About The Coffee Bean & Tea Leaf (Special Distribution Site) Franchise
The Coffee Bean & Tea Leaf offers a compelling franchise opportunity centered on providing premium coffee and tea experiences within Special Distribution Sites.
Franchisees operate Stores or Kiosks in high-traffic institutional settings such as hotels, airports, universities, hospitals, and corporate offices.
These locations serve a diverse customer base seeking high-quality espresso beverages, roasted coffee beans, specialty teas, baked goods, and snacks.
The Coffee Bean & Tea Leaf (Special Distribution Site) Franchise Cost & Fees
Minimum Investment
$173K
Average Investment
$394K
Maximum Investment
$616K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $15,000 - $25,000 | One-time payment upon signing |
| Royalty Fee | 5.5% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Revenues (subject to increase to 4%) plus at least 1% local advertising | National brand fund |
| Total Investment Range | $173,250 – $615,500 | Includes build-out, inventory, working capital |
The investment range of $173K–$616K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.5% of Gross Revenues) and marketing fee (2% of Gross Revenues (subject to increase to 4%) plus at least 1% local advertising) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Store) | $25,000 | $25,000 |
| Lease for Store | $2,500 | $12,000 |
| Design & Plans | $20,000 | $40,000 |
| Leasehold Improvements | $35,000 | $150,000 |
| Signage | $2,000 | $20,000 |
| Furniture, Fixtures and Equipment | $125,000 | $175,000 |
| Point of Sale (POS) System | $15,000 | $35,000 |
| Initial Inventory | $8,000 | $32,000 |
| Grand Opening Promotion | $0 | $10,000 |
| Permits and Security Deposits | $1,000 | $6,500 |
| Insurance | $2,000 | $10,000 |
| Professional Fees | $1,500 | $15,000 |
| Training Expenses | $12,000 | $25,000 |
| Additional Funds - 3 month period | $45,000 | $60,000 |
| TOTAL (Store) | $294,000 | $615,500 |
| Initial Franchise Fee (Kiosk) | $15,000 | $15,000 |
| Lease for Store (Kiosk) | $2,000 | $4,000 |
| Design & Plans (Kiosk) | $20,000 | $26,000 |
| Leasehold Improvements (Kiosk) | $7,000 | $25,000 |
| Signage (Kiosk) | $2,000 | $15,000 |
| Furniture, Fixtures and Equipment (Kiosk) | $75,000 | $125,000 |
| Point of Sale (POS) System (Kiosk) | $15,000 | $25,000 |
| Grand Opening Promotion (Kiosk) | $0 | $10,000 |
| Initial Inventory (Kiosk) | $2,500 | $5,000 |
| Permits and Security Deposits (Kiosk) | $750 | $5,000 |
| Insurance (Kiosk) | $1,000 | $10,000 |
| Professional Fees (Kiosk) | $1,000 | $15,000 |
| Training Expenses (Kiosk) | $12,000 | $25,000 |
| Additional Funds - 3 month period (Kiosk) | $20,000 | $45,000 |
| TOTAL (Kiosk) | $173,250 | $350,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | 50% of Initial Franchise Fee |
| Technology Fee | $700 - $1,500 per month (Store Technology Subscription) plus $200 - $750 per month (Technology Vendor Service Fee) |
| Audit Fee | Cost of audit plus attorneys and accountants fees (if understatement of at least 5% of Gross Revenues) |
| Art Work and Promotional Materials Fee | 0.5% of Gross Revenues |
| Food Safety and Operations Audit Fee | Currently $400 per audit, not more than quarterly |
| Customer Experience Measurement Program Fee | Currently $600 annually |
| Initial On-Site Assistance | Currently $150-$450 per day plus expenses, up to $2,000 |
| Optional Training Courses | Currently $150-$450 per day plus expenses |
| Manual Replacement Charge | Then-current charge |
| Insurance Reimbursement | Amount of unpaid premiums |
| Approval of Suppliers | Franchisor's costs for review |
| Developer Page Fee | Then-current fee |
| Interest and Late Charge | $100 per late payment plus 1.5% per month interest |
| Indemnification | Varies |
| Liquidated Damages for Abandonment | Net Present Value of lesser of Royalty and Central Marketing Fees for next 5 years or remainder of term |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 15 days Initial Training plus 5 days Owner Training |
| Classroom Training | 32 hours |
| On-the-Job Training | 80 hours |
| Training Location | Corporate headquarters in Southern California, at a Company-owned or affiliate-owned Store in Southern California, or at some other designated location |
| Additional Training | 14 days of on-site assistance at franchisee's Store before/at opening (1st Store); 7 days for 2nd and 3rd Stores. Optional and mandatory supplemental training programs may be held at Store or in Southern California, typically lasting approximately 1 week. Each Store employee must receive not less than 7 days initial training by the Certified General Manager. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected (limited) |
| Exclusive Territory | No |
| Territory Size | Designated Territory generally includes the premises of the location of your Store (e.g., an airport terminal, casino, or food court) |
| Description | You will not receive an exclusive territory. You may face competition from other franchisees, from outlets the franchisor or its affiliates own, or from other channels. However, during the term, the franchisor will not open or operate, or license others to own or operate, a Coffee Bean & Tea Leaf Store at any venue within your Designated Territory, except as permitted by extensive Reserved Rights. The franchisor reserves broad rights to sell through alternate channels, operate under other brands, and license CBTL-Brand Single-Serve Products and Beanstro Restaurants. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | 50% of Initial Franchise Fee |
| Renewal Conditions | Must notify franchisor between 6 and 12 months before end of term; must comply with all material obligations; renovate/modernize the Store to then-current standards; sign a general release; must not have committed 2 or more material breaches during any 12-month period; must sign new Franchise Agreement with potentially materially different terms. |
| Transfer Fee | $5,000 |
| Transfer Conditions | Requires prior written consent of franchisor (not unreasonably withheld). Must have fully performed all obligations; sign continuing guarantee; sign general release; subordinate amounts owed. New franchisee must qualify, assume obligations, complete training, sign new Franchise Agreement, and agree to refurbish the Store. |
| Termination for Cause | Franchisor can terminate for: default; failure to train General Manager; failure to open Store within 180 days; General Manager fails to complete training. Curable defaults: 5 days to cure non-payment of fees; 10 days for other defaults. Non-curable defaults include: bankruptcy, insolvency, abandonment, death/incapacity, repeated defaults, misrepresentation, felony conviction, health/safety violations, trademark misuse, knowingly understating Gross Revenues. |
| Non-Compete Period | 24 months after termination or expiration |
| Non-Compete Details | No Restricted Person may have any involvement in any Competitive Business for 24 months within the Designated Territory or within 10 miles of your Store or any Store then existing. During the term, no involvement in any Competitive Business is permitted. Must not solicit employees of franchisor, affiliates, or franchisees for 2 years following termination. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Although you do not have to personally supervise the franchised business, the franchisor recommends that you do. You must employ and continue to employ throughout the term at least one Director of Operations and one General Manager, both of whom must have successfully completed Initial Training and must be approved by the franchisor. One trained person must be working at the Store at all times while open to the public. |
| Required Suppliers | Must purchase all Coffee Bean Products and Proprietary Products (coffees, teas, coffee extracts, powder mixes, and other ingredients manufactured with proprietary recipes) from the franchisor, its affiliates, or designated suppliers. Non-Proprietary Products must be purchased from franchisor, affiliates, designated suppliers, or approved suppliers. |
| Supply Restrictions | 100% of expenditures for leases and purchases in establishing and operating the franchise are subject to sourcing restrictions. Must use only approved equipment, fixtures, and signs meeting franchisor specifications. |
| Franchisor Revenue from Suppliers | During fiscal year ending December 26, 2021, total worldwide revenue was $157,053,000; $6,637,000 (4.23%) was derived from required purchases or leases from franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither the franchisor nor its affiliates offer direct or indirect financing. They do not guarantee leases or any other obligations. |
The Coffee Bean & Tea Leaf (Special Distribution Site) Franchise Earnings — Item 19
Average Revenue
$926K
Median Revenue
$863K
Revenue Range
$91K – $2.7M
Sample Size
15 units
Past financial performance does not guarantee future results. Individual results will vary.
The Coffee Bean & Tea Leaf (Special Distribution Site) Litigation & Risk Flags
2 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Coffee Bean & Tea Leaf (Special Distribution Site) System Growth
Total Units
189
Franchised
77
Company-Owned
112
The Coffee Bean & Tea Leaf (Special Distribution Site) currently operates 77 franchised locations and 112 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 5 | 98 |
| 2020 | 2 | 14 | 86 |
| 2021 | 6 | 15 | 77 |
Transfers: 0 | Closures: 15
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$157.1M
The Coffee Bean & Tea Leaf (Special Distribution Site) Franchise — FAQ
The total investment to open a The Coffee Bean & Tea Leaf (Special Distribution Site) franchise ranges from $173,250 to $615,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $15,000 - $25,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
The Coffee Bean & Tea Leaf (Special Distribution Site) charges a royalty fee of 5.5% of Gross Revenues of gross sales, plus a 2% of Gross Revenues (subject to increase to 4%) plus at least 1% local advertising contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the The Coffee Bean & Tea Leaf (Special Distribution Site) Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from The Coffee Bean & Tea Leaf (Special Distribution Site) to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, The Coffee Bean & Tea Leaf (Special Distribution Site) franchise owners report average revenue of $926K and median revenue of $863K. This is based on a sample of 15 units. Past performance does not guarantee future results.
The Coffee Bean & Tea Leaf (Special Distribution Site) has been franchising since 2000. The FDD shows an investment range of $173,250-$615,500, a 5.5% of Gross Revenues royalty, and includes an Item 19 earnings disclosure. There are 2 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $15,000 - $25,000 and the total investment ranges from $173,250 to $615,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from The Coffee Bean & Tea Leaf (Special Distribution Site) and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with The Coffee Bean & Tea Leaf (Special Distribution Site) or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com