About LMC Franchise
Laughing Man Coffee & Tea is a premium cafe franchise offering creative, high quality coffee and tea beverages alongside packaged coffee, tea products, and branded merchandise.
Each location provides a welcoming atmosphere for customers seeking an elevated coffee experience that goes beyond the standard coffee shop, with a menu focused on craftsmanship and distinctive flavor profiles.
The franchise fee is $35,000, and Laughing Man Coffee & Tea has been franchising since 2024 under LM Licensing, LLC.
LMC Franchise Cost & Fees
Minimum Investment
$397K
Average Investment
$685K
Maximum Investment
$974K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Sales | National brand fund |
| Total Investment Range | $396,950 – $973,900 | Includes build-out, inventory, working capital |
The investment range of $397K–$974K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (1% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Construction, Remodeling, Leasehold Improvements and Decorating Costs (whether purchased or leased) | $178,800 | $577,400 |
| Equipment, Fixtures, Signage, other Fixed Assets (whether purchased or leased) | $135,000 | $264,500 |
| Initial Training Expenses | $4,000 | $8,000 |
| Inventory to begin operating | $7,500 | $15,000 |
| Insurance | $1,500 | $5,000 |
| Initial Marketing | $8,500 | $12,000 |
| Deposits, Business Licenses, and other Prepaid Expenses | $9,500 | $22,000 |
| Average Monthly Rent | $2,150 | $10,000 |
| Additional Funds for Initial 3-Month Period | $15,000 | $25,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $17,500 or one half of the then current Initial Franchise Fee |
| Renewal Fee | $17,500, or one half of the then current Initial Franchise Fee, plus reimbursement of our reasonable out-of-pocket costs and expenses associated with renewing your franchise, including legal and accounting fees. |
| Audit Fee | Cost of audit |
| Local Marketing Expenditure | 2% of Gross Sales |
| Marketing Cooperative Contribution | Amount determined by cooperative, not to exceed then-current Local Marketing Expenditure |
| On-Site Remedial Assistance | $300 per person per day, plus expenses |
| Supplemental or Additional Training Fee | $300 per person per day, plus expenses |
| Transfer Fee (Area Development Agreement) | Reimbursement of our expenses incurred in connection with the transfer, including attorneys' fees. |
| Relocation Fee | $2,500, plus monthly Lost Royalty Fee |
| Alternative Supplier Review | Costs of reviewing your proposed alternative supplier |
| Guest Satisfaction Survey Monitoring | Vendor's then-current fee |
| Computer System Costs | As incurred |
| Placement of Media and Marketing Materials | As incurred |
| Replacement of Manuals | Then-current charge to reimburse cost of replacement |
| Trade Accounts | Amount owed to vendors, plus our then-current administrative fee |
| Extension Fee (Area Development Agreement) | As agreed between us and you |
| Interest | Lesser of 2% per month or maximum contract rate of interest allowable by law |
| Insurance and Other Reimbursement | Premiums vary depending on location of Café |
| Legal | Actual legal fees and expenses |
| Indemnification | Actual legal fees, costs and expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 84 hours |
| Classroom Training | 28 hours |
| On-the-Job Training | 56 hours |
| Training Location | New York, New York |
| Additional Training | At our option, we may provide continuing training for you and your management-level personnel. At your request or as we deem appropriate, we will provide on-site remedial training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | The exact size of the Designated Area will be determined by us based on several factors, including without limitation, designated market area; population base; density of population; growth trends of population; apparent degree of affluence of population; the density of residential and business entities; co-tenants of your Café at the Selected Site, traffic generators, driving times; and major topographical features which clearly define contiguous areas, like rivers, mountains, major freeways, and underdeveloped land areas. |
| Description | The Franchise Agreement grants you the right to operate a Laughing Man Coffee & Tea café at a single approved location (Selected Site) within a defined geographic area (Territory). Once the Selected Site is approved, a "Designated Area" for your Café will be determined. We and our affiliates will not operate or grant others the right to operate any other Laughing Man Coffee & Tea café in the Designated Area during the term of your Franchise Agreement, subject to certain reservations. For Area Development Agreements, you are assigned a geographic area (Development Territory) within which you are required to develop multiple Cafés, but you will not receive an exclusive territory within this Development Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two additional 5-year terms |
| Renewal Fee | $17,500, or one half of the then current Initial Franchise Fee, plus reimbursement of our reasonable out-of-pocket costs and expenses associated with renewing your franchise, including legal and accounting fees. |
| Renewal Conditions | To renew, you must: (1) give written notice 6-12 months before expiration; (2) be in good standing; (3) have right to possession of premises; (4) repair, upgrade, and modernize the Café to current standards; (5) pay renewal fee and execute current franchise agreement; (6) comply with current qualification and training requirements; and (7) you and your Principals sign a general release in our favor. |
| Transfer Fee | $17,500 or one half of the then current Initial Franchise Fee, plus reimbursement of our reasonable out-of-pocket costs and expenses associated with renewing your franchise, including legal and accounting fees. |
| Transfer Conditions | You must be in full compliance with the Franchise Agreement; proposed transferee must meet new franchisee requirements, provide an acceptable business plan, agree to employ qualified and trained personnel, comply with training requirements, execute our then-current franchise agreement and ancillary agreements; we must approve material terms of transfer; you or transferee must pay transfer fee; you and Principals must execute a general release; we do not exercise right of first refusal; and you satisfy any other conditions. |
| Termination for Cause | We can terminate the Franchise Agreement if you default or fail to comply with your obligations. This includes failure to pay amounts due, failure to accurately report Gross Sales, failure to comply with applicable law, failure to cure a failing Brand Audit score, failure to cure deficiencies identified during inspections, or failure to comply with your lease or any other provision of the Franchise Agreement. Non-curable defaults include material misrepresentations or omissions, failure to begin operations by the required opening deadline, abandonment of the Café, conviction of a felony, unauthorized transfer, unauthorized use or disclosure of Marks or Confidential Information, repeated failures to submit reports or pay amounts due, termination of an Area Development Agreement, failure to pay taxes, bankruptcy, assignment for benefit of creditors, or attachment/seizure of the Café. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise, you, your affiliates, and your Principals will not be involved with any coffee shop, café, or food service establishment that is the same as or substantially similar to the Café or the Laughing Man Coffee & Tea brand (coffee accounts for 25% or more of menu items or gross sales). For two years after expiration, termination, or transfer, you, your affiliates, and your Principals will not be involved in a Competitive Business (1) within the Designated Area; (2) at or within 3 miles of the Café operated under your Franchise Agreement; and/or (3) within 3 miles of any other Café operating or under construction in the Designated Area. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Your Designated Principal, Café General Manager, and Café Managers must devote full-time and best efforts to the management of the Café. At least one Café Manager must provide direct on-premises supervision to the Café during all hours of operation. If you sign an Area Development Agreement, you must employ management-level personnel, including a Designated Principal who must be dedicated solely to the development of your Cafés in the Development Territory. |
| Required Suppliers | You must purchase, lease, license, sublicense, or otherwise obtain from approved suppliers (which may be us or our affiliate): (1) fixtures, furniture, equipment, computer systems, and décor; (2) food products and ingredients; (3) coffee and tea; (4) uniforms, shirts, memorabilia, and all merchandise and items intended for retail sale; (5) advertising, point-of-purchase materials, and other printed promotional materials; bags, packaging, and supplies bearing our Marks; and (6) all other goods and/or services as we require. SAMPADANA, LLC is the sole approved supplier of coffee, tea, and hot chocolate. You must also purchase or lease point-of-sale systems, computer systems, software, and hardware that we approve. |
| Supply Restrictions | You may have to buy or lease items from the franchisor or a limited group of suppliers the franchisor designates. These items may be more expensive than similar items you could buy on your own. You may purchase items and services for which we have not identified approved suppliers from any supplier, if the items and services meet our minimum standards and specifications. If brand requirements have been identified, you may purchase and use only approved brands. |
| Franchisor Revenue from Suppliers | Neither we nor our affiliates currently derive revenue or other material consideration from required purchases or leases that you make from us or from our affiliates, but we and our affiliates reserve the right to do so in the future. As of the issuance date of this Disclosure Document, neither we nor any of our affiliates have received any such payments or other consideration from any approved supplier based on franchisees' purchases or leases of required products or services from approved suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing, and we do not guarantee your notes, leases, or other obligations. |
LMC Franchise Earnings — Item 19
LMC does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
LMC 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.
LMC Litigation & Risk Flags
Clean Litigation RecordLMC 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.
LMC System Growth
Total Units
0
Franchised
0
Company-Owned
0
LMC currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
Public Figures (Item 18)
The following public figures are associated with this franchise: Hugh Jackman
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)
Total Assets
$150K
Audited by SingerLewak LLP for year ending December 31, 2022.
LMC Franchise — FAQ
The total investment to open a LMC franchise ranges from $396,950 to $973,900, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
LMC charges a royalty fee of 6% of Gross Sales of gross sales, plus a 1% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the LMC 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 LMC to ensure you have the most up-to-date version.
LMC does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
LMC has been franchising since 2024. The FDD shows an investment range of $396,950-$973,900, a 6% of Gross Sales royalty, and no 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 $35,000 and the total investment ranges from $396,950 to $973,900 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 LMC and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with LMC or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com