America's #1 Franchise Directory, Trusted for Over 15 Years

The Coffee Beanery Franchise Cost & Fees

Date of Incorporation: 1976
Franchising Since: 1985
Headquarters: Flushing, Michigan

Business Description: The Coffee Beanery Ltd. is the franchisor of the franchise program. The franchisor is in the business of operating and franchising specialty coffee retail stores. Coffee Beanery stores are located in a variety of locations including malls, strip centers, neighborhood locations, airports, regional shopping malls and office buildings.

Franchise Offer: The franchisee will offer for retail sale various types of coffee, including espresso based beverages, and other beverages, coffee beans, tea, spices, related products and food items such as salads, sandwiches, baked goods as well as merchandise and coffee accessories, for on or off-site consumption using the Coffee Beanery name and trademarks.

Financial Assistance: The franchisor presently does not offer either direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or other obligation.

Training and Assistance: Prior to the opening of the store, the franchisee (or, if a corporation or partnership, a principal of the business acceptable to the franchisor) and/or the designated store manager, shall attend and complete to the franchisor’s satisfaction, the franchise operations training program and the initial on-site training program. The operations training program will last anywhere from 7 to 20 calendar days (at the franchisor’s discretion) depending upon the location and physical characteristics of the store the franchisee will be operating and whether the franchisee has decided to offer extended food service. The on-site training program will be held at the franchisee’s store at the time it is scheduled to open. Within 180 days following the opening of the store, the franchisor may provide, at its discretion, one on-site follow-up training visit. The franchisee and other employees designated are also required to attend the national convention for franchisees as well as additional training programs that the franchisor may reasonably require.

Territory: The franchisee will not receive an exclusive territory. The franchisee may face competition from other franchisees, from outlets that owned by the franchisor, outlets or from competitive channels of distribution or competitive brands that the franchisor controls. The franchisor may establish other franchised or company-owned stores that may compete with the store in any area without restriction. The franchisor retains the right, for itself and its affiliates, on any terms it deems advisable, and without granting the franchisee any rights.

Term of Agreement and Renewal: The length of the initial franchise term is 15 years. If the franchisee satisfies requirements and completes a renewal application, he or she can renew for consecutive terms of 15 years each.

Obligations and Restrictions: Unless the franchisor otherwise approves in writing, the franchisee or the designated Store manager, must devote full-time and best efforts to the management and operation of the store. The franchisee or the store manager and other employees the franchisee may designate are required to attend and satisfactorily complete the training programs applicable to pre-opening training before opening the store for business. The franchisee or the store manager and other employees the franchisee may designate, also must attend and satisfactorily complete refresher training courses at the franchisor’s reasonable request. The franchisee must offer and sell all services, products, and programs that the franchisor requires him or her to sell and that are part of the Coffee Beanery system, or that have been incorporated into the Coffee Beanery system in the future./p>

Estimated Number of Units: 70

Investment Tables:
Initial Investment for a Retail Store without Food
Name of Fee Low High
Initial Franchise Fee 27,500 $27,500
Opening Inventory and Supplies $8,000 $30,000
Equipment Fixtures, Signage & Leasehold Improvements $200,000 $300,000
Grand Opening Advertising $3,500 $3,500
First Month's Rent & Security Deposit $3,000 $15,000
Training Expenses $3,000 $5,000
Miscellaneous Opening Costs $3,000 $5,000
Additional Funds-Working Capital $20,000 $60,000
Total Estimated Initial Investment $268,000 $446,000
Initial Investment for a Retail Store with Food
Name of Fee Low High
Initial Franchise Fee 27,500 $27,500
Opening Inventory and Supplies $12,000 $30,000
Equipment Fixtures, Signage & Leasehold Improvements $200,000 $300,000
Grand Opening Advertising $3,500 $3,500
First Month's Rent & Security Deposit $3,000 $15,000
Training Expenses $3,000 $5,000
Miscellaneous Opening Costs $3,000 $5,000
Additional Funds-Working Capital $20,000 $80,000
Total Estimated Initial Investment $272,000 $446,000
Initial Investment for a Kiosk
Name of Fee Low High
Initial Franchise Fee 27,500 $27,500
Opening Inventory and Supplies $6,000 $12,000
Equipment Fixtures, Signage & Leasehold Improvements $45,000 $125,000
Grand Opening Advertising $3,500 $3,500
First Month's Rent & Security Deposit $3,000 $10,000
Training Expenses $3,000 $5,000
Miscellaneous Opening Costs $3,000 $5,000
Additional Funds-Working Capital $20,000 $40,000
Total Estimated Initial Investment $111,000 $228,000
Initial Investment for a Converting Coffee Store
Name of Fee Low High
Initial Franchise Fee 5,000 $5,000
Opening Inventory and Supplies $5,000 $25,000
Equipment Fixtures, Signage & Leasehold Improvements $20,000 $160,000
Grand Opening Advertising $3,500 $3,500
First Month's Rent & Security Deposit $3,000 $10,000
Training Expenses $2,000 $3,000
Miscellaneous Opening Costs $3,000 $3,000
Additional Funds-Working Capital $20,000 $40,000
Total Estimated Initial Investment $61,500 $249,500
Initial Investment for a Co-Branded Store
Name of Fee Low High
Initial Franchise Fee 5,000 $5,000
Opening Inventory and Supplies $5,000 $25,000
Equipment Fixtures, Signage & Leasehold Improvements $20,000 $160,000
Grand Opening Advertising $2,500 $2,500
First Month's Rent & Security Deposit $3,000 $10,000
Training Expenses $2,000 $3,000
Miscellaneous Opening Costs $3,000 $3,000
Additional Funds-Working Capital $25,000 $50,000
Total Estimated Initial Investment $65,500 $258,500
Other Fees
Type of Fee Amount
Royalty 6% of the net sales of the Store.
Brand Building Fund The greater of $100 per week or an amount specified by the franchisor not to exceed 2% of net sales.
Cooperative Advertising If cooperatives established, an amount to be established by local cooperative but the franchisor may require up to 2% to be paid to local cooperative without vote and up to 4% if approved by vote of the stores.
Warehouse Purchases The franchisee is required to purchase coffee products from the franchisor. The amount will vary depending upon the store sales and other circumstances.
Training Reasonable charge based upon a per diem charge of $350 per day plus expenses.
National Convention Fee $200
Transfer To New Or Existing Franchisee Reasonable expenses not to exceed 25% of the then current initial franchise fee.
Renewal $1,500, subject to the right of the franchisor to increase the fee on a uniform basis in the future.
Marketing Fee (Sale of Franchise)/td> 2.5% of gross sales price, less inventory.
Maintenance Of Store And Insurance Reasonable charge, which will vary depending upon the maintenance required or the cost of insurance where the store is located.
Reinstatement Fee $2,500
Costs And Attorney’s Fees The franchisor’s actual cost for costs and attorneys fee. The amount will vary under circumstances depending upon the dispute.
Audit Cost of audit, understatement plus interest.
Indemnification Will vary under circumstances depending upon the liability the franchisor incurs because of the franchisee operations./td>
Advertising & Promotional Materials Reasonable costs./td>
Liquidated Damages An amount equal to the royalties the franchisee paid to the franchisor in the 60 month period immediately before the franchisor terminated the franchise agreement because of a material breach or if the franchisee has not operated the Store for 60 months, the average monthly royalties paid multiplied by 60, or the number of months remaining in the term of the franchise agreement if fewer than 60.
Leaseholds And Rental As provided by the sublease./td>

The above information has been taken from the FDD of The Coffee Beanery. Year of FDD: 2015

Franchise Direct's Disclaimer


Sign up to our newsletter and be notified about other franchise opportunities

Your E-mail Address

Confirm E-mail Address

 

You may be interested in the following franchises...

Nestlé® Toll House® Café Nestlé® Toll House® Café has built on the world's most powerful food name, Nestle®, to become North America's Very... Request Info Min. Cash Required:
$100,000.

Mora Iced Creamery An opportunity to savor! High-quality product, efficient business model & full support system. Request Info Min. Cash Required:
$100,000.

Your Request List

You can add items by clicking the "Add to Request List" button or checkbox when you find something you're interested in.

You may add up to 15 items to your Request List

Your request list will follow you around the site.

When you are ready to complete your request for free information, click "Submit" in your Request List.

Why not get started by browsing our New Franchise Opportunities or Low Cost Franchise Directory?

You may only enter 15 items in your Request List.

To request information from your selected companies, just fill in the form and click "Submit".

OK, got it

Request Info From:

  •  

Your List is Empty

You can add items by checking the "Request FREE Info" boxes.

* indicates required field

Optional Information

Join our mailing list!

We share your information only with your selected franchises.