Although being isolated was tough, it did allow us more time to spend with our families and a better work/life balance for average workers. Those who are not ready to go back to the status quo are considering other options, like becoming business owners, but that is not always feasible for everyone. Franchising is one option that gives everyone a way to become their own boss and call the shots.

Why Franchising is Better Than a Business Start-Up

The only real way to accumulate wealth is to stop trading hours of your life from making someone else wealthy. Being a business owner allows you the freedom to work when you want and enjoy the privileges that come with ownership; it is also a way to secure your financial freedom. 

However, starting a business from scratch takes a great idea and entrepreneurism; it also takes capital and a business model that may or may not work. When you own a franchise, you are more likely to secure financing than you would for a start-up, and you are not going in blind; you are given the keys to success before you even put up the “open for business” sign.

The Coffee Industry in America

Annual retail sales of coffee in the United States are more than $5 billion. According to statistics, coffee consumption nationwide is approximately 3 cups per day per person. And 47% of adults aged 18-24 years old report drinking coffee. Currently, coffee stands as the most loved non-alcoholic drink, with over 167 million bags of coffee being consumed just in 2020-2021. 

In 2022, the average person spent $270 on coffee annually, and it is predicted that in a post-pandemic economy, by the year 2025, 21% of all coffee consumed will come from out-of-home vendors and venues. Coffee is one of those things that is nearly recession-proof.

Obviously, Starbucks and Dunkin’ Donuts are two of the most recognized coffee shops in America, but other up-and-coming coffee franchises are giving them a run for their money. If you are looking to open up a franchise, these are 10 of the best coffee franchises to invest in for 2022.

1. Dunkin’

Going with the status quo isn’t always a bad thing. Originally started in 1946, today, there are nearly 13,000 Dunkin’ chains nationwide. Dunkin’ is in over 32 different countries and has over 70 different varieties of donuts to choose from. 

The initial fee to open a Dunkin’ is anywhere from $40,000-90,000, with an initial investment of anywhere from about $500k to $1.8M. The net worth requirement of owning a Dunkin is $250k-$500k, with a veterans incentive of 20% off the franchise fee for the first five restaurants opened and owned. Royalty fees are 5.9%, and ad royalty fees are at 5% with a 20-year term agreement. 

The franchise offers up to 165-255 hours of on-the-job training with anywhere from 45 to 52 hours of classroom instruction. They also provide ongoing support for purchasing, meetings and conventions, grand openings, field operations, newsletters, lease negotiations, proprietary software, online support, and safety and security procedures. The franchise also offers marketing support via advertising, ad templates, SEO, social and national media, loyalty app/program, email marketing, and website development. 

2. Scooter’s Coffee

Scooter’s Coffee is quickly gaining popularity around the nation. It requires an investment of $512k to $861k, with 341 units open as of 2021. Originally a Midwestern start-up, the first Scooter’s Coffee opened in 1998. They offer organic iced and hot teas, cold brews, single-origin coffee, and pastries. Scooter’s Coffee has a reputation for “amazing drinks and amazingly fast delivery” with high-quality standards. 

The initial franchise fee for Scooter’s Coffee is about $40k, with an initial investment upwards of $787k to $1.3M. Scooter’s Coffee has a required net worth of $500k and an additional cash requirement of $200k. Like Dunkin’, they offer a veteran discount of $20,000 credit for the first year’s products. The franchise has a royalty fee of 6%, and an ad royalty fee of 2% and requires a 10-year term of the agreement. 

The franchise offers 104 hours of on-the-job training and 56 hours of classroom instruction. They also offer ongoing support for a newsletter, grand opening, safety and security procedures, field operations, site selection, lease negotiation, online support, purchasing co-ops, and meetings and conventions. For marketing, they offer advertising, ad templates, social and national media, marketing planning and support SEO, website development, email marketing, and a loyalty app/program.

3. The Human Bean

The Human Bean originally began in Ashland, Oregon in 1998. They have a farm-friendly direct program that is eco-conscious. They support sustainable growing, processing, and harvesting by rewarding farmers by giving above-market prices and then giving back to the community to fund improvement projects. 

As of 2021, there were 121 units open. The initial franchise fee for the Human Bean is $30k, with an initial investment total of anywhere from $380k-905k and a net worth requirement of $500k-$1M, along with a cash requirement of $100k-$200k. The ad royalty fee is just 1%, with a 10-year term of the agreement. 

The Human Bean provides 120 hours of on-the-job training and additional training as needed. They also offer ongoing support for a newsletter, purchasing co-op, meetings and conventions, grand opening, safety and security procedures, online support, proprietary software, lease negotiation, site selection, field operations, and franchise intranet. In terms of marketing support, the franchise offers advertising, ad templates, SEO, email marketing, social and national media, website development, and loyalty app/program.

4. Biggby Coffee

The Biggby Coffee franchise originally started in Lansing, Michigan in 1999. They are known for their specialty coffees. The brand’s identity rests in its laid-back and casual atmosphere. Although they have baristas like other coffee shops, they are known to be less pretentious and have a more fun approach, with a motto of “leave in a better mood than they arrive in.” The initial franchise fee is just $20k, with an initial investment of $275k to $517k, and veterans get 50% off their franchise fees. The royalty fees for owning a Biggby Coffee are 6%, with an ad royalty fee of 3% and a term agreement of 10 years. 

The Biggby Coffee franchise offers 150 on-the-job training hours with an additional 64 hours of classroom instruction. They also offer ongoing support in a newsletter, a toll-free line, online support, meetings and conventions, grand openings, safety and security procedures, proprietary software, field operations, site selection, lease negotiation, and a franchisee internet platform. Marketing support includes ongoing help with advertising, ad templates, social and national media, SEO, website development, loyalty app/program, and email marketing. 

5. Ziggi’s Coffee

Ziggi’s Coffee was born in Longmont, Colorado, in 2004 and is known for offering a convenient cup of coffee that is consistently good. They have a double-sided drive-thru option and recently opened indoor cafes alongside their drive-thru combo. There are now over 25 Ziggi’s Coffee franchises in the US. 

The initial franchise fee to own a Ziggi’s Coffee is $40k, with an initial investment of anywhere from $385k to $1.5M and a net worth requirement of $300k to $350k, along with a cash requirement of $150k-$200k. There is a 25% veterans discount for the first unit’s franchise fee. The franchise royalty fee is 6%, with an ad royalty fee of 1% and a 10-year term agreement.

Ziggi’s Coffee franchise offers 40 hours of on-the-job training with an additional 17 hours of classroom instruction. Their ongoing support includes a newsletter, meetings and conventions, online support, grand opening, lease negotiation, site selection, safety and security procedures, and field operations. Ongoing marketing support includes advertising, ad templates, social and national media, SEO, website development, email marketing, and loyalty app/program.

6. Ellianos Coffee

Ellianos Coffee also has a double-sided drive-thru for convenience and speed. They offer specialty coffees and have been around since 2002. As of 2021, there were 20 different Ellianos Coffee shops located in 35 states. 

The initial franchise fee is $25k, with an initial investment of anywhere from $397k to $690k and net worth and cash requirements of $400k and $125k, respectively. The franchise royalty fee is 5%, with an ad royalty fee of 1% and a term of agreement of 10 years. 

The franchise offers 76 hours of on-the-job training and an additional 10 hours of classroom instruction. They also offer ongoing support in a newsletter, purchasing co-ops, online support, grand opening, safety and security procedures, field operations, site selection, lease negotiation, and franchise intranet. Marketing support includes ad templates, social media, marketing planning, and support, website development, email marketing, SEO, and loyalty app/program.

7. CAFE2U

CAFE2U is a mobile coffee company that offers coffee on the go – literally. It is a fairly inexpensive startup franchise that started in 2005 and now has hundreds of franchises around the globe. The franchise fees for CAFE2U are $25k, with online royalty fees of $175/week. The initial investment required is $109k to $154k, and a net worth requirement of $100k, with a liquid cash requirement of $25k and a 10-year agreement term. 

The franchise offers one week of on-the-job training and an additional week of classroom instruction. It also offers ongoing support with newsletters, meetings and conventions, a toll-free line, online support, grand openings, safety and security procedures, and field operations. Their marketing support is ad templates. 

8. Aroma Joe’s Coffee

Aroma Joe’s Coffee is a handcrafted beverage chain that offers quality coffee only from sustainable farmers. They use a 100% Arabica bean blend that is ethically sourced and has a distinct and full flavor. Founded in 2000, there are now more than 75 franchise units throughout the US. 

The franchise fee for owning an Aroma Joe’s Coffee shop is $25k, with an initial investment of anywhere from $296k-$1.1M and a net worth requirement of $350k. There is also a cash requirement of $150k, with 50% off the first unit franchise fees as a veteran’s incentive program. The royalty fees are 8%, with ad royalty fees from 2.5% to 4.5% and a 20-year term agreement. 

The Aroma Joe’s franchise offers 40 hours of on-the-job training with 31 additional hours of classroom instruction. Ongoing support is offered in a newsletter, grand opening, meetings, and conventions, safety and security procedures, proprietary software, field operations, site selection, franchise intranet, and lease negotiation. Marketing support includes advertising, ad templates, social and national media, SEO, email marketing, loyalty app/program, and website development.

9. CaffeBene

CaffeBene is a European-based business that features a full menu of waffles, a roasted coffee shop, and interiors, all in one location. They grew to over 650 stores in its first four years of operation and now has over 1600 locations around the globe. Originally opening its doors in 1995, the franchise began offering opportunities in 2000. 

The franchise fee is $35k with an initial investment of $414k-$899k and royalty fees of 6.9%. The franchise also has an ad royalty fee of 3% and a 10-year term of the agreement. They offer one week of classroom instruction with one week of on-the-job training and ongoing support in purchasing co-ops and meetings and conventions. The franchise marketing support provides national media. 

10. Gloria Jean’s Coffee

Dating back to 1979, Gloria Jean’s Coffee has grown to over 800 locations around the world. It is known for its heavy emphasis on training programs, marketing, and ongoing support. Gloria Jean’s Coffee is an internationally recognized brand for its decades of delivering quality coffee.

The initial franchise fee for Gloria Jean’s Coffee is $15k-$25k, with an initial investment of anywhere from $173k-$473k. The net worth and cash requirements for owners are $200k-$350k and $150k, respectively. The franchise royalty fee is 6%, with an ad royalty fee of 2% and a term of agreement of up to 10 years. They offer 80 hours of on-the-job training and an additional 80 hours of classroom instruction. 

The franchise also offers ongoing support for newsletters, meetings, and conventions, a toll-free line, online support, grand opening, safety and security procedures, lease negotiation, site selection, field operations, and proprietary software. The marketing support they offer includes ad templates, social and national media, website development, SEO, email marketing, and loyalty app/program.

As we head into a post-pandemic recovery period, it is nice to get back to normalcy – but if you are one of the many who are not willing to return to the daily grind, then a franchise might be your ticket to a better work/life balance and wealth accumulation. 

Investing in a coffee franchise is one of your safest bets because one thing we know is that the world loves coffee! These are just ten coffee franchise opportunities to explore. For more information and help in finding the right franchise to invest in, contact Frannexus today. We have the insider knowledge you need to be successful!