Risk Score
Pending analysis
Investment Range
$360,000 - $571,500
Franchise Fee
$70,000
Total US Locations
4
Business Summary
MOTW Coffee & Pastries operates quick service cafes that offer a variety of coffee beverages, espresso, teas, pastries, and other related items. These cafes provide options for both sit-down dining and carry-out orders. A typical MOTW Cafe is located in a strip center, often as an end-cap unit that may feature a drive-up window in addition to indoor seating. These cafes are designed to accommodate approximately 35 to 50 customers within a space ranging from 1,800 to 3,000 square feet, featuring uniform interior and exterior designs.
Corporate History
MOTW Coffee & Pastries Franchising, LLC was organized as an Indiana limited liability company on July 6, 2023, specifically to offer and sell MOTW franchises. The company does not have any parent or predecessor entities. However, an affiliate, MOTW Coffee & Pastries, LLC, owns the franchise marks and has been operating MOTW cafes, similar to those being franchised, since 2021. This affiliate currently operates four MOTW cafes. MOTW Coffee & Pastries Franchising, LLC began offering franchises in July 2023.
Financial Overview
Investment Range
$360,000 - $571,500
Franchise Fee (Low)
$70,000
Franchise Fee (High)
$75,000
Royalty %
7.5%
Marketing %
1%
Equipment Costs (Low)
$232,000
Equipment Costs (High)
$431,500
Working Capital
$22,500
Audited Financials
No
Offers Financing
No
Audit Opinion
Unaudited
Financial Health Notes
MOTW Coffee & Pastries Franchising, LLC was organized in July 2023 and has not been in business for three or more years. The financial statements provided are unaudited, and no specific notes on working capital, cash flow, or other financial health indicators are detailed in the document.
Financing Details
MOTW Coffee & Pastries Franchising, LLC does not offer any direct or indirect financing for its franchises. The franchisor also does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
4
Franchised Units
0
Corporate Units
4
Avg Square Footage
2,400
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
MOTW Coffee & Pastries Franchising, LLC has no litigation to disclose. There are no pending, past, or current material litigation cases or proceedings that are required to be reported in Item 3 of the Franchise Disclosure Document.
Bankruptcy History
MOTW Coffee & Pastries Franchising, LLC has no bankruptcy history to report. There are no bankruptcies that are required to be disclosed for the franchisor or its management in Item 4 of the Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, MOTW Coffee & Pastries franchisees must not be in default of their agreement and must not have received two or more default notices within the last 12 months. They must provide written notice of intent to renew 6 to 12 months before the current term ends, maintain possession of their approved franchise location, and, if required, refurbish it to meet current standards. Franchisees must also have satisfied all payment and reporting requirements throughout the initial term, meet current training standards, sign a general release, sign the franchisor's then-current standard franchise agreement, and pay a renewal fee equal to 25% of the initial franchise fee being charged at the time of renewal. The franchisor reserves the right to approve the renewal.
Training & Support Program
Franchisor Assistance
Before opening, MOTW Coffee & Pastries assists franchisees with site selection and lease negotiation. They provide a CAD file with standards for leasehold improvements, interior design, layout, and decor, along with specifying equipment, fixture, sign, and inventory requirements, and providing a list of approved suppliers. The franchisor will also provide one copy of its Operations Manual once it is created. Initial training is provided to help franchisees operate the business. A representative will offer up to five days of on-site assistance before and during the opening, with additional assistance available for a fee if requested. The franchisor also designates products and services and provides supply sources, and assists in creating a grand opening campaign. Once open, ongoing assistance includes providing updates to the Operations Manual, periodic visits from a representative to evaluate operations and offer advice, continuous updates on product/service specifications and supply sources, guidance and approval on pricing, and administration of the advertising fund, including review of local advertising. They also review alternative locations if the initial one becomes unusable and review proposed transferees.
Initial Training Hours
80
Training Location
MOTW HQ in Indianapolis
Ongoing Support
After opening, MOTW Coffee & Pastries provides ongoing support by offering updates and modifications to its Operations Manual as they become available. Franchisees can request additional assistance beyond the initial opening period, which may incur a charge. The franchisor continuously designates and updates specifications for products and services, providing sources of supply. A representative will visit the franchise business periodically to evaluate operations and offer advice. Operational advice and assistance are also available via telephone or email upon request. The franchisor guides and approves product and service pricing, administers the advertising fund when implemented, and reviews local advertising proposals. They also review alternative locations if the initial one becomes unusable and review proposed transferees. Periodically, MOTW Coffee & Pastries may require franchisees, managers, and employees to attend mandatory follow-up training programs, webinars, conference calls, and meetings, for which franchisees are responsible for travel, lodging, meals, and salaries.
Franchise Requirements
Ideal Candidate Profile
MOTW Coffee & Pastries seeks franchisees with strong character, business experience, financial strength, and good credit standing. Ideal candidates should demonstrate good reputation and business ability, along with availability of management personnel. The franchise requires a hands-on Designated Owner who will devote full time to the day-to-day active management and operation of the MOTW Coffee & Pastries business, exercising best efforts to market the business and maximize customer satisfaction. This individual must also preserve ultimate authority and responsibility for management and operations. Managers, if other than a Designated Owner, must also successfully complete the training program and be approved by the franchisor.
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
MOTW Coffee & Pastries grants a protected area that is typically a radius of zero to five miles from the franchise location. For densely populated urban areas, the protected area may be less than one mile, to be mutually agreed upon and specified in the Franchise Agreement. In less populated rural areas, the franchisor may grant a larger protected area at its discretion.
Staffing Notes
MOTW Coffee & Pastries requires at least one individual per location to complete the initial training program, and this individual must be the designated Manager for the franchise. If a manager other than a Designated Owner is to operate the business, that manager must successfully complete the franchisor's training and be approved in writing by the franchisor. Franchisees are responsible for implementing an ongoing training program for their management and staff personnel, ensuring all employees complete specified training. Franchisees must maintain a staff of trained employees sufficient to operate the business according to the franchisor's standards. All employees are required to wear uniforms, including specified shirts, pants, and hats, as designated by the Operations Manual. Franchisees are exclusively responsible for all employment decisions, including hiring, firing, scheduling, and compensation, and must ensure employees sign confidentiality agreements.