Scooter’s Coffee Franchise Cost, Revenue & Review 2026
- Investment
- $955K – $1.5M
- Disclosed sales
- $915K
- gross sales, not profit
- SBA charge-off
- 0.0%
- on 235 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Scooter's Coffee is a drive-thru-focused specialty-coffee franchise serving espresso drinks, blended beverages, and light food from compact kiosks and cafes. Franchisees run fast, convenience-format stores built on speed and repeat morning traffic.
FranchiseVerdict summary · 2026
A Scooter’s Coffee franchise requires a total initial investment of $955K – $1.5M, including a $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $915K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 235 loans[1]. FranchiseVerdict grade: A (Strongest tier), 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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $955K – $1.5M
- 92nd pct Service Resta…
- Avg gross sales
- $915K
- 16th pct Service Resta…
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 849
- 92nd pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
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 $955K – $1.5M including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $915K/year (median $881K), with an estimated 6% cash-on-cash return (based on EBITDA10).
- RISKVerdict A (Strongest tier), verdict score 90/100 (higher is better). SBA loan charge-off rate of 0.0% across 235 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +96 franchised outlets in the latest year (121 opened, 25 closed); 242 signed but not yet open (Item 20).
- GROWTHSystem growing at 57.1% CAGR over 3 years with 849 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Scooter's Coffee, LLC
- Parent company
- Boundless Enterprises, LLC
- FDD Item 1, page 8 of the 2025 FDD
- CEO title
- Chief Executive Officer
- Joe Thornton
- Incorporated in
- Nebraska
- HQ
- 11808 Miracle Hills Drive, Suite #400, Omaha, Nebraska 68154
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $65.8M
- vs $56.9M prior year
Overview
About
- CEO
- Joe Thornton
- Headquarters
- NE
- Founded
- 1998
- FDD year
- 2025
- States available
- 31
Can you afford it, and what does the money buy?
Entry cost runs 155% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $40K | $40K | |
| Initial Opening Support Fee | $20K | $20K | |
| Site and Building Improvements | $639K | $974K | |
| Architectural and Engineering Fees | $26K | $72K | |
| Equipment, fixtures and furniture | $132K | $195K | |
| Signs | $32K | $65K | |
| Point-of-sale system and software | $12K | $14K | |
| Deposits and licenses | $5K | $18K | |
| Initial training: travel and living expenses | $5K | $8K | |
| Opening inventory, supplies, and smallwares | $28K | $31K | |
| Additional funds - 3 months | $16K | $86K | |
| Total initial investment | $955K | $1.5M |
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
- $955K – $1.5M
- Bottom third — review vs category
- Liquid capital req'd
- $16K – $86K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 17.4 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of net sales |
| Marketing / ad fund | 2.0% of net sales |
| Technology fee | $350 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Inventory (initial) | $28K – $31K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales land near the quick-service restaurants norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Scooter’s Coffee until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
Total invested capital · disclosed
$1.3M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $129K as EBITDA10. This is a disclosed figure, not our estimate — we publish no modelled profit for Scooter’s Coffee.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Scooter’s Coffee 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 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2025 FDD
Financial Performance
- Avg gross sales
- $915K
- Per unit, per year
- Median gross sales
- $881K
- Avg ebitda10
- $129K
- Reported as EBITDA10 in FDD Item 19
- Cash-on-cash
- 5.7%
- Based on EBITDA10 / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Historical - Average Gross Sales, Customer Ticket, Sales/Expenses/Earnings by quartile, Same Store Sales, and first-month sales
- Sample size
- 605 outlets
- vs category median 19 · large
- Range (low → high)
- $240K→$2.1MCited, not corroborated — printed on page 54 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 781 Quick-Service Restaurants brands
Revenue is only 0.7x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $915K/year in gross sales. Revenue-to-investment ratio: 0.7x.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants median).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 57.1% CAGR over 3 years across 849 units — operators are staying and new ones are joining.
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 Scooter’s Coffee 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 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 849
- Opened
- 121
- Last reporting year
- Closed
- 25
- Turnover rate
- 2.9%
- Company-owned
- 24
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (3-yr)
- +57.1%
- Net unit change over 3 years
- 3-yr CAGR
- +57.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Reacquired
- 5
- Franchisor bought back
- Signed, not yet open
- 242
- 0.29 per open outlet · Item 20 Table 5
- Projected new
- 88
- Franchisor's next-year forecast
- Termination rate
- 5.0%
- Franchisor-initiated terminations
- Ceased ops
- 10.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 31 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
- Indiana
- Michigan
- New York
- South Dakota
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
508 current owners across 31 states.
- NE 99
- IA 56
- TX 45
- KS 43
- MO 41
- IL 23
- OK 22
- FL 19
- SD 19
- MN 18
- AL 12
- AZ 12
- +19 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
- 235
- Loan volume
- $237.8M
- Median loan
- $997K
- 50th percentile
- Charge-off rate
- 0.0%
- on 235 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 60
- Defaults
- 0
- Typical loan rate
- 7.8%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 7225
- Jobs supported
- 5,741
- 2.4 per loan
- Lender concentration
- 18%
- top lender's share
Borrower mix: 85% went to startups / new businesses, 15% to established operators
Vintage analysis
Scooter’s Coffee charge-off rate by loan vintage
Top lenders financing Scooter’s Coffee franchisees
Showing 3 of 60 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 Scooter’s Coffee from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 7.76%
- Lender concentration
- 18.3%
- Job velocity
- 2.4 per $100K
- Startup risk premium
- 0.0pp
- Jobs supported
- 5,741
Top SBA lendersTop lender holds 18% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | 43 | N/A | N/A | |
| 2 | 15 | N/A | N/A | |
| 3 | 12 | N/A | N/A | |
| 4 | 10 | N/A | N/A | |
| 5 | 10 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 31 | 0 | 0.0% |
| ILIllinois | 21 | 0 | 0.0% |
| NENebraska | 17 | 0 | 0.0% |
| KSKansas | 16 | 0 | 0.0% |
| MOMissouri | 16 | 0 | 0.0% |
| TNTennessee | 16 | 0 | 0.0% |
| MNMinnesota | 13 | 0 | 0.0% |
| OKOklahoma | 10 | 0 | 0.0% |
| FLFlorida | 9 | 0 | 0.0% |
| WIWisconsin | 9 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
With a 0.0% charge-off rate across 235 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Strong, mature system: 849 units, net worth $12.4M, net income $9.5M on revenue of $65.8M, robust 57.1% net growth. The single Item 3 matter is a franchisor-initiated arbitration against former franchisees for unpaid fees, which is routine for an 849-unit system.
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
Scooter's Coffee, LLC and Harvest Roasting, LLC v. Johnson Java, LLC et al. (AAA Case No. 01-25-0003-8419, filed Aug 20, 2025) - arbitration by franchisor against former franchisees for unpaid royalties, marketing contributions, technology fees, and supply chain amounts; hearing scheduled April 2026.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Score breakdown · what drove the 90 / 100 verdict
- 01MINORHealthy financials: $9.48M net income, $12.37M net worth, $65.8M revenue
- 02MINOR1 franchisor-initiated collection arbitration across 849 units (routine)
- 03MEDAudited financials, Item 19 disclosed, no bankruptcy or going concern
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 2025 · 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 |
| 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 | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | Yes |
| Arbitration location | Omaha, Nebraska |
| Jury trial waiver | Yes |
| Governing law | Nebraska |
| Litigation count | 1 |
View Item 3 litigation summary
Scooter's Coffee, LLC and Harvest Roasting, LLC v. Johnson Java, LLC et al. (AAA Case No. 01-25-0003-8419, filed Aug 20, 2025) - arbitration by franchisor against former franchisees for unpaid royalties, marketing contributions, technology fees, and supply chain amounts; hearing scheduled April 2026.
Items 10, 11
Training & Operations
- Classroom training
- 75 hrs
- On-the-job training
- 104 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- POS System (third-party, via Approved/Designated Supplier)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: POS System (third-party, via Approved/Designated Supplier)
Item 20 · call current owners
Franchisee Contacts
508 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 Scooter’s Coffee franchise?
The total investment to open a Scooter’s Coffee franchise ranges from $955K – $1.5M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Scooter’s Coffee franchise owners earn?
According to Item 19 of the Scooter’s Coffee FDD, the average gross sales per unit is $915K. The median is $881K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Scooter’s Coffee?
Scooter’s Coffee is franchised by Scooter's Coffee, LLC. Its parent company is Boundless Enterprises, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Scooter’s 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 Scooter’s Coffee FDD and qualifies whose outlets they describe.
What is Scooter’s Coffee's franchise failure rate?
Based on SBA 7(a) loan data, Scooter’s Coffee has a charge-off rate of 0.0% across 235 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Scooter’s Coffee franchise locations are there?
As of their most recent FDD filing, Scooter’s Coffee has 849 total units in the United States, including 825 franchised units and 24 company-owned units. 121 new units were opened in the latest reporting year.
Is Scooter’s Coffee a good franchise to buy?
FranchiseVerdict rates Scooter’s Coffee as a A-grade franchise with a verdict score of 90 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.