Nick’s Roasting Co. Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$244,800 - $465,100
Franchise Fee
$28,000
Business Summary
Nick's Roasting Company operates cafes that offer a variety of pre-packaged and made-to-order all-day food items, along with iced, blended, and hot coffee and tea beverages, boba drinks, and energy drinks. The cafes operate under the brand marks such as "NICK'S ROASTING CO EST. 2023™," "Nick's Roasting Co.," and "NRCO," providing eat-in and carry-out services at retail locations.
Corporate History
Nick's Roasting Company was incorporated in California on November 17, 2023, and began offering franchises on February 6, 2024. The company has no parents, predecessors, or affiliates, and has not engaged in any other business activities or offered franchises in other lines of business prior to this. The current president, Jatinder ("Nick") Singh, has prior experience in the food and beverage industry, including roles at World of Sourdough Franchising, LLC and Trademark Pizza Company, LLC.
Financial Overview
Investment Range
$244,800 - $465,100
Franchise Fee (Low)
$28,000
Franchise Fee (High)
$39,500
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$143,500
Equipment Costs (High)
$285,000
Working Capital
$11,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Nick's Roasting Company is a very new entity, incorporated on November 17, 2023, and began offering franchises in February 2024. As of January 17, 2024, the company has not generated any revenue, indicating a limited operating history. The auditors issued an unqualified opinion on its balance sheet, and the company reports no liabilities, only cash and cash equivalents of $55,845 from additional paid-in capital. The FDD notes that this limited operating history makes the franchise a riskier investment.
Financing Details
Nick's Roasting Company does not offer any direct or indirect financing to its franchisees. The company also states that it will not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Avg Square Footage
1,550
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Nick's Roasting Company has no litigation to report. The FDD explicitly states that no litigation is required to be disclosed in this disclosure document.
Bankruptcy History
Nick's Roasting Company has no bankruptcy history to report. The FDD explicitly states that no bankruptcies are required to be disclosed in this disclosure document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Nick's Roasting Company franchisees must provide written notice of their intent to renew between 9 months and one year before the current term expires. They must be in good standing, without being in default of any agreements, and must not have received more than three written notices of default during the preceding term (even if cured). Franchisees will be required to sign Nick's Roasting Company's then-current franchise agreement, pay a $10,000 renewal fee for each 5-year term, refurbish and redecorate their cafe to meet current brand standards, sign a general release of claims, and comply with any current qualification and training requirements.
Training & Support Program
Franchisor Assistance
Before opening, Nick's Roasting Company assists franchisees with approving their specific location and protected territory, providing initial training for up to two individuals at no fee, furnishing prototype plans and specifications for cafe construction and design, supplying a list of required equipment and initial inventory, loaning a copy of the Operating Manual, informing them of trade procedures, providing approved suppliers, and conducting a pre-opening inspection and approval. After opening, Nick's Roasting Company allows franchisees to use the Marks and copyrighted materials, continues to loan the Operating Manual and trade procedures, provides business and reporting forms, approved suppliers, periodic assistance, newsletters, and will license proprietary software if developed in the future.
Initial Training Hours
328
Training Location
Corporate headquarters in Cameron Park, California
Ongoing Support
After opening, Nick's Roasting Company provides ongoing support through periodic assistance as deemed necessary, and sends periodic newsletters and bulletins. The franchisor also offers ongoing training through memos and newsletters, and access to additional or refresher training programs via telephone, webinars, or video at no cost. In rare instances, owners or managers may be required to complete additional or refresher training programs (which may include annual conferences) to improve operations; non-virtual training for these may incur additional fees for travel, lodging, meals, and per diem charges.
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
Protected
Staff Count
20
Territory Size Requirements
Nick's Roasting Company grants a protected territory defined as a two-mile radius around the franchisee's specific location. However, this protection has exceptions for locations in indoor shopping malls, airports, college campuses, military bases, or within other retail establishments like convenience stores or gas stations. The franchisor reserves the right to adjust the 2-mile radius to be larger or smaller based on population density, geographic features, and traffic patterns. For Area Development, territories are typically defined by demographics, market characteristics, business/residential density, traffic generators, driving times, and major topographical features.
Staffing Notes
Nick's Roasting Company requires that each franchised cafe must always be under the on-site supervision of a manager. This manager can be the franchisee or another individual approved by Nick's Roasting Company. The designated manager must successfully complete the initial training program and any other mandatory training, dedicating their full efforts to the cafe's operation. Managers are prohibited from having an interest in or business relationship with any competitor. Additionally, prior to opening, franchisees must hire their initial staff, and Nick's Roasting Company's representative will assist in establishing and standardizing procedures and training personnel during the initial opening assistance.