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Description
Investment Icon

What Are the Initial Investment Requirements for The Human Bean Franchise?

To become a franchisee of The Human Bean, you'll need to prepare for an initial investment ranging from $552,350 to $1,058,890. This includes a franchise fee of $30,000. Additionally, potential franchisees must have a cash reserve of $127,000 to $154,000 and a net worth of at least $1,000,000. Understanding these financial requirements is crucial for evaluating whether this franchise opportunity aligns with your financial capabilities.

Fees Icon

What Are the Ongoing Fees for The Human Bean Franchise?

Franchisees of The Human Bean are required to pay a royalty fee of 6% on their gross sales, along with a marketing fee of 1%. These ongoing fees are essential for maintaining brand support and marketing efforts, which can significantly impact your franchise's success. It's important to factor these costs into your overall financial planning when considering this investment.

Revenue Icon

What Is the Average Revenue Potential for The Human Bean Franchisees?

The average annual revenue per unit for The Human Bean franchisees is approximately $884,304, with a median revenue of $859,940. Revenue can vary significantly, with the lowest reported annual revenue at $369,322 and the highest at $1,594,758. This revenue potential highlights the opportunity for profitability, but it also underscores the need for effective management and operational efficiency to achieve these figures.

Breakeven Icon

What Is the Breakeven and Payback Period for The Human Bean Franchise?

Franchisees can expect a breakeven time of around 12 months, which indicates that they can recover their initial investment within the first year of operation. The investment payback period is even more favorable, at just 8 months. These timelines suggest that The Human Bean franchise could be a viable option for those looking to enter the coffee franchise market with a promising return on investment.

The Human Bean 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.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$1,000,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

8 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$30,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

6%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

1%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$552,350 - $1,058,890
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$127,000 - $154,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$884,304
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$859,940
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,594,758
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$369,322
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Coffee Franchises
Category icon A more specific division within the broader industry.

i Category:

Coffee Shops
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Tom Casey
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

545 Rossanley Dr., #A, Medford, Oregon 97501
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2002
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Casey Hawkins, Inc.

The Human Bean Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

145
The number of locations owned by independent franchisees.

Franchised Units i

133
The number of locations owned and run by the franchisor.

Corporate Units i

12
Units 2020 2021 2022
Total Units 26 26 24
Net Change YoY 0 -2
Franchised Units 13 13 12
Net Change YoY 0 -1
Corporate Units 13 13 12
Net Change YoY 0 -1
Investment About

Investment Overview

The Human Bean franchise offers a low initial investment ranging from $552,350 to $1,058,890, making it accessible for aspiring entrepreneurs. The initial franchise fee is set at $30,000, with ongoing royalty fees of 6% and a marketing fee of 1%. To get started, franchisees need to have liquid cash available between $127,000 and $154,000, along with a net worth requirement of $1,000,000.

Potential About

Revenue Potential

Franchisees can expect average annual revenue of approximately $884,304 per unit, with a median revenue of $859,940. The revenue range varies significantly, with the lowest annual revenue reported at $369,322 and the highest reaching $1,594,758. This diverse revenue potential showcases the opportunity for growth and profitability within the franchise model.

Metrics About

Breakeven and Payback

The Human Bean franchise has a breakeven timeframe of about 12 months, indicating that franchisees can expect to recover their initial investment within the first year of operation. Furthermore, the investment payback period is an impressive 8 months, which enhances the attractiveness of this franchise opportunity for potential investors.

Fees About

Franchise Growth

As of 2022, The Human Bean operates a total of 24 units, with 12 franchised and 12 corporate locations. The franchise has maintained a consistent number of units over recent years, with 13 franchised units in both 2020 and 2021, followed by a slight decrease in 2022. This stability reflects the brand’s commitment to sustainable growth and operational excellence.

Breakeven About

Financial Performance

The average profit and loss metrics reveal a gross profit margin of 60.2%, with operating expenses averaging $426,009 annually. This indicates that while costs are significant, the potential for strong profitability exists, particularly with an EBITDA of $106,412, representing 12% of revenue. Understanding these financial dynamics is crucial for franchisees aiming to optimize their operations.

Units About

Operational Insights

Franchisees should be aware of the average annual running expenses, which total approximately $426,009. Key costs include payroll expenses at $236,357, rent at $32,927, and utilities at $15,550. Effective management of these expenses is essential for maintaining profitability and ensuring the long-term success of each franchise location.

Frequently Asked Questions

The initial investment for a Human Bean franchise ranges from $552,350 to $1,058,890, which includes the franchise fee and other startup costs.