Coffee BeaneryFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Coffee Beanery franchise requires a total initial investment of $143K – $417K, including a $15K franchise fee and an ongoing 4.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 19.2% charge-off rate across 73 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $143K – $417K
- 16th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 28
- 52nd pct Service Resta…
- SBA default
- 19.2%
- 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 1985. Systems this mature have refined operations and brand recognition.
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.
- Verdict B (Above Average) with a risk score of 55/100. SBA loan charge-off rate of 19.2% across 73 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- Legal entity
- THE COFFEE BEANERY LTD.
- Parent company
- Shaw Coffee Company
- CEO title
- CEO and President
- JoAnne Shaw
- CEO experience
- 48 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- MI
- HQ
- 3429 Pierson Place, Flushing, Michigan 48433
- Auditor
- Taylor & Morgan, P.C.
- Audited financials
- Franchisor revenue
- $12.1M
- vs $12.7M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
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.
- CEO
- JoAnne Shaw
- Headquarters
- MI
- Founded
- 1976
- FDD year
- 2025
- States available
- 13
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $15K | $15K |
| Working capital (3–6 mo) | $20K | $50K |
| Equipment, build-out, other | $108K | $352K |
| Total initial investment | $143K | $417K |
Source: Coffee Beanery 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $143K – $417K
- Better than avg vs category
- Liquid capital req'd
- $20K – $50K
- Near category avg vs category
- Franchise fee
- $10K – $15K
- Better than avg vs category
- Royalty
- 4.0%
- Net Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $8K |
| Renewal fee | $5K |
| Total fee load | 6.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Coffee Beanery Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 28
- Opened
- 1
- Last reporting year
- Closed
- 1
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.6%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Multi-unit owners
- 17.4%
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 5
- Franchisor's next-year forecast
- Termination rate
- 3.6%
- Franchisor-initiated terminations
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 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
- 73
- Loan volume
- $14.5M
- Median loan
- $199K
- average
- Charge-off rate
- 19.2%
- 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)
- N/A
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 36
- Defaults
- 14
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
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.
Litigation (Item 3)
Two administrative proceedings: (1) Illinois Attorney General investigation (April 2007) regarding unlicensed broker participation and failure to disclose gift card, background music, and Pepsi purchase programs - settled January 2, 2008 with $2,500 fine; (2) Maryland Securities Commissioner v. Coffee Beanery and Kevin Shaw (Case No. 2005-0244) regarding franchise sale to Richard Welshans with alleged violations of disclosure and antifraud provisions - settled September 12, 2006 via Consent Order requiring cessation of franchise offerings in Maryland and rescission offers to affected franchisees.
Largest disclosed settlement: $2,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Taylor & Morgan, P.C.
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 55 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| 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 | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Michigan |
| Litigation count | 2 |
View Item 3 litigation summary
Two administrative proceedings: (1) Illinois Attorney General investigation (April 2007) regarding unlicensed broker participation and failure to disclose gift card, background music, and Pepsi purchase programs - settled January 2, 2008 with $2,500 fine; (2) Maryland Securities Commissioner v. Coffee Beanery and Kevin Shaw (Case No. 2005-0244) regarding franchise sale to Richard Welshans with alleged violations of disclosure and antifraud provisions - settled September 12, 2006 via Consent Order requiring cessation of franchise offerings in Maryland and rescission offers to affected franchisees.
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 60 hrs
- Training location
- Training Center (Flushing, Michigan), Training Store (Flint, Michigan), and franchisee's store
- Ongoing training
- Required
- Field support
- 60 hrs/yr
- On-site visits per year
- POS system
- Revel POS Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel POS Software
Item 20 · call current owners
Franchisee Contacts
29 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Coffee Beanery · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Coffee Beanery franchise?
The total investment to open a Coffee Beanery franchise ranges from $143K – $417K, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Coffee Beanery franchise owners earn?
Coffee Beanery does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Coffee Beanery's franchise failure rate?
Based on SBA 7(a) loan data, Coffee Beanery has a charge-off rate of 19.2% across 73 loans, meaning 19.2% 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 Coffee Beanery franchise locations are there?
As of their most recent FDD filing, Coffee Beanery has 28 total units in the United States, including 27 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is Coffee Beanery a good franchise to buy?
FranchiseVerdict rates Coffee Beanery as a B-grade franchise with a risk score of 55 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.
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.