Bad Ass Coffee of Hawaii Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$40,000
Investment required
$454,000 - $921,000
Royalty fee
5.00%

Bad Ass Coffee of Hawaii: Pioneering Premium Hawaiian Coffee with the Spirit of Aloha

Founded in 1989 on Hawaii's Big Island, Bad Ass Coffee of Hawaii is renowned for its dedication to delivering premium Hawaiian coffee grown in the United States. The franchise boasts a rich history of sharing the distinct flavors of coffee beans from Kauai, Waialua (Oahu), Maui, Moloka'i, Kona, and Ka'u with coffee lovers worldwide.

Fueled by a commitment to quality and the essence of Aloha, the brand has grown from a local favorite to a cherished franchise with locations across the mainland U.S., the US Virgin Islands, and Japan. The journey into franchising began in 1995 when B.J. Bilanzich, enamored with the brand's unique charm and exceptional coffee, opened stores in Utah. This expansion eventually led her to acquire Bad Ass Coffee of Hawaii and launch the franchise model on the mainland.

In 2019, under the new ownership of Royal Aloha Coffee, LLC, the franchise experienced a comprehensive rebranding. This transformation included a refreshed logo, new packaging, modernized store designs, and the addition of new products, all while honoring the brand's legacy and dedication to quality.

These rebranding efforts have strengthened Bad Ass Coffee of Hawaii's reputation as a premier provider of high-quality Hawaiian and international coffees, blended drinks, teas, food, and branded merchandise. The brand continues to offer exceptional service that encourages customers to embrace their inner Bad Ass.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $40,000*
Development Fee $100,000
Architectural Services $18,000 - $30,000
Building and Tenant Improvements $170,000 - $530,000
Equipment Furnishings $152,000 - $220,000
Signs $9,000 - $25,000
Point-of-Sale System, Software and Office Equipment $1,200 - $4,500
Opening Inventory $10,000
Security Deposits, Utility Deposits, Business Licenses $5,000 - $10,000
Grand Opening Marketing Campaign $15,000
Initial Training: Travel and Living Expenses $4,000 - $6,000
Additional Funds - 3 months $30,000
Total Estimated Initial Investment $454,200 to $920,500

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Number of units

2024
Franchised units

20

20

25

Company-owned units

0

0

1

Total units

20

20

26

Franchise Disclosure Document

Training 

The franchisor offers an extensive training program designed to equip franchisees with the knowledge and skills necessary for success:

Initial Training Program: This program blends home study, orientation, classroom instruction, and hands-on training. It includes approximately 4-5 days of home study, two days of orientation and classroom instruction, and three days of practical, on-the-job training at a location specified by the franchisor.

Manager Training Programs: New Principal Managers hired during the Franchise Agreement period must complete the franchisor's initial training program. This training ensures managers are fully prepared to maintain the franchise's standards and operations.

Additional Training: The franchisor may provide seminars, webinars, conventions, manager retreats, or ongoing development programs for franchisee benefit. Attendance at these events may be mandatory. While the training sessions are offered free of tuition or fees, franchisees are responsible for their travel and living expenses.

Ongoing Training: Franchisees and their designated managers are required to attend any ongoing mandatory seminars, conventions, or programs as dictated by the franchisor. These training sessions are provided without tuition or fees, but franchisees must cover travel and living expenses.

Territory Protection

The franchisor provides territory protection to franchisees. Franchisees receive a designated protected territory around their franchised location, within which the franchisor will not permit the establishment or operation of other BAD ASS COFFEE OF HAWAII shops.

This protected territory is defined according to the franchisor's reserved rights. The territory typically encompasses specific geographical markers such as county lines, zip code boundaries, street boundaries, natural landmarks, or similar designations. There is no minimum area guaranteed for the protected territory. The exact boundaries and the extent of the protection are determined by various market conditions surrounding the proposed franchised location.

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