Biggby Coffee Franchise Cost Analysis (2023)

Written by: Parth Parth
Last Updated by Facundo Bermudez : July 12, 2023
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This article is based on the video featured above, originally recorded for Vetted Biz Youtube Channel.
This article is based on its 2023 FDD

Biggby Coffee is a community coffee shop chain with offerings of espresso beverages, sandwiches, baked goods, etc. Their franchise is generally operated from either a free-standing, store front or strip center location or a prefabricated modular structure. Biggby has a very high focus on community integration, which they credit for their economic recovery after COVID-19 pandemic. Robert P. Fish is a Co-Founder and Co-CEO of Biggby Coffee since April 2016, along with Michael J. McFall. Both of them are managing members of Global Orange, Biggby’s associates.  


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Biggby Coffee’s Positioning in the Food and Beverage Industry 

The Food and Beverage industry in the USA accounts for 13% of all manufacturing employment in the country. Around 1.46 million people get employed in this industry. Food franchises make up to 36% of the total franchise establishments in the USA, and there’s the expectation that it will create 1.6 million more jobs by 2027. 

The annual growth rate in the industry is around 2% and the EBITDA multiplier is around 3x. 

Biggby Coffee competes in the Food and Beverage industry with brands like Aroma Espresso Bar, Illy, etc. 

How Much Is a Biggby Franchise? 

The initial Franchise Fee is $20,000. The initial franchise fee is payable in full at the time the franchisee sign the Franchise Agreement. The initial franchise fee is also not refundable under any circumstances.


Biggby Franchise Cost 

The estimated total investment necessary to begin operation of a Biggby Coffee Franchise ranges from $246,305 to $564,626. 

The following costs are part of the upfront costs included in the initial investment for a Biggby Coffee franchise. Many of these are one-time fees that are needed to launch the franchise. 

Review the chart below to see how much it costs to buy a franchise in 2023. 

Company Franchise Cost (Detailed)

Site Built Location
Type of ExpenditureEstimated Amount LowEstimated Amount HighMethod of PaymentWhen DueTo Whom Payment is to be Made
Initial Franchise Fee20,00020,000Lump SumAt the time the Franchise Agreement is SignedGlobal Orange
Real Property Rental2,30521,326As arrangedAs specified in leaseThird Party  Landlord
Leasehold Improvements135,000290,000As arrangedAs arrangedContractors
Equipment, Furniture and Decor48,00082,000As arrangedAs arrangedGlobal Orange and Suppliers
Drive-Through Equipment016,500As arrangedAs arrangedGlobal Orange and Suppliers
Blueprints, Plans and Permits5,50034,800As arrangedAs arranged before openingArchitect and Contractor
Signage (Interior/Exterior)4,00018,000As arrangedAs arranged before openingSignage Supplier
Initial Inventory9,00014,000As arrangedAs arrangedFood Service Suppliers and Global Orange
Insurance-general Liability, Property and Workers Compensation3,5004,500As arrangedAs arranged before openingInsurance agent
Utility Expense5004,000As arrangedMonthly/QuarterlyUtility Company
License Permits and Other1,0002,500Lump SumAs incurredPublic Agencies, Landlord
Initial Advertising and Gran Opening Promotions9,5009,500As arrangedAs arrangedAdvertising Media
Travel and Living
Expenses for
5005,000As arrangedAs incurredTravel Company, Hotels, Restaurants
Organizational Expenses2,0002,500As arrangedAs arrangedLawyer, accountant
Additional Funds – 3 Months5,00040,000As incurredAs incurredGlobal Orange, Various Suppliers and Employees
Total Estimated Initial Investment246,305564,626   

Franchise Requirements 

Biggby Coffee requires franchisees to lease around 1300-1700 square feet. for a “free-standing, store front or strip center location”. The franchisee will also be responsible for maintenance and other charges under the lease. At the time of signing, At the time of signing
a lease or land license, the franchisee may be required to pay a deposit equal to one or two
month’s rent and the first month’s rent. Moreover, the franchisee is required to have a grand opening advertising plan, which is to be implemented at the franchisee’s own cost. A minimum of
$9,500 is required to be spent on this. 

Owning a Biggby Franchise Requires Ongoing Fees 

Royalty: 6% of gross sales.

Advertising Fund Contribution: The greater of: (a) $100 per week; or an amount specified by Biggby, not to exceed 3% of Gross Sales. 

Minimum Local Advertising: Up to 3% of Gross Sales. 

Annual Conference Fees: Determined by Biggby. Not to exceed $1,000 per person (currently less than $400).  


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How Much Do Biggby Coffee Franchise Owners Make?

Non Drive Thru StoresTop QuartileUpper MiddleLower MiddleBottom QuartileAll Stores
Store Count9991037
Average Cup Count355256224191255
Unit Sales845,827637,503548,754449,522615,783
Discount Amount134,58390,39080,33851,82088,270
Gross Sales711,244547,113468,416397,702527,513
Cost of Goods Sold231,997178,088145,505131,464170,674
Operating Income479,247369,025322,910266,238356,838
Marketing & Fees78,14957,97151,54743,45557,393
Total Operating Expenses393,077347,917307,495281,955331,242
Profit Margin12.1%3.9%3.3%-4.0%4.9%
Unit Sales
Stores / % – or = Average4/44%4/44%4/44%5/56%16/43%
Operating Income     
Stores / % – or = Average4 / 44%4 / 44%4 / 44%5 / 67%17/46%
Stores / % – or = Average3 / 33%5/56%4 / 44%5 / 56%18 / 49%
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Consolidated Statement of Operations and Income

Net Sales Years ended December 31,
2022 2021 2020
Initial franchise fees $1,335,000 $531,335 $615,334
Advertising fund contributions $6,171,488 $5,114,947 $3,920,217
Technology and maintenance fees $676,548 $549,765 $488,404
Product sales and other revenue $3,534,797 $2,638,636 $1,621,541
Royalty and licensing fees $12,008,955 $9,819,012 $7,544,563
Total net revenue $23,726,788 $18,653,695 $14,190,059
Cost of Revenue $2,178,063 $1,551,098 $1,129,791
Gross Profit $21,548,725 $17,102,597 $13,060,268
Operating Expenses $20,387,537 $14,863,106 $10,910,136
Operating Income $1,161,188 $2,239,491 $2,150,132
Nonoperating Income (Expense)
Investment income $250 $99
Other income $378,126 $323,926 $244,209
Interest expense ($105,319) ($81,588) ($105,424)
PPP loan forgiveness (Note 4) $784,022
Total nonoperating income $272,807 $242,588 $922,906
Consolidated Net Income $1,433,995 $2,482,079 $3,073,038
Amounts Attributable to Noncontrolling Interest and Controlling Interest
Consolidated net income attributable to:
Noncontrolling interest $56,516 $1,009,385 $842,995
Controlling interest $1,377,479 $1,472,694 $2,230,043
Consolidated net income $1,433,995 $2,482,079 $3,073,038
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How Many Biggby Coffee Units Have Opened and Closed? 

Over the last three years the company has been expanding. Franchising units are growing. Franchises have closed at a rate of 16 units a year for the past three years. 

System-wide Outlet Summary

Outlet typeYearOutlets at the Start of the YearOutlets at the End of the YearNet Change
Total Outlets2020239245+6

At the close of 2022, Biggby Coffee has 334 franchised stores in operation. They have no company-owned outlet stores


Biggby Coffee presents itself as an up-and-coming player in the industry focused heavily on community values and engagement. It is offering a chance to be a part of an industry that has been long present. While still in its early stages, Biggby Coffee’s growth seems to be accelerating. 

While this may be the business for you, make sure to also check out other businesses offered on Vetted Biz and in Food and Beverage Industry. 

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