Beans And Brews
Beans & Brews offers coffeehouses serving coffee, tea, baked goods, and related items in two models—Standard and Express. Known for its casual café atmosphere, Beans & Brews operates in the retail coffeehouse industry.
About Beans And Brews
Beans And Brews franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to open one Standard Model Coffeehouse ranges from $423,050 to $858,500, which includes a $32,500 payment prior to opening. For an Express Model Coffeehouse, the range is from $198,550 to $532,000, including a $20,000 payment before opening. [p.1, p.26]
What is the initial franchise fee?
The initial franchise fee is $30,000, which must be paid in a lump sum upon signing the Franchise Agreement. This fee is non-refundable [p.11, p.158, p.166, p.77].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5.5% of Net Sales generated by the franchised business each week [p.77]. Additionally, franchisees must contribute an advertising fee equal to 1-3% of their gross revenues on a weekly basis [p.166].
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?
Yes, you can sell or transfer your franchise, but it must comply with applicable laws [p.100] and involves paying a transfer fee to the franchisor. The fee is 50% of the initial franchise fee unless the transferee entity is owned and controlled by the Franchisee's principals for convenience purposes, in which case the fee is $2,000 [p.99]. Additionally, the purchase price and terms must not unduly burden the prospective transferee [p.100].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if certain conditions are met, as outlined on [p.102] and [p.176]. These include the franchisee's failure to cure a default within the specified time period, the franchisee ceasing active engagement in development activities for three consecutive months, becoming insolvent, or failing to meet development obligations under the Development Schedule. Additionally, if any Franchise Agreement entered by the franchisee is terminated or subject to termination by the franchisor, this can also lead to agreement termination.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on initial net worth or liquid capital requirements for franchisees. However, it does mention that a transferee must demonstrate adequate financial resources and capital to meet performance obligations under the agreement [p.99].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by Beans & Brews, or competitive brands controlled by the company [p.40, p.41]. Each Franchised Business will have a protected Territory within your Development Area, but this does not constitute an exclusive territory [p.41].
What training and ongoing support does the franchisor provide?
Beans & Brews provides initial training for up to three people at their facilities or designated locations [p.37]. For your first location, they will also send a corporate trainer who stays on-site 4-5 days before opening and continues to assist during the early operations [p.39]. Ongoing support includes two in-person visits annually from the operations team, with Beans & Brews covering all related expenses [p.39]. This training is supervised by Sarah Anderson and her team [p.39]. For subsequent locations, you are required to maintain at least two certified managers and lead new crew training using provided tools or through certification [p.39].
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 franchisor does provide some financial performance information based on historical data of existing outlets [p.60]. However, this information is not intended to represent future performance for a prospective franchisee [p.186], and the franchisor does not endorse any oral or written information that differs from what is provided in Item 19 of the disclosure document [p.64, p.186].
What am I restricted to selling, and where must I buy supplies?
You are not restricted in what you can sell beyond the requirement to use Beans & Brews' trademarks. However, all required equipment and inventory, such as food preparation items, furniture, coffee, and proprietary drink mixes, must be purchased from approved vendors including Arabica or other specified suppliers [p.20-24]. This includes purchasing coffee and proprietary drink mixes exclusively from Arabica via Electronic Funds Transfer (EFT) [p.20-24].