Cabin Coffee Co. FDD – Franchise Information, Costs and Fees
Type of Business
The franchisee will operate at least one “Cabin Coffee Co.” artifact-themed coffee café and restaurant operation that specializes in the preparation and merchandising of specialty coffees and coffee blends, other drinks, baked goods, soups, breakfast and lunch sandwiches, salads and other related food items.
Corporate Information
Cabin Coffee Franchising, Inc. is an Iowa corporation that was incorporated on August 14, 2006. Their principal business address is 408 South 15th Street, Clear Lake, IA 50428.. They have been offering franchises since 2007.
Investment
The total investment necessary to begin operation of a Licensed Business is from $350,000 – $2,000,000. This includes $40,000 that must be paid as the initial franchise fee as well as $15,000 for training that must be paid 2 weeks before training begins. These payments must be paid to Cabin Coffee Franchising, Inc. In the event franchisee commits to opening multiple Licensed Businesses (a Committed Franchisee), the initial franchisee fee for the first Licensed Business shall be $40,000 and the training fee for the first Licensed Business shall be $15,000 that must be paid 2 weeks before training begins. For Committed Franchisees, subsequent Licensed Businesses, however, shall have an initial fee of $30,000 per Licensed Business and a training fee of $10,000 per Licensed Business. Half of the initial fees for subsequent Licensed Businesses is due when the franchise fee for the first Licensed Business is due. For example, if a Committed Franchisee commits to opening three Licensed Businesses, the Committed Franchisee will pay an initial franchise fee of $40,000 for the first Licensed Business as well a $15,000 training fee payable two weeks before training for the first Licensed Business begins. Along with paying the initial franchise fee of $40,000 for the first Licensed Business, the Committed Franchisee will also pay $30,000 ($15,000 which is half the franchise fee of the second Licensed Business + $15,000 which is half the franchise fee of the third Licensed Business). When the Committed Franchisee signs the License Agreement for the second Licensed Business, the Committed Franchisee will pay the other half of the initial franchise fee ($15,000) for the second Licensed Business as well as the training fee $10,000 for the second Licensed Business two weeks before training for the second Licensed Business begins. When the Committed Franchisee signs the License Agreement for the third Licensed Business the Committed Franchisee will pay the other half of the initial franchise fee ($15,000) for the third Licensed Business as well as the $10,000 training fee for the third Licensed Business payable two weeks before training for the third Licensed Business begins.
