Biggby CoffeeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A BIGGBY COFFEE franchise requires a total initial investment of $296K – $1.0M, including a $20K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $720K[2]. SBA 7(a) loans show a 2.8% charge-off rate across 292 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $296K – $1.0M
- 58th pct Service Resta…
- Avg gross sales
- $720K
- 21st pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 420
- 87th pct Service Resta…
- SBA default
- 2.8%
- 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
Franchising since 1999. Systems this mature have refined operations and brand recognition.
Franchised units fell from 420 to 334 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $296K – $1.0M including a $20K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $720K/year (median $703K), with an estimated 14% cash-on-cash return (based on Gross Margin). Note: this is gross profit, not take-home income.
- Verdict A (Top Quintile) with a risk score of 44/100. SBA loan charge-off rate of 2.8% across 292 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- GLOBAL ORANGE DEVELOPMENT, LLC
- Incorporated in
- MI
- HQ
- 2501 Coolidge Road, #302, East Lansing, Michigan 48823
- Auditor
- Plante & Moran, PLLC
- Audited financials
- Franchisor revenue
- $28.1M
- vs $30.8M prior year
Overview
About
BIGGBY COFFEE franchisees operate specialty coffee retail locations, managing daily espresso bar operations, customer service, inventory management, and staff scheduling. Franchisees are responsible for location lease negotiations, local marketing, hiring/training employees, and maintaining brand standards while paying 6% of gross sales in ongoing royalties.
- CEO
- Michael J. McFall
- Headquarters
- MI
- Founded
- 1998
- FDD year
- 2025
- States available
- 13
FDD Item 7 · 2025 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $20K | $20K | |
| Leasehold Improvements | $140K | $351K | |
| Site Improvements | $230K | $481K | |
| Construction Costs | $172K | $712K | |
| Equipment, Furniture and Decor | $51K | $129K | |
| Architectural and Engineering | $8K | $24K | |
| Building Permits | $4K | $19K | |
| Signage (Interior and Exterior) | $13K | $30K | |
| Real Property Rental or License | $6K | $19K | |
| Initial Inventory | $10K | $15K | |
| Insurance-General Liability, Property, EPLI and Workers Compensation | $2K | $2K | |
| Utility Expense | $500 | $5K | |
| License Permits and Other | $1K | $6K | |
| Initial Advertising and Grand Opening Promotions | $10K | $10K | |
| Miscellaneous Travel and Living Expenses for Training | $500 | $5K | |
| Organizational Expenses | $2K | $3K | |
| Additional Funds-3 months | $10K | $40K | |
| Total initial investment | $678K | $1.9M |
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
$94K
13.0% margin
Unlevered ROIC
14%
EBITDA / total invested capital
Payback
7.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $296K – $1.0M
- Near category avg vs category
- Liquid capital req'd
- $10K – $40K
- Better than avg vs category
- Franchise fee
- $10K – $20K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
- Payback period
- 7.1 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Transfer fee | $20K |
| Renewal fee | $2K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $720K
- Per unit, per year
- Median gross sales
- $703K
- Avg gross margin
- $92K
- Reported as Gross Margin in FDD Item 19
- Cash-on-cash
- 14.1%
- Based on Gross Margin / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 358 units
- vs category median 28 · large
- Range (low → high)
- $263K→$1.5M
- Cohort dispersion (min → max)
- Quartile band
- $475K→$1.0M
- Bottom 25% → top 25%
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Biggby Coffee Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 420
- Opened
- 47
- Last reporting year
- Closed
- 10
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +9.7%
- Net unit change last year
- 3-yr CAGR
- +25.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 8
- Transfer rate
- 1.9%
- Owners selling to other franchisees
- Termination rate
- 0.2%
- Franchisor-initiated terminations
- Ceased ops
- 2.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 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
- 292
- Loan volume
- $80.9M
- Median loan
- $224K
- 50th percentile
- Charge-off rate
- 2.8%
- 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)
- 97.1%
- 5-yr charge-off
- 2.8%
- Loans approved 2021+
- Active lenders
- 66
- Defaults
- 3
Vintage analysis
Biggby Coffee charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Biggby Coffee's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 11 states
- Startup risk premium and job creation velocity
- 19-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
BIGGBY presents moderate-to-high risk: going concern status, unprotected territory, litigation history, and thin profit margins warrant deep franchisee validation before $296K-$1M commitment.
Litigation (Item 3)
Global Orange Development, LLC v. Kevin A. Shannon and Garth M. Shannon (Case No. 24-0311-CB, Circuit Court for the County of Ingham, Michigan). Filed April 23, 2024. Franchisor terminated franchisee's agreement; franchisee continued operating BIGGBY COFFEE location. Court entered temporary restraining order (April 24, 2024) and preliminary injunction (May 8, 2024) ordering cessation of operations. Default judgment entered July 3, 2024 in franchisor's favor awarding $130,155.90 in damages and permanent injunction requiring compliance with post-termination covenants. Defendants filed bankruptcy October 17, 2024.
Bankruptcy (Item 4)
Disclosed in last 7 years
Defendants in Global Orange Development, LLC v. Shannon case filed bankruptcy on October 17, 2024.
Audited financials (Item 21)
Yes · Plante & Moran, PLLC
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 44 / 100 rating
- 01HIGHGoing Concern issue flagged — indicates potential financial distress at corporate level despite positive unit growth
- 02MINORUnprotected territory creates direct competition risk; 420 units in system means potential market saturation without exclusivity
- 03HIGHLitigation case shows franchisor aggressively enforced termination but franchisee bankruptcy suggests inadequate unit profitability to cover legal costs and damages
- 04MEDNet income of $91,984 on $720,465 revenue (12.8% margin) is thin; 6% royalty plus operating costs leave limited cushion for unforeseen expenses
- 05MINORNo Item 19 financial performance representation limits transparency; average figures may mask poor performer data and survivor bias
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 | 10 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| 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 | 2 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Michigan |
| Litigation count | 1 |
View Item 3 litigation summary
Global Orange Development, LLC v. Kevin A. Shannon and Garth M. Shannon (Case No. 24-0311-CB, Circuit Court for the County of Ingham, Michigan). Filed April 23, 2024. Franchisor terminated franchisee's agreement; franchisee continued operating BIGGBY COFFEE location. Court entered temporary restraining order (April 24, 2024) and preliminary injunction (May 8, 2024) ordering cessation of operations. Default judgment entered July 3, 2024 in franchisor's favor awarding $130,155.90 in damages and permanent injunction requiring compliance with post-termination covenants. Defendants filed bankruptcy October 17, 2024.
Items 10, 11
Training & Operations
- Classroom training
- 56 hrs
- On-the-job training
- 150 hrs
- Training location
- On-site at franchisee's restaurant
- Ongoing training
- Required
- Time to open
- 11 mo
- From signing to launch
- POS system
- PERC-O-Matic
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: PERC-O-Matic
Item 20 · call current owners
Franchisee Contacts
92 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
BIGGBY COFFEE · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a BIGGBY COFFEE franchise?
The total investment to open a BIGGBY COFFEE franchise ranges from $296K – $1.0M, 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 BIGGBY COFFEE franchise owners earn?
According to Item 19 of the BIGGBY COFFEE FDD, the average gross sales per unit is $720K. The median is $703K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is BIGGBY COFFEE's franchise failure rate?
Based on SBA 7(a) loan data, BIGGBY COFFEE has a charge-off rate of 2.8% across 292 loans, meaning 2.8% 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 BIGGBY COFFEE franchise locations are there?
As of their most recent FDD filing, BIGGBY COFFEE has 420 total units in the United States, including 420 franchised units and 0 company-owned units. 47 new units were opened in the latest reporting year.
Is BIGGBY COFFEE a good franchise to buy?
FranchiseVerdict rates BIGGBY COFFEE as a A-grade franchise with a risk score of 44 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.