Aroma Joes
AROMA Joes offers specialty coffee shops with espresso, tea, pastries, and baked goods. Known for its full-service coffee shop and drive-thru options, it operates in the competitive quick-serve restaurant and coffee shop industry.
About Aroma Joes
Aroma Joe's is an American chain of coffee shops. A drive-thru-centered coffee company, Aroma Joe's was founded in 2000 in East Rochester, New Hampshire, and is now headquartered in Scarborough, Maine, United States. There are over 100 locations across Maine, New Hampshire, Massachusetts, Pennsylvania, Florida, Connecticut, and New York.
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Aroma Joes franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of an AROMA JOE'S ® Traditional Coffee Shop ranges from $597,821 to $1,840,221. This includes a Franchise Fee that starts at $222,100 to $278,450 paid to the franchisor or its affiliate(s). [p.1]
What is the initial franchise fee?
The Initial Franchise Fee is $25,000. This fee may be subject to discounts for qualified candidates or franchisees as noted in Note 1 on page [p.22].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a percentage of gross sales, with no specific rate mentioned in these excerpts. It is payable weekly within two days after the end of the business week. Advertising contributions are retained by the company for spending on advertising and related expenses to benefit all franchisees, though exact amounts are not specified [p.31, p.32].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, selling or transferring your franchise requires compliance with specific provisions. You must not sell, transfer, or assign all or part of your franchise, an interest in your Coffee Shop, or related agreements without complying with the provisions outlined in Section 9 [p.72]. Additionally, the franchisor has the right to refuse such transfers for good cause, as defined [p.155(g)].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any ground available by law, as stated on [p.158]. However, specific legal grounds are not detailed in these excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, company-owned outlets, or competitive brands controlled by the franchisor [p.40]. Additionally, even if granted an Area Development Agreement (ADA), it does not provide any exclusive right to a customer base or special distribution opportunities [p.42, p.40].
What training and ongoing support does the franchisor provide?
The franchisor provides a Training Program led by their Operations Department, including facilitators with significant experience in operations [p.37]. This program is mandatory for new franchisees unless certain exemptions apply [p.18, p.36], and refresher training sessions are provided at no cost [p.37]. Additionally, the franchisor retains advertising contributions to spend on marketing efforts beneficial to all franchisees [p.31].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The FDD does not explicitly state whether the franchisor shares financial performance or earnings information. However, it does indicate that if such information is provided, it must have a reasonable basis and can be supplemented by actual records from existing outlets [p.52]. Additionally, written substantiation for any financial performance representation will be made available upon request [p.54].
What am I restricted to selling, and where must I buy supplies?
You are generally not restricted to selling specific items, but you must purchase or lease certain products and materials from approved sources as specified by the franchisor. These include coffee, tea, food products, packaging materials, construction materials, equipment, and items bearing the AROMA JOE'S ® trademark [p.24]. You may buy office supplies from any source that meets their specifications [p.3], but for major items like equipment, coffee, tea, food, certain beverage products, signage, menu boards, advertising, promotional items, and other operational items, you must order through the franchisor or an approved source they designate [p.24].