The Human Bean Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$552,000

-

$1,059,000

LOCATIONS

148

Emily

Updated

April 11, 2024

Is

The Human Bean

a franchise?

Yes,
The Human Bean
currently
accepts
franchise
applications

The Human Bean was founded in 1998 with the aim of creating the best coffee drive-thru in Southern Oregon. This mission led to the establishment of a franchise model that has since expanded to hundreds of locations across the United States, all while maintaining a strong commitment to community, quality service, and exceptional coffee. 

The Human Bean is unique for its signature touch of placing a chocolate-covered espresso bean on top of every cup served, symbolizing their dedication to making even the smallest interactions memorable and kind​​. The franchise began expanding through partnerships in 2002, growing its presence nationally by selecting the right partners and locations, and emphasizing community involvement and treating everyone involved like "good human beans." 

The Human Bean stands out in the coffee franchise industry by not charging royalty fees, which is quite uncommon among franchises, highlighting their partner-centric approach​​. The Human Bean's headquarters is located in Medford, Oregon, which serves as the central hub for its franchising operations. The franchise process emphasizes the importance of finding the right kind of partners and heavily invests in these relationships by providing extensive guidance and tools to make the ownership experience both enjoyable and rewarding​​.

How many

The Human Bean

franchises

are there?

In 2022, there were
148
outlets in
the United
States, of which
135
are franchises, and
13
are corporate-owned.

What are the

The Human Bean

franchise

fees?

Advertising fee

1.00%

Initial Franchise Fee

The Initial Franchise Fee is $30,000, due upon execution of the Franchise Agreement.

Royalty Fee

No royalty fee is charged; revenue is derived from the sale of coffee and other supplies.

Advertising Fee

Brand Fee is 1% of gross revenue excluding taxes, promotional discounts, and delivery fees, payable monthly by EFT.

Technology Fee

Monthly software fee ranges from $350 for a single point-of-sale station to $450 for two stations, payable to approved suppliers.

Transfer Fee

In case of transfer, the fee is $5,000, payable immediately upon approval of the transfer.

Renewal Fee

A renewal fee of $3,000, is applicable if you renew your franchise.

Additional Fees

Audit Fee: Cost of audit, due when incurred.

Additional Training: $60/hour, due when incurred.

Additional On-Site Assistance: $600/day, due when incurred.

POS Software and System Fees: $350-$450 plus transactional fees on card purchases, due monthly.

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

The Human Bean

franchise?

It costs between
$552,000
and
$1,059,000
to start a
The Human Bean
franchise.
Type of Expenditure Amount
Site Analysis Fee (nonrefundable) $5,000
Initial Franchise Fee $30,000
Optional Area Development Fee $10,000 per additional location
Training Expenses $8,700-$22,440
Real Property (purchased or leased) Lease payment $3,500-$10,000
Equipment, fixtures, other fixed assets, construction, remodeling, leasehold improvements, and decorating costs, whether purchased or leased $460,000 - $895,000
Inventory $24,000-$26,000
POS Software $350-$450 Monthly
Security deposits, utility deposits, business licenses and other prepaid expenses $4,800-$10,000
Working capital $1,000-$5,000
Advertising and promotion $5,000-$10,000
Additional funds – (Initial 90 day period) $15,000-$50,000
Total Initial Investment $552,350 to $1,058,850

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

The Human Bean

provide

training

to its

franchisees?

Yes,
The Human Bean
provides
training

Initial Training Program

The Human Bean provides an initial training program designed to ensure the operational success of the THB Outlet. This program is mandatory for two people designated by the franchisee, ideally including the General Manager. The program covers necessary operational procedures and skills, and there is no fee for this training. However, the franchisee is responsible for any associated costs such as transportation, lodging, and meals.

Supplemental Training

Franchisees or their General Managers are required to participate in any continuing training programs provided by The Human Bean. These programs may be delivered through various means such as bulletins, manuals, and other literature. The franchisee must comply with the directives and instructions contained in these materials.

Operations Manual

The Human Bean will provide franchisees with an Operations Manual for each outlet, which may be updated or revised periodically. Any supplemental instructions or information provided by The Human Bean during the term of the agreement are considered part of the revised Operations Manual.

Assistance at Opening & Annual Meetings

The Human Bean offers assistance at the opening of the THB Outlet and may hold annual meetings to provide further training and updates. This assistance is aimed at ensuring franchisees are well-equipped to start and maintain their operations in line with brand standards.

Does

The Human Bean

provides

territory

protection?

The Human Bean franchise offers territorial exclusivity to its franchisees. Once you become a franchisee, you are granted an exclusive territory within a 1-mile radius of your drive-thru location, which must be a site approved by The Human Bean. The franchise agreement stipulates that the territory cannot be altered without mutual written agreement between the franchisee and The Human Bean.

If you opt to become an Area Developer, your exclusive territory will be defined as the development area specified by the Area Development Agreement until it expires or terminates. As an Area Developer, you have the right and obligation to open additional The Human Bean outlets within your development area during the term of the Area Development Agreement. It's important to note that any site used for a The Human Bean drive-thru must first be approved by the franchisor, and their current standards for site approval will apply.

The franchise agreement ensures that within your designated territory, The Human Bean will not operate a company-owned outlet or grant a franchise for the operation of a competing business. However, The Human Bean retains the right to sell branded merchandise through mail order, an Internet website, or other networked means, including sales to persons physically located within your territory.

Can a

The Human Bean

franchise

be run as

a passive

investment?

The Human Bean franchise agreement specifies that franchisees are not required to participate personally in the direct operation of their drive-thru but recommends it. Regardless, each drive-thru must always be under the direct supervision of the franchisee or a designated manager.

This stipulation ensures that, while franchisees have the flexibility to not be directly involved in day-to-day operations, they must maintain oversight, either personally or through a manager, to ensure the franchise operates within the brand's standards.

Moreover, the franchisee is responsible for appointing a General Manager who will have primary responsibility for the day-to-day operations of the outlet. The General Manager is expected to use their best efforts and constant personal attention to oversee the daily operations, ensuring the outlet operates according to the franchise agreement and the operations manual.

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