Biggby Coffee
Biggby Coffee offers community coffee shops with a range of beverages, food, and merchandise. Known for its espressobased drinks and whole bean options, it operates in the quick-serve restaurant sector.
Biggby Coffee franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a BIGGBY ® COFFEE franchise varies based on the location type. For a Whitebox leasehold location, it is from $296,250 to $658,000, including $27,500 to $39,500 that must be paid to the franchisor or its affiliates. For a Modular Location, the range is from $533,500 to $949,000 with the same affiliate payment. For a Site-built location with a drive-thru, the investment ranges from $412,972 to $1,011,500, also including the affiliate payment. [p.1]
What is the initial franchise fee?
The initial franchise fee is $20,000 unless the Franchise Owner is an active or honorably discharged military service member or already owns one or more other Stores, in which case the fee is reduced to $10,000 [p.74]. This fee is payable at the time of signing the Franchise Agreement and is not refundable under any circumstances [p.13, p.139].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is related to the franchise right license and varies based on the franchisees' sales. Advertising fees are assessed by the company to maximize public recognition of the BIGGBY COFFEE trademarks and systems [p.241, p.245]. These fees are recorded as unexpended advertising fees if in excess of costs incurred or as accounts receivable if costs exceed fees assessed [p.242].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is typically 10 years [p.241]. You have an option to renew the agreement for a fee, but this isn't specified in the exact duration or conditions for renewal in the provided excerpts.
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit the transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified reasons [p.5]. This provision also does not prevent the franchisor from exercising a right of first refusal to purchase the franchise [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.260]. Additionally, if a franchisee fails to comply with lawful provisions of the franchise agreement and does not cure such failure within a reasonable time frame, this can be grounds for termination [p.5].
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 any exclusive area for your Franchise Business according to [p.140]. You may face competition from other franchisees, outlets owned by the company, or other competitive brands [p.207 and p.43].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program at no cost for up to two people who are owners or management employees of the franchise. Additional training can be requested, with fees not exceeding $5,000 per person. Ongoing support includes required attendance at additional training, sales programs, and meetings as specified by the franchisor. There is also a possibility of on-demand training at your location, though this may incur costs. [p.42]
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not provide a specific number of franchised outlets. However, it mentions that 14 locations across Illinois, Michigan, Ohio, South Carolina, and Wisconsin permanently closed in 2024, while some locations had plans to re-open after repairs. Additionally, there were closures in previous years: 5 locations closed in 2022, and 6 locations closed in 2023 [p.61, p.60].
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor can provide financial performance information based on subsets of their existing outlets' historical data [p.52, p.153, p.107, p.206]. However, this information is not audited and may not be prepared in accordance with generally accepted accounting principles (GAAP) [p.53]. The franchisor does not make any financial performance representations other than the historical data provided [p.58].
What am I restricted to selling, and where must I buy supplies?
You are required to sell all products and services specified by the company [p.48]. You may not offer any unauthorized products or services [p.48]. The franchisor can change the authorized products and services at any time without limitation [p.48]. Regarding supply, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.3]. However, in Hawaii, if such requirements are found to be unlawful, you must purchase those products from approved suppliers instead [p.255, p.267].