About La Cabra Franchise
La Cabra is a specialty coffee franchise that has been franchising since 2021, originating from Denmark and backed by LA CABRA Holding ApS.
The brand is known for its meticulous approach to sourcing, roasting, and brewing exceptional coffee, creating a refined cafe experience that appeals to discerning coffee lovers.
La Cabra locations feature a minimalist aesthetic and a curated menu of expertly prepared coffee beverages.
La Cabra Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 6% of Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Net Sales (currently 1% of Net Sales charged, may increase) | National brand fund |
| Total Investment Range | $197,600 – $373,000 | Includes build-out, inventory, working capital |
The investment range of $198K–$373K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Net Sales) and marketing fee (Up to 2% of Net Sales (currently 1% of Net Sales charged, may increase)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (See Notes 1 & 2) | $35,000 | $35,000 |
| Construction and Leasehold Improvements (See Notes 3-6) | $100,000 | $200,000 |
| Equipment, Furniture, Fixtures, Menu Boards, Graphics (see Notes 7-9) | $32,000 | $60,000 |
| Architect and Business Licenses | $10,000 | $25,000 |
| Smallwares | $1,000 | $3,000 |
| POS System (See Note 10) | $1,000 | $3,000 |
| Opening Supplies | $1,000 | $3,000 |
| Initial Training and Pre-Opening Expenses (See Notes 11-20) | $3,000 | $10,000 |
| Insurance | $500 | $3,000 |
| Utility Deposits | $100 | $1,000 |
| Legal and Accounting Fees | $4,000 | $10,000 |
| Additional Funds for 3 Months (See Notes 21-26) | $10,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of then current Initial Franchise Fee for each transferred Business; 10% of then current Initial Franchise Fee if to your Affiliate |
| Renewal Fee | 50% of then current Initial Franchise Fee for a full term renewal; $2,000 for a 1 year renewal term |
| Technology Fee | None currently, may introduce a fee to cover costs of providing technology and support plus related overhead charges |
| Audit Fee | Underpaid Royalty Fees; Brand Fund Contributions and other fees; cost of audit and accounting fees (if understatement > 2%) |
| Advertising Cooperative Contribution | Not currently charged; may be imposed in the future (Up to 2% of Net Sales) |
| Loyalty Program Fees | Not currently charged; may be imposed in the future |
| Purchasing Program Fee | Not currently charged; may be imposed in the future |
| Supplier Evaluation and Approval Fee | Greater of $2,500 or actual costs |
| Supplemental Initial Training Fee | $500 per Trainer per day |
| Onsite-Training Fee | Up to $500 per day and per person plus trainer’s travel, lodging, meal, and incidental expenses |
| Additional Consulting Fee | $600 per day plus representative’s travel, lodging, meal, and incidental expenses |
| In-Term Training Program Tuition | $5,000 per attendee |
| Training Cancellation Fee | Our out-of-pocket costs |
| Annual Inspection Fee | Our out-of-pocket costs |
| Gift Card Program Purchases and Fee | Cost of gift card plus third party administrator fee, currently up to 10% of gift card face amounts |
| Site Selection Fee | $5,000 together with travel, lodging, transportation, food, and personnel |
| Relocation Fee | 10% of then current Initial Franchise Fee |
| Bank Fees | Actual Bank Fees charged for insufficient funds or denied access for EFT/ACH transfer plus an administrative fee of $25 per event |
| Repeated Inspection Fee | Cost of Inspection, travel, lodging, meals |
| Late Charge | Greater of 1.5% per month and highest rate allowed by law (10% in California) |
| Securities Offering Fees | $10,000 for each offering, plus expenses that exceed the fee |
| Indemnification, Insurance and Enforcement Costs | As incurred, includes 25% of premium advance paid as an administrative fee for insurance compliance |
| Convention Fee | Estimated to be $700 per attendee, excluding travel, lodging and meals |
| Liquidated Damages | The average monthly Royalty Fee and Brand Fund Contribution for the 12 months preceding termination, or the number of months the Unit has been open if less, multiplied by the lesser of 36 or the number of months remaining in the term |
| Reinstatement Fee | 10% of the then Initial Franchise Fee, plus Royalty Fees that would have been payable in the period between termination and reinstatement |
| De-Identification Fee | Our actual costs, plus interest and an administrative fee of 15% of our actual costs |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | three to five weeks (15-25 days) |
| Classroom Training | 52 |
| On-the-Job Training | 270 |
| Training Location | Aarhus, Denmark, or New York, New York, or in another location designated by us and will be approximately three to five weeks in duration. |
| Additional Training | We provide initial training for up to three people without any additional fee. Additional persons can attend if space is available. Supplemental initial training or additional onsite training (after 30 days of opening) costs $500 per trainer per day plus expenses. In-Term Training Program Tuition is $5,000 per attendee for replacement managers. Training Cancellation Fee covers out-of-pocket costs. Annual convention or regional meeting attendance may be required, with tuition charged. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | defined by zip codes, a map, or other means |
| Description | The Franchise Partner Agreement grants the right to operate a single Franchised Business at the Franchised Location. The Trade Area is limited to the retail shopping center or commercial building where the business is located, or the building if it's a standalone location. During a 60-day period after signing, the franchisor will not grant another franchise or open an affiliate outlet within the designated Trade Area. However, the franchisor and its affiliates retain the right to operate, franchise, and license others to operate outlets anywhere, including within the franchisee's Trade Area, and through various distribution channels (internet sales, mass gathering locations, etc.) without compensation to the franchisee. The franchisor may restrict solicitation for off-premises catering to the Trade Area. For Development Agreements, a Development Territory is granted, but it is not exclusive unless specified, and the franchisor/affiliates may develop and operate outlets within it. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years (one additional "Succession Term") or one-time 1 year renewal |
| Renewal Fee | 50% of then current Initial Franchise Fee for a full term renewal; $2,000 for a 1 year renewal term |
| Renewal Conditions | Must notify franchisor 6-12 months before expiration. Must not be in default, have satisfied all monetary obligations, not be in bottom quartile of Net Sales for preceding fiscal year, not suffered more than one material default in first year, or more than one cured/uncured material default in any 24-month period. Must execute a general release of claims, sign current Franchise Partner Agreement (which may have different terms/fees), complete required retraining, perform remodeling/renovations, deliver landlord documents for continued lease, and pay Successor Fee. Must upgrade Franchised Business to current entry standards, design elements, kitchen equipment, and POS system. Franchisor may require changes at 5th, 10th, or 15th year of initial term. |
| Transfer Fee | 50% of then current Initial Franchise Fee for each transferred Business; 10% of then current Initial Franchise Fee if to your Affiliate. Waived for "Preferred Transferee" under certain conditions (death/disability, entity controlled by transferor franchisee, etc.). |
| Transfer Conditions | For control transfers (50%+ interest): 90 days prior written notice, comply with right of first refusal, submit price (must not impact operation), pay all amounts owed, not be in default, provide signed assignment contract. Transferee must meet new franchisee requirements (proficient in English, upgrade/remodel unit, sign current FPA, attend training), and landlord must consent to lease transfer. For non-control transfers (20%+ interest): 90 days prior written notice, pay all sums owed. Transferee must meet new franchisee qualifications and execute FPA and guaranty. For Related Party Transfers: 90 days prior written notice, not in default. Transferee must assume FPA and guaranty. |
| Termination for Cause | Franchisor may terminate with written notice for curable defaults (e.g., non-payment, non-compliance with health/safety laws, failure to provide computer system access, failure to comply with vendor requirements, other FPA provisions) if not cured within specified time (10-30 days, 24 hours for health/safety). Incurable defaults (e.g., uncured default, repeated curable default, copying System Manual, abandonment, insolvency, bankruptcy, conviction of moral turpitude crime, material inaccuracy in application, underreporting Net Sales by 2%+ three times in 36 months or 5%+ in any year, false records, unauthorized permission, repeated breach of same provision, violation of specific FPA sections, public health/safety threat, jeopardizing goodwill, default on $100k+ indebtedness, failure to meet opening deadlines, or if law/regulation/judicial decision makes agreement commercially impracticable or affects its purpose/risk allocation/benefits). |
| Non-Compete Period | During the term of the franchise and for a period of one (1) year after termination or expiration. |
| Non-Compete Details | During the term, franchisee may not engage directly or indirectly in any 'competing business' (restaurant/shop featuring coffee/baked goods as primary menu items, or resembling trade dress/service style/products of Franchised System) in the United States, other than a Franchised Business. After termination/expiration, for one year, franchisee may not engage in any competing business at the accepted Location, within five miles of the accepted Location, or within five miles of any Primary Outlet open or under development at termination. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | At least one person with a significant equity ownership (at least 25%) must be designated as the 'Owner-Operator' and attend the training program. An 'on-premises' manager (or general manager) may be hired for day-to-day operations but must complete the franchisor's training program and sign a confidentiality agreement. If operating as a business entity, each owner must guarantee obligations and agree to transfer restrictions. In community property states, a spouse may be asked to sign the guaranty. |
| Required Suppliers | Franchisor and its Affiliates are currently the only approved suppliers for certain food inventory, operating supplies, equipment, and décor materials. Franchisees must purchase all Proprietary Products and ingredients for Proprietary Products from designated suppliers selected in the franchisor's sole discretion. Franchisees must purchase computer hardware and applications software, and subscribe to point of sale technology and cloud-based management and reporting software applications and services from Approved Suppliers (Shopify is the only approved POS system). |
| Supply Restrictions | Franchisor is the exclusive supplier of certain food inventory, operating supplies and equipment, including coffee and certain décor materials. Franchisor or Parent may be the only approved or designated supplier of certain Proprietary Products and equipment. Franchisor may change identity, specifications, formulas, inventory requirements, and designations of Proprietary Products. Franchisees must conform to all such changes. For Non-Proprietary Products, franchisees must obtain them from Approved Suppliers or other suppliers after notice to franchisor, ensuring same Brand, grade, quality, and quantities. Sensitive Products must be obtained from Approved Suppliers. Franchisees must obtain computer hardware and applications software and subscribe to point of sale technology and cloud-based management and reporting software applications and services from certain Approved Suppliers. |
| Franchisor Revenue from Suppliers | As of the Disclosure Document date, no revenue or material consideration is derived from franchisee purchases. In the future, revenue may be derived from direct sales to franchisees (primarily roasted coffee, cups, uniforms, and other smaller items) and from suppliers for franchisee purchases. Parent derived $90,000 in revenue from sales to the licensee in New York in 2022. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
La Cabra Franchise Earnings — Item 19
La Cabra 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.
La Cabra 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.
La Cabra System Growth
La Cabra currently operates 1 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 2 |
| 2021 | 1 | 0 | 3 |
| 2022 | 1 | 0 | 4 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 2 states: CA, NY
Franchisor Financials (Item 21)
Audited by Aprio, LLP for year ending December 31.
La Cabra Franchise — FAQ
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