About Foxtail Coffee Franchise
Foxtail Coffee is a specialty coffee franchise that has been franchising since 2019.
Known for its craft roasted coffee, carefully curated menu, and inviting cafe atmosphere, the brand has built a strong following among coffee enthusiasts.
Each location serves premium espresso drinks, cold brews, teas, and light food items in a warm, community focused setting.
Foxtail Coffee Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 6% of your gross sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of your gross sales | National brand fund |
| Total Investment Range | $310,000 – $520,500 | Includes build-out, inventory, working capital |
The investment range of $310K–$521K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of your gross sales) and marketing fee (1% of your gross sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee (see Note 1) | $40,000 | $40,000 |
| Rent and Lease Security Deposit (see Note 2) | $5,000 | $10,000 |
| Utilities | $500 | $3,000 |
| Leasehold Improvements | $150,000 | $250,000 |
| Market Introduction Program | $2,000 | $7,500 |
| Furniture, Fixtures, and Equipment | $60,000 | $120,000 |
| Point of Sale Hardware | $2,500 | $5,000 |
| Insurance | $500 | $1,000 |
| Signage | $8,000 | $15,000 |
| Office Expenses | $1,000 | $2,000 |
| Inventory | $10,000 | $15,000 |
| Operational Licenses and Permits | $500 | $2,000 |
| Professional Fees (lawyer, accountant, etc.) | $2,000 | $4,000 |
| Travel, lodging and meals for initial training | $3,000 | $6,000 |
| Additional funds (for first 3 months) (see Note 3) | $25,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 plus any broker fees and other out-of-pocket costs we incur |
| Renewal Fee | $10,000 |
| Technology Fee | Mobile Application $150-$300 Monthly |
| Audit Fee | Our actual cost |
| Market Cooperative Contribution | As determined by co-op. Currently, none. Maximum 5% of gross sales. |
| Replacement / Additional Training fee | Currently, $500 per person |
| Third party vendors | Pass-through of costs, plus reasonable administrative charge. Currently, none. |
| Software | Currently, $300-$600 per month |
| Non-compliance fee | $500 |
| Reimbursement | Amount that we spend on your behalf, plus 10% |
| Late fee | $100 plus interest on the unpaid amount at a rate equal to 18% per year |
| Insufficient funds fee | $30 (or, if such amount exceeds the maximum allowed by law, then the maximum allowed by law) |
| Costs of collection | Our actual costs |
| Special support fee | Our then-current fee, plus our expenses. Currently, $500 per day. |
| Customer complaint resolution | Our expenses |
| Special inspection fee | Currently $600, plus our out-of-pocket costs |
| Non-compliance cure costs and fee | Our out-of-pocket costs and internal cost allocation, plus 10% |
| Liquidated damages | An amount equal to royalty fees and marketing fund contributions for the lesser of (i) 2 years or (ii) the remaining weeks of the franchise term. |
| Indemnity | Our costs and losses from any legal action related to the operation of your franchise |
| Prevailing party’s legal costs | Our attorney fees, court costs, and other expenses of a legal proceeding, if we are the prevailing party |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 92 TOTAL HRS |
| Classroom Training | 16 |
| On-the-Job Training | 56 |
| Training Location | Foxtail Training Center, YOUR LOCATION, Virtual - Google Meet |
| Additional Training | Your managers that we reasonably designate must attend and complete, to our satisfaction, any additional training programs that we reasonably require from time to time. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | two mile radius around your location |
| Description | Your territory will usually be specified as two mile radius around your location; however, we may use other boundaries (such as counties or other political boundaries, streets, geographical features, or trade area). |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years from the date of franchise agreement. |
| Renewal Term | unlimited number of additional 5-year terms. |
| Renewal Fee | $10,000 |
| Renewal Conditions | To renew, you must give advance notice to us; be in compliance; renovate to then- current standard; sign then-current form of franchise agreement; sign general release (unless prohibited by applicable law), and pay us a $10,000 renewal fee (subject to state law). |
| Transfer Fee | $10,000 plus any broker fees and other out-of-pocket costs we incur |
| Transfer Conditions | Pay transfer fee; buyer meets our standards; buyer is not a competitor of ours; buyer and its owners sign our then-current franchise agreement and related documents (including personal guaranty); you’ve made all payments to us and are in compliance with all contractual requirements; buyer completes training program; you sign a general release; business complies with then-current system specifications (including remodel, if applicable). |
| Termination for Cause | We can terminate only if you commit one of several violations, including non-payment, material breach not cured within 30 days, misrepresentation, intentionally submitting false information, bankruptcy, loss of location, violation of confidentiality or non-compete, abandonment of business, slander/libel, refusal to cooperate with audit/inspection, operation constituting a significant danger to health/safety, multiple defaults, cross-termination, or felony charge/conviction. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise, neither the franchisee, any owner, nor any spouse of an owner may have an ownership interest in, or be engaged or employed by, any competitor. For two years after termination or expiration, no ownership or employment by a competitor located within five miles of your former territory or the territory of any other Foxtail Coffee Co. business operating on the date of termination. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | You are not required to participate personally in the direct operation of your business. However, we recommend that you participate. You must designate one person as your “Principal Executive” who is the executive primarily responsible for your business and has decision-making authority. The Principal Executive must own at least 10% of the Franchised Business and complete initial training. |
| Required Suppliers | We are currently the only approved supplier of your initial startup inventory and certain pieces of equipment that you must purchase. We also reserve the right to be a supplier (or the sole supplier) of a good or service in the future. |
| Supply Restrictions | You must purchase the equipment, supplies and items you will use in the operation of the franchised business from our approved vendors. You may also elect to purchase equipment through our Foxtail Coffee managed purchasing program for an additional administrative fee. You will purchase the coffee products and marketing materials from us or our Affiliates. |
| Franchisor Revenue from Suppliers | $515,769 |
Foxtail Coffee Franchise Earnings — Item 19
Foxtail 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.
Foxtail 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.
Foxtail Coffee System Growth
Foxtail Coffee currently operates 13 franchised locations and 29 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 6 | 0 | 17 |
| 2021 | 15 | 0 | 32 |
| 2022 | 10 | 0 | 42 |
Transfers: 1 | Closures: 0
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Audited by KEZOS & DUNLAVY Certified Public Accountants for year ending December 31.
Foxtail Coffee Franchise — FAQ
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