Risk Score
Pending analysis
Investment Range
$296,250 - $1,011,500
Franchise Fee
$10,000
Min Cash Required
$10,000
Total US Locations
420
Business Summary
The BIGGBY COFFEE franchise operates as a community coffee shop, offering a variety of beverages including espresso-based drinks, coffee, tea, and energy beverages. It also sells food items like sandwiches and baked goods, along with whole bean coffee (including farm direct options), merchandise, and coffee accessories. BIGGBY COFFEE locations are typically free-standing, store fronts in strip centers, pre-fabricated modular structures, or site-built structures that often include a drive-thru, with options for a lobby or drive-thru only.
Corporate History
Global Orange Development, LLC was formed in Michigan on May 28, 1998, and conducts business under the names "BIGGBY®" and "BIGGBY® COFFEE." While its affiliates operated businesses similar to the franchise from July 1994 to September 2005, Global Orange Development, LLC has been offering BIGGBY COFFEE franchises since February 1999. The company is a purpose-driven organization focused on supporting its franchisees.
Financial Overview
Investment Range
$296,250 - $1,011,500
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$20,000
Minimum Cash Required
$10,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$210,000
Equipment Costs (High)
$826,000
Working Capital
$25,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements of Global Orange Development, LLC include an unqualified audit opinion, indicating that they present fairly in all material respects. However, the company has reported a significant members' deficit, totaling ($7,393,572) as of December 31, 2024, which has been impacted by substantial member distributions of over $5 million in 2024, and over $4 million in 2023 and 2022. The company also carries a notable liability for phantom interest awards to employees, amounting to approximately $2 million in 2024. State regulators in Maryland and Virginia have expressed concerns about the franchisor's financial condition, with Virginia specifically questioning Global Orange Development, LLC's ability to provide services and support.
Financing Details
The BIGGBY COFFEE franchise does not offer any direct or indirect financing for franchisees. It also does not guarantee any of a franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
420
Franchised Units
420
Corporate Units
0
Avg Square Footage
1,500
Franchising Since
1999
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
The BIGGBY COFFEE franchise has one litigation case to report. In April 2024, Global Orange Development, LLC filed a lawsuit in Michigan against a former franchisee who continued to operate a BIGGBY COFFEE location after their franchise agreement was terminated. The court issued a temporary restraining order and a preliminary injunction for the former franchisee to stop operations. In July 2024, a default judgment was entered in favor of Global Orange Development, LLC, awarding them $130,155.90 in damages and a permanent injunction. The defendants filed for bankruptcy in October 2024.
Bankruptcy History
The BIGGBY COFFEE franchise has no bankruptcy history to report for Global Orange Development, LLC or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, BIGGBY COFFEE franchisees and their affiliates must not be in default of any agreements with Global Orange Development, LLC and must receive written confirmation of their compliance with all operating standards. They are required to provide notice of their intent to renew, show proof of their ability to maintain possession of the franchise location, and refurbish or upgrade the location's equipment, fixtures, and signs according to current standards at least 30 days before renewal. Franchisees must also complete any additional required training, sign a general release of claims, sign Global Orange Development, LLC's current Franchise Agreement (which may have different terms), pay a renewal fee, and obtain approval from Global Orange Development, LLC.
Training & Support Program
Franchisor Assistance
Before a BIGGBY COFFEE franchise opens, Global Orange Development, LLC reviews and approves the proposed location and lease, provides specifications for construction or improvements, and specifies sources for equipment, fixtures, signs, and initial inventory. It also gives franchisees access to its Operations Manual and provides an initial training program. A representative from Global Orange Development, LLC assists for up to five days with setup and initial training. Global Orange Development, LLC also designates products and services and offers guidance on pricing and grand opening advertising. During operation, Global Orange Development, LLC provides ongoing access to Operations Manual updates, periodic on-site visits to evaluate operations and offer advice, and assistance via email, online resources, or phone. It continues to designate products and services, provide pricing guidance, and administer the Advertising Fund. Global Orange Development, LLC also offers indemnification for certain trademark infringement claims and allows area representatives to perform some on-site assistance and operational support.
Initial Training Hours
198
Training Location
Training for BIGGBY COFFEE franchisees is conducted at Global Orange Development, LLC's facilities in East Lansing, Michigan, in selected BIGGBY COFFEE Stores, and some portions are available virtually.
Ongoing Support
After opening, BIGGBY COFFEE franchisees receive ongoing access to updates for the Operations Manual and specifications. Global Orange Development, LLC representatives visit the franchise during the first two months after opening and periodically thereafter to evaluate operations and provide advice. Franchisees can also receive operational advice by email, through the online Franchise Resource Center, or by telephone. Global Orange Development, LLC administers the Advertising Fund and provides brand standards for advertising. Franchisees and their management employees may be required to attend additional training, sales programs, and meetings, and can request additional training. There is also a BIGGBY® Franchise Advisory Council composed of franchisees and franchisor leadership to foster communication and provide recommendations.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
non-exclusive
Staffing Notes
BIGGBY COFFEE franchisees are required to hire and train all employees for their business and maintain a sufficient staff to operate according to Global Orange Development, LLC's standards. All management employees must successfully complete Global Orange Development, LLC's management training program. Franchisees are solely responsible for all employment decisions, compensation, and other employment-related matters, and must prominently post notices clarifying that their employees are not employees of Global Orange Development, LLC. Global Orange Development, LLC's standards do not include employee policies or procedures, and it will not control day-to-day employment decisions. Franchisees are responsible for ongoing employee training programs in line with Global Orange Development, LLC's specifications and may be required to have employees sign confidentiality agreements.