Ziggi's Coffee Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$527,000

-

$2,018,000

LOCATIONS

78

Emily

Updated

May 2, 2024

Is

Ziggi's Coffee

a franchise?

Yes,
Ziggi's Coffee
currently
accepts
franchise
applications

Ziggi's Coffee, founded in 2004 in Longmont, Colorado, has grown significantly from its initial coffee shop to include multiple drive-thru and coffeehouse locations across the U.S.Ziggi's Coffee began franchising in 2016. Ziggi's is known for its superior cup of coffee and exceptional service, focusing on community, product, and profitability.

The franchise offers various business models, including coffeehouse, coffeehouse with drive-thru, and a double-sided drive-thru, catering to different market needs and investment levels.

Ziggi's Coffee provides comprehensive support to its franchisees, including training programs based on real ownership experience, marketing support, and assistance with site selection, lease negotiation, and store design. The franchise also offers financial assistance through third-party partnerships.

For veterans interested in franchising with Ziggi's, there is a significant incentive with a 100% waiver of the franchise fee available under certain conditions. Ziggi's Coffee is looking for franchisees both within the U.S. and internationally, with opportunities for single and area developers.

How many

Ziggi's Coffee

franchises

are there?

In 2022, there were
78
outlets in
the United
States, of which
71
are franchises, and
7
are corporate-owned.

What are the

Ziggi's Coffee

franchise

fees?

Advertising fee

3.00%

Initial Franchise Fee

The Initial Franchise Fee is $40,000, payable as a lump sum at the signing of the Franchise Agreement.

Royalty Fee

The Royalty Fee is 6% of the total Gross Sales from the Coffee Shop, payable weekly.

Marketing and Technology Fee

The Marketing and Technology Fee is 1% of the Gross Sales, payable weekly concurrently with the Royalty Fee.

Launch Fee

An additional Launch Fee of $10,000 is required, representing payment for pre-opening obligations and is not refundable after payment.

Renewal Fee

The Successor Franchise (Renewal) Fee is 40% of the then-current Initial Franchise Fee, payable when exercising the right to obtain a successor franchise.

Relocation Fee

A Relocation Fee of 25% of the then-current Initial Franchise Fee is required before moving the Coffee Shop to another location.

Site Acquisition Extension Fee

A Site Acquisition Extension Fee of $500 for each of up to four 90-day extensions is payable if a lease or approved location is not acquired within the specified time frame.

Management Fee

A Management Fee of 5% of Gross Sales plus direct out-of-pocket costs and expenses is due if the franchisor manages the Coffee Shop after default or abandonment by the franchisee.

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

Ziggi's Coffee

franchise?

It costs between
$527,000
and
$2,018,000
to start a
Ziggi's Coffee
franchise.
Type of Expenditure Amount
Initial Franchise Fee $40,000
Launch Fee $10,000
Café with Drive Thru Building $-0- to $400,000
Site Work $-0- to $400,000
Tenant Improvements $-0- to $300,000
Architecture/Engineering Fees/Permits (incl. water) $55,000 to $75,000
Initial Equipment Package (incl. POS System) $350,000 to $375,000
Misc., Smallwares, Etc. $11,000 to $12,000
Sign Package $35,000 to $45,000
Initial Inventory $25,000 to $25,000
Initial supply of apparel, gift cards, and loyalty cards $2,000 to $3,000
Grand Opening $10,000 to $10,000
Utility Deposits, Business Licenses, Etc. $500 to $1,000
Training Expenses $3,500 to $5,000
Professional Fees $1,000 to $3,000
Insurance $2,000 to $4,000
Additional Funds - 3 months $25,000 to $30,000
Total $570,000 to $1,753,000

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

Ziggi's Coffee

provide

training

to its

franchisees?

Yes,
Ziggi's Coffee
provides
training

The franchisor provides a comprehensive initial training program for franchisees, which consists of both online classroom and in-person training sessions. This program includes:

  • Owner Training: The franchisee or the managing owner, along with one other individual selected by the franchisee and approved by the franchisor, must attend and successfully complete the owner training. This training is offered online and at the franchisor's training facilities in Mead, Colorado. The classroom owner training portion is provided without any tuition or fee.
  • Manager Training: The person designated by the franchisee to primarily manage the Coffee Shop (Designated Manager), plus one other management-level employee, must attend and successfully complete both the classroom and in-person on-the-job manager training. The classroom training is conducted online, while the on-the-job training takes place at an operating ZIGGI'S Coffee Shop or at the franchisor's training facilities in Mead, Colorado. These individuals can participate in the on-the-job manager training without any tuition or fee.
  • On-Site Training: For the franchisee's first ZIGGI'S Coffee Shop, the franchisor will provide approximately 32 hours of on-site training at the Shop Location before the Coffee Shop opens and approximately 432 man-hours of continued on-site training during the first 14 days following the opening.

Does

Ziggi's Coffee

provides

territory

protection?

The franchisor does not grant franchisees an exclusive territory. Franchisees are allowed to operate their Coffee Shop only at the approved Shop Location and may face competition from other franchisees, from outlets owned by the franchisor, or from other channels or formats under the franchisor's brand or any other brands that the franchisor controls.

This means there is no territorial protection that would prevent the franchisor from establishing other locations or granting franchises in proximity to any existing franchisee's location​​.

Can a

Ziggi's Coffee

franchise

be run as

a passive

investment?

Ziggi's Coffee Franchise (ZCF) expects a certain level of active involvement from the franchisee or a designated manager who is responsible for the franchise's operations.Franchisees are acknowledged to have sole responsibility for the successful operation of their Coffee Shops. This includes maintaining a clean, safe, and high-quality operation in compliance with the Operations Manual and all applicable laws and regulations.

Proper management of the Coffee Shop is emphasized as important, and franchisees are required to ensure that a Designated Manager (which could be the franchisee or a managing owner who has completed specific training) will be responsible for the management of the Coffee Shop following the commencement of operations.

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