Scooter’s Coffee Franchise Costs, Fees & FDD

Year Business Began: 1998

Franchising Since: 2002

Headquarters: Omaha, Nebraska

Estimated Number of Units: 800

Franchise Description: The franchisor is Scooter’s Coffee, LLC. The franchisor’s parent company is Boundless Enterprises, LLC. The franchisor is offering franchises for the establishment and operation of quick-service coffee stores that offer and sell espresso drinks, smoothies, baked goods, and other items. The franchisor currently offers franchises for three different store types: drive-thru kiosk stores, end cap stores, and other stores.
Training Overview: One of the principal owners must attend a three-day franchise ownership training session in Omaha, Nebraska or another training facility the franchisor designates, which we refer to as immersion training (Immersion Training). In addition, one of the principal owners and a person designated by the franchisee to assume primary responsibility for the management of the store (the “designated manager”), and any additional individuals the franchisor requires, must attend and complete to the franchisor’s satisfaction our operations training program (Operations Training). Operations Training lasts approximately 16 days. Four days of Operations Training will take place at a corporate training kiosk (currently located in Omaha and Dallas); five days will consist of designated manager training to be held in Omaha or Dallas; and seven days will consist of field training with an approved store. The franchisor will send a representative to provide opening assistance for seven days total. Between one and four times per year, a principal owner or the designated manager (and the multi-unit leader, if any) may be required to attend, at the franchisee’s expense, a national, regional or local meeting, seminar or conference which the franchisor presents for the purpose of discussing a topic such as advertising programs, new operations methods, training, management, sales, or sales promotion. Franchisees must attend the franchisee conference each year.

Territory Granted: Under the Franchise Agreement, franchisees may operate their store and use the marks and the system only at a franchised location that has been approved by the franchisor. The franchisor bases its consent to the franchisee’s proposed franchised location on a variety of factors including the viability of the location and demographics of the proposed franchised location. 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.

Obligations and Restrictions: The franchisor currently will only permit a franchised store to be operated by a franchisee that is a corporation, limited liability company or partnership. Although the franchisor may enter into a Franchise Agreement with a party in an individual capacity as the franchisee, the franchisee must form a legal entity and transfer the franchise to legal entity within 90 days of the effective date of the Franchise Agreement, which must be prior to entering into a lease or purchase agreement for the site for the store. The principal owners are not required to manage and operate the store personally. However, one of the principal owners, and a person the franchisee designates (the designated manager), must successfully complete the mandatory initial training programs for franchisees. Franchisees may sell only those products and services approved by the franchisor and may not use the store or the franchised location for any purposes other than the operation of a Scooter’s Coffee store. Franchisees must sell all of the products and services approved by the franchisor, including gift cards and promotional items. Franchisees must comply with the franchisor’s standards and specifications.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. There is an option to renew for one additional 10-year term, if requirements are met.

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

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$40,000	$40,000
Initial Grand Opening Support Fee	$20,000	$20,000
Construction Costs (not including the purchase of land)/Site and Building Improvements	$299,550	$974,350
Architectural and Engineering Fees	$28,400	$72,100
Equipment, Fixtures and Furniture	$186,500	$195,200
Signs	$52,050	$65,150
Point-of-Sale System and Software	$12,000	$14,050
Deposits and Licenses	$4,850	$17,750
Initial Training: Travel and Living Expenses	$5,000	$8,000
Opening Inventory, Supplies and Smallwares	$27,800	$30,800
Additional Funds — 3 months	$16,000	$86,000
ESTIMATED TOTAL	$692,150	$1,523,400

 
Other Fees

Type of Fee	Amount
Royalty	6% of net sales.
Marketing Contribution	Currently, 2% of net sales.
Local Marketing and Advertising Commitment	None currently, although the franchisor may require franchisees to spend up to 2% of net sales for local marketing and advertising in the future.
Regional Marketing and Advertising Cooperatives	None currently. May vary, with recurring contributions up to 3% of net sales.
Cost of Marketing, Advertising and Promotional Materials	Varies depending on the materials, but ranges from $50 to $200 per item.
Inventory Purchases from Franchisor or Affiliate	Varies according to sales volume.
Interest and Late Charges	$25 late charge, plus the lesser of 1.5% per month, or highest rate of interest allowed by law.
Transfer Fee	$10,000 or 25% of the then-current initial franchise fee for a new store if the franchisee transfers the Franchise Agreement.
Territory/ Search Area Modification Fee	No charge for the first two requests. After second request, $3,000 for each additional request.
Renewal Fee	The greater of $10,000 or 25% of the then current initial franchise fee for the first store.
Real Estate Assistance Fee	$150 per hour plus travel, lodging, living expenses telephone charges and other expenses the franchisor’s representatives incur in connection with the assistance.
Inspection and Audit Fee	Interest on past due amount at 18%, or highest rate of interest allowed by law plus costs of audit.
Alternative Supplier Approval Fee	$2,500 per supplier plus the actual cost of any testing and the reasonable cost of the franchisor’s investigation.
Technology Fee	Currently $350 per month.
Brand Protection Committee Default Fee	None currently, but $500-$1,000 per violation.
Standard Default Fee	None currently, but up to $500 per violation per month.
Costs and Attorneys’ Fees	Will vary under the circumstances.
Indemnification	Will vary depending on nature of the claim involved.
Insurance Premiums	Will vary depending on the franchisee’s location and insurer.
Relocation Fees	Minimum of $500 up to a maximum of $1,000 depending on expenses incurred by the franchisor.
Conference Fee	$499 per person per year.
Additional Training Fee	$500 per person.
Development Default Fee	All amounts due and all damages, costs and expenses, including attorneys’ fees, the franchisor incurs, plus interest at the lesser of 18% per year or the highest rate allowable by law, from the date of default.
Operations Training Cancellation Fee	$500 per person plus all other expenses the franchisor incurs.
Designated Manager Training Cancellation Fee	$150
Tax Indemnification	The franchisor may collect from franchisees the cost of all taxes arising from its licensing of intellectual property (such as the royalty fees) to them in the state where their store is located, as well as any assessment on fees and any other income the franchisor receives from franchisees.
Site Concept Plan	Up to $1,000.

The above information has been compiled from the FDD of Scooter’s Coffee. Year of FDD: 2025.
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