Definition: The length of time your franchise agreement will last. Scooters Coffee has not verified or audited this information. There is no assurance that you will sell or earn as much. Heyman has a Bachelor of Science degree in Geology and Physics from Tufts University and a Master of Science degree in Geology from Brown University. Overhead employees are not included in the labor calculations above. Smith earned a Bachelor of Arts degree in Political Science and Business from SMU in Dallas, Texas. This includes the franchise fee, which is $30,000, as well as the cost of equipment, signage, and other start-up expenses. 3 (Fri.), 11 a.m. EST, Top Pick Franchises Mar. 1. Over the last 7 years, Participating Stores in the Scooters system has experienced same-store sales growth that breaks down as follows: Franchised Same-Store Sales Growth Over Prior Year: +24.32%, Total Number of Open Franchised Outlets Whose Data Were Used: 217, Number and Percentage of Outlets That Attained or Exceeded Average: 112/51.61%, Franchised Same-Store Sales Growth Over Prior Year: +26.49%, Total Number of Open Franchised Outlets Whose Data Were Used: 163, Number and Percentage of Outlets That Attained or Exceeded Average: 79/48.47%, Franchised Same-Store Sales Growth Over Prior Year: +11.62%, Total Number of Open Franchised Outlets Whose Data Were Used: 154, Number and Percentage of Outlets That Attained or Exceeded Average: 78/50.65%, Franchised Same-Store Sales Growth Over Prior Year: +7.63%, Total Number of Open Franchised Outlets Whose Data Were Used: 135, Number and Percentage of Outlets That Attained or Exceeded Average: 56/41.48%, Franchised Same-Store Sales Growth Over Prior Year: +3.59%, Total Number of Open Franchised Outlets Whose Data Were Used: 124, Number and Percentage of Outlets That Attained or Exceeded Average: 64/51.61%, Franchised Same-Store Sales Growth Over Prior Year: +8.40%, Total Number of Open Franchised Outlets Whose Data Were Used: 94, Number and Percentage of Outlets That Attained or Exceeded Average: 50/53.19%, Franchised Same-Store Sales Growth Over Prior Year: +16.0%, Total Number of Open Franchised Outlets Whose Data Were Used: 79, Number and Percentage of Outlets That Attained or Exceeded Average: 42/53.16%, Franchised Same-Store Sales Growth Over Prior Year: +13.39%, Total Number of Open Franchised Outlets Whose Data Were Used: 59, Number and Percentage of Outlets That Attained or Exceeded Average: 38/64.41%. See Item 19 of the FDD for more information. This Item 19 is separated into five sections. 4. Over the last 7 years, Participating Stores in the Scooters system has experienced same-store sales growth that breaks down as follows: Franchised Same-Store Sales Growth Over Prior Year: +26.49%, Total Number of Open Franchised Outlets Whose Data Were Used: 163, Number and Percentage of Outlets That Attained or Exceeded Average: 79/48.47%, Franchised Same-Store Sales Growth Over Prior Year: +11.62%, Total Number of Open Franchised Outlets Whose Data Were Used: 154, Number and Percentage of Outlets That Attained or Exceeded Average: 78/50.65%, Franchised Same-Store Sales Growth Over Prior Year: +7.63%, Total Number of Open Franchised Outlets Whose Data Were Used: 135, Number and Percentage of Outlets That Attained or Exceeded Average: 56/41.48%, Franchised Same-Store Sales Growth Over Prior Year: +3.59%, Total Number of Open Franchised Outlets Whose Data Were Used: 124, Number and Percentage of Outlets That Attained or Exceeded Average: 64/51.61%, Franchised Same-Store Sales Growth Over Prior Year: +8.40%, Total Number of Open Franchised Outlets Whose Data Were Used: 94, Number and Percentage of Outlets That Attained or Exceeded Average: 50/53.19%, Franchised Same-Store Sales Growth Over Prior Year: +16.0%, Total Number of Open Franchised Outlets Whose Data Were Used: 79, Number and Percentage of Outlets That Attained or Exceeded Average: 42/53.16%, Franchised Same-Store Sales Growth Over Prior Year: +13.39%, Total Number of Open Franchised Outlets Whose Data Were Used: 59, Number and Percentage of Outlets That Attained or Exceeded Average: 38/64.41%. Tim Arpin, vice president of franchise sales for Scooters Coffee, said, Were thrilled with the growth weve seen in the past few years and hitting a milestone like 300 stores is a great reminder of what the brand has accomplished. Entrepreneur Franchise 500 Rank: 11 th. Launched new store with 22 days lead time. In addition to the initial franchise fee of $40,000, you would also pay for: On average, a Scooters Coffee franchise makes $797,101 in sales per year. There is no assurance that you will sell or earn as much. See Item 19 of the FDD for more information. The initial investment for a Scooter's Coffee franchise is $120,000. Section V Presentation and analysis of Scooters Coffees financial performance representations, based on Item 19 of the companys 2021 FDD, including information on the: The following table summarizes the ownership of Stores in operation as of December 31, 2020: This Item 19 does not include financial performance information for any of Scooters Coffees franchised nontraditional Stores as Scooters Coffee currently is not actively marketing non-traditional Stores, and they operate differently from Kiosk and Coffeehouse Stores. Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses. And once 2018 rolled around, they had a total of 171 franchise locations. Prior to joining Scooters Coffee, Heyman served in leadership roles at companies that included Retail Digital Strategy Consulting, Christopher & Banks, Gordmans, Pamida Stores, Distributed Intelligence Systems, Sirius Retail, and Bakers Supermarkets. 2. Your individual results may differ. Scooter's Coffee may offer a starting point and a brand built on outstanding performance. Smith has held a wide array of development team leadership roles with Starbucks Coffee, opening 350 stores in six states; Potbelly Sandwich Works; and Qdoba Mexican Grill, spearheading development and implementation of national corporate and franchise restaurant growth strategies for the 650-location chain across 42 states. The Gross Sales, Discounts, Cost of Goods Sold, Labor Costs, and Rental Expenses are based upon the reported results for the Participating Stores during the Measurement Period. Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company. Subscribe to Scooter's Coffee delivery and enjoy 100% Arabica beans, sourced directly from farmers who take pride in their product. Scooter's Coffee General Information. Of these 31 Drive-Thru Kiosks that compile the top quartile: (1) 17 of them (or 40%) had an AUV that met or exceeded $1,179,980, (2) 19 of them (or 44%) had a Net Profit Margin and EBITDA that met or exceeded the average. Heres what you need to know if youre interested in opening a Scooter's Coffee franchise. The following are statements of Sales, Expenses, and Earnings for Participating Kiosk Stores and Participating Coffeehouse Stores based upon reported results and actual and estimated expenses. Your results may differ. Number and Percentage That Attained or Exceeded the Average: 83/48%, Number and Percentage That Attained or Exceeded the Average: 84/49%, Number and Percentage That Attained or Exceeded the Average: 79/46%, Number and Percentage That Attained or Exceeded the Average: 35/47%, Number and Percentage That Attained or Exceeded the Average: 37/49%, Number and Percentage That Attained or Exceeded the Average: 34/45%. The franchise grew by almost 50 locations in 2020, while experiencing historic same-store sales growth. With more than 35 years of experience in information technology, Heyman has successfully led digital transformation for entrepreneurial endeavors and large public enterprises. The term Labor Costs includes wages for in-store employees including the manager and payroll taxes, but does not include employee benefits. Start By Evaluating Your Goals. *This is historical representation of what some of our franchisees have earned as described further in Item 19 of the FDD. Approaching 500 locations across the U.S., Scooters Coffee provides customers with responsibly sourced coffee served by amazing people, all from a convenient 664 square foot drive-thru kiosk. And entrepreneurs considering buying a franchise want to know how much money they may stand to make. 7. Initial Investment: $438K - $1 . This statement includes average Gross Sales for the first full calendar month of operations for all franchised Kiosk Stores and Coffeehouse Stores that opened for operation in each of calendar years 2018 to 2021. Scooters Coffee continues to grow rapidly while it strives to provide the best customer drive-thru interaction in the world and also elevates franchisee success through best-in-class franchise support systems. Drive-thru coffee kiosks are growing in popularity all around the country. Heyman will transform Scooters Coffees technology capability, allowing the company and brand to differentiate itself when providing best-in-class franchise support systems and elevating an amazing experience for its loyal and new customers. The Eckleses got the idea for their specialty coffee shop when they saw a man building a drive-thru coffee hut while living in California. Net Sales also includes the fair market value of any services or products you receive in barter or exchange for your services and products. Scooters Coffee Continues Growing in Iowa, Scooters Franchise Owner Salary vs. Competition. 4. Total Number of New Stores That Opened During the Calendar Year: 39, Average Gross Sales During the First Full Month of Operations: $66,775, Number and Percentage That Attained or Exceeded the Average: 19/48.7%, Median Gross Sales During the First Full Month of Operations: $66,652, Low Gross Sales During the First Full Month of Operations: $27,221, High Gross Sales During the First Full Month of Operations: $102,739, Total Number of New Stores That Opened During the Calendar Year: 43, Average Gross Sales During the First Full Month of Operations: $44,686, Number and Percentage That Attained or Exceeded the Average: 20/46.5%, Median Gross Sales During the First Full Month of Operations: $42,132, Low Gross Sales During the First Full Month of Operations: $13,063, High Gross Sales During the First Full Month of Operations: $111,917, Total Number of New Stores That Opened During the Calendar Year: 26, Average Gross Sales During the First Full Month of Operations: $36,742, Number and Percentage That Attained or Exceeded the Average: 12/46.2%, Median Gross Sales During the First Full Month of Operations: $35,936, Low Gross Sales During the First Full Month of Operations: $13,336, High Gross Sales During the First Full Month of Operations: $66,643, Total Number of New Stores That Opened During the Calendar Year: 18, Average Gross Sales During the First Full Month of Operations: $36,266, Number and Percentage That Attained or Exceeded the Average: 9/50.0%, Median Gross Sales During the First Full Month of Operations: $35,865, Low Gross Sales During the First Full Month of Operations: $12,572, High Gross Sales During the First Full Month of Operations: $53,444. Showcasing what the future of Scooters Coffee will look like, the Katy site offers the first of many new features for the brand, including exterior digital menu boards, a dual-lane drive-thru, and much more. This ever-growing brand has more than 275 locations across 17 states, including coffeehouses and drive-thru kiosks. Compared to the year before, Scooter's Coffee stores saw an increase of more than 26%. Definition: The initial fee paid to a franchisor to join their system. Were extremely proud to have had an impact with our customers and to have provided security to our franchisees, along with optimism and excitement to those considering franchising with Scooters Coffee in the future.. How to Find, Vet and FUND a Good Franchise (Webinar), Buying a Franchise on Your Own Can Be Overwhelming, exclusive content for Platinum subscribers, Scooters Coffee (coffeehouse store) franchise costs, Scooters Coffee (kiosk store) franchise costs, Scooters Coffees initial franchise fee, royalty fee, and marketing fee, How to Find, Vet & FUND a Good Franchise. 15. Your results may differ. Prior to his time at McDonalds, Lester received a Bachelor of Science degree in Civil Engineering from the University of Illinois and worked as a Civil Engineer, master planning and designing municipal treatment solutions across the United States. For example, a Kiosk Store makes slightly less revenue than a Coffeehouse Store. What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. Dunkin'. 9. During 2021, the range of monthly rent paid for both Kiosks and Coffeehouses was $3,500 to $10,000. On average, a Scooter's Coffee franchise makes $170,116 in profits per year (21.2% EBITDA margin). Exceeding 400 stores is significant and reflects an important moment for the brand as Scooters Coffee advances toward a goal of 1,000 stores by 2024. Need help? 2. Scooter's Coffee was founded in 1998 by Don and Linda Eckles in Bellevue, Nebraska. airports, hospitals, stadiums, train stations, malls, military bases, amusement parks, and business atriums), or within other businesses such as large office buildings. The amount included in the table assumes that each Participating Store will comply with the requirements in the Franchise Agreement. Scooters Coffee was founded as Scooters Java Express in 1998 by Don and Linda Eckles in Bellevue, Nebraska. To be part of the Scooter's Coffee team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. 13. The following charts are based on information for only 186 Kiosk and 78 Coffeehouse franchised Stores that were open and operating during the entire Measurement Period for 2021 and that provided complete information (the Participating Stores). Scooters Coffee ranked No. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee. The information presented in this Part 2 is based on information for Participating Stores. Only then you can pay yourself dividends. Franchised Same-Store Sales Growth Over Prior Year: 31.70%, Total Number of Open Franchised Outlets Whose Data Were Used: 102, Number and Percentage of Outlets That Attained or Exceeded Average: 46/45.10%, Franchised Same-Store Sales Growth Over Prior Year: 19.63%, Total Number of Open Franchised Outlets Whose Data Were Used: 61, Number and Percentage of Outlets That Attained or Exceeded Average: 31/50.82%, Franchised Same-Store Sales Growth Over Prior Year: 26.49%. The Store Manager exemplifies Scooter's Coffee . Initiatives included digitizing supply chain processes, automating business practices, designing/building the first global sustainability data collection/reporting solution, and leading the implementation of its Automated Order Taking initiative. Initial investments: $794,000 - $1,264,500 Net Worth Requirement: $500,000 Liquid Cash Requirement: $200,000 Estimated Initial Investment Heymans expertise in digital transformation will result in data-driven, dynamic decision-making, allowing the company and franchise system to elevate overall customer experience while striving to deliver the best drive-thru interaction in the world. Scooters Coffee has partnered with third-party financial lenders that may help qualified franchisees cover the costs of the franchise fee, startup cost, equipment, inventory, accounts receivable, payroll. Liabilities include items like mortgages, car payments, and credit card debt. Arpin added, We wouldnt set such ambitious goals for growth if we didnt see proof of the models success and sustainability. Founded in 1998 in Ashland, Oregon, The Human Bean franchise is a drive-thru coffee concept with 79 locations 66 are franchised, and 13 are corporate locations in 10 states. Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. Copyright 2023 Entrepreneur Media, Inc. All rights reserved. Which Franchise Is Right for You? Your results may differ. By requesting information, you agree that Scooter's Coffee may call and/or text you about your inquiry, which may involve the use of automated means. With commitments to build new stores in 30 states, the company plans to open many additional locations in 2022. According to the latest FDD, startup costs vary based on the format of restaurant you choose: the Kiosk Store costs on average $794,500-$1,264,500, whereas a Coffeehouse store costs $666,500-$1,847,500 instead. By requesting information, you agree that Scooter's Coffee may call and/or text you about your inquiry, which may involve the use of automated means. The company is seeking to expand its reach even further, potentially making it an intriguing option for entrepreneurs. Our listings and rankings are solely research tools you can use to compare opportunities. Why Drink Franchises are the Easiest Franchises to Own, Kim Ellis Joins Scooters Coffee as Chief Development Officer to Cultivate Franchisee Success as Company Continues Nationwide Expansion. Scooters Coffee has not verified or audited this information. Same-store sales growth compares net sales (gross sales minus discounts and refunds) in calendar year 2020 to net sales in calendar year 2021. Subscribe, save & smile. Scooter's Coffee franchisees have two options for franchise models: our drive-thru kiosk model or a welcoming drive-thru coffeehouse model. There has never been a better time than now to join the Scooter's Coffee family! Those are exciting numbers for entrepreneurs looking at a Scooters Coffee franchise, especially in light of the relatively low investment required to launch a location. Of these 217 locations, 112 (or 51.61%) of them had Same-Store Net Sales Growth Over Prior Year that met or exceeded 24.32%. The following statement is based on information for only 146 Kiosk and 73 Coffeehouse franchised Stores that were open and operating during the entire Measurement Period and that provided complete information (the Participating Stores). The table above excludes franchised Kiosk and Coffeehouse Stores that were initially opened as corporate stores by Scooters Coffees affiliate and then transferred to a franchisee. This statement includes average Gross Sales of Participating Stores (both Participating Kiosk Stores and Participating Coffeehouse Stores) for each of calendar years 2014 to 2020. The Initial Franchise Fee for an individual Scooter's Coffee Store, regardless of the type of Store you purchase, is $40,000 for each Store. Last updated on August 29, 2022 by Franchise Chatter Leave a Comment in Coffee Franchise, FDD Talk: Food Franchises, Franchise Earnings. This is a total growth of 71 outlets over a six-year time length. Orders over $39.99 Ship Free! Coffee, espresso, smoothies, pastries, breakfast items. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. How profitable is a Scooters Coffee franchise? Katy is one of our first locations to offer a dual-lane drive-thru to really enhance the speed in which our customers are getting through the drive-thru from start to finish. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. When it comes to Scooter's Coffee, they have had a decent amount of growth since they began offering the franchise opportunity in 2001. At the beginning of August 2021, Scooters Coffee appointed Richard Heyman as chief information officer. Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees. The brand is known for its signature caramel coffee, smoothies, baked goods, espresso drinks, and other related foods. Here's How to Find Out. We may receive a commission for leads generated from our site. Initiatives included voice-activated drive-thru capabilities, predictive production management, robotic/automated cooking equipment and more that drove better business efficiencies and performance. 15. He subsequently earned a Master of Business Administration and a Master of Information Systems from the University of Nebraska at Omaha. The onset of a public health crisis introduced challenges levied on businesses of all shapes and sizes. These concepts continually rank as the top franchises in the coffee and tea industry. Your email address will not be published. The information presented in this Part 2 is based on information Participating Franchisees provided to Scooters Coffee. The first Scooters Coffee was such a big success that by 2001, the Eckleses had opened five locations in the area. 6. If a Store first opened mid-month, that partial month of initial operations is not included in the data below. Despite being one of the biggest names in coffee shop chains, with more than 31,200 stores globally, Starbucks Franchise does not fall into the discussion of attractive coffee franchises because Starbucks does not grant franchises so there is no opportunity for entrepreneurs to get involved. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Assets include cash, stocks, retirement accounts, and real estate. Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company. Scooter's Coffee May 2022 - Present 11 . As part of your due diligence, you may want to speak to existing franchisees and ask the Scooter's Coffee franchising team questions. The Houston Humane Society also had its mobile adoption unit onsite and pets available for adoption from 9 a.m. to 11 a.m. As a bonus, Scooters Coffee gave away pet bandanas to the first 400 customers of the day. Scooters Coffee has not verified or audited this information. All of the Stores whose data were used in the table above were open for at least 13 months during the measured period. There is no assurance that you will sell or earn as much. With more than 11,300 restaurants worldwide (more than 8,500 in the United States), Dunkin Donuts franchise certainly is among the best-known brands in coffee franchises. 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