Peet's CoffeeFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Peet's Coffee franchise requires a total initial investment of $1.0M – $1.7M, including a $35K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.5M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $1.0M – $1.7M
- 96th pct Service Resta…
- Avg gross sales
- $1.5M
- 47th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 199
- 82nd 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 2024. Newer systems carry more uncertainty but may offer better territories.
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).
- Verdict A (Top Quintile) with a risk score of 41/100.
- 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
- Legal entity
- Peet’s Coffee Franchise, LLC
- Parent company
- Peet’s Coffee, Inc.
- Ultimate parent
- JDE Peet's N.V.
- Incorporated in
- DE
- HQ
- 1400 Park Avenue, Emeryville, California 94608
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
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.
- CEO
- Stuart Heflin
- Headquarters
- CA
- Founded
- 2024
- FDD year
- 2026
- States available
- 0
FDD Item 7 · 2026 filing · 13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Real Estate (3 Months' Rent and Security Deposit) | $30K | $50K | |
| Other Security and Utility Deposits | $10K | $20K | |
| Leasehold Improvements | $385K | $770K | |
| Computer System and Technology | $60K | $90K | |
| Initial Inventory and Supplies | $15K | $20K | |
| Furniture, Fixtures & Equipment | $260K | $350K | |
| Signage | $45K | $70K | |
| Professional Fees and Licenses | $70K | $110K | |
| Insurance | $7K | $10K | |
| Initial Training Program - Mandatory Trainees | $5K | $12K | |
| Grand Opening Advertising | $3K | $10K | |
| Additional Funds - First 3 Months of Operation | $110K | $150K | |
| Total initial investment | $1.0M | $1.7M |
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$193K
13.0% margin
Unlevered ROIC
13%
EBITDA / total invested capital
Payback
7.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.0M – $1.7M
- Below avg, review vs category
- Liquid capital req'd
- $110K – $150K
- Below avg, review vs category
- Franchise fee
- $35K – $35K
- Near category avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- Not currently assessed (subject to change)
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Technology fee | $500 |
| Transfer fee | $18K |
| Renewal fee | $18K |
| Inventory (initial) | $15K – $20K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $1.5M
- Per unit, per year
- Median gross sales
- $1.4M
- Item 19 type
- gross_sales
- Sample size
- 196 units
- vs category median 28 · large
- Range (low → high)
- $474K→$2.9M
- Cohort dispersion (min → max)
- Quartile band
- $1.1M→$1.9M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Peet's Coffee Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 199
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 199
- 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
- 0
- Franchisor's next-year forecast
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.
Available to sell in · Item 12
- California
- Illinois
- Maryland
- Michigan
- Minnesota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
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
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.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $262,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
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: No
Score breakdown · what drove the 41 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Protected territory | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 120 hrs
- Training location
- On-site and off-site
- Site selection
- joint
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
22 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Peet's Coffee · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Peet's Coffee franchise?
The total investment to open a Peet's Coffee franchise ranges from $1.0M – $1.7M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Peet's Coffee franchise owners earn?
According to Item 19 of the Peet's Coffee FDD, the average gross sales per unit is $1.5M. The median is $1.4M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Peet's Coffee's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Peet's 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 Peet's Coffee franchise locations are there?
As of their most recent FDD filing, Peet's Coffee has 199 total units in the United States, including 0 franchised units and 199 company-owned units.
Is Peet's Coffee a good franchise to buy?
FranchiseVerdict rates Peet's Coffee as a A-grade franchise with a risk score of 41 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.