Beans & Brews Coffee House Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Beans & Brews Coffee House is a specialty-coffee franchise serving espresso drinks, house-roasted coffee, teas, and light food. Franchisees run cafes and drive-thrus managing baristas, beverage prep, and service.
FranchiseVerdict summary · 2026
A Beans & Brews Coffee House franchise requires a total initial investment of $423K – $859K, including a $20K – $30K franchise fee and an ongoing 5.5% royalty[2]. Per the 2025 FDD, average unit revenue was $679K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 11 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $423K – $859K
- 69th pct Service Resta…
- Avg gross sales
- $679K
- Net sales8th pct Service Resta…
- Royalty
- 5.5%
- 42nd pct Service Resta…
- Units
- 82
- 74th pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $423K – $859K including a $20K franchise fee, 5.5% ongoing royalty.
- RETURNSAverage unit revenue of $679K/year (median $685K).
- RISKVerdict A (Strongest tier), verdict score 74/100 (higher is better). SBA loan charge-off rate of 0.0% across 11 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHSystem growing at 35.0% CAGR over 3 years with 82 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Beans & Brews Franchise Company, LLC
- Parent company
- B&B Coffeehouse Intermediate Holdings, LLC
- Ultimate parent
- B&B Coffeehouse, LLC
- CEO title
- Chief Executive Officer
- Doug Willmarth
- Incorporated in
- UT
- HQ
- 8619 Sandy Parkway, Suite 110, Sandy, Utah 84070-6404
- Auditor
- Forvis Mazars, LLP
- Audited financials
- Franchisor revenue
- $3.2M
- vs $2.4M prior year
Overview
About
- CEO
- Doug Willmarth
- Headquarters
- UT
- Founded
- 2004
- FDD year
- 2025
- States available
- 8
Can you afford it, and what does the money buy?
Entry cost is about average for a quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown15 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $423K – $859K
- Bottom third — review vs category
- Liquid capital req'd
- $30K – $40K
- Middle of category vs category
- Franchise fee
- $20K – $30K
- Top 40% of category vs category
- Royalty
- 5.5%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $150 |
| Training fee | $1K |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Inventory (initial) | $12K – $15K |
| Total fee load | 8.5% of rev |
What do units actually make?
Average unit sales run 44% below the quick-service restaurants norm.
Reported as net sales, not gross sales
Source: FDD 2025 · Item 19
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
$92K
13.5% margin
Unlevered ROIC
14%
EBITDA / total invested capital
Payback
7.4 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Beans & Brews Coffee House unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
14%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
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
$883K
on $4.4M purchase
Total debt
$3.5M
SBA $2.2M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Reported as net sales, not gross sales
- Avg gross sales
- $679K
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
- Median gross sales
- $685K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Net Sales and Net Income (affiliate-owned); Net Sales only (franchisee-owned)
- Sample size
- 32
- vs category median 20
- Range (low → high)
- $315K→$1.2M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 782 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $679K/year in gross sales. Revenue-to-investment ratio: 1.1x.
Fee burden
Total ongoing fee load of 8.5% (near the Quick-Service Restaurants average).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 35.0% CAGR over 3 years across 82 units — operators are staying and new ones are joining.
Multi-unit rate
Only 7% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Beans & Brews Coffee House Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 82
- Opened
- 22
- Last reporting year
- Closed
- 5
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.9%
- Company-owned
- 28
- Corporate units in the system
- % franchised
- 66%
- vs corporate-owned
- Multi-unit owners
- 6.9%
- Net growth (3-yr)
- +35.0%
- Net unit change over 3 years
- 3-yr CAGR
- +35.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 10
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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 · 12 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
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
- Typical loan rate
- 8.2%
- avg rate to borrowers
- Franchised industry avg
- 10.6%
- brand beats franchise avg ↓
- Jobs supported
- 169
- 3.4 per loan
- Lender concentration
- 27%
- top lender's share
Borrower mix: 73% went to startups / new businesses, 27% to established operators
Franchise vs independent — in snack and nonalcoholic beverage bars, franchised businesses charge off at 10.6% vs 8.9% for independents — franchising is associated with 19% higher SBA default risk in this category.
Top lenders financing Beans & Brews Coffee House franchisees
Showing 3 of 8 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
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.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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 required to be disclosed in Item 3.
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 74 / 100 verdict
- 01MINOR20% YoY unit growth is strong but requires validation; rapid expansion can mask underlying unit-level profitability issues
- 02MINORRoyalty rate of 5.5% is reasonable, but combined with startup costs, payback period unclear without Item 19 data
- 03MINORNet 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
What are you signing up for?
Ongoing fees run about 8.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| 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 | UT |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 2 hrs
- On-the-job training
- 78 hrs
- Training location
- Beans & Brews Support Center or certified Coffeehouse locations
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisor must approve site; franchisee selects within Site Selection Area mutually agreed upon
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
47 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 $423K – $859K, with an initial franchise fee of $20K. 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 $679K. The median is $685K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Beans & Brews Coffee House FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Beans & Brews Coffee House FDD and qualifies whose outlets they describe.
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 54 franchised units and 28 company-owned units. 22 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 verdict score of 74 out of 100 (higher is better), 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.
For franchisors
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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.