Travelin Toms Coffee
Travelin' Tom's Coffee offers mobile coffee and tea services through franchised trucks, known for their on-the-go convenience in various locations. Operating in the quick-service food and beverage industry.
Travelin Toms 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 Travelin' Tom's Coffee franchised business is between $198,450 and $255,325 [p.1]. This range includes the costs specified in the FDD excerpts but does not cover all potential additional expenses such as build-out, inventory, equipment, supplies, materials, products, staff training, and signage mentioned on page 262.
What is the initial franchise fee?
The initial franchise fee is $15,000 [p.12]. This fee covers pre-opening assistance and offsets some of the franchisee recruitment expenses [p.12]. However, this fee can be deferred under certain conditions, such as when required by a state's Department of Labor and Regulation or Commerce and Consumer Affairs [p.193, p.255, p.183].
What are the ongoing royalty and advertising fees?
The ongoing BEV Royalty is based on a schedule that includes three, six, or nine installments per year [p.103]. Additionally, if you participate in the BEV Advertising Program, you will pay a 15% royalty of the Advertising Gross Sales generated from this program [p.23]. This isn't specified in the excerpts for other ongoing royalties or advertising fees beyond these.
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is 10 years [p.100]. You may qualify to enter into a maximum of two successor franchise agreements, each also for a 10-year term, but these terms and conditions may vary substantially from the initial agreement, including potentially higher royalties [p.100].
Can I sell or transfer my franchise, and what does that require?
You can transfer your franchise, but it requires compliance with certain conditions as outlined in the FDD. The transfer must be approved by the franchisor, except for good cause, which includes but is not limited to specific reasons such as financial distress [p.5]. Additionally, any laws governing the offer and sale of franchises must be adhered to, and you or your owner, along with the transferee, must satisfy other conditions reasonably required by the franchisor [p.124].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the 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?
Yes, you will operate under an exclusive territory as specified in the Franchise Agreement. Your Protected Territory is based on geographic area and population properties within that area, with exclusivity granted for areas up to 100,000 people, though this can vary depending on the density of the population [p.41]. This territory will be identified in an exhibit to your Franchise Agreement and you are restricted from operating outside these boundaries unless approved by the franchisor [p.41].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training through a program called "Tom's Coffee Academy" at no cost for one attendee. This includes actual operation of a BEV under supervision, using instructional materials such as the BEV and its equipment, manufacturer brochures, operational manuals, and the Brand Manual [p.40]. For additional attendees or in cases where an existing franchise is being acquired through transfer, costs are the responsibility of the franchisee [p.108, p.40]. The franchisor may also charge fees for training and require reimbursement for associated costs [p.108].
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 may provide actual records of an existing outlet's performance if you are purchasing one. However, they do not make representations about future financial performance or past performance of company-owned or franchised outlets, nor authorize their employees to do so [p.53]. Financial performance information can be included in the disclosure document only if there is a reasonable basis for it and if specific conditions are met [p.52].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering only the products and services that have been approved and specified in the Brand Manual, which may include certain minimum and maximum resale prices for multi-area marketing programs and special price promotions. You must obtain services and products from designated suppliers, approved suppliers, or according to our specifications as detailed in the Brand Manual [p.28].