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Ziggi's Coffee Franchise ProfileCoffee Franchises > Coffee Shops |
What Are the Initial Investment Requirements for a Ziggi's Coffee Franchise?
To open a Ziggi's Coffee franchise, you should be prepared for a significant financial commitment. The initial investment ranges from $526,500 to $2,018,000, which includes a franchise fee of $40,000. Additionally, you will need to have a net worth of between $300,000 and $500,000, along with cash readily available to cover the startup costs. Understanding these financial requirements is crucial as you evaluate your readiness for franchise ownership.
What Are the Ongoing Fees Associated with a Ziggi's Coffee Franchise?
Owning a Ziggi's Coffee franchise comes with ongoing fees that are essential to budget for. Franchisees are required to pay a royalty fee of 6% on gross sales and a marketing fee of 1%. These fees contribute to the support and resources provided by the franchisor, ensuring that you have the tools needed to succeed in a competitive market. It's vital to factor these expenses into your financial planning to maintain profitability.
What Are the Financial Performance Metrics for Ziggi's Coffee Units?
Ziggi's Coffee franchises demonstrate strong financial performance, with an average annual revenue of approximately $784,666 per unit. The median revenue is slightly lower at $771,712, showcasing a healthy earning potential. The lowest annual revenue recorded is $243,298, while the highest reaches $1,326,412. These figures indicate that, with the right management and market conditions, franchisees can achieve significant financial success.
What Is the Breakeven and Investment Payback Period for Ziggi's Coffee Franchisees?
Franchisees of Ziggi's Coffee can expect to reach breakeven within 12 months, which is an encouraging timeline for new business owners. Additionally, the investment payback period is also 12 months, allowing franchisees to recoup their initial investment relatively quickly. This rapid return on investment can be a compelling factor for aspiring entrepreneurs considering a Ziggi's Coffee franchise.
Ziggi'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:
Ziggi'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 | 28 | 38 | 47 |
| Net Change YoY | 10 | 9 | |
| Franchised Units | 20 | 30 | 40 |
| Net Change YoY | 10 | 10 | |
| Corporate Units | 8 | 8 | 7 |
| Net Change YoY | 0 | -1 |
Company Background
Ziggi's Coffee is a rapidly growing coffee franchise known for its commitment to quality and customer experience. Founded in 2004, Ziggi's has established itself as a favorite in the drive-thru coffee market, offering a diverse menu that includes specialty coffee drinks, teas, smoothies, and baked goods. With a focus on local community engagement and sustainability, Ziggi's aims to create a welcoming atmosphere for customers while delivering exceptional products and service.
Franchise Opportunity
Investing in a Ziggi's Coffee franchise offers aspiring entrepreneurs a chance to join a well-established brand with a proven business model. The initial investment ranges from $526,500 to $2,018,000, which includes a franchise fee of $40,000. With a strong support system and training programs in place, franchisees can leverage Ziggi's expertise to build a successful coffee business in their local market.
Financial Performance
Ziggi's Coffee units have demonstrated strong financial performance, with an average annual revenue of $784,666 per unit. The median annual revenue stands at $771,712, showcasing the brand's potential for profitability. The breakeven time is approximately 12 months, and investment payback is also estimated at 12 months, making it an attractive option for investors looking for quick returns.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 6% on gross sales, along with a 1% marketing fee. These fees contribute to the overall support and resources provided by Ziggi's, including marketing initiatives and operational assistance. The structured fee system ensures that franchisees can benefit from the brand's growth and visibility while maintaining their profitability.
Corporate Structure
Ziggi's Coffee operates under the corporate entity Ziggi's Coffee, LLC, with its headquarters located in Longmont, Colorado. The company has seen consistent growth in its franchised units, expanding from 20 units in 2021 to 40 in 2023. This growth reflects the brand's strong market presence and commitment to franchisee success, making it an appealing choice for potential investors.
Community Engagement
Ziggi's Coffee places a strong emphasis on community involvement and sustainability. The brand actively participates in local events and supports various charitable initiatives, fostering a sense of connection with its customers. By prioritizing community engagement, Ziggi's enhances its brand reputation and creates loyal customers who appreciate the brand's commitment to making a positive impact in their neighborhoods.
Frequently Asked Questions
The initial investment for a Ziggi's Coffee franchise ranges from $526,500 to $2,018,000. This includes the franchise fee, equipment, and other startup costs.