Risk Score
Pending analysis
Investment Range
$1,035,000 - $1,697,000
Franchise Fee
$35,000
Total US Locations
199
Business Summary
Peet's Coffee offers franchises for coffee shops specializing in coffee and espresso drinks, various teas, coffee beans, food items, and related merchandise under the Peet's Coffee® brand. These stores typically include a drive-thru.
Corporate History
Peet's Coffee Franchise, LLC was established in Delaware in September 2024 and began offering franchises in November 2024. Its parent company, Peet's Coffee, Inc. (PCI), has operated Peet's Stores since 1996 and has offered licenses for Peet's Stores since 2001. PCI is majority-owned by Peet's Coffee & Tea, LLC, which is part of the larger JDE Peet's N.V. group. Peet's Coffee Franchise, LLC focuses solely on franchising traditional Peet's Stores with drive-thrus.
Financial Overview
Investment Range
$1,035,000 - $1,697,000
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$35,000
Royalty %
6%
Marketing %
0.5%
Equipment Costs (Low)
$750,000
Equipment Costs (High)
$1,280,000
Working Capital
$130,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Peet's Coffee Franchise, LLC's financial condition raises questions about its ability to provide services and support to franchisees, as noted in the special risks section. The audited financials for December 31, 2024, show a member's equity of $147,044. However, the unaudited financials as of March 31, 2025, reflect a lower member's equity of $56,485 and significant liabilities of $193,515 owed to related parties.
Financing Details
Peet's Coffee Franchise, LLC does not offer any direct or indirect financing options to its franchisees. Additionally, Peet's Coffee Franchise, LLC does not guarantee any promissory notes, mortgages, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
199
Franchised Units
0
Corporate Units
199
Avg Square Footage
1,900
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Peet's Coffee Franchise, LLC has no litigation history to report as no litigation is required to be disclosed in Item 3 of the FDD.
Bankruptcy History
Peet's Coffee Franchise, LLC has no bankruptcy history to report as no bankruptcy information is required to be disclosed in Item 4 of the FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, Peet's Coffee franchisees must provide written notice 180 to 365 days before the agreement expires, substantially comply with the franchise agreement's terms throughout its duration, and secure possession of the premises for the full renewal term. They are also required to make any necessary remodels, refurbishments, or modernizations to bring the store up to current Peet's Coffee standards and image, pay a renewal fee equal to 50% of the then-current initial franchise fee, and remain in full compliance with all agreements for 60 days prior to renewal. Additionally, franchisees must sign the then-current Peet's Coffee franchise agreement, which may have different terms, and provide a general release of claims (subject to state law). Renewal is only possible if Peet's Coffee is actively offering franchises in that geographic market.
Training & Support Program
Franchisor Assistance
Peet's Coffee provides several types of assistance to its franchisees. Before opening, Peet's Coffee or its affiliates will help with site selection approval, review and approve construction plans, provide an Initial Training Program for mandatory trainees, and offer on-site opening support for a new General Manager or first Peet's Store. They also make operations manuals available and approve grand opening advertising programs. During operation, Peet's Coffee offers periodic advice, ongoing training opportunities, permits the use of its trademarks and copyrighted materials, sells proprietary coffee and tea products, approves alternative vendors, administers a Brand Fund (if established), and approves advertising materials. Peet's Coffee may also set maximum or minimum product prices.
Initial Training Hours
150
Training Location
Classroom training at Peet's Headquarters in Emeryville, CA, and on-the-job training at a Peet's Certified Training Store in California.
Ongoing Support
Peet's Coffee provides ongoing support to its franchisees by offering periodic advice on store operations and ongoing training opportunities. It continues to make its Manuals available and allows the use of its trademarks and copyrighted materials. Peet's Coffee sells proprietary products to franchisees, approves or disapproves alternative vendors, and administers a Brand Fund if one is established. Additionally, Peet's Coffee approves franchisee advertising materials and may set maximum or minimum prices for products. Peet's Coffee may also offer additional or special guidance or training upon request, which may incur a fee.
Franchise Requirements
Ideal Candidate Profile
Peet's Coffee is looking for managing owners who are natural persons with at least a 10% ownership and voting interest in the franchise entity. These individuals must be authorized to make all decisions on behalf of the franchisee and are solely responsible for supervising the management, direction, and control of the Peet's Store, continuously exerting their best efforts to promote and enhance its operation. While not explicitly stated, strong business acumen and dedication to the brand are implied.
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
Non-Exclusive
Staffing Notes
Peet's Coffee stores require at least one General Manager who has completed the Initial Training Program to work full-time supervising the day-to-day operations. The Managing Owner, if the franchisee is an entity, is responsible for overall supervision and promoting the store, while the General Manager is dedicated to daily operational oversight.