About Travelin' Tom's Coffee Franchise
Travelin' Tom's Coffee is a mobile coffee franchise that brings premium espresso drinks, cold brews, and specialty beverages directly to customers at events, offices, neighborhoods, and community gatherings.
The brand has been franchising since 2021 and is part of the same family of companies behind Kona Ice, operating under Mobile Coffee Company Intermediate Holdings, LLC.
The mobile model eliminates the need for expensive commercial real estate.
Travelin' Tom's Coffee Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $15,000 | One-time payment upon signing |
| Royalty Fee | Varies by year ($3,000 - $5,000) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently $500 per year for the first year | National brand fund |
| Total Investment Range | $175,750 – $227,455 | Includes build-out, inventory, working capital |
The investment range of $176K–$227K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Varies by year ($3,000 - $5,000)) and marketing fee (Currently $500 per year for the first year) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $15,000 | $15,000 |
| BEV and Installed Equipment | $149,500 | $159,500 |
| Training Expenses | $140 | $950 |
| BEV Delivery | $0 | $4,000 |
| BEV Compliance Fee | $0 | $5,000 |
| BEV Insurance for 3 Months | $600 | $1,500 |
| Tax, Title, and Licensing of BEV | $180 | $6,000 |
| Initial Inventory | $9,080 | $9,080 |
| Optional Inventory | $0 | $225 |
| Permits and Licenses | $250 | $1,500 |
| Real Estate or BEV Storage | $0 | $1,200 |
| Second Option Fee and Third Option Fee | $0 | $10,000 |
| Computer System and Software | $0 | $1,000 |
| Additional Funds – 3 Months | $1,000 | $12,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 to $7,500 |
| Renewal Fee | $7,500 |
| Technology Fee | Then-current fee (not currently charged) |
| Audit Fee | Cost of audit and any related accounting and legal expenses and related travel and administrative expenses (estimated to be between $1,000 and $10,000) |
| Additional Equipment Royalty | Varies based on the type of Additional Equipment (estimated to be between $600 and $2,000 per year) |
| Reservation Fee | $10,000 per territory |
| Territory Infringement Fee | $1,000 plus amount of applicable products and services you invoiced while infringing for first violation; $5,000 plus amount of applicable products and services you invoiced while infringing for second and subsequent violations |
| Initial Territory Adjustment Fee | $1,000 to $2,500 |
| Territory Relocation Fee | $2,500 |
| Additional Training | Then-current fee (not currently charged) plus costs and expenses |
| Email Address Fee | $168 per email address per year |
| KonaOS Business Management Software Fee | Then-current fee (not currently charged) |
| Insurance Reimbursement of our costs | plus a 20% administration charge |
| Customer Satisfaction Reimbursement | Varies under circumstances |
| Supplier and Product Evaluation Fee | Costs of inspection (estimated to be approximately $100 to $500) |
| Misappropriated Brand Manual Fee | Will vary under the circumstances (not less than $30,000) |
| Non-Compliance Fee | $1,000 for the first violation; $5,000 if violation is not corrected within 30 days; and $5,000 for the second violation. |
| Payment Service Fees | Up to 3% of total charge |
| Late Fees | $25 per day, plus the lesser of the daily equivalent of 12% per year simple interest or the highest rate allowed by law |
| Returned Check or Insufficient Funds Fee | $100 |
| Indemnification | Varies under circumstances |
| Professional Fees and Expenses | Will vary under circumstances |
| Lead Procurement Fee | $15,000 or the third-party broker fee, currently estimated to be $3,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Minimum of two (2) and a maximum of four (4) calendar days |
| Classroom Training | 0 |
| On-the-Job Training | 16-20 |
| Training Location | Our corporate office in Florence, Kentucky |
| Additional Training | Franchisor may require or offer additional training courses for newly-hired personnel, refresher training, or advanced training, for which fees and expenses may be charged to the franchisee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | Generally up to 100,000 people |
| Description | Based on geographic area and population properties, identified by one or more adjacent zip codes. Franchisees are permitted to engage in direct advertising and solicitation only within the Protected Territory unless approved otherwise. Franchisor and its affiliates will not establish or franchise a similar or competitive business within the Protected Territory, but may operate other kinds of businesses or sell products through alternative distribution channels outside of a dedicated Travelin' Tom's Business. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Ten years |
| Renewal Term | Two successive terms of ten years each |
| Renewal Fee | $7,500 |
| Renewal Conditions | Franchisee and Owners must be in full compliance with the Franchise Agreement, including all monetary obligations. Franchisee must maintain possession of the BEV, complete required remodels/upgrades, or secure a substitute BEV. Franchisee must execute a general release of claims (unless prohibited by state law) and sign the then-current successor franchise agreement, which may have materially different terms and higher fees. |
| Transfer Fee | $5,000 to $7,500 |
| Transfer Conditions | Transferee must apply for a franchise, meet franchisor's standards, have sufficient business experience, aptitude, and financial resources. All monetary obligations must be paid. Transferee and owners must not have ownership interest or perform services for a Competitive Business. Transferee must complete training. Transferee agrees to pay a remodel fee for BEV/Additional Equipment. Transferee signs current franchise agreement and related documents. Transferor/transferee pays transfer fee. Transferor/owners sign a general release (unless prohibited by state law). Transferee's financing obligations are subordinate to franchisor's fees. Transferor/owners agree to non-compete for two years. Transferee takes possession of BEV/Additional Equipment. |
| Termination for Cause | Franchisor can terminate for various reasons, including material misrepresentation, failure to open within three months, failure to complete training, abandonment of business for 12 consecutive months, unauthorized transfer, felony conviction, failure to maintain insurance, actions adversely affecting brand reputation, unauthorized use of confidential information, health/safety/sanitation law violations (3-day cure), other law violations (48-hour cure), failure to pay amounts due (10-day cure), failure to pay taxes, three or more compliance failures in 12 months, assignment for benefit of creditors/insolvency, assets blocked due to terrorist activities, three or more insufficient funds checks in one year, written intent to commit preceding actions, or termination of any other agreement with franchisor/affiliates. |
| Non-Compete Period | During the term of the Franchise Agreement and for two (2) years after termination, transfer, or expiration. |
| Non-Compete Details | During the term, franchisee, owners, and immediate family members cannot have any direct or indirect interest in, perform services for, divert business to, loan money to, interfere with franchisor/affiliates, or injure goodwill of Marks/Patent/System for a Competitive Business. Post-term, owners cannot have interest in, own, manage, operate, finance, control, or participate in any competitive business within a 20-mile radius of any Travelin’ Tom’s Business (franchised or company-owned) for two years, nor solicit customers for two years. If a court deems the two-year period too long, it will be reduced to one year. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Managing Owner (a natural person with at least 25% ownership interest and voting power) must directly supervise and participate in the day-to-day operation for at least the first 60 days. After 60 days, a franchisor-approved Designated Manager may be appointed. The Designated Manager must successfully complete initial training. |
| Required Suppliers | Yes, franchisees must purchase initial inventory (coffee product, flavorings, cups, graphics package, branded t-shirt uniforms) from franchisor or its affiliate. BEV and Additional Equipment must be purchased from franchisor or its affiliate. Approved suppliers are designated for other products/services. |
| Supply Restrictions | Franchisees must purchase initial inventory and BEV from franchisor or its affiliate. They are not permitted to purchase these items, with the exception of ice, from alternate sources. For other products/services, franchisees must use designated or approved suppliers or follow approval procedures for new suppliers. Franchisor may concentrate purchases with one or more suppliers to obtain lower prices or better advertising support. |
| Franchisor Revenue from Suppliers | $2,411,906 |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor does not offer direct financing but may, at its sole discretion and if the franchisee qualifies, refer to third-party lenders: Eagle Financial Services, Inc., a hybrid of Ally Financial, Inc. and Eagle, Auxilior Capital Partners, and Osgood Bank. These lenders may offer financing for the purchase of the BEV and initial inventory pack. Terms vary by lender, including APR, monthly payments, and security requirements. Some financing options include interest-only periods or seasonal payment structures. The franchisor or its affiliates may receive trade show sales and marketing support, sponsorship fees, rebates, or volume discounts from these lenders. |
Travelin' Tom's Coffee Franchise Earnings — Item 19
Travelin' Tom's Coffee 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.
Travelin' Tom's Coffee 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.
Travelin' Tom's Coffee System Growth
Travelin' Tom's Coffee currently operates 15 franchised locations and 6 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 0 |
| 2020 | 17 | 0 | 17 |
| 2021 | 4 | 0 | 21 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Barnes Dennig for year ending December 31, 2021.
Travelin' Tom's Coffee Franchise — FAQ
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