Ziggis Coffee
Ziggis Coffee offers retail coffee shops serving gourmet specialty drinks and food items. Known for its drive-thru options and various beverage choices, it operates in the competitive quick-service restaurant sector.
Ziggis Coffee franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation ranges from $581,500 to $2,093,000 for different types of ZIGGI'S Coffee Shop franchises as detailed in [p.1]. This includes an additional fee of $50,000 for a 3-Pak or $185,000 for a 9-Pak at the time of signing the Franchise Agreements, which are paid to the franchisor.
What is the initial franchise fee?
The initial franchise fee varies based on the number of franchises acquired. For a single ZIGGI'S Coffee Shop franchise, the Initial Franchise Fee is $40,000 [p.24]. If acquiring a 3-Pak for three franchises, the total Initial Franchise Fee is $90,000 [p.24]. For a 9-Pak to develop nine Coffee Shops, the fee structure includes an initial $25,000 per each of the first nine shops plus a Development Fee of $25,000 for each additional shop beyond the first three in a 3-Pak or the first nine in a 9-Pak [p.24].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of the franchisee's gross sales, paid weekly [p.73]. There is no specified minimum amount for local advertising other than the opening marketing requirements, but ZCF reserves the right to require a minimum expenditure not exceeding 1 percent of Gross Sales if needed [p.37].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreements is typically 10 years [p.212]. A franchisee may generally renew the franchise agreement upon its expiration, subject to the franchisor's approval [p.212].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a 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 factors [p.5(G)].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement if there is a default by the franchisee that constitutes good cause, as defined [p.5]. Good cause includes failure to comply with lawful provisions of the franchise agreement and not curing such failure after receiving written notice and a reasonable opportunity to cure, which cannot exceed 30 days [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 an exclusive territory. According to [p.45] and [p.47], you will not be granted a geographic area around your Shop Location where you have the sole right to operate ZIGGI'S Coffee Shops. You may face competition from other franchisees, outlets owned by the franchisor, or other competitive brands within the Development Area.
What training and ongoing support does the franchisor provide?
The franchisor provides pre-opening services, operational materials, planning, and functional training courses. Additionally, they offer ongoing services such as marketing and technology support. [p.212]
How many franchised outlets are there, and how many have closed or been terminated?
As of the end of calendar year 2024, there were 93 ZIGGI'S Coffee Shops operated by franchisees. The number of franchised outlets that have closed or been terminated is not directly specified in the provided excerpts. However, [p.200] indicates that a list of such franchisees who had their outlets terminated, cancelled, not renewed, or otherwise ceased to do business is available, but the specific numbers are not given here.
Does the franchisor share any financial performance or earnings information?
The franchisor does not provide specific financial performance or earnings projections in Item 19 of the FDD [p.171]. However, it reserves the right to disclose data derived from Franchisee's financial and accounting reports for various purposes such as preparing financial performance representations [p.95]. This isn't specified in the excerpts regarding actual financial performance information shared with potential franchisees.
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those products and services approved by ZCF, and you must comply with their standards and specifications for product mix and inventory levels. You must sell all designated products and cannot engage in wholesale orders or off-premises sales without prior written consent [p.50]. For supplies, you may have to buy items from the franchisor or a limited group of suppliers they designate, as these items might be more expensive than those available elsewhere [p.3]. Additionally, all advertising and marketing materials must be purchased from ZCF or an approved supplier designated by them [p.31].