The coffee franchise industry is really popular nowadays as consumers use coffee shops as a place to hang out, study, and meet with friends. This is why it’s currently one of the best franchise opportunities. We spoke with FranchiseGrade.com and received data on the 8 best-performing coffee franchises with minimum investments between $10,000 and $250,000.
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The 8 best coffee franchises include:
1. Corner Bakery Cafe
Corner Bakery Cafe is a fast and casual restaurant serving breakfast, lunch, and dinner. The menu features freshly prepared dishes including pancakes, oats, sandwiches, soup, pastries, coffee, juice, and more. They also pride themselves on having a best-in-class catering platform.
Corner Bakery Cafe was founded in 1991 and started franchising in 2007. As a franchisee, they assist you every step of the way, from site selection to grand opening. The required initial investment ranges from $10,000 to $1.9 million, plus an ongoing royalty fee of 5%. The contract length is 10 years.
Maui Wowi is a Hawaiian-themed coffee shop that serves fresh fruit smoothies, Hawaiian coffee and related espresso beverages and a variety of Hawaiian products. Their franchise units vary from full-scale restaurants to mall kiosks, food trucks and portable carts.
You need a total upfront investment of $73,900 to $1.5 million to become a Maui Wowi franchisee. They currently have 170 locations nationwide. The initial contract agreement term is for a period of 10 years and their renewal term is 5 years.
3. Dunkin Donuts
Dunkin’ Donuts is a popular coffee and doughnut chain all around the world. They have been in business since 1950 and currently have over 7,500 locations available. However, it’s tough to join Dunkin’ Donuts as a new franchisee. There’s a rigorous selection process for new owners, and existing owners have an advantage because 90% of new stores are opened by current franchisees.
Dunkin’ Donuts require an initial upfront investment of $95,200 to $1.7 million. The ongoing royalty fee is 5.9% and they have their agreement term is 20 years – the longest term among all the coffee franchises on this list.
4. Scooter’s Coffee
Scooter’s Coffee is a drive-through coffee founded in 1998. They started to franchise in 2001 and they currently have 177 franchise locations. They offer a variety of items, such as hot drinks, iced drinks, blenders, smoothies, teas, pastries, sandwiches, burritos, and more. Their keys to success are finding great locations and staying committed to high-quality drinks and speed of service with a smile.
If you want to start a Scooter’s Coffee franchise, you need an initial investment of between $103,000 to $468,500. Their contract agreement is for a length of 10 years and their ongoing royalty fee is 6%.
5. Cafe2U
Cafe2U is a mobile coffee business that sells high-quality coffee at offices, factories, parks, campuses, and almost anywhere else. Franchise owners sell coffee straight from their Cafe2U van, which is equipped with all the gear needed to make espresso, cappuccinos, lattes, and other premium drinks. Cafe2U was launched in 2000 in Australia and is now making slow headway into the US.
If you want to start a Cafe2u franchise, you need an upfront investment between $109,146 and $154,621. The ongoing royalty fee is $175 per week, and the length of the contract agreement is 10 years.
Biggby Coffee takes a traditional approach to the American coffee house. Their mid-sized interiors resemble a modest office lounge and their menu includes a variety of coffee drinks, flavored lattes, cookies, parfaits, fruit cups, bagel sandwiches, and other baked goods. Their founders have years of experience in the restaurant business and they have developed a support system that offers training, marketing, and more.
An initial investment between $160,350 and $319,100 is needed if you want to be a Biggby Coffee franchisee. They currently have over 200 franchise locations nationwide. The contract agreement has a length of 10 years and the term for renewal of the contract is 5 years. The ongoing royalty fee is 5%.
7. Caffe Bene
Caffe Bene is one of the fastest growing coffee chains, which originally started in South Korea in 2008. They have over 1,600 units globally, with 31 existing locations in the US. They offer a diverse menu including coffee, tea, frappes, smoothies, fruit juice, ice flakes, pastries, bagels, and waffles.
Caffe Bene offers a cozy and comfortable coffee lounge for its customers, with its a homey interior of reclaimed wood. You need a minimum initial investment of $246,000 to become a Caffe Bene franchisee. The contract agreement length for this coffee franchise is 10 years and the ongoing royalty fee is 4.9%.
8. Cabin Coffee Co.
Cabin Coffee Co. has the highest minimum initial investment among the five coffee franchises listed in this article. The required total initial investment ranges between $250,000 and $935,000. However, they have the lowest royalty fee of 3%, compared to the other coffee franchises’ royalty fee of between 4.9% to 6%. Also, they have the shortest agreement length of 5 years, versus the 10-year contract of the other franchises.
Cabin Coffee Co. is an artifact-themed café and restaurant that specializes in the preparation and merchandising of specialty coffees and coffee blends, other blended soft drinks, baked goods, soups, sandwiches, salads, and more. They are dedicated to training, supporting, and serving each franchisee to ensure that you maximize every opportunity in providing quality service and products. Currently, they have 11 existing locations available.
Bottom Line – Best Coffee Franchise
While most of the big coffee chains are not open for franchise opportunities, there are a number of growing coffee shops looking to expand through franchising. Finding the right location for your franchise site, hiring the best people to manage your coffee shop, and using great cafe POS software are key components to making sure that your coffee franchise will be a success.
When it comes to marketing, a professional website can bring customers to your door (or cart) and literally put you on the map. DreamHost offers website hosting for just $4.95 a month, which includes a free domain name, premade website templates, online sales marketing tools, and more.
Medo
Hi , i have about 400,000 $ , so i need a franchise a coffee shop to open in Saudi Arabia. So do you have a good coffee shop that may need to franchise their business.
Laura Handrick
Hi Medo,
Many franchisors focus on specific geographic locations. You may want to go to the website of the International Franchise Association, IFA, to search by location. IFA has an annual conference every year where you can meet franchisors directly (The 2019 conference will be in Las Vegas, USA). Another option is to contact a franchise broker who represents several franchise systems to help find one best for you. Or given your resources, you might consider finding a franchisor that’s not currently in Saudi Arabia, and negotiate with them about purchasing a licensing agreement that allows you to expand their business into that country.
Your funds are adequate.
Best of luck to you!
Laura, Staff WRiter, MA Ed, International Certified Franchise Executive (ICFE)
https://fitsmallbusiness.com/starting-a-franchise/
https://www.franchise.org/
https://www.franchise.org/convention
Joe
Hello,
I’m looking to franchise a coffee franchise. I own a building for the franchise but limited funds. Is it possible to get financing with some of these franchises?
Laura Handrick
Hi Joe,
Some franchisors do provide finance options for their franchise owners, most likely through a third party.
However, you’re often in a better buying position if you obtain finance approval in advance.
We recommend you take a look at our Finance section to see the many options available to business owners.
Best!
Laura
Busayo Adeniyi
Hi, I have about $15,000 to invest in a food business in NYC. Do you have any recommendations? I know NYC is busy & highly competitive. Also business startup & fold up everyday so I’m trying to be careful with my “little cash” investment.
Regards.
Laura Handrick
Hi Busayo,
Although $15K isn’t much you might consider a food truck or kiosk. A food truck might cost $50K or more, but you could start small, with a limited menu perhaps. Franchises are going to cost much more because, frankly, you get more — in terms of experience, established processes, and someone to guide you so that you don’t make newbie mistakes. Here are some articles that may help. Good luck to you.
Laura, Staff Writer, Certified Franchise Exec
Amir zia
Hallo I want to open coffee shop in poland starbucks or costa or nero green
Laura Handrick
Hi Amir,
Looks like you’ve narrowed down your options. Consider visiting franchisees for each of these systems and getting their insights on what works well and what’s not working with each of their franchise systems. That will help you determine which is the best for you. For example, some will have much higher franchisee fees, while others may offer better training and support. Do your homework before investing your funds. Here are additional articles to help you choose.
Best!
https://fitsmallbusiness.com/how-to-choose-a-franchise/
https://fitsmallbusiness.com/buying-a-franchise/
Erin Meiers
I live In Gainesville, FL in an area where subdivisions are building like wild-fire. A lot of young families and hospital staff are living in these subdivisions. I think a nice coffee shop that includes a drive through would be very successful! What franchise do you think would be beneficial?
Laura Handrick
Hi Erin,
Your best bet is to go to the International Franchise Association (IFA) website and look at ratings. You’ll also want to talk to franchisees in whichever system you choose to make sure they enjoy working with the Franchisor. The Franchisor-franchisee relationship is the most important thing in my opinion. Also look at franchise and marketing fees, and ask how much start-up support and training you’ll get. Franchising is a great way to open a business, without risking rookie mistakes. Just follow the system, with whichever franchise you choose, and do your homework before scheduling your Discovery Day (because on that day, you may encounter a heavy sales pitch…). Here are articles to help you with your research. Best!
Laura, Staff Writer and International Certified Franchise Executive