In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Biggby Coffee franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Biggby Coffee franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Biggby Coffee outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Biggby Coffee franchise opportunity

Section V – Presentation and analysis of Biggby Coffee’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, highest, and lowest gross sales for the 306 Biggby Coffee franchised Stores (and separately stated, 245 Stores with a drive-thru and 61 Stores without a drive-thru) in operation at the end of 2023 that were in operation for at least 13 months at the end of 2023, other than kiosk Stores (kiosk Stores are Stores that are housed inside another retail business operation) and Stores that were not open seven days a week, Stores closed more than 30 consecutive days in 2023

• 2023 average unit sales, discount amount, gross sales, cost of goods sold, gross profit, expenses (labor, operations, administration, services, marketing and fees), and EBITDA for the 204 Biggby Coffee franchised Stores (and separately stated, 168 Stores with a drive-thru and 36 Stores without a drive-thru) that provided Biggby Coffee with consistent and accurate revenue and expense data and are a reasonable representation of the Biggby Coffee franchise system

Section VI – Key ratios, comparables, computations, and analyses for the Biggby Coffee franchise opportunity (exclusive content for Platinum subscribers)

Section I – Biggby Coffee Franchise Costs

• Biggby Coffee franchise costs (whitebox leasehold location), based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $20,000
• Leasehold Improvements:  $165,000 to $295,000
• Equipment, Furniture, and Decor:  $77,000 to $125,000
• Architectural and Engineering:  $7,500 to $15,000
• Building Permits:  $7,500 to $15,000
• Signage (Interior and Exterior):  $10,000 to $22,000
• Real Property Rental or License:  $6,000 to $18,500
• Initial Inventory:  $10,000 to $15,000
• Insurance – General Liability, Property, EPLI, and Worker’s Compensation:  $1,500 to $2,000
• Utility Expense:  $500 to $4,000
• License, Permits, and Other:  $1,000 to $2,500
• Initial Advertising and Grand Opening Promotions:  $9,500
• Miscellaneous Travel and Living Expenses for Training:  $500 to $5,000
• Organizational Expenses:  $2,000 to $2,500
• Additional Funds for 3 Months:  $10,000 to $40,000
• Total Estimated Biggby Coffee Franchise Costs:  $328,000 to $591,000

Section II – Biggby Coffee’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Biggby Coffee’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $20,000
• Royalty:  6% of Gross Sales; 5% of Gross Sales for certain existing operators in Michigan
• Advertising Fund Contribution:  the greater of $100 per week or 3% of Gross Sales
• Minimum Local Advertising:  up to 3% of Gross Sales

Section III – Number of Franchised and Company-Owned Biggby Coffee Outlets

Franchised

2021

• Outlets at the Start of the Year:  245
• Outlets at the End of the Year:  281
• Net Change:  +36

2022

• Outlets at the Start of the Year:  281
• Outlets at the End of the Year:  334
• Net Change:  +53

2023

• Outlets at the Start of the Year:  334
• Outlets at the End of the Year:  384
• Net Change:  +50

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the Biggby Coffee Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Biggby Coffee Franchise (Item 19, 2024 FDD)

• Part 1 through Part 3 provide average and median annual Gross Sales information for Stores in 2023. Part 1 provides that information for Stores as defined in Note 1 below. Part 2 provides that information for Stores with a drive-thru (including modular, B-Cubed, Site-built locations with a drive-thru, and leasehold Whitebox with a drive-thru). Part 3 provides the same information for non-drive-thru Stores (lobby only leasehold Whitebox).

• Part 4 through Part 6 provide a reasonable analysis of 2023 Store financial performance. The dataset used for the analysis in these charts includes only those Stores that self-report Store financial performance. Biggby Coffee excluded kiosk Stores, Stores not open 7 days per week, Stores closed more than 30 consecutive days in 2023, and a limited number of stores that reported non-representative data. The ultimate dataset used for Part 4 through Part 6 includes 204 Stores.

• Part 4 includes the total population of 204 Stores. Of those 204 Stores, Part 5 includes only stores with a drive-thru. Of those 204 Stores, Part 6 includes Stores without a drive-thru. Biggby Coffee organized Part 4 through Part 6 by quartile and report each number as an average number in each quartile. Biggby Coffee also discloses the median, and range for each number in each quartile.

• The information in the Charts is a historical financial performance representation based on subsets of Biggby Coffee’s franchise system’s existing outlets and on the assumptions and notes described below. The financial information from Biggby Coffee’s Stores has not been audited and Biggby Coffee does not know if the information was prepared in accordance with generally accepted accounting principles (GAAP).

Part 1 – Annual Gross Sales for All Stores for 2023

• As of December 31, 2023, there were 382 franchised Stores in operation.

• For Part 1 through Part 3, Biggby Coffee used revenue information from a subset of 306 of its 382 franchised Stores in operation at the end of 2023 that were in operation for at least 13 months at the end of 2023, other than kiosk Stores (kiosk Stores are Stores that are housed inside another retail business operation) and Stores that were not open seven days a week, Stores closed more than 30 consecutive days in 2023.

• Number of Stores:  306
• Average Gross Sales:  $720,820
• Number and Percentage at or Above Average:  142 / 46%
• Median Gross Sales:  $691,110
• Highest Gross Sales:  $1,544,435
• Lowest Gross Sales:  $314,154

Part 2 – Annual Gross Sales for Drive-Thru Stores for 2023

• Part 2 includes 245 Stores with a drive-thru.

• Number of Stores:  245
• Average Gross Sales:  $759,686
• Number and Percentage at or Above Average:  107 / 44%
• Median Gross Sales:  $737,222
• Highest Gross Sales:  $1,544,435
• Lowest Gross Sales:  $371,706

Part 3 – Annual Gross Sales for Non-Drive-Thru Stores for 2023

• Part 3 includes 61 Stores without a drive-thru.

• Number of Stores:  61
• Average Gross Sales:  $564,721
• Number and Percentage at or Above Average:  26 / 43%
• Median Gross Sales:  $537,400
• Highest Gross Sales:  $993,895
• Lowest Gross Sales:  $314,154

Part 4 – Statement of Store Level Sales, Expenses, and Earnings for All Stores for 2023

• For Part 4 through Part 6, Biggby Coffee used revenue and expense information from a subset of 204 of the 382 franchised Stores in operation at the end of 2023. Biggby Coffee believes that these 204 Stores provide it with consistent and accurate revenue and expense data and are a reasonable representation of its franchise System.

• The Stores represented in the Charts may differ materially from a Store that may be operated by you because these Stores have been operated for a longer period of time and by more experienced operator.

Store Count:  204

Unit Sales:  $833,063 (116.0%)

Less: Discount Amount:  $114,979 (16.0%)

Gross Sales:  $718,084 (100.0%)

Less:  Cost of Goods Sold:  $221,594 (30.9%)

Gross Profit:  $496,490 (69.1%)

Expenses

• Labor:  $223,248 (31.1%)
• Operations:  $14,536 (2.0%)
• Administration:  $40,551 (5.6%)
• Services:  $52,535 (7.3%)
• Marketing and Fees:  $80,294 (11.2%)
• Total Operating Expenses:  $411,164 (57.3%)

EBITDA:  $85,326 (11.9%)

Part 5 – Statement of Store Level Sales, Expenses, and Earnings for Stores With a Drive-Thru for 2023

Store Count:  168

Unit Sales:  $868,839 (115.8%)

Less: Discount Amount:  $118,483 (15.8%)

Gross Sales:  $750,355 (100.0%)

Less:  Cost of Goods Sold:  $230,800 (30.8%)

Gross Profit:  $519,556 (69.2%)

Expenses

• Labor:  $232,063 (30.9%)
• Operations:  $14,936 (2.0%)
• Administration:  $41,508 (5.5%)
• Services:  $53,741 (7.2%)
• Marketing and Fees:  $84,017 (11.2%)
• Total Operating Expenses:  $426,265 (56.8%)

EBITDA:  $93,291 (12.4%)

Part 6 – Statement of Store Level Sales, Expenses, and Earnings for Stores Without a Drive-Thru for 2023

Store Count:  36

Unit Sales:  $666,110 (117.4%)

Less: Discount Amount:  $98,625 (17.4%)

Gross Sales:  $567,485 (100.0%)

Less:  Cost of Goods Sold:  $178,630 (31.5%)

Gross Profit:  $388,855 (68.5%)

Expenses

• Labor:  $182,109 (32.1%)
• Operations:  $12,669 (2.2%)
• Administration:  $36,081 (6.4%)
• Services:  $46,907 (8.3%)
• Marketing and Fees:  $62,921 (11.1%)
• Total Operating Expenses:  $340,687 (60.0%)

EBITDA:  $48,168 (8.5%)

• Unit Sales includes all revenues from the franchise business before discounts and excludes sales tax.

• Discount Amount is the value of applied promotional discounts.

• Gross Sales is Unit Sales minus Discount Amount.

• Cost of Goods Sold is the total amount paid as a cost directly related to the sale of products.

• Gross Profit is equal to Gross Sales minus Cost of Goods Sold.

• Labor includes employee, manager, hiring & training, worker’s comp insurance, and payroll taxes; and excludes officer/guaranteed payments, health insurance/retirement, and management fees.

• Operations includes cash +/-, chemicals, small wares, freight, maintenance, and repairs.

• Administration includes dues & subscriptions, office supplies, postage, rent, CAM, and property taxes; and excludes travel, entertainment, and miscellaneous operations.

• Services includes laundry & uniforms, bank service charges, credit card processing, insurance, license & permit fees, professional services, delivery fees, miscellaneous expenses, utilities, and telephone & internet.

• Marketing & Fees includes advertising, royalty fees, and technology fees.

• Operating Expenses is total of Labor, Operations, Administration, Services, and Marketing & Fees.

• EBITDA is Gross Profit minus Operating Expenses, and excludes miscellaneous income, interest, taxes, depreciation, and amortization.

• Profit Margin is EBITDA divided by Gross Sales.

• EBITDA and Profit Margin do not reflect the actual potential net income of a particular Store and should not be relied on in calculating profitability. There are a number of fixed and variable costs associated with a Store, not all of which are reflected in the information above.

• These expenses, which are likely to be significant, include, but are not limited to, the following:

• the certain costs listed above, costs described in Items 6 and 7 of the disclosure document;
• interest or finance charges if you finance some or all of the cost of the franchise;
• depreciation on property and equipment;
• additional occupancy costs;
• Store supplies;
• credit card fees;
• worker’s compensation and general liability insurance;
• taxes;
• accounting and legal fees, and general administrative expenses;
• any pre-opening or amortization of organization costs;
• costs associated with regulatory compliance;
• fringe benefits; and
• certain repairs and maintenance.

• You should also be aware that the financial performance of any Store might be affected by a number of factors that may vary due to the individual characteristics of the Store. These factors include, but are not limited to:

• competition from other restaurants;
• appreciation and acceptance of the products offered by your Store in the community in which your Store is located;
• your efforts;
• your experience;
• the quality and effectiveness of your managerial skills;
• your individual decisions with respect to location, additional advertising programs, personnel, and cost controls;
• geographic and socioeconomic conditions in your locality;
• business cycles;
• the performance of the local, national, and world economy.

• Some franchises have sold this amount. Your individual results may differ. There is no assurance that you will sell as much.

Section VI – Biggby Coffee Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️