The coffee shop industry is valued at $47.5 billion. One coffee franchise that’s been able to ride this broader wave of industry wide growth is Biggby Coffee. Since being founded in 1995 this chain of drive-thru coffee shops has gradually expanded to more than 300 locations.
How much does it cost to open a Biggby Coffee Franchise? To franchise this coffee chain, expect the initial investment to be around $276,000 to $439,000. The franchise fee is $20,000.
But is a Biggby Coffee franchise right for you? Find out in the review of this coffee franchise that has ambitions to grow to 1,000 locations by 2028. Click here to take our 7-minute franchise quiz and get paired with a unique opportunity based on your goals.
- Financial Requirements and Fees
- Average Sales / Revenue per Year
- Biggby Coffee Franchise Facts
- How Much Does Biggby Coffee Make in Profit?
- Advantages of a Biggby Coffee Franchise
- Challenges of a Biggby Coffee Franchise
- Is the Biggby Coffee Franchise Right For You?
Financial Requirements and Fees
The following are the main financial fees that Biggby Coffee requires:
|Fees / Expenses||Financial Amount|
|Total Investment||$276,000 to $439,000|
Other fees to note are the following:
|Initial Franchise Fee||$20,000|
|Real Property Rental||$1,000 to $21,000|
|Leasehold Improvements||$140,000 to $205,000|
|Furniture, Equipment, and Décor||$61,500 to $71,000|
|Drive-Through Equipment||$13,500 to $14,500|
|Blueprints, Plans, and Permits||$5,500 to $11,000|
|Interior and Exterior Signage||$4,000 to $15,000|
|Initial Inventory||$9,000 to $14,000|
|Insurance||$3,500 to $4,500|
|Utility Expense||$500 to $4,000|
|License Permits and Other||$1,000 to $2,500|
|Initial Advertising and Grand Opening Promotions||$9,000|
|Initial Advertising and Grand Opening Promotions||$9,000|
|Misc. Travel and Living Expenses for Training||$500 to $5,000|
|Organizational Expenses||$2,000 to $2,500|
|Additional Funds – 3 Months||$5,000 to $40,000|
|Total Estimated Initial Investment||$276,000 to $439,000|
The fees mentioned above are for a Site-built Location. If you choose a Modular Location, which Biggby Coffee describes as a pre-fabricated building with a drive-through only, the estimated investment will be around $320,500 to $517,500.
Other fees to note are that Biggby Coffee requires a 6% ongoing royalty fee and an ad royalty fee of 3%. For discounts, Biggby Coffee offers a 50% discount on the franchise fee for veterans. If you’ve served in the military, make sure to mention this experience and thank you for your service.
The term of agreement to run this franchise is 10 years and can be renewed.
Average Sales / Revenue per Year
According to reports, Biggby Coffe’s sales have reached $201,104,363 in 2021. It has seen a sales growth of 28.1% from their 2020 sales which was around $160 million. This is phenomenal year over year revenue growth figures and we should expect systemwide growth to continue as more units are added. Considering coffee chains like Starbucks have more than 35,000 locations, there’s plenty of runway to grow this concept.
Biggby Coffee Franchise Facts
|Incorporated Name||Biggby Coffee|
|Subsector||Food and Beverage|
Biggby Coffee started in 1995 as Beaner’s Coffee in East Lansing, Michigan. Bob Fish and then business partner Mary Roszel started the coffee shop while Michael McFall came afterwards and was first known as a part-time barista in their coffee shop. When Beaner’s Coffee went on to add a second location, McFall was tasked to handle that location and then eventually led the franchising.
Beaner’s Coffee rebranded to Biggby Coffee in 2007 due to the concern of the name “beaner”, which was originally derived from coffee beans, can also be known as a slur and was offensive for Hispanic people. The name Biggby came from the owners that referred to their coffee shop as the “Big B”.
Biggby sells several types of coffee such as their traditional brewed coffee, lattes, and cappuccino. They also offer teas, cold brews, flavored coffee, mocktails, smoothies and energy drinks. Food is also served at Biggby such as bagel sandwiches, muffins, and turkey ciabattas.
To franchise Biggby Coffee, complete the initial interest form located here. Afterward, Biggby will send you an email with a copy of their franchise information report so you’ll get to study the franchise in detail.
Related Reading: Can You Finally Open a Starbucks Franchise?
Next, an introductory call will be made by Biggby so you and a franchise representative can discuss what you can expect as well as the goals you are looking forward to achieving with the franchise. If you’re qualified, Biggby will then send an updated copy of their Franchise Disclosure Document.
What makes things official is then you sign the franchise agreement. You’ll be working with their real estate development team for your ideal Biggby Coffee location. You’ll also be training at their corporate headquarters which is located in East Lansing, Michigan. The duration of the training will be one week and it includes making Biggby Coffee’s products, using their POS system, how to lead your staff and team, and working in a physical Biggby Coffee location. Once that’s all done, you’re ready to open your Biggby Coffee shop.
Though Biggby is a coffee shop, they’re also all about forming a tight-knit community of helping franchise owners, employees, and their customers. Franchise owners are also involved in their local community which gathers people. One of the franchise owners of Biggby even claim that running a Biggby is a lot like running for mayor.
At present, Bob Fish and Michael McFall are owners of Biggby Coffee after buying Mary Roszel’s shares along with another Detroit businessman who owned a 10% share. They are still active in running the Biggby Coffee business.
How Much Does Biggby Coffee Make in Profit?
As of this moment, there is no official data regarding Biggby Coffe’s profit. But an unofficial estimate for how much a Biggby Coffee shop franchise owner would make would be around $58,024.
Advantages of a Biggby Coffee Franchise
Biggby Coffee has several advantages when you decide to franchise with them. Here are a few:
Ethically Sourced Coffee Beans
Biggby Coffee ethically sources their coffee beans. One of the owners, Bob Fish, travels with his wife to find coffee that is sourced in an ethical way. They’ve traveled to India, Nepal, Ethiopia, Mexico, Zambia, and many more to discover more than just coffee beans but the farmers and their families who provide them.
With this practice, you’re assured that the people you’re franchising from are doing business that comes from their hearts.
It’s all about building a community when it comes to running a Biggby Coffee franchise. As mentioned above, one franchisee even likens it as if you’re running a mayor. They’re all about building relationships that help each other out and that can be a good work environment if you franchise with them.
There are several store models that Biggby Coffee offers. You can choose to franchise just a lobby model or a drive-through only model. Or you can even choose both in one location. Looking for something smaller? Biggby Coffee also offers a kiosk type model that is simple to operate.
Challenges of a Biggby Coffee Franchise
Franchising is a business concept that’s not entirely perfect. There are still challenges to be aware of before signing a franchise agreement.
No International Locations
Biggby Coffee started in 1995. That’s almost 30 years of being in the coffee franchising business and yet there hasn’t been any move to franchise internationally. If Biggby Coffee could open franchises outside of the United States, they could see an increase in revenue as well as support many communities with their business.
Biggby Coffee has a lot of competition. There’s Starbucks, Seattle’s Best, Dunkin’ Donuts, Dutch Brothers, and The Human Bean. All of these coffee chains have what Biggby Coffee has with even more food options. They also feature a drive-through and several other store models.
Biggby Coffee should be able to maintain their service and craft if they want to continue competing against these big chains like Peet’s Coffee and others.
Limited Food Menu
Based on Biggby Coffee’s menu, there are only bagel sandwiches, cookies, and muffins that are on their food list. It would be nice if they can add more items so that people can have other choices on their bakery that would go with coffee such as croissants and cakes.
Less National Brand Awareness
One of the advantages of investing in a franchise is the opportunity to leverage customer base and likeness of a brand. But with Biggby Coffee, not as many coffee drinkers are aware of the brand. In fact, the company just opened the very first Idaho location in 2022. The company has much more brand recognition in parts of the country like Ohio where the chain has been operating for decades. Keep in mind it will take more effort to promote and market a coffee shop in a region that doesn’t know anything about the brand.
Is the Biggby Coffee Franchise Right For You?
Biggby Coffee is all about serving great tasting coffee along with letting their customers and staff be a part of their warm community. They also know their craft and care for the environment since they ethically source their coffee beans. If this is a franchise you would like to join in, then Biggby Coffee is the franchise for you. Be sure to check out their Franchise Disclosure Document before signing any agreement and chat with the existing franchise owners to know more about franchising Biggby Coffee.
What is an alternative Biggby Coffee franchise?
For another coffee chain alternative, check out Dutch Brothers. They have an extensive menu consisting of coffee, cold brews, energy drinks, tea, smoothies, and more. They have over 400 locations and are popular for their drive-thru set up.
To franchise a Dutch Brothers coffee, expect investments to reach $150,000 to $500,000. You can also read our full guide in franchising Dutch Brothers here.
Should you invest in a Biggby Coffee franchise? The answer to that question depends on your personal goals, passions, and investment capital. The coffee industry doesn’t seem to be slowing down soon so if you want to join the coffee market and franchise a coffee shop, Biggby Coffee is worth considering due to their expansion goals over the next 5 years.