Biggby Coffee Franchise Costs, Fees & FDD

Year Business Began: 1994

Franchising Since: 1999

Headquarters: East Lansing, Michigan

Estimated Number of Units: 420

Franchise Description: The franchisor is Global Orange Development, LLC. The Biggby Coffee franchise is a community coffee shop with offerings that include espresso-based beverages, coffee, tea, energy beverages, other beverages, sandwiches, baked goods, and other food, whole bean coffee including farm direct options, merchandise and coffee accessories. The franchise will generally be operated from either a free-standing, store front or strip center location, a pre-fabricated modular structure, or a site built structure with a drive-thru (including a drive-thru only and a drive-thru with a lobby).
Training Overview: Franchisees (or if the franchisee is a corporation or other entity, a principal and the designated manager) must complete the training program before they begin to operate the franchise business. The training program will be conducted without charge for up to two people who are owners of the franchise or management employees of the franchise. The franchisor will train additional people if requested but may charge a reasonable fee for each additional person trained. The training program will be conducted at the franchisor’s facilities in East Lansing, Michigan and in Biggby Coffee stores of its choosing, and some portions may be done virtually. The franchisor will provide a representative for up to five days (the specific number of days will be determined by the franchisor) to assist in the set-up and initial operation of the franchise business. Franchisees and their management employees may be required to attend additional training, sales programs and meetings reasonably specified by the franchisor. After beginning operation of the franchise business, franchisees must establish and maintain a continual program of training for managers and other employees in accordance with the franchisor’s specifications.

Territory Granted: Franchisees must operate the franchise business only from a specific location, which will be designated in the Franchise Agreement. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that are owned by the franchisor, or from other channels of distribution or competitive brands that the franchisor controls. Franchisees are not granted a minimum or maximum territory in which to operate the franchise business. As long as franchisees provide their services from their franchise location, they are not limited in the area from which they may draw their customers.

Obligations and Restrictions: The franchise business must, at all times, be under the direct supervision of a manager (the designated manager). If this is the franchisee’s first store, and depending on his or her prior business experience, at least one of the persons designated in the Franchise Agreement, may be required to be the designated manager of the franchise business for up to one year after beginning operation. The designated manager must meet the following requirements before beginning to serve as designated manager for the franchise business: (1) the designated manager must have successfully completed the initial training program and any retraining or refresher training programs specified by the franchisor; and (2) the designated manager must be approved by one of the franchisor’s directors or executive officers and not later disapproved. Franchisees must sell all products and services specified by the franchisor. Franchisees may not offer any products or services that the franchisor has not authorized.

Term of Agreement and Renewal: The length of the initial franchise term is generally 10 years (may vary depending on the term of the lease or license for the franchise location). Renewal of the term is for 10 years, if requirements are met.

Financial Assistance: The franchisor does not offer direct or indirect financing for the franchise. The franchisor does not guarantee any of a franchisee’s notes, leases or other obligations.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$20,000	$20,000
Leasehold Improvements, Site Improvements and Construction Costs	$140,000	$712,000
Equipment, Furniture and Décor	$70,000	$114,000
Architectural and Engineering	$7,500	$20,000
Building Permits	$7,500	$20,000
Signage (Interior and Exterior)	$14,000	$30,000
Real Property Rental or License	$6,000	$18,500
Initial Inventory	$10,000	$15,000
Insurance - General Liability, Property, EPLI and Workers Compensation	$1,500	$2,000
Utility Expense	$500	$5,000
License, Permits and Other	$1,000	$3,000
Initial Advertising and Grand Opening Promotions	$9,500	$9,500
Miscellaneous Travel and Living Expenses for Training	$500	$5,000
Organizational Expenses	$2,000	$2,500
Additional Funds - 3 months	$10,000	$40,000
ESTIMATED TOTAL	$296,250	$1,011,500

 
Other Fees

Type of Fee	Amount
Royalty	6% of gross sales; 5% of gross sales for certain existing operators in Michigan.
Advertising Fund Contribution	The greater of $100 per week; or 3% of gross sales.
Minimum Local Advertising	Up to 3% of gross sales.
Product Purchases	Will vary under circumstances.
Maintenance and Repairs	Actual cost to franchisor.
Annual Conference Fees	Amount determined by the franchisor, not to exceed $1,000 per person (currently less than $400).
Operational Standards Fees	Up to $500 per occurrence.
Insurance	Actual cost to franchisor.
Cost of Cyber Liability Insurance	$5 to $78 per month.
E-card Program	No fee is charged for participation. Overpayments or underpayments are reconciled at least on a quarterly basis.
Additional Training	The franchisor currently does not charge for additional training if franchisees attend its regular training programs. The franchisor also offers additional on-demand training; the current charge is not more than $200 per day per trainer plus travel costs.
Late Charge, NSF Fees and Interest	$25 per month late charge, NSF fees equal to charge the franchisor incurs, but not less than $30, and 1.5% per month interest.
Transfer Fee	If the transferee is an existing Biggby Coffee franchisee in good standing, the fee is $5,000; for all other transfers the fee is $20,000 and includes training for the transferee.
Renewal Fee	Up to 50% of the standard initial franchise fee being charged to new franchisees at the time of renewal.
Audit and Inspection Expenses	Cost of audit or inspection.
Damages for Failure to Open Store	$27,000
Liquidated Damages for Lost Future Royalties	Payable as part of the damages due to the franchisor if franchisees breach the Franchise Agreement and the Franchise Agreement is terminated.
Indemnification	Amount will vary under circumstances.
Costs and Attorney’s Fees	Amount will vary under circumstances.
POS Hardware Support Fees	Currently $75 per month per terminal.
PERC Services License	Currently $23 per month per terminal, tablet, or kiosk.
Microsoft Office 365 License Fees	Currently $12 to $25 per month per store.
Back of House Hardware Support and Limited Warranty Fees	Currently $40 per month per store.
Profitkeeper	Currently $10 per month per store.
LMS (Learning Management System)	Currently $15 per month per store.
Freshdesk (Freshservice)	Currently $20 per month per store.
Cybersecurity	Currently $30 per month per store.
Online Menu Integration	Currently $50 per month per store.
Internet Backup Hardware and Subscription Fees (Optional)	Currently $10 per month per store; $115 initial hardware cost and will increase as costs increase.
Digital Menu Signage with Signagelive (Optional)	Signagelive licenses are $150 per display per year. Each display costs $958, which includes a wall mount but does not include installation.
Curbside Tablet Fees (Optional)	Currently $35 per month per tablet for the service; tablet cost is $150 per device.

The above information has been compiled from the FDD of Biggby Coffee. Year of FDD: 2025.
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