Biggby Coffee Franchise FDD, Profits, Costs & Fees (2024)
Biggby Coffee is a fast-growing coffee franchise founded on March 15, 1995, in East Lansing, Michigan. Co-founders Bob Fish and Michael McFall started with a handshake and $4,000 to open their first store. By 1996, they had expansion plans, launching their franchise model.
The brand is headquartered in East Lansing and now has over 300 locations in 13 states. Known for exceptional service and a vibrant, community-focused culture, Biggby offers lattes, sweet foam drinks, energy beverages, smoothies, traditional coffee, tea, and food options.
Biggby stands out by building strong bonds with franchisees and customers.
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Initial Investment
How much does it cost to start a Biggby Coffee franchise? It costs on average between $246,000 – $746,000 to start a Biggby Coffee franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property. Biggby Coffee offers 3 types of franchises:
| Type of Expenditure | Whitebox Leasehold Amount | Modular Amount | Site-built Location Amount |
|---|---|---|---|
| Initial Franchise Fee | $20,000 | $20,000 | $20,000 |
| Subtotal Initial Franchise Fee | $20,000 | $20,000 | $20,000 |
| Development Costs | |||
| Leasehold Improvements | $165,000 to $295,000 | Included in Construction Costs | Included in Construction Costs |
| Site Improvements | Not applicable | $83,000 to $323,000 | Included in Construction Costs |
| Construction Costs | Included in Leasehold Improvements | $193,500 to $237,500 | $300,000 to $398,000 |
| Equipment, Furniture, and Decor | $77,000 to $125,000 | $43,000 to $74,000 | $74,000 to $112,000 |
| Architectural and Engineering | $7,500 to $15,000 | $13,250 to $24,000 | $12,000 to $20,000 |
| Building Permits | $7,500 to $15,000 | $8,500 to $14,250 | $8,500 to $15,000 |
| Signage (Interior and Exterior) | $10,000 to $22,000 | Included in Construction Costs | $11,500 to $24,000 |
| Subtotal Development Costs | $267,000 to $472,000 | $341,250 to $672,250 | $406,000 to $569,000 |
| Other Pre-Opening Costs | |||
| Real Property Rental or License | $6,000 to $18,500 | $6,000 to $18,500 | $6,000 to $18,500 |
| Initial Inventory | $10,000 to $15,000 | $10,000 to $15,000 | $10,000 to $15,000 |
| Insurance – General Liability, Property, EPLI, and Workers Compensation | $1,500 to $2,000 | $1,500 to $2,000 | $1,500 to $2,000 |
| Utility Expense | $500 to $4,000 | $500 to $5,000 | $500 to $5,000 |
| License Permits and Other | $1,000 to $2,500 | $1,000 to $2,500 | $1,000 to $2,500 |
| Initial Advertising and Grand Opening Promotions | $9,500 | $9,500 | $9,500 |
| Miscellaneous Travel and Living Expenses for Training | $500 to $5,000 | $500 to $5,000 | $500 to $5,000 |
| Organizational Expenses | $2,000 to $2,500 | $2,000 to $2,500 | $2,000 to $2,500 |
| Additional Funds – 3 months | $10,000 to $40,000 | $10,000 to $40,000 | $10,000 to $40,000 |
| Subtotal Other Pre-Opening Costs | $41,000 to $99,000 | $41,000 to $100,000 | $41,000 to $100,000 |
| Total Estimated Initial Investment | $328,000 to $591,000 | $402,250 to $792,750 | $467,000 to $689,000 |
Average Revenue (AUV)
How much revenue can you make with a Biggby Coffee franchise? A Biggby Coffee franchised restaurant makes on average $676,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $557,000 yearly revenue for similar coffee & tea franchises. Below are 10 Biggby Coffee competitors as a comparison:
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Biggby Coffee Franchise Disclosure Document
Frequently Asked Questions
How many Biggby Coffee locations are there?
As of the latest data, Biggby Coffee operates 392 franchised locations across 13 U.S. states, with over 140 stores in development. The coffee chain has been experiencing significant growth and aims to reach 500 stores by the end of 2024.
There are no company-owned stores; all locations are franchised. The brand’s expansion plans include opening new locations primarily in Michigan, Indiana, Ohio, and Wisconsin, among other states.
What is the total investment required to open a Biggby Coffee franchise?
The total investment required to open a Biggby Coffee franchise ranges from $328,000 to $793,000.
What are the ongoing fees for a Biggby Coffee franchise?
Biggby Coffee franchisees are required to pay a 6% royalty fee on gross sales. Additionally, there is a marketing fund fee of 6% of gross sales, which covers both regional and national advertising efforts, as well as brand development and promotional activities.
What are the financial requirements to become a Biggby Coffee franchisee?
To become a Biggby Coffee franchisee, the financial requirements include a minimum net worth of $300,000 and at least $100,000 in liquid capital. These requirements ensure that potential franchisees have the financial stability and resources needed to establish and operate a Biggby Coffee franchise effectively.
How much can a Biggby Coffee franchise owner expect to earn?
The average gross sales for a Biggby Coffee franchise are approximately $0.68 million per location. Assuming a 15% operating profit margin, $0.68 million yearly revenue can result in $102,000 EBITDA annually.
Who owns Biggby Coffee?
Biggby Coffee is owned by its co-founders, Bob Fish and Michael McFall. They started the company in 1995 in East Lansing, Michigan, and it has since grown into a large franchise with locations across multiple states. Bob Fish and Michael McFall remain actively involved in the business as co-CEOs, guiding the company’s expansion and operations.
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