About Matto Espresso Franchise
Matto Espresso is a specialty coffee franchise that brings artisan espresso drinks and Italian inspired beverages to neighborhoods across the country.
The brand is built around a streamlined cafe model that emphasizes quality coffee, a clean aesthetic, and efficient service.
Since beginning its franchise program in 2019, Matto Espresso has attracted entrepreneurs looking for a manageable entry point into the premium coffee market.
Matto Espresso Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $36,000 | One-time payment upon signing |
| Royalty Fee | From opening to the end of Month 3, 5% of Gross Revenues. Beginning Month 4, 6% of Gross Revenues. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 3% of Gross Revenues (Currently 2% of Gross Revenues) | National brand fund |
| Total Investment Range | $227,850 – $453,300 | Includes build-out, inventory, working capital |
The investment range of $228K–$453K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (From opening to the end of Month 3, 5% of Gross Revenues. Beginning Month 4, 6% of Gross Revenues.) and marketing fee (Up to 3% of Gross Revenues (Currently 2% of Gross Revenues)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $36,000 | $36,000 |
| Lease Deposit | $15,000 | $45,000 |
| Utility Deposit | $500 | $1,000 |
| Architect Plan Approval Fee | $5,000 | $7,000 |
| Designer/Architect Fee | $500 | $3,000 |
| Leasehold Improvements | $84,500 | $170,300 |
| Furniture and Fixtures | $5,000 | $5,000 |
| Signage | $2,000 | $4,000 |
| Equipment | $57,000 | $85,000 |
| Maintenance Equipment | $500 | $1,500 |
| Computer Hardware and Software | $2,000 | $4,000 |
| Internet Connection (3 months) | $350 | $500 |
| Initial Inventory | $7,000 | $14,000 |
| Office Equipment and Supplies | $1,000 | $3,000 |
| Business Permits and Licenses | $500 | $3,000 |
| Insurance | $1,500 | $3,000 |
| Professional Fees | $3,000 | $6,000 |
| Training Expense | $3,500 | $6,000 |
| Initial Launch Marketing | $3,000 | $6,000 |
| Additional funds-Three Months | $0 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | For Transfers to: (i) new entity/individual, 75% of current Franchise Fee; (ii) existing owner, 50% of current franchise fee; (iii) franchisee-controlled entity for convenience, $1,500; (iv) spouse, parent or child upon death/disability, no charge. |
| Renewal Fee | Fifty Percent (50%) of the then current Franchise Fee. |
| Technology Fee | Currently $150 per month |
| Audit Fee | Costs and Expenses. |
| Grand Opening Marketing/Local Advertising and Marketing | $5,000-$7,000 (Grand Opening), One Percent (1%) of Gross Revenue (Local Advertising) |
| Cooperative Advertising | Up to one half (1/2) of your required Local Advertising Spending. |
| Software/App Fee | One-Time Licensing Fee not to exceed $3,000 when implemented. |
| Interest | 1.5% per month or highest rate allowed by law. |
| Late Charge | $100 |
| Non-Compliance Fee | $300 per incident per day. |
| Relocation Fee | Thirty percent (30%) of the then current Franchise Fee. |
| Non-Sufficient Funds Fee | $100 |
| Additional Training at Franchisor’s Location | Currently $250 per person per day plus expenses incurred. |
| Remedial Training/On-Site Training at Franchisee’s Location | Currently $350 per trainer per day plus travel and other expenses incurred. |
| 3rd Party Accounting Fee | Costs and Expenses. |
| Indemnification | The amount of any claim, liability or loss we incur from your Franchised Business. |
| Liquidated Damages | An amount equal to the average monthly Royalty Fees paid or owed during the twelve months of operation preceding the effective date of termination multiplied by the lesser of twenty-four months or the number of months remaining in the Franchise Agreement. |
| Confidential Operating Manual Replacement Fee | Currently $2,500. |
| Management Fee | Four hundred and fifty dollars ($450) per day per representative, plus our expenses. |
| Post-Termination or Post-Expiration Expenses | Costs and expenses. |
| Testing or Supplier Approval Fee | $750, may be refunded to franchisee if approved for use by the entire system. |
| Reimbursement of Legal Fees and Expenses | Our costs and expenses, including but not limited to attorneys’ fees, incurred for your failure to pay amounts when due or failure to comply in any way with the Franchise Agreement. |
| Insurance | Amount paid by us for your insurance obligations plus and additional ten percent (10%) administrative fee. |
| Taxes | Amount of taxes. |
| Mystery Shop/Customer Satisfaction Measure | Amount incurred. Currently up to three times per year up to $300 per mystery shop. |
| Customer Dispute Resolution Reimbursement | Amount reimbursed. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Initial training program is approximately five (5) days classroom, followed by up to two (2) weeks on-site. |
| Classroom Training | 16 hours |
| On-the-Job Training | 19 hours |
| Training Location | New York, NY, or another location specified by Franchisor. |
| Additional Training | Franchisor may offer mandatory or optional additional training programs (up to 5 days/year) and annual business meetings/conferences. Franchisee pays for travel, lodging, meals, wages, and a reasonable fee for tuition/attendance. On-site remedial training is $350 per trainer per day plus travel/expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Under the Franchise Agreement, you have the right to establish and operate one (1) Matto outlet at a specific approved location. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, from other channels of distribution or competitive brands that we control. We reserve all rights to sell our products and services under the Marks in the Territory through alternative distribution channels, such as the Internet or other non-traditional retail locations (sports arenas, train stations, airports, seasonal or 'pop-up' stores and mall kiosks). |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | Fifty percent (50%) of the then current franchise fee. |
| Renewal Conditions | Be in full compliance, have no more than three (3) events of default during current term; provide written notice to us at least six months before the end of the term; execute a new franchise agreement; pay us a Successor Agreement fee of fifty percent (50%) of the then current franchise fee; continue to maintain your location, current trade dress and other standards; execute a general release; comply with then-current qualifications and training requirements; including completion of additional training. You may be asked to sign a new Franchise Agreement with materially different terms and conditions than your original Franchise Agreement. |
| Transfer Fee | For Transfers to: (i) new entity/individual, 75% of current Franchise Fee; (ii) existing owner, 50% of current franchise fee; (iii) franchisee-controlled entity for convenience, $1,500; (iv) spouse, parent or child upon death/disability, no charge. |
| Transfer Conditions | Our decision not to exercise our right of first refusal; transferee meets our then-current standards for qualifying franchisees; transferee signs our then-current form of Franchise Agreement, which may have materially different terms from your Franchise Agreement; transferee successfully complete our Initial Training Program; you have paid us and third-party creditors all amounts owed; you and the transferee sign a General Release in the form of Attachment 4 to the Franchise Agreement; you shall subordinate any claims you have against the transferee to us; you will indemnify us for a period of 3 years following the transfer; our approval of the material terms and conditions of the transfer. |
| Termination for Cause | The Franchise Agreement will terminate if you default. Non-curable defaults include failure to open business within timeframes, falsifying reports, ceasing operations for 5+ days, losing possession of property, understating Gross Revenue two or more times, failure to comply with insurance/indemnification, attempting unauthorized transfer, failure to transfer upon death/disability, misrepresentation in application, conviction of felony/crime damaging goodwill, adverse judgment for fraud/racketeering, concealing revenues, creating public health/safety threat, refusing inspection/audit, unauthorized use/disclosure of confidential information, defaulting 3+ times or receiving 2+ default notices in 12 months, insufficient funds 3+ times, or default under other agreements. |
| Non-Compete Period | 24 months |
| Non-Compete Details | During the term of the franchise, you may not divert customers, participate in a competing business, induce employees to leave, or damage goodwill. After termination or expiration, for 24 months, you may not divert customers, participate in a competing business within 25 miles of your former Matto outlet or any other Matto outlet, induce employees to leave, or damage goodwill. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | You must appoint a Manager that is actively involved in overseeing the business. Your Manager must successfully complete our Initial Training Program and all other training courses we require. Your Manager is not required to have an equity interest in the franchisee entity. If you replace your Manager, the new Manager must complete our Initial Training Program to our satisfaction. |
| Required Suppliers | Matto MGMT NY LLC for coffee and food items. |
| Supply Restrictions | Franchisee must purchase equipment or materials bearing the Marks in accordance with specifications. Franchisor maintains written lists of approved items and designated suppliers. Hardware and software requirements: Desktop/laptop, 2 iPads with Square Register Setup, Receipt Printer, Router, Camera System, QuickBooks, Microsoft Office, Square or Toast Software. |
| Franchisor Revenue from Suppliers | $228,300.00 (53% of total revenue in prior fiscal year) |
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. We will, if such is available, introduce you to financial sources and suppliers who may offer credit arrangements, but we will not derive income from the placement of financing. You may obtain financing from any source, at your discretion, upon such terms and conditions as you may negotiate. |
Matto Espresso Franchise Earnings — Item 19
Matto Espresso 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.
Matto Espresso 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.
Matto Espresso System Growth
Matto Espresso currently operates 14 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 |
|---|---|---|---|
| 2019 | 6 | 3 | 14 |
| 2020 | 2 | 8 | 8 |
| 2021 | 6 | 3 | 14 |
Transfers: 0 | Closures: 14
State Registrations
Registered in 15 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by RAICH ENDE MALTER & CO. LLP for year ending December 31.
Matto Espresso Franchise — FAQ
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