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

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

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

Section III – Number of franchised and company-owned Ziggi’s 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 Ziggi’s Coffee franchise opportunity

Section V – Presentation and analysis of Ziggi’s 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 total sales, discounts, actual gross sales, gross profits, and royalty for the 4 Drive-Thru Ziggi’s Coffee Shops operated by Ziggi’s affiliated companies for the entire calendar year 2023

• 2023 total sales, discounts, actual gross sales, gross profits, and royalty for the 2 Café with Drive-Thru Ziggi’s Coffee Shops operated by Ziggi’s affiliated companies for the entire calendar year 2023

• 2023 average, median, high, and low total sales for the 32 Drive-Thru Ziggi’s Coffee Shops operated by Ziggi’s franchisees for the entire calendar year 2023

• 2023 average, median, high, and low total sales for the 23 Café with Drive-Thru Ziggi’s Coffee Shops operated by Ziggi’s franchisees for the entire calendar year 2023

• 2019, 2020, 2021, 2022, 2023, and 2024 average daily total sales for the affiliate-owned and franchisee-owned Drive-Thru Ziggi’s Coffee Shops and Café with Drive-Thru Ziggi’s Coffee Shops that operated at any time during the calendar year, even for less than a full calendar year

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

Section I – Ziggi’s Coffee Franchise Costs

• Initial Franchise Fee:  $40,000
• Launch Fee:  $10,000
• Tenant Improvements:  $0 to $400,000
• Architecture/Engineering:  $12,000 to $30,000
• Fees/Permits (Including Water):  $0 to $15,000
• Security Deposit and Rent:  $5,000 to $15,000
• Initial Equipment Package (Including POS System):  $375,000 to $425,000
• Miscellaneous, Smallwares, Etc.:  $11,000 to $12,000
• Sign Package:  $35,000 to $45,000
• Initial Inventory:  $25,000
• Initial Supply of Apparel, Gift Cards, and Loyalty Cards:  $2,000 to $3,000
• Grand Opening Marketing:  $10,000
• Utility Deposits, Business Licenses, Etc.:  $500 to $1,000
• Training Expenses:  $3,500 to $5,000
• Professional Fees:  $1,000 to $3,000
• Insurance:  $2,000 to $4,000
• Additional Funds for 3 Months:  $25,000 to $30,000
• Total Estimated Ziggi’s Coffee Franchise Costs:  $557,000 to $1,073,000

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

• Initial Franchise Fee:  $40,000

• Royalty:  6% of your actual Gross Sales

• Marketing and Technology Fee:  1% of your actual Gross Sales

• Local Advertising Expenditure:  currently none, but Ziggi’s may require you to spend at least 1% of your Gross Sales on local advertising in the future

• Regional Advertising Fee:  currently none, but Ziggi’s may establish requirements in the future which will limit the amount of the fees the regional advertising cooperative may impose to no more than 1% of Gross Sales without Ziggi’s consent

Section III – Number of Franchised and Company-Owned Ziggi’s Coffee Outlets

Franchised

2021

• Outlets at the Start of the Year:  20
• Outlets at the End of the Year:  37
• Net Change:  +17

2022

• Outlets at the Start of the Year:  37
• Outlets at the End of the Year:  57
• Net Change:  +20

2023

• Outlets at the Start of the Year:  57
• Outlets at the End of the Year:  71
• Net Change:  +14

Company-Owned

2021

• Outlets at the Start of the Year:  7
• Outlets at the End of the Year:  8
• Net Change:  +1

2022

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  8
• Net Change:  0

2023

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  7
• Net Change:  -1

Section IV – News Updates on the Ziggi’s Coffee Franchise

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

• Ziggi’s offers two different Coffee Shop models, Drive-Thru and Café with Drive-Thru, with the Café with Drive-Thru model being offered as either a freestanding location or as an end-cap location.

Part 1 – 2023 Actual Annual Gross Profits for Affiliated Company Coffee Shops

• At the end of calendar year 2023, Ziggi’s had seven Ziggi’s Coffee Shops operated by its affiliates, one of which is a café without a drive-thru, which is a model Ziggi’s does not offer under the Disclosure Document, and therefore is not shown in the tables.

• The tables show four Drive-Thru model Coffee Shops and two Café with Drive-Thru model Coffee Shops, respectively, that Ziggi’s affiliates operated for the entire calendar year 2023. One affiliate-owned café without a drive-thru Coffee Shop closed during calendar year 2023.The Café with Drive-Thru model operated by Ziggi’s affiliate is located in a freestanding facility. Each of these units are operated similar to a Ziggi’s Coffee Shop like the kind you will operate, depending on the model you choose.

• One of Ziggi’s affiliates also operates a café without a drive-thru. Ziggi’s is not showing the results of that café since Ziggi’s is not promoting that model under the Disclosure Document.

A.  Affiliates with Drive-Thru Model (4 Coffee Shops)

Coffee Shop A

• Total Sales:  $1,133,781
• Less Discounts:  $46,250
• Actual Gross Sales:  $1,087,531

• Gross Profits:  $689,069

• Royalties (6% of actual gross sales; not incurred by affiliates):  $65,252

Coffee Shop B

• Total Sales:  $1,021,784
• Less Discounts:  $44,608
• Actual Gross Sales:  $977,176

• Gross Profits:  $611,553

• Royalties (6% of actual gross sales; not incurred by affiliates):  $58,531

Coffee Shop C

• Total Sales:  $1,214,253
• Less Discounts:  $54,318
• Actual Gross Sales:  $1,159,935

• Gross Profits:  $726,648

• Royalties (6% of actual gross sales; not incurred by affiliates):  $69,596

Coffee Shop D

• Total Sales:  $882,921
• Less Discounts:  $35,302
• Actual Gross Sales:  $847,619

• Gross Profits:  $534,106

• Royalties (6% of actual gross sales; not incurred by affiliates):  $50,857

Average

• Total Sales:  $1,063,185 (104.4%)
• Less Discounts:  $45,120 (4.4%)
• Actual Gross Sales:  $1,018,065 (100.0%)

• Gross Profits:  $640,344 (62.9%)

• Royalties (6% of actual gross sales; not incurred by affiliates):  $61,059

B.  Affiliate with Café Drive-Thru Model (2 Coffee Shops)

Coffee Shop A

• Total Sales:  $918,207
• Less Discounts:  $33,500
• Actual Gross Sales:  $884,707

• Gross Profits:  $538,876

• Royalties (6% of actual gross sales; not incurred by affiliates):  $53,082

Coffee Shop B

• Total Sales:  $1,094,202
• Less Discounts:  $47,120
• Actual Gross Sales:  $1,047,082

• Gross Profits:  $631,100

• Royalties (6% of actual gross sales; not incurred by affiliates):  $52,825

Average

• Total Sales:  $1,006,204 (104.2%)
• Less Discounts:  $40,310 (4.2%)
• Actual Gross Sales:  $965,894 (100.0%)

• Gross Profits:  $584,988 (60.6%)

• Royalties (6% of actual gross sales; not incurred by affiliates):  $52,954

Part 2 – 2023 Average Annual Total Sales for Franchised Coffee Shops

• At the end of calendar year 2023, Ziggi’s had 71 Ziggi’s Coffee Shops operated by franchisees. Fifty-three of those Coffee Shops operated for the entire calendar year 2023, 30 of which operated Ziggi’s Drive-Thru model Coffee Shops and are shown in Part 2A, and 23 of which operated Ziggi’s Café with Drive-Thru model Coffee Shops and are shown in Part 2B.

• Ziggi’s has one franchisee who operates a café model Coffee Shop. Ziggi’s is not showing the results of that Coffee Shop since it does not promote that model to franchisees.

• Ziggi’s had 17 Coffee Shops that commenced operations during calendar year 2023, two of which are shown in Table 2A since they commenced operations in early January 2023. The remaining 15 Ziggi’s Coffee Shops that opened in calendar year 2023 are not shown in the tables because they did not operate for the entire or substantially all of calendar year 2023.

• None of Ziggi’s affiliate-owned Coffee Shops are shown in Part 2A or 2B.

A.  Franchisees with Drive-Thru Model (32 Coffee Shops)

• Average Total Sales:  $784,666
• Number and Percentage That Met or Exceeded the Average:  13/41%
• Median Total Sales:  $771,712
• High Total Sales:  $1,326,412
• Low Total Sales:  $243,298

B.  Franchisees with Café with Drive-Thru Model (23 Coffee Shops)

• Average Total Sales:  $796,838
• Number and Percentage That Met or Exceeded the Average:  14/61%
• Median Total Sales:  $841,330
• High Total Sales:  $1,207,520
• Low Total Sales:  $439,611

Part 3 – Average Daily Total Sales of Affiliated and Franchised Coffee Shops for Calendar Years 2019, 2020, 2021, 2022, and 2023

• The table below shows the average daily total sales for affiliate-owned and franchisee-owned Coffee Shops for each calendar year of 2019, 2020, 2021, 2022, and 2023.

• Since the information is based on daily total sales, Coffee Shops that operated at any time during the calendar year, even for less than a full calendar year, are included in this table. The number of Coffee Shops shown in each group is stated in the table.

• Only the Drive-Thru model Ziggi’s Coffee Shops and Café with Drive-Thru model Ziggi’s Coffee Shops are shown in the table. Ziggi’s is not showing the daily results of its café model Ziggi’s Coffee Shops as it does not promote that model to franchisees.

Affiliate-Owned Drive-Thru Ziggi’s Coffee Shops

• 2019 (4 Outlets):  $1,899
• 2020 (4 Outlets):  $2,641
• 2021 (4 Outlets):  $3,164
• 2022 (4 Outlets):  $3,036
• 2023 (4 Outlets):  $2,925

Franchisee-Owned Drive-Thru Ziggi’s Coffee Shops

• 2019 (11 Outlets):  $1,358
• 2020 (12 Outlets):  $1,866
• 2021 (20 Outlets):  $2,214
• 2022 (30 Outlets):  $2,242
• 2023 (40 Outlets):  $2,214

Affiliate-Owned Café with Drive-Thru Ziggi’s Coffee Shops

• 2019 (1 Outlet):  $2,426
• 2020 (1 Outlet):  $2,250
• 2021 (2 Outlets):  $3,172
• 2022 (2 Outlets):  $2,896
• 2023 (2 Outlets):  $2,765

Franchisee-Owned Café with Drive-Thru Ziggi’s Coffee Shops

• 2019 (2 Outlets):  $1,525
• 2020 (6 Outlets):  $2,219
• 2021 (14 Outlets):  $2,445
• 2022 (23 Outlets):  $2,520
• 2023 (29 Outlets):  $2,209

• “Total Sales” as used in this Item 19 means the total receipts of each of the Coffee Shops shown in the tables, but does not include sales tax or equivalent taxes. It includes revenue from the redemption of Ziggi’s gift certificates, customer loyalty cards, gift cards, and other prepaid cards.

• “Actual Gross Sales” as used in this Item 19 means Total Sales minus the value of discounts and complimentary products given to employees. This is the amount on which franchisees pay Royalty Fees and other fees.

• “Gross Profits” as used in this Item 19 means Actual Gross Sales minus cost of goods sold.

• The Coffee Shops included in these tables sell substantially the same products and services as will be offered by the franchised Coffee Shops offered pursuant to the Disclosure Document.

• The information for the Coffee Shops included in Part 1 is information as reported by Ziggi’s affiliates. The information for the Coffee Shops included in Part 2 is information as reported by Ziggi’s franchisees. The information for the Coffee Shops included in Part 3 is information as reported by Ziggi’s affiliates and franchisees. None of the information has been audited or otherwise verified by Ziggi’s.

• Ziggi’s does not show any operating expense nor non-operating income or expenses, or resulting net profit for any of the Coffee Shops shown in any of the tables.

• Other than the fact Ziggi’s affiliates’ Coffee Shops have operated for a longer period of time, there are no material financial or operational differences between Ziggi’s affiliate Coffee Shops and an operational franchise Coffee Shop.

• Some Ziggi’s Coffee Shops have sold this amount. Your individual results may differ. There is no assurance you will sell as much.

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