Caribou Coffee Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$279,100 - $1,429,000
Franchise Fee
$7,000
Total US Locations
487
Business Summary
Caribou Coffee franchisees operate a retail coffee shop business, known as a Coffeehouse, specializing in freshly roasted coffee, coffee-based and caffeinated beverages, teas, and baked goods. These products are offered for both on-premises and carry-out consumption, along with related retail items, all within a modern, technical environment. Caribou Coffee offers franchises for three different Coffeehouse sizes: Chalet, Cabin, and Kiosk.
Corporate History
Caribou Coffee's brand history began with its first Coffeehouse opening in December 1992. The corporate parent, Caribou Coffee Company, Inc. (CCC), was incorporated in September 1992 and operated company-owned Coffeehouses until February 2020. Caribou Coffee Development Company, Inc. (CCDC) itself was organized in October 2004 and has been offering franchises and licenses for Coffeehouses since August 2006. The brand also briefly offered co-branded Caribou Coffee & Einstein Bros. Bagels franchises from 2016 to 2019, which were then discontinued. In late 2019 and early 2020, company-owned operations and assets were transitioned to Caribou Coffee Operating Company, Inc. (CCOC), an affiliate that continues to operate them. The company has undergone several corporate reorganizations, including becoming an indirect subsidiary of JAB Beech in 2013 and later Beech Leaf LLC in 2015.
Financial Overview
Investment Range
$279,100 - $1,429,000
Franchise Fee (Low)
$7,000
Franchise Fee (High)
$30,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$234,000
Equipment Costs (High)
$1,234,000
Working Capital
$63,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The auditors issued an unqualified opinion on Caribou Coffee's consolidated financial statements, indicating that they present fairly, in all material respects, the financial position and results of operations. Caribou Coffee maintains cash and cash equivalent balances, and management believes its credit risk is minimal despite these balances exceeding federally insured limits. As of December 31, 2024, the company is in compliance with all financial covenants under its credit facility. A key executive retirement settlement of $11.6 million was accrued as of December 31, 2024.
Financing Details
Caribou Coffee does not offer any direct or indirect financing options to its franchisees. Additionally, the company does not guarantee any notes, leases, or other obligations of its franchisees.
Performance Metrics
Total US Locations
487
Franchised Units
152
Corporate Units
335
Avg Square Footage
1,150
Franchising Since
2006
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Caribou Coffee has no litigation history that is required to be disclosed in its Franchise Disclosure Document.
Bankruptcy History
Caribou Coffee has no bankruptcy history that is required to be disclosed in its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Caribou Coffee franchisees must provide timely written notice of their intent to renew. They are required to refurbish their Coffeehouse to meet Caribou Coffee's then-current standards for new locations. Franchisees must have been in compliance with all terms of their agreement throughout its term and at the time of renewal, and must have timely met all financial obligations to Caribou Coffee and its affiliates and vendors. They will need to sign Caribou Coffee's then-current form of franchise agreement, which may include terms materially different from their original agreement, as well as pay a renewal fee. Additionally, franchisees must sign a renewal agreement that includes a mutual general release, comply with current personnel and training requirements, and demonstrate their right to remain in possession of the accepted location.
Training & Support Program
Franchisor Assistance
Caribou Coffee provides pre-opening and ongoing assistance to its franchisees. Before opening, Caribou Coffee offers general site selection guidelines, counseling, and one on-site evaluation, along with reviewing lease, design, and renovation plans. Franchisees receive standard layout, design, and image specifications for their Coffeehouse, including approved suppliers for equipment and signage. Caribou Coffee also provides a copy of its confidential Manual, initial training, on-site supervision and assistance during the pre-opening and opening phases, and help with developing the New Store Opening Marketing Launch Program. After opening, Caribou Coffee offers periodic assistance in marketing, management, and operations, including visits from field consultants who provide advice. The franchisor also provides ongoing training as deemed appropriate.
Initial Training Hours
240
Training Location
Training center in Minneapolis, Minnesota, or at a designated certified training Coffeehouse.
Ongoing Support
Caribou Coffee provides its franchisees with periodic assistance in marketing, management, and operations, as determined by the franchisor. This includes the services of field consultants who will periodically visit the franchisee's Coffeehouse to offer operational advice. Caribou Coffee also provides ongoing training as deemed appropriate. Franchisees may also request additional on-site training or assistance for a fee plus expenses.
Franchise Requirements
Ideal Candidate Profile
Caribou Coffee seeks qualified franchisees by evaluating several factors, including their financial resources, educational background, work experience, personality fit with the brand, and their ability to collaborate effectively with the Caribou Coffee team.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
Caribou Coffee's territory size, if granted as a Protected Territory, is determined based on various factors including the nature of nearby businesses, drive times, demographics, and other physical and commercial characteristics of the location and trade area. There is no specified minimum area for a Protected Territory.
Staffing Notes
Caribou Coffee franchisees must designate and obtain approval for at least one Certified General Manager (CGM) who will complete an initial training program and be responsible for the daily operations and supervision of Coffeehouse personnel. The Coffeehouse must always be under the active management of a CGM, who is expected to devote the necessary time to operate the location and train staff. Franchisees are required to maintain a competent and sufficient staff to promptly serve customers, adhering to staffing and service criteria set by Caribou Coffee. All employees must also comply with Caribou Coffee's dress code and personal appearance standards, including branded apparel, and may be required to enroll in web-based training programs.