Coffee Beanery
Bottom line
- Total investment $143K – $417K including a $15K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 5 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 Coffee Beanery unit return on the cash you put in?
Unlevered ROIC · per unit
29%
Below typical band (30–60%)
Overview
About
Coffee Beanery franchisees operate specialty coffee retail locations selling premium coffee beans, brewed beverages, and related products. Day-to-day operations include customer service, espresso/beverage preparation, inventory management, and point-of-sale transactions in a cafe-style environment. Franchisees are responsible for local marketing, staff scheduling, and achieving sales targets while paying 4% royalties to the franchisor.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 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
Coffee Beanery presents elevated risk due to undisclosed unit economics, stagnant growth, prior regulatory violations, territorial conflicts, and weak franchisor financial indicators.
Score breakdown · what drove the 64 / 100 rating
- 01MINORNo Item 19 financial disclosure (average revenue and net income) prevents ROI validation; high investment ($143k-$417k) without transparent earnings data
- 02MINORStagnant unit count at 28 with unknown growth trajectory suggests mature or declining system; no expansion momentum in competitive coffee sector
- 03HIGHMaterial litigation history: 2007 Illinois AG investigation into unlicensed brokers and disclosure violations, plus 2006 Maryland Securities Commissioner consent order for registration and antifraud violations—indicates past compliance and sales practice failures
- 04MINORUnprotected territory creates direct competition risk; multiple franchisees can operate in same area, diluting individual unit economics
- 05HIGH4% royalty is low (suggests weak franchisor revenue model), combined with no going concern statement and financial opacity raises sustainability questions
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
29 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Coffee Beanery · FDD (2025) PDF