About Caribou Coffee Development Company Franchise
Caribou Coffee is a premium specialty coffee brand offering fresh-roasted coffee and espresso-based beverages, caffeinated drinks, teas, freshly made baked goods, sandwiches, and a variety of other food and beverage products through its retail coffeehouse locations across the United States.
The brand serves coffee enthusiasts and everyday consumers who seek quality coffee experiences in a warm, modern, and inviting setting.
Caribou Coffee operates in three distinct formats designed to serve different market needs: the full-service Chalet with dine-in seating and drive-thru capabilities, the streamlined drive-thru-focused Cabin, and the versatile Kiosk suited for non-traditional venues including airports, hospitals, universities, shopping malls, and corporate campuses.
Caribou Coffee Development Company Franchise Cost & Fees
Minimum Investment
$249K
Average Investment
$698K
Maximum Investment
$1.1M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $15,000 - $30,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales (Cabin and Chalet); 6% of Gross Sales (Kiosk); 4% of Gross Sales (airport Kiosks) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 3% of Gross Sales (currently allocated as 2% to Brand Fund and 1% for local marketing and promotion) | National brand fund |
| Total Investment Range | $249,100 – $1,146,300 | Includes build-out, inventory, working capital |
The investment range of $249K–$1.1M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales (Cabin and Chalet); 6% of Gross Sales (Kiosk); 4% of Gross Sales (airport Kiosks)) and marketing fee (Up to 3% of Gross Sales (currently allocated as 2% to Brand Fund and 1% for local marketing and promotion)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Architecture and Design Fees | $5,000 | $35,000 |
| Leasehold Improvements / Construction Costs | $45,000 | $510,000 |
| Furniture, Fixtures & Equipment | $135,000 | $320,000 |
| Signage | $5,000 | $75,000 |
| Initial Franchise Fee | $15,000 | $30,000 |
| Business Licenses and Permits | $100 | $1,300 |
| Initial Inventory | $10,000 | $20,000 |
| Technology Costs | $10,000 | $55,000 |
| New Store Opening Launch Program | $3,000 | $10,000 |
| Professional Fees | $2,000 | $15,000 |
| Initial Training Expenses | $2,000 | $6,000 |
| Additional Funds (3 months) | $17,000 | $110,000 |
| Total Estimated Initial Investment (excluding Lease) | $249,100 | $1,146,300 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Greater of $15,000 or 50% of then-current initial franchise fee, plus any applicable broker fees and additional costs |
| Renewal Fee | Cabin and Chalet: Greater of $15,000 or 50% of then-current initial franchise fee; Kiosk: Greater of $1,500 or 10% of then-current initial franchise fee |
| Technology Fee | Approximately $0 to $1,000 per month |
| Audit Fee | Franchisor's costs and expenses including accounting and attorneys fees if Gross Sales understated by 2% or more |
| Minimum Royalty Fee | $6,000 per year beginning 12 months after signing |
| Interest on Late Payments | 1.5% per month |
| Re-inspection Fee | $1,500 per re-inspection |
| Conference Fees (BOUcon) | $1,000 per attendee |
| Additional On-Site Training | $500 per day plus trainer out-of-pocket expenses |
| Additional/Replacement Certified General Manager Training | $1,000 to $2,500 per individual |
| Securities Offering Fee | $10,000 or franchisor's reasonable costs and expenses |
| Lost Future Royalties | Average monthly royalty for prior 12 months multiplied by lesser of 36 or remaining months in current term |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to two weeks for Certified General Manager training; up to 8 days pre-open plus 5 days post-open for Kiosk opening assistance; up to 14 days pre-open plus 5 days post-open for Cabin or Chalet opening assistance |
| Classroom Training | 0 hours for Certified General Manager training; 8 hours for Cabin/Chalet opening assistance program; 0 hours for Kiosk opening assistance |
| On-the-Job Training | 82 to 103 hours for Certified General Manager training; 56 hours for Kiosk opening assistance; 72 hours for Cabin/Chalet opening assistance |
| Training Location | Franchisor's training center in Minneapolis, Minnesota or a certified training Coffeehouse designated by franchisor |
| Additional Training | Franchisor may require additional refresher courses, seminars, and web-based training programs. Optional additional on-site training available at then-current per diem rate of $500 per day plus out-of-pocket expenses. Attendance at annual convention (BOUcon) may be required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected (discretionary grant) |
| Exclusive Territory | No |
| Territory Size | Determined at franchisor's discretion based on character of nearby businesses, drive times, demographics, and physical and commercial characteristics; no minimum area guaranteed |
| Description | Franchisor may grant a Protected Territory at its discretion; not all owners will receive one. If granted, franchisor will not operate or license another Coffeehouse within the Protected Territory during the term while the owner is in compliance. Franchisor reserves the right to establish Coffeehouses at non-traditional facilities inside the Protected Territory, sell products through alternative channels including e-commerce and consumer packaged goods, and operate or license other brands anywhere. Owners may not solicit or accept orders from outside their Protected Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years (Chalet and Cabin); 5 years (Kiosk); 10 years (airport Kiosks) |
| Renewal Term | Two additional consecutive terms of 5 years each |
| Renewal Fee | Cabin and Chalet: Greater of $15,000 or 50% of then-current initial franchise fee; Kiosk: Greater of $1,500 or 10% of then-current initial franchise fee |
| Renewal Conditions | Timely written notice (6 to 12 months before expiration); refurbishment to current standards; compliance with all agreement terms; timely fulfillment of all financial obligations; execution of then-current form of agreement which may contain materially different terms; payment of renewal fee; execution of renewal agreement with general release; compliance with personnel and training requirements; demonstration of right to remain at accepted location |
| Transfer Fee | Greater of $15,000 or 50% of then-current initial franchise fee plus any additional amounts necessary to compensate for costs incurred and any applicable broker commissions |
| Transfer Conditions | Requires prior written consent; transferor must execute general release; transferee must meet educational, managerial, and business standards; sign new franchise agreement; pay transfer fee; complete required training; remodeling and refurbishment to current standards may be required |
| Termination for Cause | Immediate termination (no cure) for: abandonment, felony conviction, unauthorized transfer, bankruptcy proceedings, false records, three or more defaults in 52-week period, continued purchase from unapproved suppliers after notice, failure to pay taxes after notice, fraudulent conduct, and unauthorized use of marks. Curable defaults require 30 days written notice with opportunity to cure. |
| Non-Compete Period | 2 years post-termination or expiration within 5-mile radius; no geographic limitation during term |
| Non-Compete Details | During term: no geographic limitation on prohibition against owning, operating, engaging in, or having any interest in a Competitive Business (any foodservice business offering similar products or where caffeinated coffee beverages comprise 20% or more of gross revenues). Post-term: 2-year prohibition within 5 miles of accepted location and other Coffeehouses. Also applies after a transfer. Any period of non-compliance does not count toward satisfying the 2-year obligation. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee or Operating Owner must devote full time, energy, and best efforts to management and operation of the Coffeehouse. Operating Owner must own at least 10% of voting and ownership interests unless prior written approval is obtained for a lesser interest. The Coffeehouse must at all times be under active full-time management of the Operating Owner or a Certified General Manager who has completed initial training to franchisor's satisfaction. |
| Required Suppliers | Franchisor and its affiliate CCOC are the only approved suppliers for coffee, most food items, and some furniture, fixtures, and equipment. All coffee, branded paper products, merchandise, apparel, and retail items must be purchased from the franchisor or its affiliates. |
| Supply Restrictions | Franchisees must purchase all ingredients, equipment, furniture, supplies, paper products, and other products used or offered at the Coffeehouse from approved suppliers only. Franchisor estimates over 95% of total costs of establishing and operating a Coffeehouse come from required or approved sources. Franchisees must request prior written approval before purchasing from any unapproved supplier, and approval response will be provided within 60 days. |
| Franchisor Revenue from Suppliers | During fiscal year 2021, franchisor received $14,784,226 in revenue from purchases made by licensees, representing 78% of total franchisor revenue of $19,063,388. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Franchisor does not offer direct or indirect financing and does not guarantee franchisee notes, leases, or obligations. |
Caribou Coffee Development Company Franchise Earnings — Item 19
Average Revenue
$1.1M
Median Revenue
$1.1M
Revenue Range
$451K – $1.8M
Sample Size
97 units
Past financial performance does not guarantee future results. Individual results will vary.
Caribou Coffee Development Company Litigation & Risk Flags
Clean Litigation RecordCaribou Coffee Development Company has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Caribou Coffee Development Company System Growth
Total Units
460
Franchised
139
Company-Owned
321
Caribou Coffee Development Company currently operates 139 franchised locations and 321 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 12 | 8 | 130 |
| 2020 | 8 | 6 | 132 |
| 2021 | 11 | 4 | 139 |
Transfers: 3 | Closures: 4
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$857.5M
Net Income
$36.0M
Total Assets
$1369.7M
Audited by Grant Thornton LLP for year ending December 28, 2021.
Caribou Coffee Development Company Franchise — FAQ
The total investment to open a Caribou Coffee Development Company franchise ranges from $249,100 to $1,146,300, per their Franchise Disclosure Document. This includes the initial franchise fee of $15,000 - $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Caribou Coffee Development Company charges a royalty fee of 5% of Gross Sales (Cabin and Chalet); 6% of Gross Sales (Kiosk); 4% of Gross Sales (airport Kiosks) of gross sales, plus a Up to 3% of Gross Sales (currently allocated as 2% to Brand Fund and 1% for local marketing and promotion) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Caribou Coffee Development Company Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Caribou Coffee Development Company to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Caribou Coffee Development Company franchise owners report average revenue of $1.1M and median revenue of $1.1M. This is based on a sample of 97 units. Past performance does not guarantee future results.
Caribou Coffee Development Company has been franchising since 2006. The FDD shows an investment range of $249,100-$1,146,300, a 5% of Gross Sales (Cabin and Chalet); 6% of Gross Sales (Kiosk); 4% of Gross Sales (airport Kiosks) royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $15,000 - $30,000 and the total investment ranges from $249,100 to $1,146,300 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Caribou Coffee Development Company and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Caribou Coffee Development Company or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com