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Scooter’s Coffee Franchise Costs $797K – $1.39M (+ 2024 Profits)

Scooter’s Coffee, founded in 1998 by Don and Linda Eckles, stands as a significant player in the drive-thru coffee franchise industry. Based in Omaha, Nebraska, Scooter’s Coffee began franchising in 2001, reflecting a quick expansion from its humble beginnings.

The franchise leverages a strategic drive-thru kiosk model, which capitalizes on the growing demand for quick and convenient access to quality coffee and related products. This model allows for operations within compact spaces typically located in parking lots near busy retail settings, maximizing customer convenience without the need for in-store seating​ ​.

What sets Scooter’s Coffee apart is not just its efficient service model but also its commitment to quality. The franchise offers a variety of espresso drinks, smoothies, and baked goods, catering to a broad audience. The operational model focuses on high efficiency and speed, living up to its promise of “Amazing Drinks, Amazingly Fast!”

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Initial investment

Type of ExpenditureAmount for Kiosk Store
Initial Franchise Fee$40,000
Initial Opening Support Fee$15,000
Construction Costs (not including the purchase of land)$495,000 to $829,000
Architectural and Engineering Fees$36,000 to $75,000
Equipment, fixtures and furniture$172,500 to $183,000
Signs$51,000 to $61,000
Point-of-sale system and software$14,500 to $15,000
Technology Systems$34,500 to $41,000
Deposits and licenses$1,000 to $8,000
Initial training: travel and living expenses$5,000 to $8,000
New Store Opening Training Fee$5,000
Opening inventory, supplies, and smallwares$25,000 to $27,000
Additional funds — 3 months$0 to $86,000
Total$895,000 to $1,393,000

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 fee for opening a SCOOTER’S COFFEE Store, referred to as the Initial Franchise Fee, is $40,000. This fee is payable by Automated Clearing House network transfer (ACH) when you sign the Franchise Agreement and is non-refundable.

Royalty Fee

The Royalty Fee is 6% of Net Sales, paid weekly via electronic funds transfer.

Marketing/Advertising Fee

The Marketing Contribution is 2% of Net Sales, paid weekly. This fee contributes to a marketing fund for promotional activities.

Technology Fee

The Technology Fee varies and is currently $175 to $350 per month, covering access to necessary technology and software.

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Franchise pros and cons

The Pros:

  • Absentee ownership is allowed: The franchise provides franchisees with a passive investment opportunity. Franchisees can operate a Scooter’s coffee restaurant as they pursue their formal jobs and other business ventures.
  • Comprehensive Training consisting of 104 on-the-job hours and 56 classroom hours is necessary to train franchisees on the business concept and practice, customer service, inventory handling, and managing human resources.
  • Corporate support: The brand provides franchisees with industry experts to guide them on how to run their restaurants smoothly. Also, franchisees get access to a network of successful franchises that share valuable business insights and ideas for growth.
  • Real estate and construction: The brand helps its franchisees with site selection, lease negotiation, design, and construction of their restaurants. It provides them with real estate experts to help them identify convenient business locations and construction plans to establish restaurants at lower costs.
  • Flexible franchise formats: The franchisor gives its franchisees two operating formats so that they can choose which suits them better. These are the drive-thru kiosks that operate on take-out for drinks and the drive-thru coffee house, which caters to walk-in customers
  • Exclusive territory: The franchisor grants franchisees the right to operate in an exclusive protected territory. The franchisor does not authorize any other franchisees or establish Scooter’s coffee restaurants in the agreed-upon territory.

The Cons:

  • Not a part-time business: The franchise does not provide franchisees with a part-time business opportunity. Therefore, franchisees are required to open in full as per the brand’s operating schedule.
  • Competition. The brand is facing competition from world brands like Dutch Bros. Coffee, Tim Hortons, Biggby coffee or even Dunkin’ Donuts.
  • No global presence: The brand does not have a presence outside the United States. Franchisees may have challenges reaching their targeted customers in other countries.

How to open a Scooter’s Coffee franchise

1: Assess Your Financial Capacity

  • Initial Capital: Ensure you have the financial capacity with a minimum liquid capital of $250,000 and a net worth of $500,000.
  • Total Investment: Be prepared for a total investment ranging from $794,000 to $1,264,500, which includes a $40,000 franchise fee​​.

2: Submit Your Application

  • Franchise Application: Complete and submit your application to Scooter’s Coffee, showing your financial qualifications and business interest.
  • Review Process: Your application will undergo a review to assess your financial stability and compatibility with the franchise’s brand values​​.

3: Complete Required Training

  • Initial Training: Attend a comprehensive training program lasting approximately four weeks at Scooter’s Coffee corporate headquarters in Omaha, Nebraska.
  • Ongoing Support: Engage in continuous learning through additional training sessions and receive support from a Field Brand Consultant who assists in all aspects of your business operations​​.

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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