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

Section I – Estimated initial investment (franchise costs) for an Ellianos Coffee franchise, based on Item 7 of the company’s 2023 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for an Ellianos Coffee franchise, based on Items 5 and 6 of the company’s 2023 FDD

Section III – Number of franchised and company-owned Ellianos Coffee outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD

Section IV – News updates on the Ellianos Coffee franchise opportunity

Section V – Presentation and analysis of Ellianos Coffee’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:

• 2022 fiscal year average, median, high, and low net sales; and average transactions for the top quartile, second quartile, third quartile, bottom quartile, and all 14 franchised Ellianos Coffee stores (including 4 stores operated by Ellianos’ officers) that were open the entire fiscal year

• 2021 fiscal year average, median, high, and low net sales for the top quartile, second quartile, third quartile, bottom quartile, and all franchised Ellianos Coffee stores (including 4 stores operated by Ellianos’ officers) that were open the entire fiscal year

• 2022 and 2021 average total income (net sales), cost of goods sold, gross profit, payroll expenses, royalties, other expenses (advertising, bank service charges, brand fund, credit card fees, dues and subscriptions, insurance, licenses and permits, office supplies, professional fees, repairs and maintenance, supplies, uniforms, and utilities), total expenses, and net operating income for the Ellianos Coffee stores operated by Ellianos’ officers that were open the entire applicable fiscal year

• 2022 and 2021 average net sales and number of transactions for all Ellianos Coffee stores that were open on Sundays for the entirety of 2022 and the entirety of 2021

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

Section I – Ellianos Coffee Franchise Costs

• Ellianos Coffee franchise costs, based on Item 7 of the company’s 2023 FDD:

• Initial Franchise Fee:  $25,000
• Initial Training Program – Travel and Living Expenses:  $1,000 to $3,000
• Real Estate:  variable
• Building/Improvements:  $385,000 to $425,000
• Site Work:  $50,000 to $175,000
• Civil Engineering and Permitting:  $12,000 to $30,000
• Architectural, MEP, and Engineering Costs:  $3,500 to $5,500
• Impact and Tap Fees:  $2,000 to $40,000
• Landscaping:  $5,000 to $13,500
• Equipment and Supplies:  $90,000 to $110,000
• Signs:  $14,000 to $25,000
• Security Deposits:  $5,000 to $10,000
• Opening Inventory:  $7,500 to $10,000
• Miscellaneous Opening Costs:  $2,000 to $6,000
• Grand Opening Spending (optional):  $0 to $1,000
• Additional Funds for 3 Months:  $10,000 to $20,000
• Total Estimated Ellianos Coffee Franchise Costs:  $612,000 to $899,000 (does not include real estate costs)

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

• Ellianos Coffee’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:

• Initial Franchise Fee:  $25,000
• Royalty Fee:  the greater of 5% of Net Sales or $250 per week
• Weekly Brand Obligation (WBO):  currently, the WBO is 1% of Net Sales; however, Ellianos Coffee can increase your WBO to 3% of Net Sales, but it will not increase the WBO by more than 0.5% of Net Sales in any 12-month period
• Brand Fund:  Ellianos Coffee can require you to contribute a portion of the WBO to it for the Brand Fund. Currently, Ellianos Coffee requires you to contribute the entire WBO to the Brand Fund.
• National Advertising Fund:  amount determined by Ellianos when the Fund is established
• Regional Advertising Fund or Regional Co-op Fund:  amount determined when the Fund is established

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

Franchised

2020

• Outlets at the Start of the Year:  13
• Outlets at the End of the Year:  17
• Net Change:  +4

2021

• Outlets at the Start of the Year:  17
• Outlets at the End of the Year:  20
• Net Change:  +3

2022

• Outlets at the Start of the Year:  20
• Outlets at the End of the Year:  30
• Net Change:  +10

Company-Owned

2020

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

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

Section IV – News Updates on the Ellianos Coffee Franchise

• Ellianos Coffee Drive-Thru Franchise Expanding Into North Carolina

• Ellianos Coffee Targets 100 Store Milestone Following Franchise Agreement

• Ellianos Coffee Named a 2022 Top Food Franchise by Franchise Business Review

• Ellianos Coffee Named a 2022 Top Franchise by Franchise Business Review

• Ellianos Coffee Opening in Alabama

• Ellianos Coffee Ranked No. 471 on Entrepreneur’s 2023 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Ellianos Coffee Franchise (Item 19, 2023 FDD)

Part 1 – 2022 Historic Ellianos Store Financial Performance

• The table below includes information about the actual sales of franchised Ellianos Stores during Ellianos’ 2022 fiscal year (these Stores include 4 Stores operated by Ellianos’ officers). The included Stores were open the entire fiscal year (the 10 Stores that opened during 2022 are not included).

• Ellianos excluded one Store as it is not Ellianos’ traditional drive-thru model.

• Ellianos compiled the franchised sales data from the information submitted to it by its franchisees for purposes of royalty reporting and from records maintained by Ellianos’ officers for Stores they operate. Ellianos believes the information submitted to be accurate, but Ellianos has not audited or otherwise verified that information.

• Ellianos currently requires new Stores to be open on Sundays, but certain existing Stores do not fall under this requirement and do not open on Sundays. Because new franchisees must open their Stores on Sundays, Ellianos has excluded 5 Stores that do not open on Sundays.

All Included Locations

• Average Net Sales:  $1,074,669
• High Net Sales:  $1,481,680
• Low Net Sales:  $589,534
• Median Net Sales:  $1,112,125

• Average Transactions:  132,701
• Number of Stores Included:  14
• Number of Stores at or Above Average Net Sales:  8
• Percentage of Stores at or Above Average Net Sales:  57%

Top Quartile

• Average Net Sales:  $1,350,110
• High Net Sales:  $1,481,680
• Low Net Sales:  $1,276,453
• Median Net Sales:  $1,321,154

• Average Transactions:  160,294
• Number of Stores Included:  4
• Number of Stores at or Above Average Net Sales:  2
• Percentage of Stores at or Above Average Net Sales:  50%

Second Quartile

• Average Net Sales:  $1,157,258
• High Net Sales:  $1,211,847
• Low Net Sales:  $1,083,664
• Median Net Sales:  $1,166,760

• Average Transactions:  140,038
• Number of Stores Included:  4
• Number of Stores at or Above Average Net Sales:  2
• Percentage of Stores at or Above Average Net Sales:  50%

Third Quartile

• Average Net Sales:  $969,626
• High Net Sales:  $1,001,097
• Low Net Sales:  $925,435
• Median Net Sales:  $982,347

• Average Transactions:  123,199
• Number of Stores Included:  3
• Number of Stores at or Above Average Net Sales:  2
• Percentage of Stores at or Above Average Net Sales:  67%

Bottom Quartile

• Average Net Sales:  $702,339
• High Net Sales:  $771,622
• Low Net Sales:  $589,534
• Median Net Sales:  $745,823

• Average Transactions:  95,631
• Number of Stores Included:  3
• Number of Stores at or Above Average Net Sales:  2
• Percentage of Stores at or Above Average Net Sales:  67%

• For fiscal year 2022, the Average Gross Sales of the Ellianos Stores included that are not operated by an officer of Ellianos (which is 10 Stores) is $990,272. The number and percentage of Stores that met or exceed that amount are 5 (50%). The Median Net Sales for those Stores are $991,722. The High and Low Net Sales are $1,276,846 and $589,534, respectively.

Part 2 – 2021 Historic Ellianos Store Financial Performance

• The table below includes information about the actual sales of franchised Ellianos Stores during Ellianos’ 2021 fiscal year (these Stores include 4 Stores operated by Ellianos’ officers). The included Stores were open the entire fiscal year.

• Ellianos excluded one Store as it is not Ellianos’ traditional drive-thru model.

• Ellianos compiled the franchised sales data from the information submitted to it by its franchisees for purposes of royalty reporting and from records maintained by Ellianos’ officers for Stores they operate. Ellianos believes the information submitted to be accurate, but Ellianos has not audited or otherwise verified that information.

All Locations

• Average Net Sales:  $1,029,734
• High Net Sales:  $1,385,398
• Low Net Sales:  $581,401
• Median Net Sales:  $1,005,555

Top Quartile

• Average Net Sales:  $1,347,964
• High Net Sales:  $1,385,398
• Low Net Sales:  $1,297,676
• Median Net Sales:  $1,345,390

Second Quartile

• Average Net Sales:  $1,113,491
• High Net Sales:  $1,253,563
• Low Net Sales:  $1,025,601
• Median Net Sales:  $1,087,400

Third Quartile

• Average Net Sales:  $938,358
• High Net Sales:  $985,510
• Low Net Sales:  $869,485
• Median Net Sales:  $949,219

Bottom Quartile

• Average Net Sales:  $719,124
• High Net Sales:  $860,939
• Low Net Sales:  $581,401
• Median Net Sales:  $717,078

Part 3 – Average (and Median) Income and Costs Statement of Ellianos Stores Operated by Ellianos’ Officers

• The table below includes the average income and costs statement of Ellianos Stores operated by Ellianos’ officers that were open for the full year of 2022. No units were excluded.

• This data was compiled from records maintained by Ellianos’ officers. Ellianos believes the information submitted to be accurate, but Ellianos has not audited or otherwise verified that information. Ellianos franchisees do not submit similar information that can be included.

2022

Total Income (Net Sales):  $1,285,663 (100.0%)

Total Cost of Goods Sold:  $487,833 (37.9%)

Gross Profit:  $797,830.21 (62.1%)

Payroll Expenses:  $344,318 (26.8%)

Royalties:  $64,761 (5.0%)

Other Expenses

• Advertising:  $4,168 (0.3%)
• Bank Service Charges:  $1,681 (0.1%)
• Brand Fund:  $12,946 (1.0%)
• Credit Card Fees:  $31,218 (2.4%)
• Dues and Subscriptions:  $12,447 (1.0%)
• Insurance:  $9,110 (0.7%)
• Licenses and Permits:  $461 (0.0%)
• Office Supplies:  $562 (0.0%)
• Professional Fees:  $4,838 (0.4%)
• Repairs and Maintenance:  $14,766 (1.1%)
• Supplies:  $28,299 (2.2%)
• Uniforms:  $1,631 (0.1%)
• Utilities:  $29,536 (2.3%)
• Total Other Expenses:  $151,666 (11.9%)

Total Expenses:  $560,886 (43.6%)

Net Operating Income:  $237,085 (18.4%)

2021 (for comparison)

Total Income (Net Sales):  $1,246,988 (100.0%)

Total Cost of Goods Sold:  $453,093 (36.3%)

Gross Profit:  $793,895 (63.7%)

Payroll Expenses:  $290,362 (23.3%)

Royalties:  $62,123 (5.0%)

Other Expenses

• Advertising:  $3,807 (0.3%)
• Bank Service Charges:  $1,740 (0.1%)
• Brand Fund:  $12,530 (1.0%)
• Credit Card Fees:  $31,653 (2.5%)
• Dues and Subscriptions:  $9,810 (0.8%)
• Insurance:  $10,230 (0.8%)
• Licenses and Permits:  $330 (0.0%)
• Office Supplies:  $1,036 (0.1%)
• Professional Fees:  $2,246 (0.2%)
• Repairs and Maintenance:  $8,952 (0.7%)
• Supplies:  $28,304 (2.3%)
• Uniforms:  $1,744 (0.1%)
• Utilities:  $25,809 (2.1%)
• Total Other Expenses:  $138,190 (11.1%)

Total Expenses:  $490,676 (39.4%)

Net Operating Income:  $303,219 (24.3%)

Part 4 – Year-Over-Year Same Store Sales and Transaction Counts

• This table includes the year-over-year average Net Sales and average number of transactions for all Stores that were open on Sundays for the entirety of 2022 and the entirety of 2021.

Average Net Sales

• 2022:  $1,074,669
• 2021:  $1,029,734
• Difference:  $44,935
• As a %:  +4.18%

Average Number of Transactions

• 2022:  132,701
• 2021:  138,209
• Difference:  -5,508
• As a %:  -4.15%

• “Total Income” includes all “Net Sales” which includes all revenue from the sale of all services and products and all other income of every kind and nature (including on-premise sales, off-premise sales, and any other type of sale) related to the Franchised Store (excluding revenue from the sale of stored value gift cards or gift certificates but including revenue when gift certificates are redeemed or stored value gift cards are debited), whether for cash or credit and regardless of collection in the case of credit.

• Net Sales does not include: (1) any bona fide documented federal, state, or municipal sales taxes collected by you from customers and paid by you to the appropriate taxing authority; (2) the sale of food or merchandise for which refunds have been made in good faith to customers; (3) the sale of equipment used in the operation of the Franchised Store; (4) customer promotional discounts approved by Ellianos; and (5) employee meal discounts.

• “Gross Profit” means Total Income minus Total Cost of Goods Sold.

• “Total Cost of Goods Sold” includes the delivered cost of food, beverages, paper, and promotional items to the Restaurants. Delivered costs include distribution and freight costs.

• “Advertising” includes local store marketing.

• “Brand Fund” is a fee of 1% of Net Sales as defined in the Franchise Agreement.

• “Insurance” includes General Liability and Worker’s Comp.

• “Payroll Expenses” includes unit hourly labor, which is comprised of the average hourly rate and the number of hours worked. The cost of labor will vary from location to location and will be dependent upon factors beyond Ellianos’ control, including, without limitation, local minimum wage laws and local labor market conditions. Labor costs also include the salaries of general and assistant managers. Most stores have one manager. The other components of labor expense are payroll taxes, health insurance, vacation, wages, sick pay, bonuses, and workers’ compensation insurance.

• “Repairs and Maintenance” includes repairs or maintenance for building and equipment including pest control service.

• “Royalty” is percentage of Net Sales as defined in the Franchise Agreement. These units pay the same royalty fee as franchised units.

• “Total Supplies” includes all general store supplies, cleaning supplies (including janitorial services), smallwares, and prepaid cards.

• “Utilities” includes garbage service, gas and electric, sewer, telephone and internet, and water.

• “Net Operating Income” means Gross Profit minus Total Expenses.

• Franchisees may incur other costs in connection with the operation of an Ellianos Store, which are not included above, such as occupancy costs (i.e., rent or mortgage payments), debt service (including interest), owner compensation, automobile, travel and entertainment expenses, cash long/short, donations, and depreciation and amortization.

• Expenses will vary from franchisee to franchisee and from location to location, and are dependent upon seasonal, local, and other factors beyond Ellianos’ control.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

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