World Franchising
January 2007 Newsletter
 
Industry Focus: Coffee
 
 

"We saw there was a high, around 80 percent failure rate, among non-franchise coffee shops and a 90 percent success rate with franchise shops."

Ginny Grace, a coffee franchisee


Considering the current popularity of retail coffee franchises, it's hard to believe that the industry was only born about a decade ago -- it wasn't until the mid-90s that the US and UK began to swap their cafes and bars for coffee houses. Now, over 400 billion cups of coffee are consumed each year.

Due to the fast-paced nature of the industry, running a coffee house can be, at least initially, hard and demanding; however, franchisees will often find that a well-located, quality coffee house will quickly allow them to take a backseat just a few months after the initial start up.

It's important to remember that, while the franchisor will be able to provide the necessary training needed, it is the individual franchisee's ongoing responsibility to make sure that customers are fully satisfied with their surroundings, drink and meal.

When it comes to retail coffee franchises, location is often the key to success. Avoid busy areas of cities, where there is likely to be a dozen other coffee shops within stumbling distance. Consider places where people need coffee and a place to relax, such as near amenities and transport links (such as train stations).

Noted below of some of the more popular Coffee Franchises.

.

DBA Name
UFOC
The Bad Ass Coffee Company
2006
Barnie's Coffee & Tea Company
2006
Bella Via
2006
Brasil Coffee House
2005
Caffino
2006
Caribou Coffee
2006
Coffee Beanery, Ltd.
2005
Cuppy's Coffee & More
2006
Cutters Point Coffee
2006
Daily Grind
2005
Dunn Brothers Coffee
2005
Dutch Bros.
2006
Forza Coffee
2006
Fox Hollow Coffee
2006
Gloria Jean's Coffee
2006
Greenberry's Coffee & Tea Company
2005
The Human Bean Drive Thru
2006
It's A Grind Coffee House
2006
JAVA-Ol'-O-GY
2005
Jo to Go Coffee
2006
Kelly's Coffee & Fudge Factory
2006
Peaberry Coffee
2005
Port City Java
2005
Saxbys Coffee
2005
Seattle's Best Coffee
2006
Seekers Coffee House
2005
Segafredo Zanetti Espresso
2006
Tully's Coffee
2006
Vieta Coffee
2006


*UFOCs are available for purchase on UFOCs.com.


Feel free to familiarize yourself with the following Coffee franchises featured on worldfranchising.com.

 



CONTACT:
Mr. Harold J. Hill
Director of Franchising
[email protected]
www.badasscoffee.com
166 W. 2700 South
Salt Lake City, UT 84115
Phone: (888) 422-3277,
(801) 463-1966

Fax: (801) 463-2606


The Bad Ass Company is the premier destination when you go to get yourself or a friend some of the world's best coffee and to experience the friendly aloha spirit while immersed in a unique, exciting, inviting Hawaiian atmosphere.

 

EST. 1989
FRAN. 1999
OPERATING UNITS
Franchised Units:
36
Company-Owned Units:
1
Total Operating Units:
37
GEOGRAPHIC DISTRIBUTION
US: 33
In 1 States
Canada: 4
In NR Provinces
International: 0
In 0 Countries
INVESTMENT
Minimum Net Worth:
$500K
Cash Investment:
$50K
Total Investment:
$150-200K
FEES
Initial Franchise Fee:
$20K
On-Going Royalty:
6%
Advertising Fee:
2%
SPACE NEEDS
Average Number of Employees:
3 FT, 4 PT
Space Needs (SF):
1,500 SF
Preferred Sites:
Free-Standing Building
Conversions?
Yes
Earnings Claim?
No

"We're enthusiastic that our growth will soon enable everyone to experience Bad Ass Coffee for themselves."

Harold Hill, corporate principal for the Bad Ass Coffee Company
TERMS OF CONTRACT
Term of Initial Contract:
5 yrs
Renewal Period:
20 yrs
Passive Ownership OK?
Yes
Area Dev. Agreements?
Yes
Sub-Franchising?
No
Expand Within Territory?
Yes
GENERAL SUPPORT
IFA:
No
CFA:
No
FA/Member:
No
Size of Corporate Staff:
6
Site Selection Assist.?
Yes
Lease Neg. Assist.?
Yes
Financial Assist.?
No
MARKETING SUPPORT
Advertising:
None Specified
Marketing Materials:
None Specified
Additional Services:
None Specified
ON-GOING SUPPORT
Central Purchasing,
Field Operation Evaluation,
Field Training, Initial Store Opening, Inventory Control, Franchisee Newsletter,
Regional or National Meetings, 800 Telephone Hotline
EXPANSION
Projected Units (within 1 yr):
10
Territories
All US, All Canada, All Countries
TRAINING
1 Week, Salt Lake City, UT
 
 



CONTACT:
Mr. Kurt Shaw
VP Franchise Sales
[email protected]

www.coffeebeanery.com
3429 Pierson Pl.
Flushing, MI 48433-2413
Phone: (800) 728-2326,
(810) 733-1020
Fax: (810) 733-0374


The Coffee Beanery, Ltd. offers a variety of investment levels with streetfront, stripcenter, and drive-thru stores being the main growth vehicle in the future. The cornerstone and foundation of the business is the exceptional quality of its own hand-roasted coffee. Our customers enjoy the best coffee and assorted products available from a network of over 160 opened franchised and corporate locations. Our operations department and training are superb.

"We're embracing this 'tasteful adventure' by offering customers the opportunity to escape with a great specialty or espresso-based coffee drink."


JoAnne Shaw, founder and president of The Coffee Beanery
EST. 1976
FRAN. 1985
OPERATING UNITS
Franchised Units: 157
Company-Owned Units: 0
Total Operating Units: 159
GEOGRAPHIC DISTRIBUTION
US: 140
In 30 States
Canada: 0
In 0 Provinces
International: 19
In NR Countries
INVESTMENT
Minimum Net Worth:
$350K
Cash Investment:
$125K
Total Investment:
$300-400K
FEES
Initial Franchise Fee:
$27.5K
On-Going Royalty:
6%
Advertising Fee:
2%
SPACE NEEDS
Average Number of Employees:
2-3 FT, 10-15 PT
Space Needs (SF):
1,600 SF
Preferred Sites:
Free-standing Building, Storefront, Strip Center, Regional Mall
Conversions?
Yes
Earnings Claim?
No
TERMS OF CONTRACT
Term of Initial Contract:
10 yrs
Renewal Period:
NR yrs
Passive Ownership OK?
Yes
Area Dev. Agreements?
Yes
Sub-Franchising?
No
Expand Within Territory?
Yes
GENERAL SUPPORT
IFA:
Yes
CFA:
No
FA/Member:
Yes/Yes
Size of Corporate Staff:
40
Site Selection Assist.?
Yes
Lease Neg. Assist.?
Yes
Financial Assist.?
Yes(D)
MARKETING SUPPORT
Advertising:
Co-Op, Local
Marketing Materials:
Brochures, Coupons/rebates, Direct Mailers, Promotional Items, Trade Show Exhibits
Additional Services:
Grand Opening, In-house Marketing, Marketing Research, Newsletter, Press Releases
ON-GOING SUPPORT
Field Operation Evaluation,
Field Training,
Initial Store Opening,
Inventory Control,
Franchisee Newsletter,
Regional or National Meetings,
800 Telephone Hotline
TRAINING
4 Weeks, Café; 3 Weeks, Mall at Michigan Corporate Center
EXPANSION
Projected Units (within 1 yr):
25
Territories
All US, Guam, Puerto Rico, China, South Korea
 
 



CONTACT:
Ms. Norma Romero
Franchise Sales Administrator
[email protected]
www.gloriajeans.com
28 Executive Park, # 200
Irvine, CA 92614
Phone: 1-800-354-JAVA,
(949) 260-1600
Fax: (949) 260-6745


American's largest retail gourmet coffee franchisor offers the highest-quality gourmet coffees, teas and accessories. Our unique store design and exclusive coffee bean counter are the focal points of our nationally honored company. Each store has up to 64 varieties of coffees..


"We will continue to satisfy every customer one cup at a time, strengthen our relationships with our partners and stakeholders, and serve the community through humanitarian activities worldwide."

Troy Franklin, Chief Operating Officer (COO), Gloria Jean's Coffees International


EST. 1979
FRAN. 1986
OPERATING UNITS
Franchised Units:
143
Company-Owned Units:
9
Total Operating Units:
152
GEOGRAPHIC DISTRIBUTION
US: 136
In 38 States
Canada: 0
In 0 Provinces
International: 16
In NR Countries
INVESTMENT
Minimum Net Worth:
$350
Cash Investment:
$125K
Total Investment:
$184-485K
FEES
Initial Franchise Fee:
$16-32.5K
On-Going Royalty:
6%
Advertising Fee:
2%
SPACE NEEDS
Average Number of Employees:
2 FT, 8 PT
Space Needs (SF):
200-1,000 SF
Preferred Sites:
Regional Mall
Conversions?
NA
Earnings Claim?
No

TERMS OF CONTRACT
Term of Initial Contract:
15 yrs
Renewal Period:
NR
Passive Ownership OK?
Yes
Area Dev. Agreements?
Yes
Sub-Franchising?
No
Expand Within Territory?
Yes
GENERAL SUPPORT
IFA:
Yes
CFA:
No
FA/Member:
Yes/Yes
Size of Corporate Staff:
150
Site Selection Assist.?
Yes
Lease Neg. Assist.?
Yes
Financial Assist.?
Yes(I)
MARKETING SUPPORT
Advertising:
None Specified
Marketing Materials:
None Specified
Additional Services:
None Specified
ON-GOING SUPPORT
Central Purchasing,
Field Operation Evaluation,
Field Training,
Initial Store Opening,
Inventory Control,
Franchisee Newsletter,
Regional or National Meetings,
800 Telephone Hotline
EXPANSION
Projected Units (within 1 yr):
20
Territories
All US
TRAINING
2 Weeks, Corporate Training Store
 
 


CONTACT:
Mr. Steve Olson
SVP Franchise Development
[email protected]
www.itsagrind.com
6272 E. Pacific Coast Hwy., # E
Long Beach, CA 90803
Phone: (866) IAG-JAVA,
(562) 594-5600 + 256
Fax: (562) 594-4100


It's a Grind is the fastest-growing coffee franchise in the U.S., with 267 franchises sold throughout the U.S. An up-scale, neighborhood coffee house with a blues and jazz motif, our stores feature the highest-quality fresh micro-roasted specialty whole bean coffees, traditional, espresso and iced blended coffee drinks, tea and tea-based drinks, bagels, muffins, scones and assorted bakery items.


"People will be impressed with the quality of our coffee and products served in a relaxing environment with cozy chairs and a crackling fireplace."

It's a Grind owner Tim McCabe


EST. 1994
FRAN. 2001
OPERATING UNITS
Franchised Units:
75
Company-Owned Units:
6
Total Operating Units:
81
GEOGRAPHIC DISTRIBUTION
US: 81
In 14 States
Canada: 0
In 0 Provinces
International: 0
In 0 Countries
INVESTMENT
Minimum Net Worth:
$400
Cash Investment:
$125K
Total Investment:
$248-466K
FEES
Initial Franchise Fee:
$36K
On-Going Royalty:
6%
Advertising Fee:
1%
SPACE NEEDS
Average Number of Employees:
15 FT
Space Needs (SF):
1,200-6,000
Preferred Sites:
Free-standing Building, Storefront, Strip Center, Regional Mall
Conversions?
No
Earnings Claim?
Yes
TRAINING
2 Weeks, Long Beach, CA Headquarters
TERMS OF CONTRACT
Term of Initial Contract:
10 yrs
Renewal Period:
Varies
Passive Ownership OK?
No
Area Dev. Agreements?
Yes
Sub-Franchising?
No
Expand Within Territory?
Yes
GENERAL SUPPORT
IFA:
Yes
CFA:
No
FA/Member:
Yes/Yes
Size of Corporate Staff:
26
Site Selection Assist.?
Yes
Lease Neg. Assist.?
Yes
Financial Assist.?
No
MARKETING SUPPORT
Advertising:
None Specified
Marketing Materials:
None Specified
Additional Services:
None Specified
ON-GOING SUPPORT
Central Data Processing,
Central Purchasing,
Field Operation Evaluation,
Field Training,
Initial Store Opening,
Inventory Control,
Franchisee Newsletter,
Regional or National Meetings,
800 Telephone Hotline
EXPANSION
Projected Units (within 1 yr):
75
Territories
Most of US

 

 


CONTACT:
Mr. Jonathon Lukens
VP of Franchising
[email protected]
www.jotogo.com
1263 Main St.
Green Bay, WI 54302
Phone: (866) 568-6461,
(920) 884-6601 + 108
Fax: (920) 482-5623


Full-service, gourmet double-drive-thru, serving premium coffee and espresso-based drinks, smoothies, tea, chai, fresh bakery. Run your business with as few as six employees. Have fun in a fast-growing industry that's immensely profitable.


"I love the whole JO TO GO Coffee® concept. As a drive thru
coffee bar, they cater to those of us who want access to high-end coffee, but don't want to take time out of our busy lives to wait for it. They're focused on providing a great cup of JO in a quick, friendly manner and they do it very well."

Jo To Go Coffee
franchise owner Richard Oatman


EST. 1998
FRAN. 2001
OPERATING UNITS
Franchised Units:
9
Company-Owned Units:
5
Total Operating Units:
14
GEOGRAPHIC DISTRIBUTION
US: 14
In 1 States
Canada: 0
In 0 Provinces
International: 0
In 0 Countries
INVESTMENT
Minimum Net Worth:
NR
Cash Investment:
NR
Total Investment:
$82.5-786K
FEES
Initial Franchise Fee:
$25K
On-Going Royalty:
7%
Advertising Fee:
1%
SPACE NEEDS
Average Number of Employees:
4 FT, 2 PT
Space Needs (SF):
500
Preferred Sites:
Prototype
Conversions?
No
Earnings Claim?
Yes
TRAINING
15 Days, Corporate Office & Local Store
TERMS OF CONTRACT
Term of Initial Contract:
5 yrs
Renewal Period:
5 yrs
Passive Ownership OK?
Yes
Area Dev. Agreements?
Yes
Sub-Franchising?
No
Expand Within Territory?
Yes
GENERAL SUPPORT
IFA:
No
CFA:
No
FA/Member:
No
Size of Corporate Staff:
8
Site Selection Assist.?
Yes
Lease Neg. Assist.?
Yes
Financial Assist.?
No
MARKETING SUPPORT
Advertising:
Co-Op
Marketing Materials:
None Specified
Additional Services:
None Specified
ON-GOING SUPPORT
Field Operation Evaluation,
Field Training,
Initial Store Opening,
Inventory Control,
Franchisee Newsletter,
Regional or National Meetings
EXPANSION
Projected Units (within 1 yr):
20
Territories
All US, All Canada
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