Ziggi's Coffee 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
$527,000 - $2,018,000
Royalty fee
6.00%

Ziggi's Coffee: Leading the Way in Premium Coffee Franchising

Established in 2004 in Longmont, Colorado, Ziggi's Coffee has experienced remarkable growth, expanding from a single coffee shop to numerous drive-thru and coffeehouse locations nationwide. Ziggi's Coffee started offering franchise opportunities in 2016, becoming known for its high-quality coffee and outstanding service, with a strong emphasis on community, product excellence, and profitability.

The franchise presents several business models to suit different markets and investment levels, including coffeehouses, coffeehouses with drive-thru options, and double-sided drive-thrus.

Franchisees of Ziggi's Coffee benefit from extensive support, which includes training programs based on practical ownership experience, marketing assistance, help with site selection, lease negotiations, and store design. The franchise also provides financial aid through partnerships with third-party organizations.

Veterans considering a franchise with Ziggi's Coffee can take advantage of a significant incentive: a full waiver of the franchise fee under certain conditions. Ziggi's Coffee is seeking franchisees both domestically and internationally, offering opportunities for single-unit and area development.

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.

Ziggi's Coffee offers 3 types of franchises:

Type of Expenditure Amount
ZIGGI’S Coffee Shop Drive Thru franchise $526,500 - $1,684,500
Freestanding ZIGGI’S Coffee Shop Café with Drive Thru $595,000 - $2,018,000
Endcap ZIGGI’S Coffee Shop Café with Drive Thru franchise $557,000 - $1,073,000

We are summarizing below the main costs associated with opening a Freestanding Ziggi's Coffee Café with Drive Thru franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Freestanding Ziggi's Coffee Café with Drive Thru

Type of Expenditure Amount
Initial Franchise Fee $40,000 - $40,000
Launch Fee $10,000 - $10,000
Café with Drive Thru Building $0 - $500,000
Site Work $0 - $500,000
Tenant Improvements $0 - $300,000
Architecture/Engineering $55,000 - $90,000
Fees/Permits (incl. water) $0 - $15,000
Initial Equipment Package (incl. POS System) $375,000 - $425,000
Misc., Smallwares, Etc. $11,000 - $12,000
Sign Package $35,000 - $45,000
Initial Inventory $25,000 - $25,000
Initial supply of apparel, gift cards, and loyalty cards $2,000 - $3,000
Grand Opening $10,000 - $10,000
Utility Deposits, Business Licenses, Etc. $500 - $1,000
Training Expenses $3,500 - $5,000
Professional Fees $1,000 - $3,000
Insurance $2,000 - $4,000
Additional Funds - 3 months $25,000 - $30,000
Total Estimated Initial Investment $595,000 - $2,018,000

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Number of units

2024
Franchised units

37

57

71

Company-owned units

8

8

7

Total units

45

65

78

Franchise Disclosure Document

Training 

The franchisor delivers an extensive initial training program for its franchisees, blending online classroom sessions with hands-on in-person training. This program encompasses:

Owner Training: The franchisee or managing owner, along with an additional individual chosen by the franchisee and approved by the franchisor, must attend and successfully complete the owner training. This training is available both online and at the franchisor's training facilities in Mead, Colorado, and is offered without any tuition or fee for the classroom portion.

Manager Training: The designated manager responsible for overseeing the Coffee Shop, along with another management-level employee, must complete both the online classroom and the on-the-job training. The on-the-job training occurs either at an operating ZIGGI'S Coffee Shop or at the franchisor's training facilities in Mead, Colorado, and is provided without any tuition or fee.

On-Site Training: For the franchisee's first ZIGGI'S Coffee Shop, the franchisor offers approximately 32 hours of on-site training at the shop location before it opens and around 432 man-hours of ongoing on-site training during the initial 14 days following the opening.

Territory Protection

The franchisor does not provide franchisees with exclusive territory rights. Franchisees are permitted to operate their Coffee Shop solely at the designated approved location and may encounter competition from other franchisees, franchisor-owned outlets, or other channels and formats under the franchisor's brand or any other brands controlled by the franchisor.

This implies that there is no territorial protection to prevent the franchisor from opening additional locations or awarding new franchises near any existing franchisee's site.

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