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Food & Beverage 849 Units

Scooter's Coffee Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$954,650 – $1,523,400

Franchise Fee

$40,000

Royalty Rate

6.0%

Initial Investment Range

Low: $954,650 High: $1,523,400

The total initial investment to open a Scooter's Coffee franchise ranges from $954,650 to $1,523,400, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $40,000.

Midpoint estimate: $1,239,025

Franchise Fee

$40,000

One-time initial fee

The Scooter's Coffee franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Scooter's Coffee brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

6.0%

of gross revenue

Ad/Marketing Fund

2.0%

of gross revenue

Total Ongoing Fee Burden: 8.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Royalty 6.0 PCT Paid by electronic funds transfer every Tuesday for the preceding Reporting Period (Saturday to Friday). Subject to electronic funds transfer authorization.
National Marketing and Advertising Contribution 2.0 PCT Currently 2% but may be increased up to 4% with 60 days' written notice. Paid by electronic funds transfer every Tuesday for the preceding Reporting Period.
Local Marketing and Advertising Contribution N/A PCT None currently. May be required up to 2% of Net Sales with 60 days' written notice. Would be spent each calendar quarter.
Regional Marketing and Advertising Cooperatives N/A PCT None currently. May vary with recurring contributions up to 3% of Net Sales. No established cooperatives as of disclosure date. May be offset by Local Marketing Contribution. Maximum total advertising expense of 6% (Note 3).
Technology Fee 350.0 FIXED Currently $350 per month. Subject to annual increase of 15% (compounded annually and cumulative). Covers mobile application, Dashboard Software, HR/talent management system, and social media management software access.
Transfer Fee 10000.0 VARIABLE $10,000 or 25% of then-current initial franchise fee for new Store (whichever is greater) if transferring Franchise Agreement. $10,000 if transferring MSD Agreement. Waived for transfers to immediate family members (spouse, son, or daughter).
Renewal Fee 10000.0 VARIABLE The greater of $10,000 or 25% of the then-current initial franchise fee for a new Store. Payable when signing the new Franchise Agreement if you opt for and qualify for franchise renewal.
Inspection and Audit Fee 18.0 VARIABLE Interest on past due amount at 18% or highest rate allowed by law, plus costs of audit. Audit costs payable only if Net Sales understated by 3% or more, or if reports not submitted or cooperation lacking. Interest payable if Net Sales understated by any amount. Due 15 days after notice of underpayment.
Interest and Late Charges 1.5 VARIABLE $25 late charge plus the lesser of 1.5% per month or highest rate allowed by law. Begins to accrue the day after payments are due. Late fee automatically assessed.
Territory/Search Area Modification Fee 3000.0 FIXED No charge for first two requests. $3,000 for each additional request. For modifications to Development Area (MSD Agreement) or Non-Exclusive Search Area (Franchise Agreement). Due upon approval.
Real Estate Assistance Fee 150.0 VARIABLE $150 per hour plus travel, lodging, living expenses, telephone charges and other expenses. Only if franchisee requests assistance with site selection, feasibility studies, lease negotiations. Due upon receipt of invoice.
Alternative Item/Supplier Approval Fee 2500.0 VARIABLE $2,500 per supplier plus actual cost of testing and reasonable investigation costs. Franchisor responds within 90 days of receiving requested information. Due upon approval or disapproval.
Brand Protection Committee Default Fee 500.0 VARIABLE None currently. $500-$1,000 per violation if Brand Protection Committee established and breach occurs. $500 if Committee agrees breach occurred; $1,000 if not timely cured or breach occurs again. In addition to other rights. Due upon demand.
Standard Default Fee 500.0 VARIABLE None currently. Up to $500 per violation per month if breach occurs and not cured during cure period. Payable until default cured. In addition to Brand Protection Committee Default Fee and other rights. Due upon demand.
Conference Fee 499.0 FIXED $499 per person per year. Principal Owner or Designated Manager must attend annual conference. Fee due even if failure to attend without prior consent or failure to register. Additional travel and lodging expenses are franchisee's responsibility. Due as incurred.
Additional Training Fee 500.0 FIXED $500 per person. Payable for Operations Training for replacement managers during franchise term. Initial Immersion Training (unlimited) and Operations Training (up to 4 people) included in Initial Franchise Fee. Due before training begins.
Operations Training Cancellation Fee 500.0 VARIABLE $500 per person plus all expenses incurred. Charged if Principal Owner fails to attend, cancellation not made 14 days before training, or attendee not prepared. Includes training fees and travel/living expenses. Applies to any scheduled training. Due upon cancellation or rescheduling.
Designated Manager Training Cancellation Fee 150.0 FIXED $150 charged if Designated Manager registers but fails to attend Designated Manager portion of Operations Training. Due upon failure to attend.
Development Default Fee 18.0 VARIABLE All amounts due and damages, costs, expenses (including attorneys' fees) incurred, plus interest at lesser of 18% per year or highest rate allowable by law from date of default. Only due if default under MSD Agreement not resolved under Franchise Agreement. Due upon demand.
Relocation Fees 500.0 VARIABLE Minimum $500 up to maximum $1,000 depending on expenses franchisor incurs. Payable only if Store relocated during franchise term. Franchisee pays all costs of relocating. Due when submitting relocation request and remainder before opening.
Site Concept Plan 1000.0 VARIABLE Up to $1,000. Document may include site plan overlay on satellite imagery, engineering test fits, preliminary civil designs to confirm Store development feasibility. Franchisee responsible for all costs to prepare Site Concept Plans. May be paid to franchisor or third parties. Due before signing ground lease or purchase agreement.
Cost of Marketing, Advertising and Promotional Materials 50.0 VARIABLE Ranges from $50 to $200 per item depending on materials. If franchisee purchases advertising or marketing materials from franchisor, franchisor may pass on costs. Due upon invoice.
Inventory Purchases from Franchisor or Affiliate N/A VARIABLE Varies according to sales volume. Purchases from franchisor's affiliate. Paid by electronic funds transfer on date of invoice.
Tax Indemnification N/A VARIABLE Cost of all sales and related taxes arising from franchisor's licensing of intellectual property (such as Royalty fees) in state where Store located, plus any assessment on fees and other revenue franchisor receives. Only imposed if state collects these taxes or assessments from franchisor. Payable by electronic funds transfer when applicable.
Costs and Attorneys' Fees N/A VARIABLE Will vary under circumstances. Payable only if franchisee does not comply with Franchise Agreement. Due as incurred.
Indemnification N/A VARIABLE Will vary depending on nature of claim. Franchisee must reimburse franchisor if held liable for claims arising from Store's operations. Due as incurred.
Insurance Premiums N/A VARIABLE Will vary depending on location and insurer. If franchisee fails to obtain or maintain required insurance, franchisor may obtain insurance and seek reimbursement including late charges. Due as incurred.

What You Get

Category

Food & Beverage

System Size

849 units

Franchise Score

97

out of 100

Scooter's Coffee operates a drive-thru and counter-service coffee franchise specializing in specialty coffee drinks and espresso beverages. The brand emphasizes speed, quality ingredients, and a convenient format for on-the-go customers.

Financial Performance (Item 19)

Median Revenue

$840,066

per year, per location

Mean Revenue

$840,066

per year, per location

Profitability Estimate

Estimated Owner Profit

$120,129

per year

Profit Margin

14.3%

of revenue

Estimation method: disclosed

Estimated ROI (Simple Payback): 10.3 years

Based on midpoint investment of $1,239,025 and estimated annual owner profit of $120,129.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.2%

Low risk — below industry average

Net Unit Growth

+446 units

From 2022 to 2024

Unit Activity History

Year Start Opened Closed Transfers End
2022 379 +148 -2 525
2023 525 +209 -1 729
2024 729 +121 825

Is a Scooter's Coffee Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Scooter's Coffee franchise opportunity:

Overall Score

97/100

Strong opportunity

Est. Payback Period

10.3 yrs

Longer payback

Risk Level

Low

0.2% annual closure rate

Scooter's Coffee scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $840,066 and a combined fee burden of 8.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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