Cabin Coffee Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$350,000 - $2,000,000
Franchise Fee
$30,000
Total US Locations
25
Business Summary
Cabin Coffee Co. operates artifact-themed coffee cafés and restaurants. These locations specialize in preparing and selling a variety of specialty coffees and coffee blends, other beverages, baked goods, soups, breakfast and lunch sandwiches, salads, and other related food items.
Corporate History
Cabin Coffee Franchising, Inc. was incorporated in Iowa on August 14, 2006, and began offering franchises in 2007. The company's affiliate, Cabin Coffee Clear Lake, Inc., was formed in 2002 and has been operating a Cabin Coffee business since December 6, 2002. The principals of Cabin Coffee Franchising, Inc. also own and operate other Cabin Coffee locations outside the franchise system.
Financial Overview
Investment Range
$350,000 - $2,000,000
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$40,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$232,500
Equipment Costs (High)
$1,132,000
Working Capital
$27,500
Audited Financials
Yes
Offers Financing
No
Financing Details
Cabin Coffee Franchising, Inc. does not offer any direct or indirect financing options to its franchisees. Additionally, the company does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
25
Franchised Units
23
Corporate Units
2
Avg Square Footage
1,550
Franchising Since
2007
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Cabin Coffee Franchising, Inc. has no litigation or arbitration cases that are required to be disclosed in this franchise disclosure document.
Bankruptcy History
Cabin Coffee Franchising, Inc. and its key personnel, as identified in Items 1 and 2, have no bankruptcy history that is required to be disclosed in this document.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew a Cabin Coffee Co. franchise, franchisees must be in substantial compliance with all provisions of their agreement. They need to provide Cabin Coffee Franchising, Inc. with at least six months' written notice of their desire to renew before the initial term expires. As a condition for renewal, franchisees must upgrade all software, hardware, physical assets, and equipment deemed necessary by Cabin Coffee Franchising, Inc. at their own expense. Finally, franchisees must pay a $2,000 renewal license fee and accept Cabin Coffee Franchising, Inc.'s then-current License and Service Agreement.
Training & Support Program
Franchisor Assistance
Cabin Coffee Franchising, Inc. provides extensive support both before and during a franchisee's operation. Before opening, Cabin Coffee Franchising, Inc. assists with site selection, construction design, budgeting, scheduling, floor plans, and reflective ceilings. They also provide specifications for fixtures and equipment, lists of supplies, and designated suppliers. Franchisees receive a copy of the Operations Manual and must complete a mandatory initial training program of at least 326 consecutive hours over eight weeks at a designated facility. Additionally, Cabin Coffee Franchising, Inc. furnishes recipes, techniques for food and drink preparation, and designates suitable sources for raw materials. After opening, Cabin Coffee Franchising, Inc. supervisors visit locations for advice and consultation, and franchisees can call for support at any time. Franchisees are also permitted to use Cabin Coffee Co.'s registered trademarks and trade names.
Initial Training Hours
326
Training Location
Mason City, Iowa, Clear Lake, Iowa, and/or Avon, Indiana
Ongoing Support
Once a Cabin Coffee Co. franchise is operational, Cabin Coffee Franchising, Inc. provides ongoing support through regular visits from supervisors who offer advice and consultation to the franchisee and their key staff. Franchisees also have the ability to call Cabin Coffee Franchising, Inc. for advice at any time without additional charge. Furthermore, franchisees are permitted to use Cabin Coffee Co.'s registered trademarks and other proprietary features.
Franchise Requirements
Ideal Candidate Profile
Cabin Coffee Franchising, Inc. is looking for franchisees who are capable of personally supervising the Cabin Coffee Co. business. If the franchisee is an entity, one of its principals must provide supervision. Ideal candidates are expected to devote their best efforts to developing, establishing, maintaining, and promoting the business, and will be responsible for its proper operation. They must possess the necessary knowledge and skills to conduct the Licensed Business effectively, as determined by Cabin Coffee Franchising, Inc. The company also seeks individuals with good moral character, sufficient business experience, aptitude, and financial resources.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
exclusive
Territory Size Requirements
Cabin Coffee Co. territories are negotiable, considering factors like city size and demographics. However, unless otherwise specified in the franchise agreement, a standard territory for one Cabin Coffee Co. bar is defined as a three-mile radius around the business location.
Staffing Notes
Cabin Coffee Co. franchisees are allowed to hire a manager who has completed the franchisor's training program to assist with the day-to-day operations. This manager is not required to have an ownership stake in the franchise. The franchisee is responsible for their own and their key employees' travel and living expenses during the initial training program. Additionally, the franchisee and their key employees must sign non-compete and confidentiality agreements.