The Human Bean Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$30,000
Investment required
$552,000 - $1,059,000
Royalty fee
n.a.

The Human Bean: Revolutionizing the Coffee Drive-Thru Experience

The Human Bean, established in 1998, set out to create the premier coffee drive-thru in Southern Oregon. This vision paved the way for a franchise model that has grown to encompass hundreds of locations nationwide, all while staying true to a core ethos of community engagement, superior service, and top-notch coffee.

A hallmark of The Human Bean is its unique practice of placing a chocolate-covered espresso bean atop every cup, a gesture that encapsulates their commitment to making each customer interaction special and kind. The franchise began its expansion journey in 2002 through strategic partnerships, broadening its reach by choosing ideal partners and locations, and fostering a sense of community and goodwill.

Notably, The Human Bean differentiates itself in the coffee franchise industry by not imposing royalty fees, underscoring their partner-focused philosophy. Based in Medford, Oregon, the company’s headquarters serves as the central hub for its franchise operations.

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 (Low) Amount (High)
Site Analysis Fee (nonrefundable) $5,000 $5,000
Initial Franchise Fee $30,000 $30,000
Optional Area Development Fee $10,000 $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
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 (not including Area Development) $552,350 $1,058,890

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Number of units

2024
Franchised units

100

116

133

Company-owned units

13

13

12

Total units

113

129

145

Franchise Disclosure Document

Training 

The Human Bean offers a comprehensive initial training program designed to ensure the operational success of each outlet. This mandatory program is intended for two individuals designated by the franchisee, ideally including the General Manager.

It covers all essential operational procedures and skills. While there is no fee for the training itself, franchisees are responsible for associated costs such as transportation, lodging, and meals.

Supplemental Training Franchisees or their General Managers must participate in ongoing training programs provided by The Human Bean. These programs can be delivered through various methods, including bulletins, manuals, and other literature. Franchisees are required to follow the directives and instructions outlined in these materials.

Operations Manual The Human Bean supplies each franchisee with an Operations Manual, which serves as a comprehensive guide for running the outlet. This manual may be updated or revised periodically. Any additional instructions or information provided during the agreement term will be considered part of the updated Operations Manual.

Assistance at Opening & Annual Meetings The Human Bean provides support during the opening of each outlet and may hold annual meetings to offer further training and updates. This assistance ensures that franchisees are well-prepared to begin and continue their operations in accordance with brand standards.

Territory Protection

Exclusive Territory for Franchisees The Human Bean provides franchisees with territorial exclusivity, ensuring that within a 1-mile radius of your approved drive-thru location, no other The Human Bean outlets will be established.

This exclusive territory is safeguarded under the franchise agreement, which states that any changes to the territory must be mutually agreed upon in writing by both the franchisee and The Human Bean.

Protection within Designated Territory Within your designated exclusive territory, The Human Bean commits to not operating any company-owned outlets or granting franchises for competing businesses.

However, The Human Bean retains the right to sell branded merchandise through various channels, such as mail order, an Internet website, or other networked means, including sales to individuals located within your territory.

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