Beans & Brews Coffee House
Bottom line
- Total investment $199K – $859K including a $30K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $762K/year (median $690K). Estimated payback in 2.4 years.
- Rated STRONG with a risk score of 34/100. SBA loan default rate of 0.0% across 22 loans (below the industry average).
- System growing at 3500% CAGR over 3 years with 82 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Beans & Brews Coffee House unit return on the cash you put in?
Unlevered ROIC · per unit
12%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Beans & Brews Coffee House units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$381K
on $1.9M purchase
Total debt
$1.5M
SBA $1.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 34 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
51 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Beans & Brews Coffee House · FDD (2025) PDF