Risk Score
Pending analysis
Investment Range
$634,500 - $946,500
Franchise Fee
$15,000
Min Cash Required
$10,000
Total US Locations
47
Business Summary
Ellianos Stores are retail outlets that offer fresh roasted coffee, espresso drinks, cappuccinos, lattes, chai teas, smoothies, food items, pastries, and other related menu items. Ellianos Stores operate according to a distinctive format and appearance, and they primarily offer traditional, free-standing store models, often with double-sided drive-thrus.
Corporate History
Ellianos, LLC was formed on June 16, 2003, in Florida. The company began offering franchises for Ellianos Stores in 2003. Ellianos Stores sell fresh roasted coffee, espresso drinks, cappuccinos, lattes, chai teas, smoothies, and food items, operating with a distinctive format and procedures. In 2009, Ellianos granted subfranchise rights for Georgia, which have since expired.
Financial Overview
Investment Range
$634,500 - $946,500
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$30,000
Minimum Cash Required
$10,000
Royalty %
6%
Marketing %
1.25%
Equipment Costs (Low)
$576,500
Equipment Costs (High)
$864,000
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Ellianos, LLC's financial statements for 2023 and 2022 received an unqualified opinion from independent auditors, indicating fair presentation in all material respects. For 2023, Ellianos reported a net income of $393,133, a significant improvement from a loss in 2022. While current liabilities slightly exceed current assets, resulting in a technical negative working capital, a substantial portion of these liabilities consists of unearned revenue (from franchise fees for stores not yet open) and gift card liability, which are not indicative of operational cash flow issues. The company maintains a healthy cash balance.
Financing Details
Ellianos does not offer any direct or indirect financing arrangements for the initial investment or the operation of a franchisee's business. Ellianos also does not receive payments for placing financing or guarantee franchisee obligations to third parties.
Performance Metrics
Total US Locations
47
Franchised Units
47
Corporate Units
0
Avg Square Footage
800
Franchising Since
2003
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Ellianos has no litigation to report, as stated in Item 3 of its FDD.
Bankruptcy History
Ellianos has no bankruptcy history to report, as stated in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Ellianos franchisees must provide written notice between 8 and 12 months prior to the initial term's expiration. They must renovate their store to meet Ellianos' then-current design standards for new locations, and not be in default under any agreements with Ellianos or its affiliates for the prior 12 months. Franchisees also need to prove they have the right to possess the location for the renewal term, execute a general release, comply with all current training requirements, and sign a new renewal franchise agreement that may include materially different terms and conditions.
Training & Support Program
Franchisor Assistance
Before opening, Ellianos provides site selection guidelines and consultation, development training, and detailed construction requirements, including an approved architectural and engineering provider. Ellianos inspects the site and provides written authorization to open. For a franchisee's first Ellianos Store, the franchisor sends a representative for 3 days to assist with the grand opening. After opening, Ellianos collects and administers advertising funds (Brand Fund, National/Regional Advertising Funds), provides local advertising guidelines, may modify the System and menu, and offers additional training (which may have a tuition fee). Ellianos also provides periodic advice and consultation, and conducts inspections of the franchised store and its operations.
Initial Training Hours
84
Training Location
Training Facility in Lake City, Florida; Ellianos' Headquarters; franchisee's Franchised Store; Online
Ongoing Support
After opening, Ellianos collects and administers advertising funds, providing guidelines for local advertising and requiring participation in special promotions. The franchisor may also change or modify the System, including menus and equipment, and provide additional training for a fee. Ellianos offers periodic advice and consultation on operations, new developments, and techniques. It also conducts inspections of the franchised store to ensure compliance with the System. Franchisees must participate in programs to verify customer satisfaction, such as 800 numbers and secret shoppers.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
absentee-allowed
Territory Type
limited
Territory Size Requirements
Ellianos grants franchisees a 'Protected Area' defined as a certain radius around the franchised location, as described in the Franchise Agreement's Appendix A. However, the specific size of this radius in miles or population is not detailed within the FDD document itself. The limited exclusivity of this territory has exceptions, allowing Ellianos to operate or license other stores in specific captive market locations or sell products through other distribution channels within the area.
Staffing Notes
Ellianos franchisees are not required to personally operate the store full-time but must designate an approved Operating Principal. This Operating Principal must devote full-time efforts to supervising the franchised store's day-to-day activities and meet all training qualifications. If the store does not have at least one manager who completed the Initial Training Program, the franchisee has 30 days to hire and enroll a replacement. Franchisees are solely responsible for hiring, compensation, and training of all employees to meet Ellianos' standards, including appearance and hygiene.