Caribou Coffee FDD – Franchise Information, Costs and Fees
Type of Business
A Caribou Coffee franchisee will operate a retail coffee shop business featuring, among other things, coffee and coffee-based or caffeinated beverages, teas and baked goods for on-premises and carry-out consumption, and related sales of retail items in a modern, technical environment.
Corporate Information
Caribou Coffee Development Company, Inc incorporated in the State of Minnesota in October 21, 2004. Their principal place of business is 3900 Lakebreeze Avenue N., Minneapolis, Minnesota 54429. They have offered franchises since August 2006.
Investment
The franchisor offers franchises for the operation of Coffeehouses of varying sizes: a “Chalet,” “Cabin,” and “Kiosk” (each of which are explained more fully in this Disclosure Document). The total investment necessary to begin operation of a “Chalet” Coffeehouse ranges from $ 847,100 to $1,381,000 (excluding lease). This includes $40,000 to $50,000 that is paid to the franchisor or its affiliates. The total investment necessary to begin operation of a “Cabin” Coffeehouse ranges from $ 579,100 to $881,000 (excluding lease). This includes $40,000 to $50,000 that is paid to the franchisor or its affiliates. The total investment necessary to begin operation of a “Kiosk” Coffeehouse ranges from $268,100 to $655,000 (excluding lease). This includes $25,000 to $35,000 that is paid to the franchisor or its affiliates.
If you sign a development agreement, your estimated initial investment under that agreement will vary depending on how many Coffeehouses you agree to develop. This includes a development fee that you must pay to the franchisor for each Coffeehouse to be developed, in the amount of the full initial franchise fee for the first Coffeehouse to be developed, and one-half of the initial franchise fee for each additional Coffeehouse to be developed. The total amount of Coffeehouses to be developed, and therefore the amount of the development fee, will be subject to their mutual agreement.
