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FranchiseVerdict

How Much Does a Aroma Espresso Bar Franchise Cost?

Data from the 2023 Franchise Disclosure Document

Investment Summary

Total Investment

$538K – $1.5M

Franchise Fee

$55K

Royalty

7.0%

Ad Fund

1.5%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Aroma Espresso Bar is $55K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Aroma Espresso Bar franchise requires a total investment of $538K – $1.5M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $10K to $30K.

Ongoing Costs

Beyond the initial investment, Aroma Espresso Bar franchisees pay ongoing fees. The royalty fee is 7.0% of gross sales (7% of Gross Sales). The advertising or brand fund contribution is 1.5% of gross sales. There is also a technology fee of $80.

Net Worth & Liquid Capital Requirements

Aroma Espresso Bar requires working capital of $10K – $30K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

According to Aroma Espresso Bar's Item 19 financial performance representation:

$1.5MAvg. Gross Sales

Median gross sales: $1.5M

This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.

How Do Banks View Aroma Espresso Bar?

SBA Loans Issued

2

Default Rate

N/A

The SBA (Small Business Administration) tracks loan performance for franchise brands. Aroma Espresso Bar has 2 SBA-backed loans on record. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

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