Gloria Jean’s Coffees Franchise Costs, Fees & FDD

Year Business Began: 1979

Franchising Since: 1986

U.S. Headquarters: Chicago, Illinois

Estimated Number of Units: 635

Franchise Description: The franchisor is Gloria Jean’s Gourmet Coffees Franchising Corp. The franchisor’s parent company in the United States is Retail Food Group USA, Inc. The ultimate parent company is Retail Food Group Limited, an Australian company. The franchise offered is to operate a Gloria Jean’s Coffees store selling gourmet coffees and teas, coffee‐based beverages, and related supplies, accessories and gifts, or a Gloria Jean’s Coffees kiosk for the sale of coffee, espresso, cappuccino, other coffee based drinks, teas and other beverages, baked goods and other foods.
Training Overview: Franchisees and any approved manager must complete an initial training program to the franchisor’s satisfaction before the store opens. If the franchisee is a corporation, partnership or limited liability company, training is required for an owner of at least 10% interest (the “managing owner”). The initial training program will take place at a franchise support center and/or operating store that the franchisor designates. The current location is in the Chicago, IL area. Initial training will include the franchisor’s Franchise Partner Induction Program. The Franchise Partner Induction Program typically lasts 10-15 days, but the franchisor may add days in its discretion depending on the franchisee’s performance. In addition to the Franchise Partner Induction Program, franchisees (or the managing owner) and any approved manager must complete at least one week of a structured program at an operating store of the franchisor’s choosing. The franchisor reserves the right to require more field training based on the final evaluation of the franchisee’s operations knowledge after attending the classroom training. The franchisor may also provide refresher, ongoing, or new training to franchisees (or the managing owner) and experienced managers, to correct, improve and/or enhance the operation of the store. Franchisees must attend, at their sole expense, all annual and other meetings, conventions, and conference calls of franchisees that the franchisor determines are mandatory for all franchisees, or groups of franchisees (as designated by the franchisor in its sole discretion).

Territory Granted: Franchisees may operate the store only at a specific location which the franchisor approves. Franchisees will not receive an exclusive territory under the Franchise Agreement. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. However, if the Franchise Agreement is for a street/non‐shopping mall location, the franchisor will sign an addendum to the Franchise Agreement defining a “protected territory” for the GJC store. Provided that franchisees are in compliance with the Franchise Agreement and the Territory Addendum for Street Location, the franchisor will not operate or grant a franchise for the operation of another GJC store (other than a mall outlet) that is located within a 1/2 mile radius of the franchisee’s GJC store.

Obligations and Restrictions: The franchisor requires that franchisees (or the managing owner if they are a corporation, partnership or limited liability company) participate personally in the direct operation of the store. Franchisees (or the managing owner) must complete the initial training program to the franchisor’s satisfaction, regardless of whether or not it allows franchisees to have other managers of the store. Franchisees must keep the franchisor informed at all times of the identity of the managing owner. If the franchisee is a corporation, partnership or limited liability company, each owner of a 10% or greater interest must personally guarantee the obligations under, and be personally bound by, the Franchise Agreement and all other agreements with the franchisor or its affiliates and agree to certain restrictions on their ownership interests. The spouse of each guarantor must sign the Spouse’s Acknowledgment portion of the guarantee. However, if the spouse is also an owner of the franchisee corporation, partnership or limited liability company, the spouse must sign as a full guarantor. Franchisees must offer for sale and sell only those products that the franchisor authorizes or requires for the store. Franchisees may not offer any services at the GJC store (including, but not limited to “delivery” and/or “order ahead” services) unless: (a) those services have been approved in writing by the franchisor; and (b) franchisees subsequently agree to offer the services in accordance with the standards as specified in the operating manuals or otherwise in writing.

Term of Agreement and Renewal: The length of the initial franchise term is the lesser of 10 years or the initial term of the lease or sublease. Renewal is for a single term of the lesser of 10 years or the term of the lease or sublease on the then-current terms if franchisees meet certain requirements and comply with certain conditions.

Financial Assistance: Neither the franchisor nor any affiliate currently offers, directly or indirectly, any financing arrangements to franchisees. Neither the franchisor nor any affiliate will guarantee a franchisee’s note, lease or other obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$30,000	$30,000
Real Estate (Rent and Security Deposit)	$6,000	$15,000
Leasehold Improvements	$60,000	$225,750
Equipment, Furniture and Fixtures	$61,000	$150,150
Signage	$5,000	$22,000
Professional Design Fees	$5,000	$21,853
Point of Sale System	$5,419	$22,519
Initial Coffee Inventory	$3,500	$7,500
Other Initial Inventory and Supplies	$5,500	$7,000
Grand Opening Fee	$10,000	$10,000
Training Expenses	$3,500	$8,000
Miscellaneous Opening Costs	$5,000	$12,500
Additional Funds (3 months)	$10,000	$31,500
ESTIMATED TOTAL*	$209,919	$563,772

*The estimated initial investment range covers from a kiosk up to a store with drive-thru. See FDD for more details.

Other Fees

Type of Fee	Amount
Royalty Fee	6% of gross sales.
Marketing Fund Contributions	Maximum of 3% of gross sales; currently, 2% of gross sales.
Gift Cards	Currently, $0.38/card plus any applicable freight.
Audit Expenses	The franchisor’s actual costs of audit.
Indemnification	The franchisor’s actual costs.
Transfer Fee	$5,000
Renewal Fee	50% of the then-current initial franchise fee.
Repairs, Renovations, Maintenance Expense, Insurance	The franchisor’s actual costs.
Interest and Late Fees	Highest legal rate for open account business credit in the state in which the store is located, not to exceed 1.5% per month and a late fee of $250 per occurrence subject to applicable law.
Advertising and Promotional Materials	The franchisor’s actual costs of production and delivery.

The above information has been compiled from the FDD of Gloria Jean’s Gourmet Coffees. Year of FDD: 2025.
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