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Coffee Franchise Industry Report
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 |
|---|---|---|---|---|
| Barnie’s Coffee and Tea Company Incorporated: 1981 |
$20,000 | $227,000 - $341,500 | 7% | Single Franchises |
| 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 Big Boy Franchise Management LLC Incorporated: 2000 |
$30,000 | $1,180,800 - $2,021,000 | 4% | 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 29 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 |
Franchise Direct's Disclaimer
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