Franchise Costs: Detailed Estimates of Scooter’s Coffee Franchise Costs (2021 FDD)

Updated August 16, 2021.

Detailed Estimates of Scooter’s Coffee Franchise Costs Based on Item 7 (Estimated Initial Investment) of Scooter’s Coffee’s 2021 Franchise Disclosure Document

For Coffeehouse Store

1.  Initial Franchise Fee:  $40,000

• The franchisor offers a Multiple Store Development (MSD) Agreement to prospective franchisees seeking to open multiple stores.

• If you sign an MSD Agreement and this is your second or subsequent Store, the franchisor applies the nonrefundable $5,000 Development Fee paid for the second and each subsequent Store to be developed toward the Initial Franchise Fee for each Store.

• This payment must be made by electronic funds transfer.

2.  Initial Opening Support Fee:  $10,000

3.  Free-Standing Building and Leasehold Improvements:  $146,500 to $679,900 (not including the purchase of land)

• Typically, a Coffeehouse Store will range from approximately 1,600 to 2,000 square feet of retail space and have inside seating for up to 25-50 customers. It may be freestanding, or may be in-line in a strip center, but the estimates in this Item 7 contemplate a freestanding location.

• Your costs for leasehold improvements for the Store will depend in large part on the square footage of your Store, the extent of the remodeling required, and the location and overall costs in the market in which you are developing the Store.

• The estimates above assume that the premises of the Coffeehouse Store exists and the estimated leasehold improvements reflect the build-out of space that is “ready to occupy” based on the recommended size of Store, although your actual costs may vary under or over the estimates.

• Although the franchisor may supply you with standardized blueprints for a Store, you are responsible for preparing all required blueprints to suit the shape and dimensions of the Franchised Location. For both Kiosk and Coffeehouse Stores, the leasehold improvements you will typically make include: interior remodeling, floor covering, painting, HVAC, lighting, electrical, plumbing, design, utilities, water, and other improvements.

• You may receive an allowance from the landlord to finish the interior or build the building, or you may receive a rent credit to cover a portion of the same. You will need to factor this into your cost analysis.

• If you purchase property (or land) for the Store, your investment obligations will be significantly higher, and will depend on the location of the land. The franchisor does not typically invest in the land for a Scooter’s Coffee Store and cannot estimate these costs due to the significant variances based on location and market conditions.

4.  Architectural and Engineering Fees:  $9,000 to $30,900

• The estimates provided above include estimated architectural fees and structural and civil engineering fees and costs. Although the franchisor may supply you with standardized blueprints for a Store, you are responsible for preparing all required blueprints to suit the shape and dimensions of the Franchised Location.

5.  Equipment, Fixtures, and Furniture:  $116,600 to $177,900

• This item includes the estimated costs to obtain and install the merchandising systems, espresso machine, coffee brewers, coffee grinders, smoothie machines, oven, refrigerators, ice makers, sinks, furniture and shelving, and menu board.

• This estimate also includes office equipment, including a telephone system and access to satellite radio.

• For a Coffeehouse Store, this item also includes the estimated costs for counters for order taking, counters for order pick-up, and display cases, as well as tables, chairs, and an in-store menu board.

• The estimates contained above only reflect equipment purchases that are required, and not additional optional equipment purchases that you may choose to make.

6.  Signs:  $15,700 to $35,300

• You will be required to have a monument sign unless it is prohibited under city codes or regulations or by your landlord. The estimate assumes that you will have a pole sign or monument sign.

7.  Point-of-Sale System and Software:  $7,000 to $11,000

• This item includes the estimated costs to purchase and license a computerized point-of-sale system (“POS System”) and Internet access. None of these payments are refundable once paid. All of these costs are paid to third-party suppliers.

8.  Deposits and Licenses:  $2,500 to $7,000

• Security deposits, if applicable to your Store, range from one to two months’ rent; utility deposits range from a nominal amount to approximately $500; and business licenses range from approximately $200 to $500 a year. Each or any of these items may exceed the stated range depending on your location.

9.  Initial Training (travel and living expenses):  $4,000 to $7,000

• Your travel and living expenses when you attend the initial training program in Nebraska vary depending on the length of your instruction, the distance you must travel, and the standard of living you desire while you attend the program. The high range estimate covers expenses for the Store owner(s) attending a three-day owners training session, and for four people attending the four-week training session in Nebraska or at one of the company’s designated training stores.

• The franchisor also may hold the training online if necessary, in which case your travel and living expenses will be lower than the estimates reflected above.

10.  Opening Inventory, Supplies, and Smallwares:  $14,000 to $17,000

• You must open with and maintain an adequate inventory of menu items, ingredients, paper goods, smallwares, uniforms, and branded products and merchandise for retail sale. You will be required to purchase several of these items from Scooter’s Preferred Suppliers. Scooter’s anticipates that all of your initial purchases will be from Harvest Roasting or a vendor recommended by Harvest Roasting.

11.  Additional Funds (3 months):  $10,000 to $30,000

• This estimates other pre-operational expenses, which have not been separately listed above, as well as additional funds necessary for the first three months of your business operations.

• These figures are estimates and the franchisor cannot guarantee that you will not have additional expenses starting the business.

12.  Total:  $375,300 to $1,046,000

• The franchisor relied on its affiliate’s and predecessors’ experience in coffee service businesses of the past 20 years, as well as estimates the franchisor has received from some third-party vendors, when preparing these figures.

For Kiosk Store

1.  Initial Franchise Fee:  $40,000

2.  Initial Opening Support Fee:  $10,000

3.  Free-Standing Building and Leasehold Improvements:  $255,300 to $506,900 (not including the purchase of land)

• Typically, a Kiosk Store will have 630 square feet. The total investment depends on a number of factors, including utility access, outside finish materials, and local code requirements. This estimate does not include any costs of constructing an optional walk-up window or patio.

4.  Architectural and Engineering Fees:  $10,400 to $38,400

5.  Equipment, Fixtures, and Furniture:  $135,500 to $153,300

6.  Signs:  $23,700 to $40,000

7.  Point-of-Sale System and Software:  $7,000 to $11,000

8.  Deposits and Licenses:  $2,500 to $7,000

9.  Initial Training (travel and living expenses):  $4,000 to $7,000

10.  Opening Inventory, Supplies, and Smallwares:  $14,000 to $17,000

11.  Additional Funds (3 months):  $10,000 to $30,000

12.  Total:  $512,400 to $890,600

• The figures above for Kiosk Stores reflect estimated increased costs associated with the slightly larger Kiosk Store (approximately 630 square feet). The franchisor estimated these increased costs based on its affiliates’ experience operating slightly smaller Kiosk Stores (approximately 550 square feet).

• These estimates only include required equipment and other purchases, and do not account for optional purchases that you may choose to make.