About ILLY and ILLY CAFFÈ Franchise
Franchisor illy caffè North America, Inc.
(“we,” “us,” or “our”) grants the right to operate Italian-style coffee bars that specialize in serving espresso, cappuccino and coffee related products, light snack food, alcoholic beverages (if applicable) and other items under our name or marks (the “ILLY Locations”).
The term “you” or “your” refers to the person or entity (and direct and indirect owners) who buys the franchise.
ILLY and ILLY CAFFÈ Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $15,000 | One-time payment upon signing |
| Royalty Fee | 6% of Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1.5% of Net Sales, As Agreed | National brand fund |
| Total Investment Range | $390,600 – $1,995,720 | Includes build-out, inventory, working capital |
The investment range of $391K–$2.0M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Net Sales) and marketing fee (1.5% of Net Sales, As Agreed) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Fee (Note 1) | $30,000 | $30,000 |
| Site Visit | $0 | $7,000 |
| Leasehold Improvements (Note 2) | $35,100 | $582,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 |
| Renewal Fee | The greater of: (1) 50% of the then current initial fee; or (2) $10,000. |
| Audit Fee | Only payable if we audit because you did not submit sales statements or keep boo |
| Interest on Overdue Amounts | 1.5% per month on the underpayment See Note 7. |
| Securities Offering Fee | $10,000 |
| Certified / Replacement training | $1,400 |
| Additional training at your location | $1,400 |
| Site Visit | $0 |
| Leasehold Improvements (Note 2) | $35,100 |
| Equipment (Note 3) | $100,000 |
| Inventory (Note 5) | $20,000 |
| Uniforms | $3,000 |
| Utility Deposits (Note 6) | $2,000 |
| Travel and Accommodations for Training(Note 7) | $4,000 |
| Insurance (Note 8) | $6,000 |
| Opening Marketing (Note 9) | $10,000 |
| Business Licenses and Professional Services (Note 10) | $10,000 |
| Liquor Licenses (Note11 ) | $2,500 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 8 hours classroom, 8 hours on-the-job |
| Classroom Training | 8 hours |
| On-the-Job Training | 8 hours |
| Training Location | Off-site training at a location we specify |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | exclusive |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Renewal Term | Your renewal rights permit you to remain as a franchisee after the initial term of your Retail Location Agreement expires. If you wish to do so, and you satisfy the required pre-conditions to renewal, |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Does not offer financing. |
ILLY and ILLY CAFFÈ Franchise Earnings — Item 19
ILLY and ILLY CAFFÈ does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
ILLY and ILLY CAFFÈ Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
ILLY and ILLY CAFFÈ System Growth
ILLY and ILLY CAFFÈ currently operates 3 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 14 | ||
| 2020 | 3 | ||
| 2020 | 17 | ||
| 2021 | 13 | ||
| 2021 | 2 | ||
| 2021 | 15 | ||
| 2022 | 16 | ||
| 2022 | 1 | ||
| 2022 | 18 |
ILLY and ILLY CAFFÈ Franchise — FAQ
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