Caribou Coffee Franchise FDD, Profits & Costs (2025)
Caribou Coffee is a premium coffeehouse chain founded in December 1992 by John Puckett in Edina, Minnesota, a suburb of Minneapolis.
The company’s headquarters are located in Brooklyn Center, Minnesota. Caribou Coffee began franchising in 2004, expanding its reach both domestically and internationally.
The brand offers a diverse menu that includes handcrafted coffee beverages, teas, sandwiches, bagels, and pastries.
Caribou Coffee differentiates itself by using 100% Rainforest Alliance Certified beans and real ingredients like chocolate chips and caramel sauce, ensuring high-quality products.
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Initial Investment
How much does it cost to start a Caribou Coffee franchise? It costs on average between $268,000 – $1,386,000 to start a Caribou Coffee franchised shop.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount varies based on several factors, such as the type of Caribou Coffee location, its geographic market, and whether the franchisee opts to lease or purchase the property.
| Type of Expenditure | Kiosk Amount | Cabin Amount | Chalet Amount |
|---|---|---|---|
| Architecture and Design Fees | $5,000 – $25,000 | $15,000 – $25,000 | $30,000 – $45,000 |
| Leasehold Improvements / Construction Costs | $45,000 – $250,000 | $140,000 – $235,000 | $300,000 – $560,000 |
| Furniture, Fixtures & Equipment | $150,000 – $225,000 | $255,000 – $300,000 | $355,000 – $475,000 |
| Signage | $5,000 – $15,000 | $50,000 – $85,000 | $35,000 – $75,000 |
| Subtotal for Leasehold Costs | $205,000 – $515,000 | $460,000 – $645,000 | $720,000 – $1,155,000 |
| Initial Franchise Fee | $7,000 – $15,000 | $30,000 | $30,000 |
| Business Licenses and Permits | $100 – $2,000 | $100 – $2,000 | $100 – $2,000 |
| Initial Inventory | $10,000 – $15,000 | $12,000 – $20,000 | $12,000 – $20,000 |
| Technology Costs | $18,000 – $23,000 | $27,000 – $32,000 | $30,000 – $36,000 |
| New Store Opening Launch Program | $3,000 – $6,000 | $10,000 – $15,000 | $10,000 – $15,000 |
| Professional Fees | $5,000 – $15,000 | $5,000 – $25,000 | $5,000 – $25,000 |
| Initial Training Expenses | $3,000 – $9,000 | $3,000 – $9,000 | $3,000 – $9,000 |
| Additional Funds (3 months) | $17,000 – $65,000 | $34,000 – $110,000 | $37,000 – $94,000 |
| Subtotal for Other Pre-Opening Costs | $63,100 – $150,000 | $121,100 – $243,000 | $127,100 – $231,000 |
| Total Estimated Initial Investment (excluding Lease) | $268,100 – $655,000 | $581,100 – $888,000 | $847,100 – $1,386,000 |
Average Revenue (AUV)
How much revenue can you make with a Caribou Coffee franchise? A Caribou Coffee franchised business makes on average $735,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $608,000 yearly revenue for similar coffee & tea franchises. Below are a few Caribou Coffee competitors as a comparison:
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Caribou Coffee Franchise Disclosure Document
Frequently Asked Questions
How many Caribou Coffee locations are there?
As of the latest data, Caribou Coffee operates a total of 480 locations. This includes 333 company-owned units and 147 franchised units. The brand continues to expand its footprint, growing both its corporate and franchise presence in various markets.
What is the total investment required to open a Caribou Coffee franchise?
The total investment required to open a Caribou Coffee franchise ranges from $268,000 to $1,386,000.
What are the ongoing fees for a Caribou Coffee franchise?
Caribou Coffee franchisees pay a royalty fee of 5% of gross sales for Cabin and Chalet models and 6% for Kiosk models, with a minimum annual royalty of $6,000. They also contribute up to 3% of gross sales toward marketing, allocated as 2% to the Brand Fund and 1% for local marketing.
What are the financial requirements to become a Caribou Coffee franchisee?
To become a Caribou Coffee franchisee, applicants are typically required to have a minimum net worth of $3,000,000. Additionally, the initial investment ranges between $200,000 and $400,000, depending on store size and location.
How much can a Caribou Coffee franchise owner expect to earn?
The average gross sales for a Caribou Coffee franchise are approximately $0.74 million per location. Assuming a 15% operating profit margin, $0.74 million yearly revenue can result in $111,000 EBITDA annually.
Who owns Caribou Coffee?
Caribou Coffee is owned by JAB Holding Company, a German conglomerate headquartered in Luxembourg. In December 2012, JAB acquired Caribou Coffee for approximately $340 million. In 2021, JAB merged Caribou Coffee with Panera Bread and Einstein Bros. Bagels to form Panera Brands, a subsidiary under its ownership.
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