Creation Coffee Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Creation Coffee is a coffee franchise serving espresso drinks, specialty beverages, breakfast sandwiches, and pastries. Franchisees run the cafes, managing baristas, food prep, and counter service.
FranchiseVerdict summary · 2026
A Creation Coffee franchise requires a total initial investment of $196K – $563K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $196K – $563K
- 22nd pct Service Resta…
- Avg gross sales
- N/A
- Company-owned only
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 4
- 19th 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 avg · 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 $196K – $563K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports actual 2025 calendar-year Gross Sales for each of the franchisor's 4 Company-Owned Outlets individually; there were no Franchise Outlets during the reporting period. Figures are individual actual results, not statistical averages, and may not be representative of future franchisee performance.
- RISKVerdict D (Below average), verdict score 38/100 (higher is better).
- DATAItem 19 reports individual outlet actuals (company-owned, no franchised outlets) rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Creation Coffee Franchising, LLC
- Parent company
- None
- CEO title
- CEO and Co-Founder
- Jacob Spence
- Incorporated in
- Michigan
- 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
- CEO
- Jacob Spence
- Headquarters
- Michigan
- Founded
- 2025
- FDD year
- 2026
- States available
- 2
Can you afford it, and what does the money buy?
Entry cost runs 42% below the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown14 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
- $196K – $563K
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $90K
- Middle of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · 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) | $2K – $4K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Creation Coffee did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Creation Coffee unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
24%
Below the 30–60% attractive-franchise band
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: 2026 FDD
Financial Performance
Item 19 reports actual 2025 calendar-year Gross Sales for each of the franchisor's 4 Company-Owned Outlets individually; there were no Franchise Outlets during the reporting period. Figures are individual actual results, not statistical averages, and may not be representative of future franchisee performance.
Company-owned outlets only - not franchisee performance
- Item 19 type
- individual outlet actuals (company-owned, no franchised outlets)
- Sample size
- 4
- vs category median 20 · small
- Range (low → high)
- $206K→$656K
- Cohort dispersion (min → max)
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 0 / 10
- vs category median 4 / 10 · below
Compared against 782 Quick-Service Restaurants brands
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 8.0% (near the Quick-Service Restaurants average).
Disclosure
Item 19 reports individual outlet actuals (company-owned, no franchised outlets) rather than annual gross sales, so unit revenue is not directly comparable.
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 averages
How Creation Coffee Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- 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 · 2 states 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.
2
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.
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
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)
No litigation is required to be disclosed in Item 3.
Largest disclosed settlement: $140,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC
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 38 / 100 verdict
- 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
- 03MINOR6% royalty on unknown gross sales revenue makes financial projections impossible — royalties could be unsustainable if unit volumes are low
- 04MEDExtremely small franchise system (4 units) suggests limited corporate resources, support infrastructure, and brand recognition
- 05MINOR10-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
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Territory population | 30,000 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 22 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Midland County, Michigan |
| Jury trial waiver | Yes |
| Governing law | Michigan |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 45 hrs
- Training location
- Midland, Michigan (plus virtual components)
- Ongoing training
- Required
- Time to open
- 7 mo
- From signing to launch
- Site selection
- franchisee (subject to franchisor approval)
- Franchisor financing
- Not offered
- Item 10
- POS system
- Square
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square
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 $196K – $563K, 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 Item 19 in the Creation Coffee 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 Creation Coffee FDD and qualifies whose outlets they describe.
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 D-grade franchise with a verdict score of 38 out of 100 (higher is better), 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.
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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.