Creation CoffeeFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Creation Coffee franchise requires a total initial investment of $264K – $598K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $264K – $598K
- 50th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 4
- 17th pct Service Resta…
- SBA default
- N/A
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
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $264K – $598K including a $30K franchise fee, 6.0% ongoing royalty.
- Item 19 discloses "Company Owned" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict B (Above Average) with a risk score of 57/100.
- Item 19 reports "Company Owned" instead of annual gross sales. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Creation Coffee Franchising, LLC
- Incorporated in
- MI
- HQ
- 5023 Eastman Avenue, Midland, Michigan 48640
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Affiliated brands
- is the owner of the Licensed Marks
- maintains a pr
- Creation Coffee
- Creation Coffee Holdings
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate specialty coffee retail locations, likely serving espresso-based beverages, specialty brews, and potentially light food items. Day-to-day operations include inventory management, staff scheduling, customer service, product preparation, and local marketing within a protected territory.
- CEO
- Jacob Spence
- Headquarters
- MI
- Founded
- 2025
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $30K | $30K | |
| Construction and Leasehold Improvements | $50K | $215K | |
| Lease Deposits and Rent - Three Months | $10K | $30K | |
| Furniture, Fixtures and Equipment | $120K | $160K | |
| Signage | $5K | $25K | |
| Computer, Software, and Point of Sale System | $600 | $2K | |
| Grand Opening Marketing | $4K | $10K | |
| Initial Inventory | $4K | $6K | |
| Utility Deposits | $3K | $5K | |
| Insurance Deposits - Three Months | $2K | $5K | |
| Travel for Initial Training | $1K | $3K | |
| Professional Fees | $4K | $15K | |
| General Licenses and Permits | $500 | $2K | |
| Additional Funds - Three Months | $30K | $90K | |
| Total initial investment | $264K | $598K |
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
- $264K – $598K
- Near category avg vs category
- Liquid capital req'd
- $30K – $90K
- Below avg, review vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $500 |
| Transfer fee | $15K |
| Renewal fee | $8K |
| Inventory (initial) | $4K – $6K |
| Total fee load | 8.0% of rev |
Financial Performance
This brand's FDD disclosed "Company Owned" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Quick-Service Restaurants averages
How Creation Coffee Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 2
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Creation Coffee presents HIGH RISK due to a micro-system of only 4 units, going concern status, complete revenue/profitability opacity, and inability to validate unit economics before committing $264k-$597k.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $140,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 57 / 100 rating
- 01MINOROnly 4 existing units with unknown growth trajectory indicates minimal market validation and system maturity
- 02HIGHGoing Concern = False signals potential financial instability or operational viability concerns at corporate level
- 03MINORNo Item 19 (Average Unit Volume) disclosure prevents ROI analysis — inability or unwillingness to share revenue data is a critical red flag
- 04MEDHigh investment ceiling ($597,500) combined with undisclosed profitability creates significant downside risk with unclear break-even timeline
- 05MINOR6% royalty on unknown gross sales revenue makes financial projections impossible — royalties could be unsustainable if unit volumes are low
- 06MEDExtremely small franchise system (4 units) suggests limited corporate resources, support infrastructure, and brand recognition
- 07MINOR10-year term with $30,000 franchise fee typical for coffee, but commitment length is substantial given unproven business model
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 |
| Territory type | Radius |
| Protected territory | Yes |
| Territory population | 30,000 |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Michigan |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 45 hrs
- Training location
- Off-site and On-site
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- Square
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square
Item 20 · call current owners
Franchisee Contacts
3 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Creation Coffee · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Creation Coffee franchise?
The total investment to open a Creation Coffee franchise ranges from $264K – $598K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Creation Coffee franchise owners earn?
Creation Coffee 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 Creation Coffee's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Creation Coffee (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 Creation Coffee franchise locations are there?
As of their most recent FDD filing, Creation Coffee has 4 total units in the United States, including 0 franchised units and 4 company-owned units.
Is Creation Coffee a good franchise to buy?
FranchiseVerdict rates Creation Coffee as a B-grade franchise with a risk score of 57 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
Are you the franchisor?
If you represent Creation Coffee, you can request corrections or provide updated information.
Claim this brandOther 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.