The Human Bean
The Human Bean offers espresso drive-thru franchises specializing in premium coffee products. Known for high-quality beverages, it operates in the competitive quick-service restaurant sector.
About The Human Bean
The Human Bean is an American national coffee company and coffeehouse chain based in Medford, Oregon. The Human Bean has 180+ drive-thru coffee locations open or in development in 25 U.S. states. The drive thru espresso brand started franchising in 2002.
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The Human Bean franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of this franchise ranges from $572,090 to $1,298,903. This includes an initial franchise fee that must be paid to the franchisor or an affiliate in the amount of $131,000 [p.1].
What is the initial franchise fee?
The Initial Franchise Fee is $35,000 for the first THB outlet and an additional $10,000 for each subsequent outlet within the development area [p.11]. This fee includes a nonrefundable site analysis fee of $5,000 [p.10].
What are the ongoing royalty and advertising fees?
There are no ongoing royalty fees as stated [p.12]. For advertising, you are required to spend at least $10,000 on local advertising during the first six months around your THB Outlet's opening, and thereafter, it is recommended to spend between 2% and 7% of gross sales revenue on local advertising [p.90-91].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is ten (10) years from the Effective Date [p.80]. You may be able to renew it for additional ten-year terms by accepting THB's offer under Section 3.1, provided you meet all conditions set forth in Section 3.2 [p.80].
Can I sell or transfer my franchise, and what does that require?
According to [p.73], you cannot freely transfer ownership of your franchise; good cause is required for such transfers, except for a right of first refusal exercised by the franchisor. For more specific details on transferring, including potential fees, you may need to refer to other sections of the FDD or contact authorized representatives as mentioned in [p.192].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law, as stated on [p.75]. However, provisions allowing termination upon the bankruptcy of the franchisee may not be enforceable under federal bankruptcy law (11 USC § 101 et seq.), as mentioned in several places including [p.72], [p.125], and [p.186].
What financial requirements — net worth and liquid capital — do I need to qualify?
According to the FDD, you must have a tangible net worth of at least $1,000,000.00 in constant dollars, both before and after any assignment [p.120]. This requirement does not specify liquid capital requirements [p.45].
Do I get an exclusive or protected territory?
Yes, as a franchisee, you are granted an exclusive territory within a 1-mile radius of your drive-thru location [p.30]. This exclusivity applies unless you become an Area Developer, in which case the terms and conditions for your territory may differ based on the Area Development Agreement [p.30, p.25].
What training and ongoing support does the franchisor provide?
The franchisor provides 120 hours of initial training for new franchisees at one of their facilities in Oregon [p.26]. This training includes travel, room, and board costs, which are paid by the franchisee [p.16]. Additional training can be requested or required, with a charge of $60 per hour [p.16]. The franchisor may also provide training for designated store managers beyond the first outlet if you become an Area Developer [p.26]. This information is specific to initial and additional training requirements but does not detail ongoing support beyond the training period.
How many franchised outlets are there, and how many have closed or been terminated?
There were 141 franchised outlets in operation throughout the fiscal year ending December 31, 2024. Two franchisees closed locations in 2024 [p.66], and no franchisee had an outlet terminated, canceled, or not renewed in 2024 [p.65].
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor shares historical financial performance data based on the unaudited financial statements of affiliate-owned stores and franchised stores. This includes EBITDA figures for both types of outlets [p.42]. However, the franchisor does not make any financial performance representations other than providing actual records of an existing outlet if purchased [p.45].
What am I restricted to selling, and where must I buy supplies?
You are required to sell products as specified by the franchisor and may have to buy or lease items from the franchisor or a limited group of suppliers they designate; these items might be more expensive than those available elsewhere [p.3]. This isn't specified in the excerpts regarding what exact products you must sell, but you must comply with the requirements set forth by the franchisor for supplies and sales [p.93].