Ziggi’s Coffee Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Ziggi's Coffee is a specialty-coffee franchise serving espresso drinks, teas, smoothies, and food from drive-thrus and cafes. Franchisees run drive-thru and cafe locations managing baristas, beverage prep, and service.
FranchiseVerdict summary · 2026
A ZIGGI’S COFFEE franchise requires a total initial investment of $587K – $1.8M, including a $25K – $40K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 54 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $587K – $1.8M
- 82nd pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 46th pct Service Resta…
- Units
- 115
- 78th 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 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 $587K – $1.8M including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 Table C (Drive Thru, n=55, avg $836,537, median $793,853, high $1,490,573, low $463,799) and Table D (Café with Drive Thru, n=35, avg $836,010, median $904,212, high $1,207,249, low $262,985) show Total Sales, not net income. Tables A/B show affiliate Gross Profit (Actual Gross Sales minus COGS and labor) for a handful of company-owned units, not disclosed as a franchisee average and excluded from avg fields per cohort-mixing rule.
- RISKVerdict B (Above average), verdict score 53/100 (higher is better). SBA loan charge-off rate of 0.0% across 54 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DATAItem 19 reports historical average/median/high/low gross sales by cohort, plus affiliate gross profit tables (no franchisee net income) 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
- Ziggi's Coffee Franchise, LLC
- Parent company
- Round Ball Ventures LLC / Crux Investments LLC
- Ultimate parent
- Round Ball Ventures LLC
- Predecessor
- BEC Longmont, Inc.
- Prior franchisor entity
- CEO title
- Manager and President
- Brandon Knudsen
- Incorporated in
- Colorado
- HQ
- 241 Welker Avenue, Mead, Colorado 80542
- Auditor
- Brock and Company CPAs PC
- Audited financials
- Franchisor revenue
- $6.9M
- vs $8.3M prior year
Affiliated brands
- of ours
- BEC has operated coffee retail businesses s
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Brandon Knudsen
- Headquarters
- Colorado
- Founded
- 2016
- FDD year
- 2026
- States available
- 15
Can you afford it, and what does the money buy?
Entry cost runs 78% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown29 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $40K | $40K | |
| Launch Fee | $10K | $10K | |
| Drive Thru Building | $0 | $500K | |
| Site Work | $0 | $500K | |
| Architecture/Engineering | $55K | $90K | |
| Fees/Permits (incl. water) | $0 | $51K | |
| Initial Equipment Package (incl. POS System) | $300K | $350K | |
| Misc., Smallwares, Etc. | $8K | $8K | |
| Sign Package | $45K | $55K | |
| Initial Inventory | $25K | $25K | |
| Initial supply of apparel, gift cards, and loyalty cards | $2K | $3K | |
| Grand Opening | $10K | $10K | |
| Utility Deposits, Business Licenses, Etc. | $500 | $1K | |
| Training Expenses | $4K | $5K | |
| Professional Fees | $1K | $3K | |
| Insurance | $2K | $4K | |
| Additional Funds - 3 months | $25K | $30K | |
| Cafe with Drive Thru Building | $0 | $500K | |
| Site Work (Freestanding Cafe) | $0 | $500K | |
| Tenant Improvements (Freestanding Cafe) | $0 | $300K | |
| Total initial investment | $1.0M | $4.0M |
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
- $587K – $1.8M
- Bottom third — review vs category
- Liquid capital req'd
- $30K – $50K
- Middle of category vs category
- Franchise fee
- $25K – $40K
- Middle of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $110 |
| Transfer fee | $10K |
| Inventory (initial) | $40K – $40K |
| Total fee load | 7.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
ZIGGI’S 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 ZIGGI’S COFFEE unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
9%
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 Table C (Drive Thru, n=55, avg $836,537, median $793,853, high $1,490,573, low $463,799) and Table D (Café with Drive Thru, n=35, avg $836,010, median $904,212, high $1,207,249, low $262,985) show Total Sales, not net income. Tables A/B show affiliate Gross Profit (Actual Gross Sales minus COGS and labor) for a handful of company-owned units, not disclosed as a franchisee average and excluded from avg fields per cohort-mixing rule.
- Item 19 type
- historical average/median/high/low gross sales by cohort, plus affiliate gross profit tables (no franchisee net income)
- Sample size
- 90 outlets
- vs category median 20 · large
- Transparency tier
- full
- 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
- 4 / 10
- vs category median 4 / 10 · typical
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 7.0% (near the Quick-Service Restaurants average).
Disclosure
Item 19 reports historical average/median/high/low gross sales by cohort, plus affiliate gross profit tables (no franchisee net income) 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 Ziggi’s Coffee Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 115
- Opened
- 14
- Last reporting year
- Closed
- 3
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.2%
- Company-owned
- 8
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 17
- Closed (3yr)
- 0
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Continuity rate
- 95.9%
- Units that stayed open
- Termination rate
- 4.6%
- Franchisor-initiated terminations
Last reporting year only, multi-year history not disclosed in this brand's FDD.
Item 12 · 15 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.
15
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.
- Total loans
- 54
- Loan volume
- $43.1M
- Median loan
- $508K
- 50th percentile
- Charge-off rate
- 0.0%
- 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
- 26
- Defaults
- 0
- Typical loan rate
- 7.9%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 7225
- Jobs supported
- 1,220
- 2.8 per loan
- Lender concentration
- 20%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Vintage analysis
Ziggi’s Coffee charge-off rate by loan vintage
Top lenders financing Ziggi’s Coffee franchisees
Showing 3 of 26 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.
With a 0.0% charge-off rate across 54 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
Litigation (Item 3)
Pending arbitration: C&L Coffee/Adams v. Ziggi's alleging FPR misrepresentation, seeking rescission and $1,400,000 damages. Two arbitrations brought by Ziggi's against former franchisees for breach of contract/collection.
Largest disclosed settlement: $225,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Brock and Company CPAs PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 53 / 100 verdict
- 01MINORNegative franchisor net worth: -$2,151,263
- 02MINORPositive net income $89,246 on total revenue $5,442,589 (partially offsets)
- 03MEDAudited financials, Item 19 disclosed, zero litigation/bankruptcy
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% 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 | 3 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| 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 |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Denver, Colorado |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 3 |
View Item 3 litigation summary
Pending arbitration: C&L Coffee/Adams v. Ziggi's alleging FPR misrepresentation, seeking rescission and $1,400,000 damages. Two arbitrations brought by Ziggi's against former franchisees for breach of contract/collection.
Items 10, 11
Training & Operations
- Classroom training
- 21 hrs
- On-the-job training
- 31 hrs
- Training location
- Mead, Colorado
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- franchisee, subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Touchscreen tablet POS System (designated supplier)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Touchscreen tablet POS System (designated supplier)
Item 20 · call current owners
Franchisee Contacts
127 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
ZIGGI’S COFFEE · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a ZIGGI’S COFFEE franchise?
The total investment to open a ZIGGI’S COFFEE franchise ranges from $587K – $1.8M, 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 ZIGGI’S COFFEE franchise owners earn?
ZIGGI’S 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 ZIGGI’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 ZIGGI’S COFFEE FDD and qualifies whose outlets they describe.
What is ZIGGI’S COFFEE's franchise failure rate?
Based on SBA 7(a) loan data, ZIGGI’S COFFEE has a charge-off rate of 0.0% across 54 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 ZIGGI’S COFFEE franchise locations are there?
As of their most recent FDD filing, ZIGGI’S COFFEE has 115 total units in the United States, including 107 franchised units and 8 company-owned units. 14 new units were opened in the latest reporting year.
Is ZIGGI’S COFFEE a good franchise to buy?
FranchiseVerdict rates ZIGGI’S COFFEE as a B-grade franchise with a verdict score of 53 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 ZIGGI’S 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.