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Coffee Franchise Information Table - Business Report II

Information Table for Coffee Store Franchises:

The following table gives information on some of the initial costs that perspective franchisees will face when starting up a coffee franchise. The initial franchise fee is generally paid on signing the franchise agreement. The estimated initial investment is the estimated cumulative amount that will be needed to open a coffee business. This amount covers such expenses as leasehold improvements, fixtures, equipment and opening inventory etc. The table specifies what percentage of the gross sales will need to be paid to a franchisor. Theses royalties are generally paid on weekly bases and are a percentage of the gross sales for that week.
This table also indicates what types of franchises are being offered by the individual coffee companies.
 

Name of Franchise Initial franchise fee for a Single Franchise Estimated Initial Investment – Low - High Royalties of weekly gross sales (unless otherwise stated) Type of Franchise Offered
Nestle Toll House Café, CREST FOODS, INC  Incorporated : 1998 $30,000 $152,300 -$420,000 6% Single Franchises
The Bad Ass Coffee Company Coffee Store Incorporated: 1997 $25,000 $204,500 - $305,500 6% Coffee Store Franchises, Drive through
The Bad Ass Coffee Company Coffee Drive-Through $25,000    $175,000 - $252,000 6%  
Bella Via Coffee Inc.  Single Drive-Through
Incorporated: 2004
$35,000 $281,600 - $413,500 6% (minimum $175.00) Single Franchises
The Brasil Coffee House Franchise LLC
Incorporated:  2005
$35,000 $226,830 - $385,130 5% Single Franchises
Butler’s Chocolate Cafés Limited
Incorporated: 1932
$35,000 $259,000 - $870,000 3% Single Franchises
Café Zupas Franchising LLC
Incorporated: 2006
$35,000 $384,000 -  
$536,000
5% Single Franchises
Caribou Coffee Development Company Inc.
Incorporated: 2004
$25,000 $331,200 - $674,500 5% Single Franchises
Cowgirl Café Franchise Corporation
Incorporated: 2007
$35,000 $278,000 - $715,000 5% Single Franchises
CP Coffee Inc. (Cutters Point)
Incorporated: 2003
$15,000 $182,050 - $465,500 5% or $250 per week, if greater. Single Franchises
Cuppy's Coffee & More, Inc. Cart Unit
Incorporated: 2003
$2,500

$27,700 - $56,900

3% plus minimum monthly requirement of $25.00 Cart Unit, Mobile Unit, Kiosk Unit, Drive-up Unit, Full Service Café, Embedded Full-Service café Unit, and Stand Alone Full-Service Unit.
Cuppy's Coffee & More, Inc. Mobile Unit $5,000 $71,300 - $85,500 3% plus minimum monthly requirement of $50.00  
Cuppy's Coffee & More, Inc. Kiosk Unit $10,000 $149,000 - $193,500 3% plus minimum monthly requirement of $100.00     
Cuppy's Coffee & More, Inc.
Drive- Up 10'x26'
$25,000 $235,500 - $297,000 3% plus minimum monthly requirement of $200.00  
Cuppy's Coffee & More, Inc. Inline Full Service Unit
1,200 sq ft
$25,000 $253,200 - $284,000 3% plus minimum monthly requirement of $300  
Cuppy's Coffee & More, Inc. Embedded Full Service Unit $25,000 $182,000 - $329,000 3% plus minimum monthly requirement of $300  
Cuppy's Coffee & More, Inc. Stand Alone Full Service Unit
40' x 60'
$25,000 $633,500 - $664,000 % plus minimum monthly requirement of $300  
Dazbog Coffee Franchising LLC.
Incorporated : 2005
$25,000 $174,300 - $380,300 6% Single Franchises
Green Beans Coffee Company, LLC
Incorporated: 2006
$25,000 $257,000 - $510,000 5% Single Franchises
THE HUMAN BEAN, Casey Hawkins, Inc.
Incorporated: 2002
$20,000 $153,350 - $617,500 The franchisee does not currently charge a royalty fee. Single Franchises
IAG Coffee Franchise LLC (‘It's A Grind’)
Incorporated : 2000
$25,000 $324,000 - $499,500 6% Single Franchises
Kelly's Coffee & Fudge Factory INC
Incorporated : 2003
$20,000 $285,500 -  $432,500 $700 per month Single Franchises
Massimo Zanetti Beverage Cafés USA INC, SZE Kiosk
Incorporated: 2007
$10,000 $22,600 - $106,250 Not available Segafredo Zanetti Espresso (SZE) Kiosk and Café, Chock Café Kiosk and Café.
Massimo Zanetti Beverage Cafés USA INC, SZE Café $20,000 $194,000 - $848,000 Not available  
Massimo Zanetti Beverage Cafés USA INC, Chock Kiosk $7,500 $20,100 - $98,500 Not available  
Massimo Zanetti Beverage Cafés USA INC, Chock Café $15,000 $84,500 - $283,000 Not available  
Moby’s Coffee Franchise Company
Incorporated : 2006
$15,000 $112,500 - $252,000 5% Single Franchises
Paradise Bakery and Café Inc
Incorporated: 1998
$60,000 $1,075,000 - $1,440,000 5% Single Franchises
Pipes Café Licensing Company Inc
Incorporated : 2001
$20,000 $191,000 - $274,000 4% Single Franchises
Saxbys Coffee Inc.
Incorporated : 2005
$10,000 - $50,000 $123,596 - $299,925 6% Single Franchises
Seattle’s Best Coffee LLC, Single Café Incorporated: 1972 $25,000 $171,000 - $306,000 7% Single Café Franchise, Single Kiosk Franchise
Seattle’s Best Coffee LLC, Single Kiosk $25,000 $164,500 - $317,000 7%  
Seeker’s Coffee House Franchise Co.
Incorporated : 2002
$20,000 - $25,000 $166,000 - $409,000 5% Single Franchises
Sonoma Coffee Café, Kiosk
Incorporated : 2007
$25,000 $122,040 - $132,060 4% of Gross Sales per month Single Franchises
Sonoma Coffee Café, Inline Store $25,000 $198,570 - $236,600 4% of Gross Sales per month  
The Coffee Beanery Ltd
Incorporated : 1976
$27,500 $355,500 - $519,000 6% Single Franchises
Tully’s Coffee Corporation
Incorporated : 1992
$20,000 $251,550 - $574,100 5% or $300.00 per week Single Franchises
Vieta Coffee Franchise Enterprise
Incorporated : 2005
$30,000 $214,166 - $329,750 $750 Single Franchises
Zizzo's Coffee Enterprise
Incorporated : 2006
$35,000 $253,000 - $367, 500 6% Single Franchises

With a franchise there are certain ongoing costs that will need to be paid to either the franchisor or to a third party. For example, if the franchisee decides to transfer the business to a new person, a fee will be paid to the franchisor. The renewal fee is paid to the franchisor if the franchisee decides to renew the franchise agreement. This will generally only be approved by the franchisor if the franchisee is in material compliance.
The late charges and interest are fees that will be paid only if the franchisee fails to pay royalties on the day that they are due. For example the average late charge is $80 per day with interest of 12% of the amount that is due to the franchisor.
The following table contains the averages of some of the ongoing fees faced by a franchisee. The averages are calculated from the 28 Franchise Disclosure Documents.
 

Name of Ongoing Fee Average amount or percentage of gross sales due
Transfer Fee $6,500
Renewal Fee $5,000
Late Charge – per day $80
Interest 12%
Advertising Fund – National 2% of gross sales
Advertising Fund – Local 1% of gross sales
Additional Training per day (if needed) $900

 

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