 per day up to $250 plus 18% interest |
| Renewal Fee | $2,500 |
| Audit Charge | Cost of Audit |
| Testing Fee | Reasonable expense at cost but not less then $500 |
| Transfer Training Fee | $5,000 |
| System Compliance | Various charges ranging from $50 - $100 per day for non-compliance |
The above information has been taken from the UFOC/FDD of the Bad Ass Coffee Company of Hawaii.
Franchise Direct's Disclaimer
You may be interested in the following franchises...
Café Fresh
Start your own Fresh and Healthy Restaurant with Café Fresh’s mouth watering franchise opportunities!
Minimum Investment: $50,000.
Gizzi's 4 Kids
Don't miss this opportunity with the world's only home-based Gourmet Coffee Fundraising Distributorship! A coffee...
Minimum Investment: $2,995.
