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Scooter's Coffee Franchise ProfileCoffee Franchises > Coffee Shops |
What is the Initial Investment for a Scooter's Coffee Franchise?
To open a Scooter's Coffee franchise, you should anticipate an initial investment ranging from $894,500 to $1,393,000. This includes a franchise fee of $40,000, along with other startup costs. It's essential to have cash available of at least $125,000 and a net worth between $500,000 and $1,000,000 to meet the financial requirements for franchise ownership.
What Are the Financial Performance Metrics for Scooter's Coffee?
Scooter's Coffee franchises have shown promising financial performance, with an average annual revenue per unit of approximately $877,495. The median annual revenue stands at $870,441, while the highest reported revenue reaches an impressive $1,902,593. Franchisees can expect a breakeven time of about 12 months and an investment payback period of around 14 months, making it a potentially lucrative opportunity.
What Are the Ongoing Fees Associated with a Scooter's Coffee Franchise?
As a franchisee, you'll be responsible for ongoing fees, including an 8% royalty fee on gross sales and a 2% marketing fee. These fees are crucial for maintaining brand standards and supporting marketing efforts. Understanding these costs is essential for effective financial planning and to ensure the long-term success of your franchise location.
How Many Units Does Scooter's Coffee Have?
Scooter's Coffee has experienced significant growth in recent years, expanding its network of franchised units from 289 in 2021 to 525 in 2023. During the same period, the total number of units increased from 310 to 546, indicating a strong demand for their coffee offerings and a robust franchise model that attracts new investors.
Scooter's 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:
Scooter's 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 | 310 | 409 | 546 |
| Net Change YoY | 99 | 137 | |
| Franchised Units | 289 | 379 | 525 |
| Net Change YoY | 90 | 146 | |
| Corporate Units | 21 | 30 | 21 |
| Net Change YoY | 9 | -9 |
Initial Investment
The initial investment for a Scooter's Coffee franchise ranges from $894,500 to $1,393,000. This includes a franchise fee of $40,000, which grants you the rights to operate under the Scooter's brand. Additional costs will vary based on location, equipment, and other startup expenses.
Financial Performance
Scooter's Coffee units generate an average annual revenue of $877,495, with a median revenue of $870,441. The lowest reported annual revenue is $204,124, while the highest reaches up to $1,902,593. This demonstrates the potential for significant earnings within the franchise model.
Royalty and Marketing Fees
Franchisees are required to pay an 8% royalty fee on gross sales, along with a 2% marketing fee. These fees contribute to the overall brand support and marketing efforts that help drive customer traffic to your location.
Required Capital
To qualify for a Scooter's Coffee franchise, you must have a cash requirement of $125,000 and a net worth ranging from $500,000 to $1,000,000. This ensures that franchisees have the financial stability to support their business operations and growth.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within approximately 12 months of operation. The investment payback period is estimated at 14 months, indicating a relatively quick return on investment compared to other franchise opportunities.
Growth and Expansion
Scooter's Coffee has shown impressive growth, increasing from 289 franchised units in 2021 to 525 in 2023. This expansion reflects the brand's popularity and the ongoing demand for quality coffee and beverage options across the country.
Frequently Asked Questions
The initial investment for a Scooter's Coffee franchise ranges from $894,500 to $1,393,000, which includes the franchise fee and other startup costs.