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Biggby Coffee Franchises Costs $246K – $564K (2024 Fees & Profits)

Biggby Coffee, a rapidly growing coffee franchise, was founded on March 15, 1995, in East Lansing, Michigan. The concept was developed by co-founders Bob Fish and Michael McFall, who opened their first store with a handshake and $4,000. By 1996, they were already planning their expansion, and the franchise model was officially launched.

Headquartered in East Lansing, Michigan, Biggby Coffee has grown significantly over the years, boasting over 300 locations across 13 states. The franchise is known for its commitment to exceptional customer service and its vibrant community-oriented culture. Biggby Coffee offers a diverse menu, including lattes, sweet foam favorites, energy drinks, crème freeze smoothies, traditional coffee, tea, and a variety of food items.

Biggby Coffee differentiates itself from competitors by focusing on building strong relationships with both its franchisees and customers. The brand’s core values—Make Friends, Have Fun, B Yourself, and Share Great Coffee—resonate throughout its operations. Additionally, Biggby Coffee emphasizes sustainability through initiatives like One Bigg Island in Space, aiming to source coffee directly from farmers who run humane and sustainable operations.

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Initial investment

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Initial Franchise Fee

The initial franchise fee for a Biggby Coffee franchise is $20,000, with potential reductions for qualifying applicants.

Royalty Fee

Franchisees must pay a royalty fee of 6% of Gross Sales, or 5% for certain existing operators in Michigan.

Marketing/Advertising Fee

Franchisees are required to contribute the greater of $100 per week or 3% of Gross Sales to the advertising fund.

Technology Fee

Monthly technology fees include $75 for POS hardware support, $23 for PERC services, and other related fees.

Transfer Fees

The fee for transferring a franchise is $5,000 for existing franchisees in good standing, and $20,000 for all other transfers.

Renewal Fees

Renewal fees can be up to 50% of the standard initial franchise fee at the time of renewal.

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Franchise pros and cons

Pros

  • Innovative franchise models: The brand has different franchise formats to help its franchisees utilize the available real estate opportunities in their locations. These are the lobby and drive-thru, lobby, drive-through only, and kiosk models.
  • Real estate and construction: With an in-house and experienced team of real estate experts, the brand helps franchisees establish and build their cafes at low costs. The real estate team helps franchisees identify a viable business location, negotiate the leases, and design and construct the restaurants.
  • Comprehensive training: The brand has an extensive training program to help franchisees learn the foundations of the brand and run a successful business.
  • Management support: The brand offers franchisees solid support to ensure they establish, build, and grow their businesses smoothly. Franchisees get advice on operational issues from experienced and knowledgeable top management. The brand also provides ongoing support, consultations from industry leaders, meetings and conventions, safety and security procedures, and field operations support.
  • Passive investment: The Biggby Coffee franchise offers franchisees a passive investment opportunity. They can operate the franchise alongside their jobs and other interests.

Cons

  • No exclusive territory protection: The franchisor does not grant the franchisees an exclusive territory to operate their business. Therefore, franchisees can face competition from franchises granted by the franchisor or other competitive channels and brands controlled by the parent company.
  • No franchise financing: The brand does not finance its franchisees directly or indirectly. Also, it does not guarantee any lease, note, or grant on behalf of the franchisees.
  • Not a part-time business: The franchise does not provide a part-time business opportunity. The franchisor requires the franchisees to open full-time as per the agreed hours of operation.
  • Competition: The brand faces tough competition from other coffee brands such as Dunkin’ Donuts and Scooter’s Coffee.

How to open A Biggby Coffee franchise

1. Initial Inquiry and Research

  • Contact Biggby Coffee: Reach out to the franchise team to express your interest and gather initial information.
  • Review Franchise Disclosure Document (FDD): Carefully review the FDD provided by Biggby Coffee to understand the financial and operational commitments.
  • Attend Discovery Day: Participate in a Discovery Day event to meet the team, see operations firsthand, and ask any questions.

2. Financial Requirements

  • Initial Investment: Prepare for an initial investment ranging from $202,450 to $418,700, covering various costs like equipment, leasehold improvements, and initial inventory.
  • Franchise Fee: Pay the initial franchise fee, typically around $20,000-$30,000.
  • Net Worth and Liquid Capital: Ensure you meet the financial criteria, usually having a net worth of at least $300,000 and liquid capital of approximately $100,000-$150,000.

3. Site Selection and Lease Negotiation

  • Choose a Location: Work with Biggby Coffee’s real estate team to select a prime location that meets their standards and market potential.
  • Lease Agreement: Negotiate the lease terms for your chosen site, focusing on favorable conditions for your franchise.

4. Training and Support

  • Initial Training Program: Complete the comprehensive training program provided by Biggby Coffee, which includes both classroom and on-the-job training.
  • Ongoing Support: Take advantage of continuous support from Biggby Coffee, including marketing assistance, operational guidance, and regular check-ins from the franchise support team.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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