Ziggi’s CoffeeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A ZIGGI’S COFFEE franchise requires a total initial investment of $527K – $2.0M, including a $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2024 FDD, average unit revenue was $797K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 54 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $527K – $2.0M
- 84th pct Service Resta…
- Avg gross sales
- $797K
- 24th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 78
- 70th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
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
At 0.6x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Only 0.0% of 54 SBA loans charged off, well below the 16% franchise average.
The system grew 25% year-over-year. Fast growth means demand, but can strain support.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $527K – $2.0M including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $797K/year (median $841K).
- Verdict A (Top Quintile) with a risk score of 38/100. SBA loan charge-off rate of 0.0% across 54 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Ziggi’s Coffee Franchise, LLC
- Parent company
- Round Ball Ventures LLC and Crux Investments LLC
- Predecessor
- and an affiliate of ours
- Prior franchisor entity
- Incorporated in
- CO
- HQ
- 241 Welker Avenue, Mead, Colorado 80542
- Auditor
- BROCK AND COMPANY CPAS PC
- Audited financials
- Franchisor revenue
- $4.9M
- vs $5.4M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
Affiliated brands
- of ours
- BEC has operated coffee retail businesses s
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Ziggi's Coffee franchisees operate drive-thru and/or walk-in specialty coffee shops serving premium espresso drinks, smoothies, and pastries. Day-to-day operations include managing barista staff, inventory procurement, customer service during high-traffic periods (primarily mornings), and marketing within their local market to drive comparable sales.
- CEO
- Brandon Knudsen
- Headquarters
- CO
- Founded
- 2016
- FDD year
- 2024
- States available
- 15
FDD Item 7 · 2024 filing · 29 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.
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
$120K
15.0% margin
Unlevered ROIC
9%
EBITDA / total invested capital
Payback
10.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $527K – $2.0M
- Below avg, review vs category
- Liquid capital req'd
- $25K – $30K
- Near category avg vs category
- Franchise fee
- $25K – $40K
- Below avg, review vs category
- Royalty
- 6.0%
- Gross Sales · 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 |
| Transfer fee | $8K |
| Inventory (initial) | $27K – $28K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $797K
- Per unit, per year
- Median gross sales
- $841K
- Item 19 type
- Average Annual Total Sales
- Sample size
- 55 units
- vs category median 28
- Range (low → high)
- $243K→$1.3M
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2023
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
Revenue is only 0.6x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Quick-Service Restaurants averages
How Ziggi’s Coffee Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 78
- Opened
- 17
- Last reporting year
- Closed
- 3
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 3.8%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 91%
- vs corporate-owned
- Net growth (yr3)
- +24.6%
- Net unit change last year
- 3-yr CAGR
- +91.9%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- 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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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
- Hawaii
States where the franchisor is registered to sell new franchises (FDD registration filings).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
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
Vintage analysis
Ziggi’s Coffee charge-off rate by loan vintage
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Ziggi's Coffee presents moderate-to-caution risk: strong unit growth and no litigation are positive, but undisclosed profitability, unprotected territory, and aggressive expansion create visibility gaps for prospective franchisees.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $225,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · BROCK AND COMPANY CPAS PC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 38 / 100 rating
- 01MEDNet income not disclosed in FDD — cannot validate actual profitability against $526.5K–$2M investment range
- 02MINORUnprotected territory creates direct competition risk; no exclusive geographic boundaries to defend customer base
- 03MINORWide investment range ($1.49M spread) suggests inconsistent unit economics or significant regional cost variation
- 04MINORHigh royalty burden (6%) on modest average revenue ($796.8K) reduces franchisee margins by ~$47.8K annually before taxes
- 05MINORRapid 24.6% YoY unit growth (78 units) may indicate over-saturation risk or aggressive recruitment masking unit quality issues
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 | 10 years |
| Allowed renewalsℹ | 3 |
| Protected territory | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 27 hrs
- On-the-job training
- 40 hrs
- Training location
- On-site and at franchisor location
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Revel iPad POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel iPad POS System
Item 20 · call current owners
Franchisee Contacts
87 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
ZIGGI’S COFFEE · FDD (2024) 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 $527K – $2.0M, 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?
According to Item 19 of the ZIGGI’S COFFEE FDD, the average gross sales per unit is $797K. The median is $841K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 78 total units in the United States, including 37 franchised units and 7 company-owned units. 17 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 A-grade franchise with a risk score of 38 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.