About The Human Bean Franchise
The Human Bean is an espresso drive-thru franchise specializing in the preparation and sale of espresso coffee, brewed coffee, tea drinks, fruit smoothies, and related products.
Franchisees operate retail drive-thru outlets under The Human Bean brand, serving customers a variety of hot and cold beverages, pastries, and branded merchandise.
The target customers are coffee and specialty beverage consumers seeking a quick, convenient drive-thru experience.
The Human Bean Franchise Cost & Fees
Minimum Investment
$380K
Average Investment
$643K
Maximum Investment
$905K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | No royalty fee (revenue derived from required product purchases) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of gross sales revenue (Brand Fee, may increase up to 2%) | National brand fund |
| Total Investment Range | $380,025 – $905,025 | Includes build-out, inventory, working capital |
The investment range of $380K–$905K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (No royalty fee (revenue derived from required product purchases)) and marketing fee (1% of gross sales revenue (Brand Fee, may increase up to 2%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Site Evaluation Fee | $5,000 | $5,000 |
| Initial Franchise Fee | $30,000 | $30,000 |
| Development Fee (optional, per additional location) | $10,000 | $10,000 |
| Training Expenses | $8,700 | $16,800 |
| Real Property (lease payment) | $2,500 | $9,000 |
| Equipment, fixtures, other fixed assets, construction, remodeling, leasehold improvements, and decorating costs | $288,200 | $744,800 |
| Inventory | $20,000 | $25,000 |
| POS Software | $325 | $425 |
| Security deposits, utility deposits, business licenses and other prepaid expenses | $4,300 | $9,000 |
| Working capital | $1,000 | $5,000 |
| Advertising and promotion | $5,000 | $10,000 |
| Additional funds (initial 90 day period) | $15,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $4,000 |
| Renewal Fee | $2,000 |
| Technology Fee | $325-$425/month POS software fee plus transactional fees on card purchases |
| Audit Fee | Cost of audit (if underreporting exceeds 2% or failure to maintain records) |
| Additional Training Pre-Opening | $40/hour |
| Additional On-Site Assistance Post-Opening | $400/day plus travel expenses |
| Costs and Attorneys' Fees for Breach | Varies, when incurred |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 120 hours over approximately 3 weeks |
| Classroom Training | 12 hours per week (Marketing: 6 hrs, Scheduling & Planning: 2 hrs, Inventory Procedures: 2 hrs, Cash Management and Reporting: 2 hrs) |
| On-the-Job Training | 28+ hours per week (Food & Sanitation: 4 hrs, Equipment Usage: 8 hrs, Guest Relations: 6 hrs, Quality Service & Cleanliness: 4 hrs, Scheduling & Planning: 2 hrs, Inventory Procedures: 2 hrs, Cash Management and Reporting: 2 hrs, Drink Assembly/Product Preparation/General Operations: 8 hrs per day) |
| Training Location | Medford or Portland, Oregon training facility |
| Additional Training | $40/hour for additional training if required; transferees pay $3,000 training fee plus travel expenses |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | 1 mile radius from the location of the drive-thru |
| Description | Exclusive territory within a 1 mile radius of the drive-thru location. Franchisor will not operate a company-owned outlet or grant a franchise for a competing business within the territory. However, franchisor may sell THB-branded products by mail order, Internet, or other networked means within the territory. Area Developers receive a larger development area defined by the Area Development Agreement until fulfilled, then revert to 1-mile radius per outlet. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $2,000 |
| Renewal Conditions | Full compliance with existing agreement, advance written notice (60-180 days before expiration), pay $2,000 renewal fee, sign then-current franchise agreement, refurbish/remodel drive-thru (up to $60,000), release past and present claims, no more than 3 written notices of default during term and no more than 2 in last 5 years, current on all financial obligations |
| Transfer Fee | $4,000 |
| Transfer Conditions | Buyer must qualify financially and meet THB criteria, buyer signs then-current franchise agreement, buyer agrees to remodel, seller must be in good standing, seller signs general release, transfer fee of $4,000 paid, THB has right of first refusal. THB will not unreasonably withhold consent. |
| Termination for Cause | Non-curable defaults include: insolvency/bankruptcy, passing off unapproved products, breach of confidentiality or noncompete covenants, abandonment, fraud, loss of lease, repeated breaches, for-cause termination of related Area Development Agreement. Curable defaults: 2 days for health/safety violations, 7 days for nonpayment or insurance failure, 30 days for other breaches. |
| Non-Compete Period | 2 years after termination or expiration |
| Non-Compete Details | For 2 years after termination, may not operate a drive-thru similar to THB within 10 miles of any THB-branded outlet. During the term, restricted from competing anywhere. May not employ THB or franchisee employees for 1 year following their non-employment. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Not required to participate personally in direct operation, but recommended. Drive-thru must always be under direct supervision of franchisee or designated General Manager. Manager is not required to have an equity interest. |
| Required Suppliers | Portland Coffee Roasters, LLC (sole supplier of coffee/espresso beans); Casey Hawkins, Inc. (equipment, signs, uniforms, logo wear, promotional items, marketing materials); Harbor Wholesale Grocery and Barista Pro Shop (food items, syrups, smoothie mixes, non-coffee drinks, cups, lids, supplies); Seattle's Favorite and Barista Pro Shop (pastries); Toast (POS system); LevelUp/GrubHub (loyalty rewards program) |
| Supply Restrictions | Must purchase coffee beans, equipment, logo cups/lids, and most supplies from franchisor or designated suppliers. Must use approved local suppliers for perishable items including milk. Must participate in system-wide discount programs and accept coupons and gift cards. |
| Franchisor Revenue from Suppliers | $5,919,137 in fiscal year 2020 from sale of required goods/services (approximately 84% of total sales of $7,087,292). Revenue from rebates from approved suppliers, margin on direct sales of 3%-40%, and sales to affiliates. |
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. |
The Human Bean Franchise Earnings — Item 19
Average Revenue
$818K
Median Revenue
$799K
Revenue Range
$316K – $1.4M
Sample Size
81 units
Past financial performance does not guarantee future results. Individual results will vary.
The Human Bean Litigation & Risk Flags
Clean Litigation RecordThe Human Bean 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.
The Human Bean System Growth
Total Units
113
Franchised
100
Company-Owned
13
The Human Bean currently operates 100 franchised locations and 13 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2018 | 12 | 3 | 80 |
| 2019 | 18 | 0 | 98 |
| 2020 | 17 | 2 | 113 |
Transfers: 11 | Closures: 2
State Registrations
Registered in 16 states: CA, FL, HI, IL, KY, MD, MI, MN, NY, ND, SD, TX, UT, VA, WA, WI
The Human Bean Franchise — FAQ
The total investment to open a The Human Bean franchise ranges from $380,025 to $905,025, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
The Human Bean charges a royalty fee of No royalty fee (revenue derived from required product purchases) of gross sales, plus a 1% of gross sales revenue (Brand Fee, may increase up to 2%) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the The Human Bean 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 The Human Bean to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, The Human Bean franchise owners report average revenue of $818K and median revenue of $799K. This is based on a sample of 81 units. Past performance does not guarantee future results.
The Human Bean has been franchising since 2002. The FDD shows an investment range of $380,025-$905,025, a No royalty fee (revenue derived from required product purchases) 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 $30,000 and the total investment ranges from $380,025 to $905,025 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 The Human Bean and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with The Human Bean or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com