Beans & Brews Coffee House Franchise Cost, Revenue & Review 2026
- Investment
- $423K – $859K
- Disclosed sales
- $679K
- gross sales, not profit
- SBA charge-off
- 0.0%
- on 11 loans
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 →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $423K – $859K
- 67th pct Service Resta…
- Avg gross sales
- $679K
- Net sales10th pct Service Resta…
- Royalty
- 5.5%
- 44th pct Service Resta…
- Units
- 82
- 73rd 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 median · 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 70/100 (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).
- GROWTHPositive: net +9 franchised outlets in the latest year (10 opened, 1 closed); 32 signed but not yet open (Item 20).
- 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
- FDD Item 1, page 7 of the 2025 FDD
- Ultimate parent
- B&B Coffeehouse, LLC
- FDD Item 1, page 7 of the 2025 FDD
- 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 runs 32% above the typical 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%
- 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 net sales |
| Marketing / ad fund | 3.0% of net 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 30% below the quick-service restaurants norm.
Reported as net sales, not gross sales
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Beans & Brews Coffee House until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$676K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own 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?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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 outlets
- vs category median 19
- Range (low → high)
- $315K→$1.2MCited, not corroborated — printed on page 63 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- 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 781 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 median).
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 medians
How Beans & Brews Coffee House Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
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 (3-yr)
- +35.0%
- Net unit change over 3 years
- 3-yr CAGR
- +35.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 32
- 0.39 per open outlet · Item 20 Table 5
- 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.
Where the owners are · Item 20 owner list
47 current owners across 12 states.
- UT 24
- TX 8
- AZ 3
- NE 2
- NJ 2
- NV 2
- CA 1
- FL 1
- ID 1
- IL 1
- NM 1
- VA 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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%
- on 11 loans · 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Beans & Brews Coffee House from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 8.24%
- Lender concentration
- 27.3%
- Job velocity
- 3.4 per $100K
- NAICS benchmark
- 7.0%
- NAICS 722515
- Jobs supported
- 169
Top SBA lendersTop lender holds 27% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Live Oak Banking Company | 3 | $875K | 0.0% |
| 2 | MISSINGMAINBANKID | 2 | $1.1M | 0.0% |
| 3 | First Commonwealth Bank | 1 | $491K | N/A |
| 4 | Utah First FCU | 1 | $455K | N/A |
| 5 | Cadence Bank | 1 | $500K | N/A |
| 6 | Zions Bank, A Division of | 1 | $300K | N/A |
| 7 | First Bank of the Lake | 1 | $750K | N/A |
| 8 | Byline Bank | 1 | $450K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| UTUtah | 7 | 0 | 0.0% |
| COColorado | 2 | 0 | -- |
| NVNevada | 1 | 0 | 0.0% |
| TXTexas | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
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)
FY2024 total revenues comprise license fees ($661,250), royalties ($1,422,027), advertising contributions ($801,541), and service and reporting fees ($297,440). Audited by Forvis Mazars, LLP (report dated April 14, 2025).
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 70 / 100 verdict
- 01MINOR20% YoY unit growth is strong but requires validation; rapid expansion can mask underlying unit-level profitability issues
- 02MINORNet 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 territory |
| 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
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. Important context: Reported as net sales, not gross sales. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Beans & Brews Coffee House?
Beans & Brews Coffee House is franchised by Beans & Brews Franchise Company, LLC. Its parent company is B&B Coffeehouse Intermediate Holdings, LLC. The ultimate parent named in the FDD is B&B Coffeehouse, LLC. Source: FDD Item 1, 2025 filing.
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. 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 verdict score of 70 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
Are you the franchisor?
If you represent Beans & Brews Coffee House, you can request corrections or provide updated information.
Other Quick-Service Restaurants franchises
Compare similar franchise opportunities in the Quick-Service Restaurants category
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.