Bottoms Up Espresso Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$97,800 - $235,800
Franchise Fee
$27,000
Total US Locations
12
Business Summary
Bottoms Up Espresso is a franchise that operates retail, drive-thru businesses providing gourmet coffee drinks, specialty beverages, and related merchandise products. The unique aspect of the Bottoms Up Espresso model is that its baristas are dressed in daily themes.
Corporate History
BUE Franchising, LLC was organized as a Limited Liability Company in Nevada on April 17, 2015, and began offering franchises on the same date. The company's founder and president, Nathan Wilson, co-founded Bottoms Up Espresso, Inc. in Modesto, California, in 2012 and started planning to franchise the business in 2014.
Financial Overview
Investment Range
$97,800 - $235,800
Franchise Fee (Low)
$27,000
Franchise Fee (High)
$30,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$45,000
Equipment Costs (High)
$127,500
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
BUE Franchising, LLC reported net losses of $21,173 in 2023 and $34,626 in 2022, leading to a member's deficit of $(35,128) as of December 31, 2023. Despite these losses, the company maintains positive working capital, with current assets exceeding current liabilities. The independent auditor provided an unqualified opinion, and management believes that no matters would materially affect the company's financial position.
Financing Details
Bottoms Up Espresso does not offer any direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or other obligations. However, the franchisor may introduce prospective franchisees to financial sources and suppliers who might offer credit arrangements, but Bottoms Up Espresso will not earn any income from these referrals.
Performance Metrics
Total US Locations
12
Franchised Units
8
Corporate Units
4
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Bottoms Up Espresso has no litigation to report. The franchise has not been involved in any material litigation or bankruptcy proceedings as disclosed in the FDD.
Bankruptcy History
Bottoms Up Espresso has no bankruptcy history to report for the franchisor, its predecessors, affiliates, or principal officers.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Bottoms Up Espresso franchisees must provide written notice of their intent to renew at least nine months before the initial term ends. They must also schedule and attend a refresher training and certification course, complete all required maintenance, refurbishing, renovating, and remodeling of their location, and be in full compliance with all terms of their franchise agreement, having cured any past defaults. Franchisees must satisfy all monetary obligations owed to Bottoms Up Espresso and its affiliates, pay a renewal fee of $5,000, and meet the franchisor's then-current criteria for operating a franchise business. Additionally, the franchisee and any District Managers must undergo background checks, provide proof of up-to-date certifications, sign a general release of claims, and demonstrate the right to maintain possession of an approved location or suitable substitute for the duration of the renewal term.
Training & Support Program
Franchisor Assistance
Before opening, Bottoms Up Espresso assists franchisees with designating their territory, approving their site location, reviewing and approving lease or purchase agreements, and providing standard overviews for the build-out, including sample floor plans and equipment lists. Franchisees also receive an initial training program and a loan of the operations manual. After opening, Bottoms Up Espresso offers ongoing support through periodic advice via telephone, email, webinars, and newsletters. The franchisor conducts periodic on-site visits, communicates system changes, provides advertising and promotional materials, approves local advertising, maintains its website and social media presence, and provides modifications to the operations manual and security systems. They also offer administrative bookkeeping and accounting control procedures.
Initial Training Hours
76
Training Location
Hybrid (online self-study and on-site at franchisee's location)
Ongoing Support
After opening, Bottoms Up Espresso franchisees receive periodic general advice and guidance through telephone, email, webinars, newsletters, and other methods on various aspects of business operation and management, including software, equipment, supplies, and marketing strategies. The franchisor conducts periodic, announced or unannounced, visits to locations for observation, consultation, assistance, and guidance, providing written reports with suggested improvements. Franchisees are informed of System changes and additions and receive periodic advertising and promotional materials. The franchisor maintains its website and social media sites, promoting BUE businesses and creating an interior page for each franchised business. Modifications to the operations manual and security procedures are provided, as well as administrative bookkeeping and accounting control procedures. Franchisees and their managers are required to attend refresher-training programs periodically, and annual training is provided at a National or Regional Convention, with the franchisor covering entrance fees for two attendees.
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
full-time
Territory Type
protected
Territory Size Requirements
Bottoms Up Espresso grants franchisees a protected non-exclusive territory that is defined by a minimum 1-mile diameter around their business location. The franchisor also considers market factors, such as proximity to highway and freeway entrances, areas with heavy commuter traffic, and other business destinations that attract large numbers of potential customers, to establish the territory boundaries at its sole discretion.
Staffing Notes
Bottoms Up Espresso requires the franchised business to always be under the direct supervision of a Designated District Manager, who can be the franchisee. For the first year, the franchisee or one of their shareholders/partners must dedicate full-time personal attention to the day-to-day operations, unless approved otherwise. After the first year, a full-time District Manager may be employed. All employees must be legal U.S. citizens and able to provide documentation. District Managers and supervisory associates must sign a Confidentiality Agreement and must not have business relationships with competitors. Employees must adhere to the company's dress code, which prohibits decorative facial tattoos, offensive tattoos, facial piercings, and unnatural hair dye. They must also be substance-free and comply with required background checks and non-disclosure/non-compete provisions. Bottoms Up Espresso emphasizes that the franchisee is the sole employer of their staff.