Beans & Brews Coffee HouseFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Beans & Brews Coffee House franchise requires a total initial investment of $199K – $859K, including a $30K franchise fee and an ongoing 5.5% royalty[2]. Per the 2025 FDD, average unit revenue was $762K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 11 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $199K – $859K
- 30th pct Service Resta…
- Avg gross sales
- $762K
- 23rd pct Service Resta…
- Royalty
- 5.5%
- 40th pct Service Resta…
- Units
- 82
- 71st pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 11 SBA loans charged off, well below the 16% franchise average.
The system grew 20% year-over-year. Fast growth means demand, but can strain support.
41% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $199K – $859K including a $30K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $762K/year (median $690K), with an estimated 41% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 5/100. SBA loan charge-off rate of 0.0% across 11 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 35.0% CAGR over 3 years with 82 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- BEANS & BREWS FRANCHISE COMPANY, LLC
- Parent company
- B&B Coffeehouse Intermediate Holdings, LLC
- Ultimate parent
- B&B Coffeehouse, LLC
- Incorporated in
- UT
- HQ
- 8619 Sandy Parkway, Suite 110, Sandy, UT 84070-6404
- Auditor
- Forvis Mazars, LLP
- Audited financials
- Franchisor revenue
- $2.4M
- vs $3.2M prior year
Overview
About
Franchisees operate specialty coffee retail locations serving espresso drinks, specialty beverages, and light food in high-traffic or standalone settings. Day-to-day involves managing barista staff, inventory control, customer service, and maintaining brand standards across menu and store presentation.
- CEO
- Doug Willmarth
- Headquarters
- UT
- Founded
- 2004
- FDD year
- 2025
- States available
- 6
FDD Item 7 · 2025 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $30K | $30K | |
| Real Estate Development Feenot refundable | $3K | $3K | |
| Property Lease | $7K | $14K | |
| Utility and Security Deposits | $2K | $3K | |
| Fixtures/Millworknot refundable | $45K | $90K | |
| Leasehold Improvementsnot refundable | $125K | $360K | |
| Architects/Permitsnot refundable | $10K | $18K | |
| Initial Inventory and Suppliesnot refundable | $12K | $15K | |
| Equipment and Furniturenot refundable | $100K | $140K | |
| Outdoor Signage & Outdoor Menu Boardnot refundable | $30K | $60K | |
| POS Equipmentnot refundable | $550 | $28K | |
| Technical Equipmentnot refundable | $16K | $28K | |
| Grand Opening Advertising Spendnot refundable | $5K | $15K | |
| Miscellaneous Expensesnot refundable | $8K | $15K | |
| Working Capitalnot refundable | $30K | $40K | |
| Total initial investment | $423K | $859K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$103K
13.5% margin
Unlevered ROIC
17%
EBITDA / total invested capital
Payback
5.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $199K – $859K
- Better than avg vs category
- Liquid capital req'd
- N/A
- Below avg, review vs category
- Franchise fee
- $20K – $30K
- Better than avg vs category
- Royalty
- 5.5%
- Net Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
- Payback period
- 2.4 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $8K |
| Training fee | $1K |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Total fee load | 8.5% of rev |
Financial Performance
- Avg gross sales
- $762K
- Per unit, per year
- Median gross sales
- $690K
- Avg p&l bottom line
- $216K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 40.8%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Affiliate and Franchisee Owned
- Sample size
- 24 units
- vs category median 28
- Range (low → high)
- $556K→$1.3M
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Beans & Brews Coffee House Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 82
- Opened
- 10
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.2%
- Company-owned
- 28
- Corporate units in the system
- % franchised
- 66%
- vs corporate-owned
- Multi-unit owners
- 6.9%
- Net growth (yr3)
- +20.0%
- Net unit change last year
- 3-yr CAGR
- +35.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 17
- Franchisor's next-year forecast
- Ceased ops
- 2.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 11
- Loan volume
- $4.9M
- Median loan
- $460K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 8
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Beans & Brews Coffee House's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 8 lenders with concentration factor
- Per-state charge-off rates across 4 states
- Startup risk premium and job creation velocity
- 6-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 11 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Moderate-to-cautious risk profile: strong unit growth and solid margins offset by absence of financial performance disclosure and wide investment variance that obscures true return potential for new franchisees.
Litigation (Item 3)
No litigation information is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Forvis Mazars, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 5 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify the $761,763 average revenue claim
- 02MINORWide investment range ($198,550–$858,500) suggests highly variable unit economics depending on location/format
- 03MINOR20% YoY unit growth is strong but requires validation; rapid expansion can mask underlying unit-level profitability issues
- 04MINORRoyalty rate of 5.5% is reasonable, but combined with startup costs, payback period unclear without Item 19 data
- 05MINORNet income margin of ~28% is healthy but based on averages — likely masks underperforming locations dragging down newer franchisees
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Utah |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation information is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 2 hrs
- On-the-job training
- 78 hrs
- Training location
- On-site and off-site
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
51 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Beans & Brews Coffee House · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Beans & Brews Coffee House franchise?
The total investment to open a Beans & Brews Coffee House franchise ranges from $199K – $859K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Beans & Brews Coffee House franchise owners earn?
According to Item 19 of the Beans & Brews Coffee House FDD, the average gross sales per unit is $762K. The median is $690K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Beans & Brews Coffee House's franchise failure rate?
Based on SBA 7(a) loan data, Beans & Brews Coffee House has a charge-off rate of 0.0% across 11 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Beans & Brews Coffee House franchise locations are there?
As of their most recent FDD filing, Beans & Brews Coffee House has 82 total units in the United States, including 40 franchised units and 28 company-owned units. 10 new units were opened in the latest reporting year.
Is Beans & Brews Coffee House a good franchise to buy?
FranchiseVerdict rates Beans & Brews Coffee House as a A-grade franchise with a risk score of 5 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.