Coffee Beanery Franchise Cost, Revenue & Review 2026
- Investment
- $213K – $417K
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 73 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Coffee Beanery is a specialty coffee franchise serving espresso drinks, flavored coffees, and pastries plus retail beans. Franchisees run the cafes, managing baristas, inventory, and counter service.
FranchiseVerdict summary · 2026
A Coffee Beanery franchise requires a total initial investment of $213K – $417K, including a $10K – $15K franchise fee and an ongoing 4.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), 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 scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $213K – $417K
- 27th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 28
- 54th pct Service Resta…
- SBA charge-off
- N/A
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 $213K – $417K including a $10K franchise fee, 4.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 54/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (1 opened, 1 closed); 5 signed but not yet open (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- The Coffee Beanery, Ltd.
- Parent company
- Shaw Coffee Company
- FDD Item 1, page 9 of the 2024 FDD
- 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
- $12.7M
- vs $12.1M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- JoAnne Shaw
- Headquarters
- MI
- Founded
- 1976
- FDD year
- 2024
- States available
- 14
Can you afford it, and what does the money buy?
Entry cost runs 35% below the typical quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $10K | $10K |
| Working capital (3–6 mo) | $20K | $50K |
| Equipment, build-out, other | $183K | $357K |
| Total initial investment | $213K | $417K |
Source: Coffee Beanery 2024 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
- $213K – $417K
- Top 40% of category vs category
- Liquid capital req'd
- $20K – $50K
- Top 40% of category vs category
- Franchise fee
- $10K – $15K
- Top 40% of category vs category
- Royalty
- 4.0%
- 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 net sales |
| Marketing / ad fund | 2.0% of net sales |
| Technology fee | $100 |
| Training fee | $5K |
| Transfer fee | $8K |
| Renewal fee | $5K |
| Inventory (initial) | $7K – $13K |
| Total fee load | 6.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Coffee Beanery makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Coffee Beanery 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 annual revenue, 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.
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: 2024 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.0% — below the Quick-Service Restaurants median of 7.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System roughly stable (0.0% 3-year CAGR) with 28 units.
Multi-unit rate
Only 17% 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 Coffee Beanery 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 2024 · Item 20
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 (3-yr)
- +0.0%
- Net unit change over 3 years
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 5
- 0.18 per open outlet · Item 20 Table 5
- 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 · 13 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
26 current owners across 13 states.
- MI 9
- TN 3
- TX 3
- WY 2
- FL 1
- GA 1
- IL 1
- KY 1
- MD 1
- NJ 1
- NY 1
- PA 1
- +1 more states
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.
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
- Limited · 73 loans
- Limited SBA coverage: 73 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 73 loans
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 36
- Defaults
- 14
Vintage analysis
Coffee Beanery charge-off rate by loan vintage
Top lenders financing Coffee Beanery franchisees
Showing 3 of 36 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 Coffee Beanery from SBA 7(a) FOIA data.
Top SBA lenders
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | U.S. Bank, National Association | 7 | $894K | 57.1% |
| 2 | Readycap Lending, LLC | 6 | $1.7M | 50.0% |
| 3 | Wells Fargo Bank National Association | 5 | $1.0M | 0.0% |
| 4 | KeyBank National Association | 4 | $570K | 0.0% |
| 5 | JPMorgan Chase Bank, National Association | 4 | $1.4M | 0.0% |
| 6 | GE Capital Small Business Finance Corporation | 3 | $526K | 50.0% |
| 7 | Bank of America, National Association | 3 | $548K | 0.0% |
| 8 | First Western SBLC, Inc | 2 | $272K | 0.0% |
| 9 | Wachovia SBA Lending, Inc. | 2 | $350K | 0.0% |
| 10 | The Huntington National Bank | 2 | $280K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| MIMichigan | 11 | 2 | 22.2% |
| NYNew York | 7 | 1 | 16.7% |
| VAVirginia | 6 | 1 | 25.0% |
| TXTexas | 5 | 1 | 20.0% |
| CACalifornia | 4 | 1 | 50.0% |
| ILIllinois | 4 | 3 | 75.0% |
| KYKentucky | 4 | 1 | 25.0% |
| NJNew Jersey | 4 | 0 | 0.0% |
| PAPennsylvania | 4 | 0 | 0.0% |
| ARArkansas | 3 | 0 | 0.0% |
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Coffee Beanery presents elevated risk due to undisclosed unit economics, stagnant growth, prior regulatory violations, territorial conflicts, and weak franchisor financial indicators.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
Administrative proceeding before the Illinois Attorney General (2007-2008, $2,500 fine); Administrative proceeding before the Maryland Securities Commissioner (2005-2006, Consent Order requiring rescission offers).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Taylor & Morgan, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Consolidated audited financial statements of Shaw Coffee Company and Subsidiaries (parent/guarantor, includes The Coffee Beanery, Ltd.) for fiscal year ended June 30, 2024. Total revenue includes retail sales, product/equipment sales to franchisees, franchise royalty revenue and fees, wholesale sales, and other revenue.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 54 / 100 verdict
- 01MINORStagnant unit count at 28 with unknown growth trajectory suggests mature or declining system; no expansion momentum in competitive coffee sector
- 02HIGHMaterial 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
- 03MINORUnprotected territory creates direct competition risk; multiple franchisees can operate in same area, diluting individual unit economics
- 04MINOR4% 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
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Flushing, Michigan (non-binding mediation at franchisor's option) |
| Jury trial waiver | No |
| Governing law | MI |
| Litigation count | 2 |
View Item 3 litigation summary
Administrative proceeding before the Illinois Attorney General (2007-2008, $2,500 fine); Administrative proceeding before the Maryland Securities Commissioner (2005-2006, Consent Order requiring rescission offers).
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
- Ongoing training
- Required
- Field support
- 60 hrs/yr
- On-site visits per year
- Time to open
- 9 mo
- From signing to launch
- Franchisor financing
- Not offered
- Item 10
- POS system
- Revel POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel POS
Item 20 · call current owners
Franchisee Contacts
26 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 Coffee Beanery franchise?
The total investment to open a Coffee Beanery franchise ranges from $213K – $417K, with an initial franchise fee of $10K. 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Coffee Beanery?
Coffee Beanery is franchised by The Coffee Beanery, Ltd.. Its parent company is Shaw Coffee Company. Source: FDD Item 1, 2024 filing.
What is Item 19 in the Coffee Beanery 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 Coffee Beanery FDD and qualifies whose outlets they describe.
What is Coffee Beanery's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Coffee Beanery (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
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 verdict score of 54 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?
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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.