BIGGBY COFFEE LOWERS FRANCHISE FEE $15,000
Posted on May 20, 2013
BIGGBY COFFEE LOWERS FRANCHISE FEE $15,000
Franchise fee cut in half in order to lessen startup costs
EAST LANSING, MI. May 9, 2013 –BIGGBY COFFEE, a 100% franchised company, cut their initial franchise fee for new store owners by $15,000 which is a 50% savings from $30,000 which was what the cost was previously. This change went into effect April 30, 2013 as BIGGBY looks to continue to increase owners return on investment by “driving down” the initial investment to open a BIGGBY COFFEE franchise.
BIGGBY COFFEE recorded revenue of $62 million for 2012, a nearly 16% increase from 2011 and is currently witnessing 41 straight months of same store sales growth franchise wide. In fact, in 2012 a majority of open BIGGBY COFFEE stores experienced their most profitable year ever.
In 2013, Franchise Business Review (FBR) conducted an independent, unbiased survey of more than 26,000 franchisees across America representing hundreds of franchise brands to determine franchisee satisfaction. BIGGBY COFFEE was named in the Top 50 for Franchisee Satisfaction as a result. In that same report, FBR also ranked BIGGBY in the Top 20 for the Food and Beverage category of Franchisee Satisfaction. The intent of this report is to demonstrate the overall enjoyment franchisees have with their business.
When compared with the other concepts on FBR’s list, the approximate total investment for a BIGGBY COFFEE franchise is more than $160,000 less than the median investment of the other top 50 brands. Right now, franchisees can build and open a non-drive thru café for $171,500 (this is an estimate – more detail in the Franchise Disclosure Document). This is something that CEO Bob Fish and President Michael McFall have been working on for quite some time and follows a nearly 40% reduction in store build-out and start-up costs that was announced by the company in July 2011.
“We have been diligent in working to reduce the costs associated with constructing a BIGGBY COFFEE with a singular goal…which is to allow owners to become profitable quicker,” McFall said. “It allows our potential franchisees the opportunity to experience both a faster and higher return on capital and can expand our current franchisees’ ability to open additional stores.”
For more information about this change, or to attend a Discovery Day call 517-482-8145, or visit our website at biggby.com/franchising.
About BIGGBY COFFEE®
East Lansing, Mich.-based BIGGBY® COFFEE was started with a single store on March 15, 1995. One year later, and on the cusp of opening a second location, Bob Fish and his business partner Michael McFall on a handshake and $3,000 decided to franchise the concept. BIGGBY COFFEE’s core values of B happy, have fun, make friends, love people and drink great coffee help coffee-lovers and the coffee-curious alike benefit from a less pretentious and fun approach to the standard gourmet café paradigm. Besides connoisseur-worthy drinks with pronounceable names like Teddy Bear and Caramel Marvel, BIGGBY baristas provide a unique experience focused on brightening their customer’s day. The “Big ‘B’” on the orange background caught on, and today BIGGBY COFFEE has 171 cafes open or under contract across seven states including: Michigan, Ohio, Indiana, Illinois, South Carolina,Wisconsin and Texas. For more information, visit biggby.com.
###