illy Franchise FDD, Profits & Costs (2025)
illy is a renowned Italian coffee company known for its premium espresso and refined café experience. Established in 1933 by Francesco Illy in Trieste, Italy, the brand has evolved into a global icon of coffee excellence and craftsmanship.
Still headquartered in Trieste, illy remains a family-owned enterprise, now managed by the third generation of the Illy family. The company expanded its reach by launching franchise opportunities under the “illy Caffè” brand, starting in the United States in 2008 and extending to Canada the following year.
The brand focuses on offering exceptional espresso made exclusively from 100% Arabica beans. illy products include whole beans, ground coffee, and single-serve pods, all complemented by its stylish coffee-bar franchise model that provides end-to-end support for café operations and interior design.
What distinguishes illy Caffè from competitors is its deep-rooted dedication to quality and innovation. Its pioneering pressurization system, developed in the 1930s, preserves the aroma and flavor of coffee, while the brand’s café concept captures the essence of Italian culture and contemporary design.
Initial Investment
How much does it cost to start a illy franchise? It costs on average between $402,000 – $2,006,000 to start a illy franchised location.
This investment covers expenses such as leasehold improvements, equipment, inventory, and initial working capital. The total amount varies based on factors like the café’s size, location, and design specifications, as well as whether the franchisee opts to lease or own the premises.
| Type of Expenditure | Amount |
|---|---|
| Initial Fee | $40,000 |
| Site Visit | $1,000 to $7,000 |
| Leasehold Improvements | $35,100 to $582,500 |
| Equipment | $100,000 to $584,220 |
| Computer System | $15,000 to $40,000 |
| Inventory | $20,000 to $40,000 |
| Uniforms | $3,000 to $10,000 |
| Utility Deposits | $2,000 to $5,000 |
| Travel and Accommodations for Training | $4,000 to $12,000 |
| Insurance | $6,000 to $20,000 |
| Opening Marketing | $10,000 to $40,000 |
| Business Licenses and Professional Services | $10,000 to $20,000 |
| Liquor Licenses | $2,500 to $200,000 |
| Pre-opening Training/Food Costs | $3,000 to $5,000 |
| Additional Funds (6 months) | $150,000 to $400,000 |
| Total Estimated Initial Investment (excluding rent/real estate) | $401,600 to $2,005,720 |
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Frequently Asked Questions
How many illy locations are there?
As of the latest available information, illy operates 17 franchised locations in the United States.
What is the total investment required to open a illy franchise?
The total investment required to open a illy franchise ranges from $402,000 to $2,006,000.
What are the ongoing fees for a illy franchise?
Illy franchisees pay an ongoing royalty fee of 6% of gross sales and a marketing or advertising fee typically ranging between 1% and 3% of gross sales. These fees support the brand’s continued global marketing efforts, product innovation, and overall operational support for franchise locations.
Who owns illy?
The franchise is owned by illycaffè S.p.A., an Italian company founded by Francesco Illy in 1933.
Disclaimer
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