Peet's Coffee
Bottom line
- Total investment $1.0M – $1.7M including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.5M/year (median $1.4M).
- Rated MODERATE with a risk score of 62/100.
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 Peet's Coffee unit return on the cash you put in?
Unlevered ROIC · per unit
9%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Peet's Coffee units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$594K
on $3.0M purchase
Total debt
$2.4M
SBA $1.5M + senior + seller note
Overview
About
Franchisees operate premium coffee retail locations featuring Peet's branded espresso drinks, single-origin coffees, and light food offerings. Daily operations include barista management, inventory control, customer service, point-of-sale management, and brand standard compliance across a company-owned specialty coffee retailer model.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Peet's Coffee presents moderate-to-caution risk due to missing profitability disclosure, unprotected territory, and unclear unit growth — making it impossible to validate the $1M+ investment ROI.
Score breakdown · what drove the 62 / 100 rating
- 01MEDNo Item 19 (Average Net Income) disclosed — impossible to validate ROI or profitability claims
- 02MINORUnprotected territory creates direct competition risk and cannibalization within the 199-unit system
- 03MINORUnknown unit growth trajectory — 199 units provides no context on system expansion, contraction, or stagnation
- 04MEDHigh initial investment ($1.035M–$1.697M) with no disclosed average net income creates severe ROI uncertainty
- 05MED10-year term with $35K franchise fee suggests relatively mature brand, but lack of growth data indicates potential plateau or decline
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
22 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Peet's Coffee · FDD (2026) PDF