The Coffee Bean & Tea Leaf Franchise Information

Year Business Began: 1963

Franchising Since: 2002

Headquarters: Los Angeles, California

Estimated Number of Units: 1,235

Franchise Description: The franchisor is Super Magnificent Coffee Company Ireland Limited. The franchisor’s parent company is Jollibee Worldwide Pte Ltd., which is wholly owned by Jollibee Foods Corporation. Franchisees will develop one or more “The Coffee Bean & Tea Leaf” stores or kiosks featuring premium coffee beverages, espresso drinks, premium teas, roasted coffee beans and blends, prepackaged coffees, prepackaged teas, baked goods, snacks and other food items and products, which may include but are not limited to coffee making equipment, cups, hats, t-shirts, miscellaneous branded items and other novelty items.
Training Overview: The franchisor will provide franchisees with a 15-day (as determined by the franchisor in its reasonable business judgment) initial training program for the certified training manager, first general manager, and, if franchisees have signed an area development agreement, their director of operations. The initial training is held at the franchisor’s corporate headquarters in Southern California, at a company-owned or affiliate-owned store in Southern California, or at some other location the franchisor may designate. In addition, the franchisor will provide a five-day training program for an owner and one other person designated by the franchisee and accepted by the franchisor. In addition, if franchisees are signing a Franchise Agreement for their first store, the franchisor will send two members of its training or operations staff to the franchisee’s store for a period of 15 days beginning at or before the scheduled opening date of the store. The franchisor, in its discretion, may provide on an optional or mandatory basis, supplemental or additional training programs as it deems necessary or appropriate for the proper operation of the store(s), and in the case of mandatory training the franchisor may require franchisees, their certified training manager and/or general managers to attend.

Territory Granted: Franchisees may operate their store at a specific location which the franchisor accepts, as described in the Franchise Agreement. Franchisees will not receive an exclusive territory. However, during the term of the Franchise Agreement, the franchisor will not open or operate, or license others to own or operate, a “The Coffee Bean & Tea Leaf” store at any venue within the “designated territory,” as defined in the Franchise Agreement. For traditional stores, the designated territory is a 0.25 mile radius of the store, except that the franchisor and its affiliates may open or operate, or license others to own or operate stores at special distribution sites within the designated territory. For special distribution stores, the designated territory generally includes the premises of the location of the store (for example, an airport terminal, casino, or food court).

Obligations and Restrictions: Although franchisees do not have to personally supervise the franchised business, the franchisor recommends that they personally supervise the operation of their store(s). Franchisees must employ and continue to employ throughout the term of the agreements at least one director of operations, one certified training manager and, for each store, one general manager all of whom have successfully completed the training program, and in the case of the general manager and certified training manager, must be approved by the franchisor. Each of the above persons may have to agree to maintain the confidentiality of the trade secrets and may have to agree to the non-competition covenants. One person who has attended and completed initial training to the franchisor’s satisfaction, or who has been trained by a trainer certified by the franchisor, must be working at the store at all times while the store is open to the public. Franchisees must offer and sell all, and only, those goods and services that the franchisor has approved. No vending, gaming, pay telephone, automatic teller machine, internet kiosk or any other mechanical or electrical devices are permitted in the store without the franchisor’s prior written consent.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One 10-year renewal term is available if requirements are met.

Financial Assistance: Neither the franchisor nor its affiliates offer direct or indirect financing. Neither the franchisor nor its affiliates guarantee a franchisee’s lease or any other obligation the franchisee may incur. The franchisor offers a discount in the amount of $20,000 off the initial franchise fee for each store for current members or qualified veterans of the U.S. Armed Forces.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$15,000	$25,000
Lease for Store	$2,000	$13,000
Design & Plans	$35,000	$55,000
Leasehold Improvements	$150,000	$588,694
Signage	$20,000	$94,780
Furniture, Fixtures and Equipment	$235,000	$353,703
Point-of-Sale (POS) System	$30,000	$30,000
Initial Inventory	$2,500	$32,000
Grand Opening Promotion	$0	$10,000
Permits and Security Deposits	$5,000	$25,000
Insurance	$1,000	$10,000
Professional Fees	$4,000	$78,000
Training Expenses	$12,000	$40,000
Additional Funds – three month period	$30,000	$75,000
ESTIMATED TOTAL*	$551,500	$1,430,177

*The estimated initial investment range covers from a traditional kiosk up to a traditional store. See FDD for more details.

Other Fees

Type of Fee	Amount
Royalty Fee	5.5% of gross revenues.
Failure to Report Gross Revenues Fee	$5,000
Central Marketing Fee	2% of gross revenues, but subject to increase to 4% of gross revenues.
Local Advertising	In addition to the central marketing fee, franchisees must spend an amount equal to at least 1% of gross revenues on local advertising.
Advertsing and Promotional Materials Fee	0.5% of gross revenues.
Cafe Technology System Fee	$700 - $1,500 per month.
Customer Facing Technology Fee	$200 - $750 per month.
Food Safety and Operations Audit Fee	Then-current reasonable per audit fee, not to be charged more often than quarterly (currently $400 per audit).
Customer Experience Measurement Program Fee	Then-current annual fee (currently $600 annually).
Initial On-Site Assistance	Then-current reasonable training fee (currently $150-$450 per day) plus our out-of-pocket expenses including travel, meals and lodging, but excluding salary (currently, up to $2,000).
Additional On-Site Assistance	The franchisor’s out-of-pocket expenses (including travel, meals and lodging) to send 1 or more members of its staff to the development area. Franchisees must also reimburse the franchisor for its direct and indirect salary and related payroll costs for its representatives.
Optional Training Courses	The franchisor’s then-current reasonable training fee (currently $150-$450 per day) plus the franchisor’s out-of-pocket expenses including travel, meals and lodging, but excluding salary (currently, up to $2,000).
Manual Replacement Charge	Franchisees must pay our then-current charge for replacement of the manuals if franchisees require a hardcopy replacement, which is currently $500.
Transfer Fee	$5,000
Audit	Cost of audit plus attorneys and accountants’ fees and costs (including travel, room and board).
Insurance Reimbursement	Amount of unpaid premiums.
Approval of Suppliers	Franchisees must pay the franchisor’s costs to review a new supplier, including inspection of the supplier’s facilities, equipment, product testing, etc. The costs are difficult to predict and depend on the supplier and the item(s) proposed to be supplied.
Review of Revised Entity Information	The franchisor’s direct and indirect costs, including attorneys’ fees, to review revised entity information.
Interest and Late Charge for Late Payments	$100 charge for each late payment plus 1.5% per month interest or the maximum amount permitted by law for each month the payment is delinquent.
Reimbursement of the Franchisor’s Attorneys’ Fees and Expenses	As incurred.
Indemnification	Varies.
Renewal Fee	50% of the initial franchise fee.
Liquidated Damages for Abandonment	Equal to the net present value of the lesser of the royalty and central marketing fees that would have otherwise been due: (i) for the next 5 years of the Franchise Agreement; or (ii) through the remainder of the Franchise Agreement term; based on an average of the store’s gross revenues for the prior 12 months.
Coffee Bean Products	Varies. Franchisees must purchase and maintain in inventory coffee bean products to meet reasonably anticipated consumer demand.

The above information has been compiled from the FDD of The Coffee Bean & Tea Leaf. Year of FDD: 2025.
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