About Cultivate Food + Coffee Franchise
Cultivate Food + Coffee is a fast casual brunch and organic coffee franchise built around scratch made, farm to table cooking and premium beverages.
The concept delivers a luxury cafe experience with an emphasis on fresh, high quality ingredients and world class customer service.
The franchise fee is $35,000, and the company has been franchising since 2021.
Cultivate Food + Coffee Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Sales (Advertising Development and Research Fund Fee); 2% of Gross Sales (Local Advertising); Up to 1% of Gross Sales (Advertising Cooperative Fees) | National brand fund |
| Total Investment Range | $970,250 – $1,866,000 | Includes build-out, inventory, working capital |
The investment range of $970K–$1.9M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Gross Sales) and marketing fee (Up to 2% of Gross Sales (Advertising Development and Research Fund Fee); 2% of Gross Sales (Local Advertising); Up to 1% of Gross Sales (Advertising Cooperative Fees)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Initial Inventory of Products and Ingredients | $15,000 | $25,000 |
| Construction, Leasehold Improvements, and Remodeling | $450,000 | $900,000 |
| Architect/Design Fees | $15,000 | $40,000 |
| Equipment, Furnishings, Fixtures and other Fixed Assets | $300,000 | $550,000 |
| Office Equipment and Supplies | $250 | $500 |
| Signage | $3,000 | $12,000 |
| Permits and Licenses | $5,000 | $10,000 |
| Furniture | $35,000 | $100,000 |
| POS System and Computer System | $1,000 | $5,000 |
| Initial Technology Expenses | $1,000 | $4,000 |
| Grand Opening Advertising/Marketing | $15,000 | $15,000 |
| Opening Training | $3,500 | $7,500 |
| Lease Review Fee | $1,500 | $1,500 |
| Rent (3 months) and Security Deposits | $15,000 | $35,000 |
| Insurance (12 months) | $12,500 | $20,000 |
| Training, Travel and Living Expenses | $2,000 | $4,000 |
| Miscellaneous Expenses | $500 | $1,500 |
| Additional Funds and Working Capital (3 months) | $60,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The greater of 25% of initial Franchise Fee or $10,000 |
| Renewal Fee | The greater of 50% of initial Franchise Fee or $25,000 |
| Technology Fee | $500 per month |
| Audit Fee | Cost of audit plus late charge on past due balances (if understatement of 3% or more) |
| Proprietary Products | Price established by Designated Supplier from time to time |
| Additional Training and Assistance | $500 per day or $3,000 per week |
| Lease Review Fee | $1,500 |
| Mystery Shopper Program | Will vary under the circumstances |
| Relocation Fee | The greater of 75% of initial Franchise Fee or $30,000 |
| Insurance | Will vary under the circumstances |
| Returned Checks or Insufficient Funds Service Fee | $50 per occurrence |
| Interest and Late Payment Fees | The lesser of 1.5% per month or the highest rate permitted by law plus a $100 late payment fee |
| Costs of Enforcement or Defense | All costs, including reasonable accounting and legal fees |
| Indemnification | Will vary under the circumstances |
| Liquidated Damages | Will vary under the circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 2 to 3 weeks |
| Classroom Training | 115 hours |
| On-the-Job Training | 165 hours |
| Training Location | Atlanta, GA and remotely |
| Additional Training | $500 per day or $3,000 per week for additional, unscheduled training |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | generally a one mile radius |
| Description | The Franchise Agreement grants the right to operate a Cultivate Unit at a specific location with a protected area, generally a one-mile radius from the center of the premises. Within this radius, the franchisor will not operate or grant rights to another party to operate a Cultivate Unit, except for Non-Traditional Sites. However, the franchisor and other franchisees are not restricted from advertising or soliciting customers within this territory, and the franchisor reserves rights for other distribution channels and competitive brands. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | The greater of 50% of initial Franchise Fee or $25,000 |
| Renewal Conditions | Franchisee must provide written notice of election to renew, be in substantial compliance with all agreements, sign the then-current form of franchise agreement, pay a renewal fee, refurbish the unit if required, sign a general release, and maintain possession of the unit location. |
| Transfer Fee | The greater of 25% of initial Franchise Fee or $10,000 |
| Transfer Conditions | Unit must be open and operating, franchisee and affiliates must be in compliance with all agreements and have paid all outstanding amounts, proposed transferee must qualify (satisfactory credit, good moral character, business qualifications), complete training, assume obligations, pay transfer fee, sign a general release, and the transfer terms must be satisfactory to the franchisor. The franchisor also has a right of first refusal. |
| Termination for Cause | The franchisor may terminate immediately without a cure period for reasons including bankruptcy/insolvency, failure to pay amounts due within 10 days, failure to open the unit within 9 months, ceasing operations, conviction of a felony/crime of moral turpitude, health/safety hazard, material misrepresentation, unauthorized transfer, breach of non-compete, misuse of marks, failure to comply with anti-terrorism laws, or three default notices within 12 months. For other defaults, a 30-day (or 60-day if curable but requires more time) cure period is provided. |
| Non-Compete Period | 24 months |
| Non-Compete Details | During the term and for 24 months after termination/expiration, the franchisee and key personnel cannot directly or indirectly own, operate, engage in, or have any interest in a 'Competing Activity' (retail sale of fast-casual brunch, organic coffee, and other menu/carry-out items) within the Franchise Territory, any former development area territory, or within five miles of any Cultivate Location. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If the franchisee is an entity, an approved 'Operating Partner' must be designated. This individual must own at least 10% of the franchisee's equity and voting rights, have authority over operational decisions, and successfully complete the training program. The Operating Partner (or the individual franchisee) must dedicate full-time and best efforts to the unit's operation and cannot engage in other businesses requiring substantial management time that conflict with their obligations. The unit must always be managed by the franchisee, Operating Partner, or a trained manager/shift supervisor. |
| Required Suppliers | Franchisees must procure all food and beverage products, supplies, ingredients, equipment, furnishings, employee uniforms, fixtures, inventory, paper products, packaging, and other items from suppliers designated or approved in writing by the franchisor. Proprietary Products must be purchased exclusively from Designated Suppliers (which may include the franchisor or its affiliates). |
| Supply Restrictions | The franchisor may change, add to, or modify standards and specifications for products and services at any time, requiring additional expenditures from franchisees. Franchisees must adhere to franchisor-approved construction plans and specifications for the unit, requiring approval for any deviations. |
| Franchisor Revenue from Suppliers | The franchisor and its affiliates have the right to receive payments, rebates, discounts, and allowances from Designated and Approved Suppliers based on franchisee purchases. While the franchisor states it has had no revenue from franchisee purchases as of the FDD date (other than a markup on proprietary products from affiliates Mikan Bakery and SKG & Liu), it intends to pass through any such payments to franchisees but is not required to do so. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Cultivate Food + Coffee Franchise Earnings — Item 19
Cultivate Food + Coffee does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Cultivate Food + Coffee Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Cultivate Food + Coffee System Growth
Cultivate Food + Coffee currently operates 0 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 1 |
| 2020 | 0 | 0 | 1 |
| 2021 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 19 states: CA, FL, HI, IL, IN, MD, MI, MN, NE, NY, NC, ND, OR, RI, SD, TX, VA, WA, WI
Cultivate Food + Coffee Franchise — FAQ
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