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Biggby Coffee Franchise ProfileCoffee Franchises > Coffee Shops |
What is the Initial Investment for a Biggby Coffee Franchise?
To open a Biggby Coffee franchise, you will need to prepare for an initial investment ranging from $328,000 to $792,750. This includes a franchise fee of $20,000, along with other startup costs. Potential franchisees should also consider having cash reserves between $328,000 and $591,000 and meeting a net worth requirement within the same range to ensure financial stability during the startup phase.
What Are the Ongoing Fees for a Biggby Coffee Franchise?
Franchisees of Biggby Coffee are subject to ongoing fees that include a royalty fee of 6% of gross sales and a marketing fee of 3%. These fees are essential for maintaining brand standards and supporting marketing efforts, which can help drive customer traffic to your location. Understanding these fees is crucial for financial planning and overall profitability.
What Are the Revenue Potential and Financial Performance of a Biggby Coffee Franchise?
The average annual revenue for a Biggby Coffee unit is approximately $833,063, with a median revenue of $720,820. Revenue can vary significantly, with the lowest reported annual revenue at $314,154 and the highest at $1,686,593. With a gross profit margin of 61.5%, franchisees can expect a healthy return on investment, making it vital to analyze these figures when considering the franchise opportunity.
How Long Does It Take to Break Even with a Biggby Coffee Franchise?
Franchisees can expect to reach breakeven in about 36 months, which is a common timeline in the coffee shop industry. Additionally, the investment payback period is relatively swift at around 8 months, indicating that diligent management and effective marketing strategies can lead to profitability in a shorter timeframe. This information can help potential franchisees assess the financial viability of their investment.
Biggby Coffee Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Biggby Coffee Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 245 | 281 | 334 |
| Net Change YoY | 36 | 53 | |
| Franchised Units | 245 | 281 | 334 |
| Net Change YoY | 36 | 53 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
Biggby Coffee offers a franchise opportunity with a low initial investment starting at $328,000 and going up to $792,750. The initial franchise fee is $20,000, with ongoing royalty fees of 6% and a marketing fee of 3%. Prospective franchisees should be prepared to have a cash requirement between $328,000 and $591,000, along with a net worth ranging from $328,000 to $792,750.
Financial Performance
On average, Biggby Coffee franchise units generate annual revenues of approximately $833,344. The lowest annual revenue reported is $314,154, while the highest reaches $1,686,593. Franchisees can expect a breakeven period of around 36 months, with an investment payback period of just 8 months, making it a potentially lucrative investment for coffee enthusiasts.
Franchise Growth
Biggby Coffee has shown consistent growth in the number of franchised units over the past few years. In 2021, there were 245 franchised units, which increased to 281 in 2022, and reached 334 in 2023. This growth trajectory highlights the brand’s expanding presence and popularity in the coffee franchise market, making it an attractive option for aspiring franchisees.
Operating Expenses
Franchisees can expect average operating expenses to total around $426,265 annually. Key expense categories include labor costs at approximately $232,063, operations at $14,936, administration at $41,508, and marketing fees at $84,017. Understanding these expenses is crucial for maintaining profitability and managing cash flow effectively.
Profitability Metrics
Biggby Coffee boasts a gross profit margin of 61.5%, with an average EBITDA of $85,326, representing about 10.3% of revenue. The cost of goods sold (COGS) accounts for 26.6% of revenue, indicating a healthy balance between sales and operational costs. These metrics provide valuable insights into the financial health of the franchise and its potential for profitability.
Company Mission
Biggby Coffee is dedicated to creating a welcoming atmosphere where customers can enjoy high-quality coffee and exceptional service. The company’s mission revolves around fostering community connections, promoting a positive coffee culture, and ensuring that every customer leaves with a smile. This commitment to customer satisfaction is a cornerstone of the Biggby brand and its franchise model.
Frequently Asked Questions
The initial investment for a Biggby Coffee franchise ranges from $328,000 to $792,750, which includes the franchise fee, equipment, and other startup costs.