Scooter’s Coffee Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$895,000

-

$1,393,000

LOCATIONS

750

Emily

Updated

May 2, 2024

Is

Scooter’s Coffee

a franchise?

Yes,
Scooter’s Coffee
currently
accepts
franchise
applications

Scooter’s Coffee emerges as an iconic American drive-thru coffeehouse chain, owned by Boundless Enterprises and headquartered in Omaha, Nebraska.The brand has over 650 locations across the United States.

This chain has etched its mark in the hearts of coffee connoisseurs with its signature caramel coffee, as well as smoothies, delectable baked goods, espresso drinks, and an array of culinary offerings.

Scooter’s Coffee was founded by Don and Linda Eckles in 1998 in Bellevue, Nebraska with a vision of offering high-quality drinks and speedy service. The brand's franchising journey began in 2002 and currently, there are Scooter’s Coffee locations throughout the country.

How many

Scooter’s Coffee

franchises

are there?

In 2022, there were
750
outlets in
the United
States, of which
729
are franchises, and
21
are corporate-owned.

What are the

Scooter’s Coffee

franchise

fees?

Advertising fee

2% to 7%

Initial Franchise Fee ($40,000 - $50,000)

The Initial Franchise Fee is $40,000 for the first Store and $50,000 for each additional Store. If you sign a Multi-Unit Development Agreement, you will pay a development fee equal to the Initial Franchise Fee for each Store you commit to develop.

Royalty (6% of Net Sales)

Franchisees are required to pay a weekly royalty of 6% of Net Sales.

Advertising (2% of Net Sales)

Franchisees must contribute 2% of Net Sales to the Marketing Fund on a weekly basis. Additionally, franchisees are currently not required to spend any minimum amount on local marketing and advertising. However, the franchisor may require franchisees, on 60 days’ notice, to begin spending up to 2% of quarterly Net Sales on local marketing and advertising.

Franchisees will also participate in and support regional cooperative marketing and advertising programs. The amount of contribution will be determined by the regional cooperative (up to 3% of Net Sales).

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Scooter’s Coffee

franchise?

It costs between
$895,000
and
$1,393,000
to start a
Scooter’s Coffee
franchise.

As you embark on your entrepreneurial journey, you'll quickly discover that the initial investment required can vary significantly depending on your business's nature and scale. This table provides a clear overview of these expenses, allowing you to plan and budget effectively for your new venture, with a total cost range between $797,000 to $1,341,500.

Type of Expenditure Amount
Initial Franchise Fee $40,000
Initial Opening Support Fee $15,000
Site Concept Plan, Preliminary Due Diligence and Site Work $176,000 to $475,000
Free Standing Building and Leasehold Improvements $267,000 to $427,000
Architectural and Engineering Fees $40,000 to $54,000
Equipment, fixtures and furniture $168,000 to $179,000
Signs $43,000 to $63,000
Point-of-sale system and software $14,500
Deposits and licenses $3,500 to $6,000
Initial training: travel and living expenses $5,000 to $8,000
Opening inventory, supplies, and smallwares $25,000 to $27,000
Additional funds — 3 months $0 to $33,000
Total $797,000 to $1,341,500

It's important to note that this table provides a general breakdown of expenditures, and actual costs may vary based on location, market conditions, and other factors specific to your business. These costs encompass various aspects of starting your business, from franchise fees and construction expenses to equipment and software.

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Scooter’s Coffee

provide

training

to its

franchisees?

Yes,
Scooter’s Coffee
provides
training

Scooter’s Coffee, a standout in the fast-food realm, is committed to equipping its franchisees with the tools and knowledge to succeed. Here's a snapshot of their training program:

Preparation for Success:

  • Management Training Program: Before opening their doors, franchisees, a designated representative, and two managers dive into a comprehensive training regimen.

Core Training Components:

  • Foundation: The first week is pivotal. Franchisees get acquainted with the Scooter’s Coffee Operations Manual, team member roles, and hands-on training across various job stations, from the fry station to the cashier.
  • Leadership Skills: Beyond the basics, the training zooms into managerial responsibilities. This encompasses guest service, crew development, portion control, and waste management, ensuring franchisees can lead their teams effectively.

Does

Scooter’s Coffee

provides

territory

protection?

Franchisees of Scooter’s Coffee do not receive an exclusive territory. They are permitted to operate their store and utilize the brand's trademarks and system only at a location that has received the franchisor's consent. The franchisor's consent is based on various factors, including the viability and demographics of the proposed location.

If a franchisee does not have an approved location at the time of signing the Franchise Agreement, the franchisor will designate a "Non-Exclusive Search Area" where the franchisee must find a suitable location. This designation does not grant any exclusivity within the search area.

The franchisee's operations are confined to the approved location, and they cannot conduct business outside of this specified site. The agreement also restricts franchisees from using other distribution channels, including online platforms.

Can a

Scooter’s Coffee

franchise

be run as

a passive

investment?

For those considering a franchise with Scooter’s Coffee, it's important to understand the operational expectations. While the Principal Owners are not mandated to personally manage and operate the store, there are specific requirements for the designated management.

One of the Principal Owners, along with a person they designate as the "Designated Manager," must successfully complete Scooter’s Coffee's mandatory initial training programs.

Although a Principal Owner isn't obligated to be the on-premises manager, all Designated Managers and associated shift supervisors must undergo and successfully complete the initial training program.

Furthermore, while the franchisee can have a Designated Manager to oversee the daily operations, it's crucial for the franchisee to be well-informed and exercise oversight to ensure the store aligns with Scooter’s Coffee's brand standards and expectations.

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