About Takagi Coffee Franchise
Takagi Coffee is a Japanese inspired restaurant and cafe franchise offering a menu of Japanese style dishes, appetizers, specialty coffee, and other beverages prepared with proprietary recipes, sauces, and techniques.
Backed by Sunpark Co., Ltd.
and franchising since 2023, the brand operates as a full service restaurant, quick service restaurant, or kiosk depending on the location and market.
Takagi Coffee Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Revenues | National brand fund |
| Total Investment Range | $385,500 – $773,000 | Includes build-out, inventory, working capital |
The investment range of $386K–$773K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Revenues) and marketing fee (1% of Gross Revenues) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Travel and living expenses while attending Initial Training | $10,000 | $12,000 |
| Grand opening advertising and promotion | $1,500 | $2,000 |
| Real property lease deposits, construction, remodeling, leasehold improvements and decorating costs – net of landlord contribution | $260,000 | $610,000 |
| Equipment, fixtures and other fixed assets | $62,000 | $80,000 |
| Opening inventory and supplies | $5,000 | $10,000 |
| Interior/exterior signs and graphics | $3,000 | $6,000 |
| Professional fees - legal and accounting | $1,500 | $2,500 |
| Business insurance | $1,000 | $2,000 |
| Miscellaneous opening costs | $2,500 | $3,500 |
| Additional funds – 3 months | $9,000 | $15,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $0 |
| Audit Fee | Cost of audit plus interest on underpayment (variable) |
| Additional Advertising and Promotion Assessment | Amount of assessment (variable) |
| Initial Training Fee for Additional Attendees | $2,000 (for additional attendees); $250 per day (for retaking/replacing General Manager) |
| Additional Training Fee | Between $250 and $300 per day (for each attendee) |
| Late Charge | 5% of the amount past due |
| Interest | Annual Percentage Rate (“APR”) of 12% on the amount past due |
| Costs of Collection | Cost of collection of delinquent amounts (variable) |
| Gift Cards | Variable based on purchases |
| Penalty for Selling Unauthorized Products | $500 per incident |
| Penalty for Not Reporting Cash Payments | $500 |
| Indemnification of Franchisor against Losses | All “Losses” (variable) |
| Interim Manager Payments | Reasonable daily (per diem) charge which is currently $750 per day |
| Reimbursement for Curing Franchisee Defaults | Cost incurred to cure your defaults (variable) |
| Attorneys’ Fees | Reasonable legal fees and other “Expenses” (variable) |
| De-identification Enforcement Expense | Variable costs and expenses relating to de-identification |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 320 hours over eight weeks |
| Classroom Training | 100 |
| On-the-Job Training | 220 |
| Training Location | Classroom training in Torrance, California, or another designated training center. On-the-job training in a designated TAKAGI COFFEE restaurant in southern California. |
| Additional Training | The franchisor may offer optional staff training courses, seminars, conferences, or other programs. Fees for required additional training are $200-$400 per day per attendee, and for optional training, $100-$300 per day per attendee. A fee of $2,000 is charged for additional attendees of initial training, and $250 per day for retaking initial training or replacing a trained General Manager. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | minimum of 50,000 population |
| Description | An exclusive geographical area surrounding the Outlet, as set forth in Exhibit 1. The franchisor will not grant another TAKAGI COFFEE franchise or operate an Outlet within this territory, provided the franchisee fulfills material obligations. Location acceptance is based on factors like viability, population demographics (minimum 50,000), household income, vehicular traffic, and competition. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10-year terms |
| Renewal Fee | $0 |
| Renewal Conditions | Franchisee must be solvent, not have abandoned the Outlet, not operate in a manner endangering public health/safety or harming the brand, not have submitted false reports, sign the then-current Renewal Franchise Agreement, remodel the Outlet if necessary, and comply with current System requirements. |
| Transfer Fee | $10,000 |
| Transfer Conditions | New franchisee must meet franchisor qualifications, pay a $10,000 transfer fee, arrange for training, sign a release, and sign the current form of Franchise Agreement. The franchisor has 60 days to approve or disapprove the transfer. |
| Termination for Cause | The franchisor can terminate the franchise agreement for material default, including curable defaults (30 days to cure) and non-curable defaults (e.g., bankruptcy, abandonment, material misrepresentations, failure to comply with laws, repeated noncompliance, seizure of business, felony conviction, or imminent danger to public health/safety). |
| Non-Compete Period | 2 years after termination/expiration (Franchise Agreement); 1 year after ADA termination/expiration (ADA) |
| Non-Compete Details | During the term of the franchise agreement and for two years after its termination or expiration, the franchisee (and principal equity owners) cannot be involved in a competing business within 25 miles of their Outlet or any other TAKAGI COFFEE retail location. Under an Area Development Agreement (ADA), the non-compete period is one year after the ADA terminates or expires. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | A General Manager must always be on duty while the Outlet is open. Principal Equity Owners are not required to personally participate in the direct “on premises” management and operation of the Outlet. Each Principal Equity Owner (and their spouse if applicable) signs a Guarantee of Franchise Agreement requiring them to ensure that all obligations of the franchisee are fulfilled. The General Manager must devote full time during normal business hours to the management, operation and development of the Franchised Business. |
| Required Suppliers | Franchisees must purchase or lease the designated POS System and items bearing trademarks from designated or approved suppliers. Fixtures, equipment, food preparation/storage equipment, display cases, cash registers, computer systems, storefront, supplies, and signs must meet franchisor specifications and be from approved suppliers. Other specified food and beverage items must be purchased from designated or approved manufacturers/producers. |
| Supply Restrictions | The franchisor may designate single or multiple suppliers for any item or service and may concentrate purchases with one or more suppliers. Franchisees must submit a written request for approval of proposed alternative suppliers with evidence of conformity to specifications, and may be required to pay for evaluation and testing. Approval will not be unreasonably withheld. |
| Franchisor Revenue from Suppliers | As of December 31, 2022, neither the franchisor nor any affiliate derived revenue, rebates or other material consideration based on required purchases or leases by TAKAGI COFFEE franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing, nor does it guarantee any notes, leases, or obligations. |
Takagi Coffee Franchise Earnings — Item 19
Takagi 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.
Takagi 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.
Takagi Coffee System Growth
Takagi Coffee 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
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by SCHILD&CO.,INC. for year ending December 31.
Takagi Coffee Franchise — FAQ
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